Convert petrol price savings into a 22% guaranteed return!!!

We as a country import 95% of of oil needs and therefore are totally dependent on exchange rate as oil is bought in Dollars with Rands and the weaker our rand the more expensive oil becomes.

However, the price of oil has dropped by half in a very short space of time resulting in a notable drop in the petrol price. The pump price this year has fallen by R1,27 and indications are that the next review of our petrol pricewill drop by another 50 cents.

So what should we do about it?

Take control of what we can while petrol is cheaper as indications are that the price will increase again. Some pundits seem to think that we have a window period of around a year or two. Who knows?

Already we are seeing oil producing countries starting to struggle with job lay offs and widening deficits on their balance sheets.

It points to the fact the current price cannot sustain certain economies whilst it is benefiting others.

So what is the current saving?

Unleaded 95 on the reef peaked at R14,33 in August 2014. The current price is R11,01 providing a saving of R3,32 per litre. If your average usage per month is R100 litres then you are R332 better off.

If you divert the savings into your high interest bearing debts you squeeze out even more savings as you effectively earn the same rate of interest of the debt. So, if your credit card balance is costing you 22% per annum then you effectively save this on interest over a year. Where else can you currently get a 22% guaranteed return onan investment.

Don’t forget the emergency fund. If you don’t have debt then you should allocate the savings to your emergency fund so that you can tackle unforeseen expenses into the future. This fund is an essential provision in your financial plan and should be saved in cash and enough to provide between 3 to 6 months of your monthly expenses.

Why? Well, if you have any unforeseen expenses then you have immediate access to funds and don’t have to borrow. There are more savings to come. The current drop in the fuel price should start to translate into lower prices in goods and services which depend on fuel to transport their products. This should improve your cost of living for the year providingmore relief onthe family budget.!

Take advantage while prices are low. Enjoy this economic gift horse whilst you can.

Read more from Financial Fitness Coach Paul Roelofse at www.investforlife.co.za


This article first appeared on 702 : Convert petrol price savings into a 22% guaranteed return!!!


Recommended

by NEWSROOM AI
Read More
Hermanus resident says that violent housing protests could've been avoided

Hermanus resident says that violent housing protests could've been avoided

It’s easy to blame a small bunch of thugs but I really don’t think that’s the case – Vanessa, Hermanus resident

DWS says that CPT dam levels will dictate if water restrictions are amended

DWS says that CPT dam levels will dictate if water restrictions are amended

‘Let’s be attentive to what the rains are doing, and then we will have a chat with water users.’ - Rashied Khan

[LISTEN] UCT student makes custom garments for disadvantaged matric girls

[LISTEN] UCT student makes custom garments for disadvantaged matric girls

Founder of MINEstitched, Kudzai Zinyengere chats about balancing school & her passion to assist young girls in their MD prep.

Skyscraper isn't an award-winning film, but it’s perfectly watchable says critic

Skyscraper isn't an award-winning film, but it’s perfectly watchable says critic

In the movie review, film critic Gayle Edmunds shares her views of the action-packed movie Skyscraper.

Health guru enlightens listeners with philosophy of mindful & conscious eating

Health guru enlightens listeners with philosophy of mindful & conscious eating

Private Health Chef Storm Rodger shares her conscious eating journey, and chats about being mindful when it comes to food.

The state of mental healthcare for the elderly is a growing concern says Prof

The state of mental healthcare for the elderly is a growing concern says Prof

Member at South African Society of Psychiatrists (SASOP) Professor Felix Potocnik chats about Sub-Saharan Africa as an aging population, and the impact of mental healthcare on the elderly in the future.

Popular articles
[LISTEN] Zille responds to Lindiwe Mazibuko comments that she undermined her

[LISTEN] Zille responds to Lindiwe Mazibuko comments that she undermined her

Helen Zille responds to alleged comments made by Lindiwe Mazibuko at a dinner, saying she's doing the same to Musi Maimane.

[WATCH] Melania Trump's reaction after shaking Putin's hand

[WATCH] Melania Trump's reaction after shaking Putin's hand

Waitress praised for standing up for herself after a man touched her butt on his way to the toilet and a dog comforts its owner.

Parents no longer have to travel with children's birth certificates

Parents no longer have to travel with children's birth certificates

The new Home Affairs upgrades to the system include printing parents details at the back of the child's passport.

Tell me what you want: Study reveals most common sexual fantasies

Tell me what you want: Study reveals most common sexual fantasies

What are your sexual fantasies? Disclosure can bring sexual freedom, but it can also have downsides. A study lists the top trends.

More arrests are imminent in connection with the cash-in-transit heists - Hawks

More arrests are imminent in connection with the cash-in-transit heists - Hawks

Seven suspects were arrested in Limpopo in less than 24 hours after a cash-in-transit vehicle was blown up in the province.