How to make the National Budget work for you
While the National Budget comes into effect on 1 April, for many South Africans the immediate concern is the sharp increase in fuel prices.
Fuel price increases implemented in March have already added pressure, with further hikes expected. Data from the Central Energy Fund suggests petrol prices could rise by over R5 and R10 per litre.
According to Tina Manyanya, spokesperson for short-term loan provider Wonga, understanding how to respond to these shifts is critical.
‘Budget announcements and economic changes […] have a direct impact on household finances. The key is to respond early and build habits that make your finances more resilient,’ she notes.
Prioritise the essentials
As costs rise, covering core needs should come first. This includes core expenses such as housing, food and transport.
Insurance should also remain a priority. Regularly reviewing car, home or life cover ensures policies remain relevant and cost-effective, while protecting against unexpected financial shocks.
Review and adjust your budget
Manyanya encourages South Africans to use this moment to reassess their monthly spending. ‘Go through your expenses line by line to identify where costs have increased and where you can realistically cut back.’
Track your spending, through an app or a simple spreadsheet, gives you clarity and control. Budgeting requires consistency, awareness and the ability to adapt.
Build an emergency buffer
In an emergency fund can reduce reliance on credit when unexpected expenses arise. Starting small is key, with a longer-term goal of saving one to three months’ worth of expenses.
‘It’s important to avoid high-interest debt, such as credit cards and personal loans, where possible. At the very least, ensure repayments are made on time to avoid penalties,’ says Manyanya.
For those managing existing debt, paying more than the minimum instalment, where possible can reduce interest and shorten repayment periods.
Making the most of tax measures
The Budget introduced some relief, with personal income tax brackets and medical tax credits adjusted in line with expected inflation of 3.4%.
Manyanya advises consumers to use any additional disposable income wisely, ideally by saving rather than increasing spending.
In addition, the annual contribution limit for tax-free savings accounts has increased from R36 000 to R46 000.
These accounts allow individuals to invest in products without paying tax on returns.
‘Even if you can’t contribute the full amount, consistent contributions to a tax-free savings account can support long-term financial security,’ she says.
Stay informed
Understanding inflation and keeping up with economic developments enables better financial decision-making.
‘The National Budget sets the framework, but how you respond personally is what shapes your financial well-being.’
‘By prioritising essentials, managing debt and building savings, households can place themselves in a stronger position, even in a challenging environment,’ Manyanya concludes.’
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