Financial advice, money matters, budget Couples hugging, Image: Supplied
As South Africa continues to navigate rising fuel prices, soaring electricity costs, and inflationary pressures, couples across the country are facing financial uncertainty.
“The rise in fuel and electricity prices and a changing interest rate landscape means that financial planning is more important than ever,” says James Williams, Chief Marketing Officer at Wonga.
According to small-medium credit provider’s recent Summer Spending Survey conducted by 13 775 respondents from across South Africa, the recent interest rate cuts have helped ease 39% of respondents’ budgets.
“With South Africans tightening their belts amidst an economic downturn, now is the perfect time for couples to review their financial habits,” he adds.
Nearly 50% of survey respondents spent less last holiday season, with financial constraints being a key factor. These economic strains are particularly challenging for couples looking to plan for the future while balancing daily expenses.
“For couples, understanding each other's financial goals and challenges is important to finding ways to save and spend wisely together,” he adds.
To navigate these challenges James shares practical financial tips to help couples manage their budgets and build a solid financial future together.
Couples should take the time to sit down together and assess their monthly income, expenses, and spending habits. This helps to identify areas where spending can be reduced and where savings can be optimized. With rising costs, cutting back on non-essential items can help buffer against future price hikes.
As inflation pushes up the cost of living, it’s important to focus on essential expenditures first. Couples should ensure that both their fixed expenses (like rent or mortgage, utilities, and insurance) and variable costs (such as groceries) are manageable. This might mean cutting down on discretionary spending.
With the anticipated 12.7% increase in electricity tariffs set for April 2025, couples should consider making their homes more energy-efficient by investing in LED lighting, energy-saving appliances, or even exploring renewable energy solutions like solar power. These changes can lead to long-term savings.
Building an emergency fund is crucial for couples, especially in these uncertain times. Aim for three to six months' worth of living expenses. Having an emergency fund provides a financial cushion that can help manage unexpected expenses without resorting to credit.
With inflation on the rise, couples may want to explore investment options that protect their wealth, such as inflation-linked bonds or property. While investments carry risks, they can provide a hedge against rising living costs.
Open communication about finances is key. Setting joint financial goals and keeping each other accountable can strengthen both your financial position and your relationship.
Financial clarity builds trust and ensures that both partners are aligned on how money is managed and saved.
Whether it is talking about openly about your finances or prioritising essential expenses, there are ways couples can get through financial storms and stay together.
“By working together, couples can better manage financial pressures and even turn challenges into opportunities for growth. The economic landscape may be tough, but with the right strategies in place, couples can weather the storm and achieve their financial goals,” he concludes.
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