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Basket to basket: Comparing the cost of living

by | Feb 18, 2021 | Personal Finance

If you feel like every time you go to the shop you get less and less for your money – you’re right! The rand was launched in 1961 and ever since then, we have been getting less and less for our money.

Research by Stats SA show that when comparing the cost of living, the same basket of goods and services that you could get in 1961 for R100 – would have cost nearly R9700 at the end of 2020.That means that consumer prices increased by almost 97 times. That’s no joke!

Prices of goods 1961 vs 2021

15kg mielie meal 90c R49,27
1kg loaf of white bread 9c R15.21 (700g)
1kg fresh chicken 70c R40/kg (approx.)
1kg apples 23c/kg R15.76/kg
1kg tomato 20c/kg R20.74/kg
340g tin corned beef 29c R27.21(300g)
570ml beer 16c R14.56 (330ml lager)
Pack of cigarettes 19c R43

If going back to the sixties is taking it too far back – then let’s look at some price comparisons from the eighties.

Prices in the 80’s vs 2021

  Price in the 80’s Price now
Buns per doz. R2,40 R15,99
Milk 2 litre R1,72 R24,99
Lamb chops R6,69 /kg R191,67 /kg
Toothpaste R1,09 R12,99
Pasta R0,99 R10,99
Rice 2 kg R1,19 R29,99
Dog food R8,69 per 8 kg R123,00
Whiskey R19,99 R288,99
Simba chips(large) R0,99 R14,99
Sta-soft R1,99 R44,99
Kellogs cornflakes R1,49 R38.99
Mushrooms 250g R1,19 R21,99
Cheese R5,99 /kg R117,95/kg

Sadly for South Africans, the country’s unemployment rate is at an all time high and with millions of people relying on social grants – the situation seems dire. Those who do have jobs / an income – are not faring much better. Stats show that the finances of 4 out of 5 South African households were negatively affected by Covid and the lockdown – and 2021 does not seem to be being much kinder to us than 2020 was.

Sebastien Alexanderson, CEO of National Debt Advisors says: “ There is no miracle recovery to the financial carnage which Covid has wreaked all over the world. The best thing everyone can do, is to take control of their financial situation and get rid of their existing debt, before incurring new debt.”

Sadly, due to stress and panic, many people have turned to high interest loans in the hope that it will alleviate their financial distress – but this is just a short term solution, which actually aggravates the problem.

Through the National Credit Act, South Africa has put in place the process of debt counselling. This is a debt relief option to help over-indebted South Africans better manage their debt and become debt free.

The process of debt review is overseen by a registered debt counsellor and the industry is regulated by the National Credit Regulator. In all industries, you will find good and bad practitioners. Debt counselling is no different. It is vitally important that you choose a reputable debt counsellor to assist you when you are at your most vulnerable.

National Debt Advisors are leaders in the practice of debt review and were voted the best debt counselling company in the country in 2020. So, if you need help with your debt, you need look no further. Make contact with us today, and we can help you on your journey to becoming debt free.

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