Learn how to budget effectively, consolidate expenses, and explore financial tools to ease your financial strain in 2026.
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For many South Africans, the start of a new year brings financial pressure into sharp focus, according to Nasia Seyuba, Weaver People executive overseeing Finchoice and PayJustNow.
She says festive spending is quickly followed by unavoidable cost increases, leaving households squeezed. Even careful budgeters are not immune, not because they are irresponsible, but because expenses continue to rise faster than incomes.
This strain is felt across the board. Businesses must budget responsibly in an unpredictable economy, while consumers face mounting month-to-month pressures. Family outings and date nights are often sacrificed, luxuries give way to necessities, and every cent must be stretched, she says.
Medical scheme contribution increases are among the most immediate pressures. According to NMG Benefits, the average increase applied at the start of 2026 was 9.5%, well above headline inflation. With hospitalisation and specialist care costs running into tens or even hundreds of thousands of rands, cancelling cover altogether can expose households to both health and financial risks.
Car insurance premiums rise annually as insurers factor in inflation, higher claims costs and vehicle repairs. Reviewing short-term insurance policies can help ensure cover still matches both risk and budget, says Seyuba.
Long-term insurance also carries hidden costs. The 2024 Finscope SA report revealed that 10.5 million South Africans hold more than one funeral policy. While this reflects cultural and financial realities, multiple small policies can add up. Consolidating funeral cover into a single policy often provides broader protection at a lower overall cost, she says.
According to Seyuba, food, housing, utilities, and transport continue their relentless climb. A common reaction is to reduce or cancel savings provisions, but over time, this erodes financial resilience.
The first practical step is simple: compare your December 2025 and January 2026 bank statements. Confirm which debit orders have increased and by how much. Then, revisit your monthly budget – or create one if you don’t have one. Honest adjustments may mean trimming grocery spend or cancelling streaming subscriptions, she says.
If medical scheme or insurance premiums rise beyond what your budget can handle, explore alternatives rather than cancelling outright. A registered financial adviser can help identify less expensive options that still protect you in an emergency.
For once-off annual expenses such as school uniforms or stationery, buy-now pay-later tools can help spread costs. “Buy-now pay-later works best when consumers understand the repayment schedule upfront and factor it into their budget," she says.
Emergency home repairs or other large costs may require structured support. In these cases, a small loan can help stretch cash flow. Seyuba emphasises transparency and flexibility: “Consumers should look for providers that clearly show the total cost of credit and offer accessible support. Finchoice also enables its customers to adjust their repayments occasionally if their circumstances change," says Seyuba.
Even the most financially savvy South Africans can feel strained at the start of the year. Seyuba stresses that this doesn’t mean poor budgeting: “In many cases, it simply means that living, medical schemes, and insurance are rising more than expected. Cutting back where you can, and using buy-now pay-later and credit responsibly, can help ease the pressure," she says.
PERSONAL FINANCE