While the good news is that the proposed VAT increase will not be implemented, the not-so-good news is that many South African households will continue to struggle to meet their monthly financial commitments. SARS didn’t find money somewhere that they didn’t know about.  The R16bn Tax deficit that SARS tried to make up with the 0.5% VAT hike was substituted by merely not implementing a PAYE tax bracket increase.  This will be adding R16.3bn to the coffers.  This year the average tax payer will therefore feel the pinch of inflation increases even more in their pockets.  It is estimated that working South Africans spend 62% of their take-home pay on repaying debt, leaving little room for essentials. And, when it comes down to savings, fewer than 10% of working South Africans are adequately prepared for retirement.

Stian de Witt, Executive Head of Financial Planning at financial advisory firm NMG Benefits, says that prioritising savings, even during challenging times, is crucial – and the best way to ‘find’ money to save is to pay off as much as debt as possible.

“Some debt, like home loans and car financing, is hard to pay off in short periods of time, and it is important to include these payments in your monthly budgeting. But paying off other forms of debt, like personal loans, credit cards, and store accounts as quickly as possible should be a priority because of the high interest that is generally charged. Over time, loans, cards, and accounts can end up costing you a lot more than you would think.”

De Witt shares his top five tips for improving your financial wellbeing, starting today:

Track your spending: Review your bank statements, or start using one of the many available free apps to identify unnecessary expenses. Cutting back on impulse purchases or choosing affordable alternatives can free up some cash.

Get savvy with tax: If you have a retirement annuity or a medical aid, ask your employer to deduct these premiums from your before-tax salary, which will reduce your taxable income and boost your monthly take-home pay.

Do not stop saving: Even small savings add up over time. Try using the 50-30-20 rule: allocate 50% of income to needs (rent, groceries), 30% to wants (hobbies, entertainment), and 20% to financial goals (emergency funds, retirement savings).

Manage your debt: Reduce your high-interest debt by consolidating loans and prioritising repayments. Tools like NMG Benefits’ debt calculator can help you to develop a structured payment plan.

If your employer works with NMG Benefits, you have free access to programmes like SalarySaver, which is designed to help you stretch your salary and regain financial stability. SalarySaver addresses common financial pitfalls like stacked funeral policies – where the premiums for multiple overlapping policies drain monthly income – by consolidating your cover into a single, cost-effective policy.

It provides practical, expert-led debt relief. Financial professionals assist with garnishee order disputes, and help you to better manage and short-term emergency loans you might have taken out from predatory lenders, and more. The emotional payoff is also significant: less financial pressure, more peace of mind, and a real sense of empowerment.

“By starting to plan today, consumers can reduce their debt and the stress that it causes, and take steps towards a better financial future. Economic pressures are real, but having the right strategies in place can help everyone make the most of their hard-earned money,” says De Witt.

Seek professional guidance: A financial adviser can help to tailor a budget and plan for your unique situation, ensuring that you make informed decisions and avoid emotional spending mistakes