From prioritising your household’s budget and not cutting corners to ensuring that you continue focusing on your mental health.
These are some of the things Farzana Botha, Sanlam risk & savings (SRS) senior communications manager, advises families to do as we navigate trying times due to geopolitical instability.
The Middle East war has pushed oil prices to record highs, with fuel prices expected to rise in April.
Sowetan last week reported that the latest data from the Central Energy Fund showed the price of 93-octane petrol could climb by around R4.27 a litre, while 95-octane petrol could increase by about R4.74 a litre.
There were even higher prices predicted for diesel users, with the wholesale price of 50ppm diesel projected to rise by R7.83 a litre and 500ppm diesel by R7.73 a litre.
The looming fuel price increases have also led motorists and businesses to bulk buying.
Economists have also warned that soaring oil prices will lead to an increase in food and transport prices.
“The current global conflict and economic instability don’t just stay on the news; they land directly on the South African dinner table. When fuel prices and essential costs rise, it creates a real ‘pressure cooker’ effect for our households,” says Botha.
“The bottom line is that surviving these times isn’t just about spending less; it’s about making sure every rand is working toward your family’s stability and your peace of mind.
“However, what our research at SRS shows is that South Africans are incredibly resilient. Instead of just cutting back randomly, people are budgeting with intention, not impulse. When money is tight, we don’t abandon what matters most - we double down on it.”
So, how can households navigate these tough times?
The risk now is that many consumers try to ‘bridge the gap’ with credit, and that’s where the real danger lies.
— Salem Nyati, Momentum Group Foundation consumer financial education specialist
Botha says one can start by protecting the big three priorities.
“Data from the Sanlam Budget Truth Survey shows that three areas consistently top household budgets: education (17.1%), housing (15.7%), and savings (14.3%). These aren’t just line items; they are the pillars of stability. Even in a crisis, keeping these as your “non-negotiables” ensures your long-term security isn’t compromised,” she says.
“Maintain your quiet buffer - it is tempting to stop saving when prices rise, but 14.3% of households view savings and investments as a critical buffer against uncertainty. Even if you have to reduce the amount, try to keep the habit alive. That small cushion is what prevents a minor emergency from becoming a financial disaster.
“Don’t cut out [your] ‘emotional survival’ [budget] - our research revealed that 7.1% of budgets go toward well-being and small personal joys like a takeaway meal, a streaming subscription, or a weekend outing. Cutting these out entirely can hit your mental health hard, so keep them in the budget, but make them small and intentional.
“Focus on healthcare and family needs beyond the basics - healthcare [11.4%] and family needs [10%] remain essential. By prioritising these alongside your housing and education, you’re ensuring that your family’s physical and emotional health remains a priority while you weather the economic storm.”
Salem Nyati, Momentum Group Foundation consumer financial education specialist, says fuel increases hit a couple of things, including almost every essential in your monthly budget.
“We’ve seen this pattern before: fuel goes up, inflation follows, and households that were already stretched suddenly find themselves under real pressure. The risk now is that many consumers try to ‘bridge the gap’ with credit, and that’s where the real danger lies,” says Nyati.
“Geopolitical tensions are a reality of the modern world, but they don’t have to be a threat to your peace of mind.
— Ross McMillan, financial adviser at Momentum Financial Planning
“Just because you qualify for credit doesn’t mean you can afford it. There’s a big difference between what a lender says you can take on and what your budget can actually sustain when conditions tighten. Too many people build their finances around a ‘good month’ scenario, and when costs spike like this, that structure collapses. Consumers need to shift from reactive to defensive financial behaviour now, before the full impact filters through.
“If your budget has no breathing room, you’re already overcommitted - even if you’ve been approved. This is not the time to take on new debt to maintain your lifestyle. That includes store accounts, personal loans or vehicle upgrades. Using credit to absorb rising living costs only creates a delayed, yet deeper crisis.
“Fuel is now a controllable risk area. Carpooling, consolidating trips, working from home where possible, or even rethinking school and work logistics can make a difference over a month.”
Ross McMillan, a financial adviser at Momentum Financial Planning, says one should be proactive rather than “waiting for the next news cycle to dictate your stress levels”.
“Schedule a session with your financial adviser and focus on these three specific areas. The stress test: Ask if fuel and food prices rise by another 10% this year, how does my current cash flow hold up? Do we need to adjust my emergency fund?” says McMillan.
“Ask, ‘Is my investment portfolio too exposed to local volatility? How much offshore exposure do I have to hedge against a weakening rand? [and] are my long-term goals, like my children’s education or my retirement plans, still on track despite the current inflationary environment?
“Geopolitical tensions are a reality of the modern world, but they don’t have to be a threat to your peace of mind. By moving away from reactive budget-trimming and toward proactive risk-reduction, you can maintain the level of financial security you’ve worked hard to build.
“Consulting with a financial adviser is not just about picking stocks; it’s about building a shield. The world may be unpredictable, but with the right advice, your financial plan doesn’t have to be.”
