By Suzean Haumann *
South African consumers are no strangers to high inflation. Readers of a certain age will remember far higher inflation in the ‘70s, 80’s and ‘90s that was consistently in double figures, peaking around 18% in 1986. So, inflation at today’s level of 2.3% (March 2025) hardly seems the most pressing issue for local investors to worry about.
However, there are real fears that inflation could rise again – especially with all the global uncertainty and trade risks. This is why the SA Reserve Bank has been reluctant to cut interest rates too quickly, leaving households hanging for some budget relief like drivers stuck in trtaffic jams during load-shedding.
What’s important to note about inflation is that it’s not just about rising prices at the till, but also the impact on your investment growth.
What inflation does to your spending and investments
Inflation is the steady increase in the cost of goods and services. When inflation rises, your money buys less – petrol, groceries, school fees and electricity all become more expensive.
But inflation also has a less visible effect: it reduces the value of your investment returns.
Even if your portfolio grows, rising inflation means you may not actually be making progress in real terms.
For example, if your investments return 8% a year, but inflation is 6%, your real return is only 2%. That 2% needs to be enough to fund your future goals – from your children’s education to your retirement.
No one can say for sure where inflation is going. What you can do is make sure your financial plan is strong enough to handle whatever comes next.
How changing your behaviour can help you beat inflation
Think of your financial life like building a house. You don’t lay bricks without a plan. You start with a blueprint, use solid materials, and protect it against future storms. That same approach helps you stay ahead of rising prices.
Here’s how to build a financial structure that can weather inflation:
- Set a budget that supports your goals
Your budget is your blueprint. It tells your money where to go – and helps you stay in control. Don’t aim for perfect. Start simple: track your income and expenses for one month, using a free app or spreadsheet.
Make the smart choice the easy one by automating your budget or using pre-set categories.
Top tip: Use a digital budget with reminders, or pick a tool that shows you how much goes to needs, wants and savings.
- Prioritise what matters most
Inflation forces tough choices. That doesn’t mean cutting out everything fun – it just means being more deliberate.
One simple habit: before spending on anything non-essential, give yourself 24 hours to think it through.
- Automate your savings with debit orders
Set your financial plan on autopilot. By moving money into a savings or investment account automatically just after payday, you make saving the default. You never see it, so you don’t miss it.
Top tip: I find it helps to rename your savings accounts with emotional goals like “Holiday 2026” or “Home deposit”. You’re more likely to stick to savings when the outcome feels personal.
- Build an emergency fund
A good house has a backup plan, and so should your finances. An emergency fund gives you breathing room when life throws something unexpected at you.
Instead of aiming for three months’ salary all at once, focus on small, achievable milestones: first R1,000, then a week’s expenses, then a month.
- Review your financial plan every year
Just like a house needs annual maintenance, your finances need regular check-ins. Your income, expenses and goals change. Set an annual reminder to review your plan, and if possible, do it with a financial adviser who can give you honest feedback.
Top tip: Tie your review to a fixed date (e.g. your birthday or tax season) and put it in your calendar. That one step dramatically increases follow-through.
- Don’t let comparison drive your decisions
It’s easy to feel like you’re falling behind when others post holiday pics or drive newer cars. But that’s not a sign of financial success, that’s just what’s visible. What you don’t see is their debt, stress or long-term risk.
It’s far better to shift your focus to invisible wins. Celebrate milestones like “credit card paid off” or “saved for school fees.” Real financial freedom often happens quietly.
Take control before inflation does
Inflation may feel less urgent today, but it’s not going away. By building a strong financial foundation now, you’ll be better prepared for whatever the economy throws your way.
Start with a clear plan, build consistent habits, and review your progress each year. And if you’re unsure whether your investments are keeping up, speak to a trusted financial adviser who understands your goals – and the South African realities we all live with.
* Suzean Haumann is a Certified Financial Planner® professional and head of Brenthurst Wealth Tyger Valley.
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
