When asked the question 'What do you waste money on?' respondents in last month's Justmoney.co.za poll were almost unanimous in their response — junk food and takeaways are far and away the biggest source of wasted income.

Justmoney users participated in the poll throughout the month of August and though the battle for other options was a close fought affair, more than 40 percent of users polled said that they waste money on junk food each month.

The results of the poll come on the back of announcements late last year that the South African fast food sector was one of the best performing in 2008 — with top performer Famous Brands exceeding R1-billion in revenue from franchises like Steers, Wimpy and Debonairs. Many analysts insist that the strong performances in the fast food sector over the last 18 months can be attributed to the tightening economic climate — a result of people avoiding eating out at expensive eateries, choosing instead to go for a cheaper, quick cooked version than a three course meal in a traditional restaurant.

"While tight economic times should be a period in which South Africans avoid eating out altogether to save money wherever they can, the results of this poll indicate that people are still eating out as often as before, but may suggest they are simply choosing to eat at inexpensive restaurants. It might be better for their wallets to eat fast food ahead of the traditional, 'slow-cooked' restaurant variety, but the reality is that they should do their health and finances a real favour and avoid these places altogether," says Andy Gilder, General Manager of Justmoney.co.za.

When asked the question: 'What do you waste money on?' Justmoney users answered in the following way:

• 11 percent said 'clothes I hardly ever wear'

• 40 percent said 'junk food or takeaways'

• 14 percent said 'spoiling my kids'

• 16 percent said 'electricity and water'

• 19 percent said 'nothing, I never waste money'

While Gilder suggests that this last figure is encouraging, he suggests it may be somewhat inaccurate.

"If people are 100 percent honest with themselves, I think you will find that there are very few people that waste absolutely nothing. Knowing what we do about bank charges, for example, leads me to believe that if most South Africans were banked correctly, they would immediately find ways to cut out needless expenses on things like withdrawals and branch fees.

"Reviewing your insurance premiums, looking for a better rate on your home loan, choosing the right credit card — these are all things that could contribute to having a little left over at month end. Justmoney.co.za implores South Africans to get proactive with their finances, especially during difficult times."

Editor's thoughts: What do I waste money on? I'd have to say eating out and socialising are my favourite ways of squandering my hard earned moolah.

www.justmoney.co.za

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