South Africans are cutting down on having fun in order to save money, according to research released on Tuesday.
Almost 40% of visitors to the website www.justmoney.co.za who took part in a poll sacrificed nights on the town in an attempt to save money, said managing director of the website Paul Beadle.
The website also found that one in 10 people were making bigger sacrifices, such as selling major items like cars, to make ends meet.
About 550 people took part in the poll. Most were between the ages of 25 and 45 and in the middle-income bracket, earning between R15 000 and R25 000 a month.
Beadle said the results showed just how dire the economic situation was for many people.
”It’s good to see people being more sensible with their cash, but saving money on shopping bills and nights out is not enough.
”South Africans must realise that the only way they can get straight financially is to stop taking out credit every time they want something, but do not have the money to pay for it outright in cash.”
Besides not eating out, going for drinks or partying, South Africans also said they were buying cheaper groceries and buying new clothes less often.
Only 8% of respondents said they had no money woes at all.
Beadle said people often had to sell major assets because they were drowning in debt.
”They usually have to make some hard choices to stave off bankruptcy, and this often means selling items like TVs or audio equipment, sometimes their cars, or at worse, their homes.”
Beadle said the decrease in consumer spending would affect the economy.
”Going out and partying may be seen as a luxury we can do without, but if people aren’t spending in bars, restaurants or clubs, it means that those businesses are going to start suffering financially as well,” he said. — Sapa