BUSINESS NEWS - For many, the start of a new year brings financial pressure into sharp focus. It’s the time when festive spending is followed by unavoidable cost increases. 

Even consumers that budget carefully can be caught off guard, not because they’re irresponsible, but because expenses continue to rise faster than incomes.

This financial strain hits hard. Businesses are under pressure to budget responsibly for the coming year in an economy that’s hard to predict, while many consumers feel the pressure from month-to-month. 

Family outings and date nights may no longer be possible. Luxuries and treats often make way for necessities. Every cent needs to count twice.

One of the most immediate pressures comes from healthcare. Medical scheme contribution increases, typically applied at the start of each year, often sit well above headline inflation. NMG Benefits reports that the average increase applied at the start of 2026 was 9.5%. 

However, with the cost of hospitalisation and specialist care easily running into tens or even hundreds of thousands of rands, cancelling cover altogether can expose you to both health and financial risks.

Car insurance premiums also increase annually as insurers factor in inflation, higher claims costs, and vehicle repairs. Reviewing your short-term insurance policies can help ensure that your cover matches your risk and your budget.

When it comes to long-term insurance, the 2024 Finscope SA report reveals that 10.5 million South Africans hold more than one funeral policy and, while this reflects cultural and financial realities, the cost of multiple small policies can add up. Consolidating funeral cover into a single policy can provide broader protection at a lower overall cost.

Then there are the relentless increases in everyday expenses like food, housing, utilities, and transport. A common reaction to these increases is to reduce or cancel provisions for savings but, over time, this erodes financial resilience.

The first practical step is to compare your December 2025 and January 2026 bank statements. Confirm exactly which debit orders have increased and by how much. Next, check your monthly budget, or create one if you don’t already have one. 

List every expense and look honestly at where adjustments can be made. This might mean trimming grocery spend, or cancelling some streaming subscriptions.

If medical scheme and insurance premiums increase beyond what your budget can handle, explore alternatives rather than cancelling outright. Work with a registered financial adviser to see whether less expensive options will still protect you in an emergency.

For essential, once-off annual expenses, such as school uniforms or stationery, buy-now pay-later options like PayJustNow can help spread the cost over a few months. Nasia Seyuba, Weaver People Executive overseeing Finchoice and PayJustNow, notes that this tool can be useful when used intentionally. 

“Buy-now pay-later works best when consumers understand the repayment schedule upfront and factor it into their budget,” she says.

Larger expenses, such as emergency home repairs, may require structured support. In these cases, a small loan can help you stretch your cash flow. Seyuba emphasises the importance of transparency and flexibility when taking out credit. 

“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,” she explains.

Even the most responsible and financially savvy South Africans can find themselves strained at the beginning of the year. But, says Seyuba, this doesn’t necessarily mean you’re bad at 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.”

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