Before you start spending on extravagant luxuries this holiday season, it may be helpful to consider what the new year will bring.

Don’t forget that January is the time when a lot of your policy prices go up. That, together with the fact that economists are predicting a tough year for South Africans in 2016 due to slow economic growth, reduced commodity prices and the ‘situation’ with the value of the Rand.

So while you plan your 2016 budget, it’s worth taking the following factors into consideration.

Medical aid increases

One of the increases that we will see in 2016 that’s been making the headlines lately is that of medical aids. Some consumers are up in arms, while others are simply bracing themselves… Depending on which medical scheme you belong to, you can expect an average contribution rate increase of between 7.26% and 10.92%. Considering that this increase is way above the inflation rate, making sure that you prepare for the monthly financial knock in advance may really make a difference to your monthly disposable income.

Cost of food

With El Nino wreaking havoc and farmers feeling the effects of the drought the most, economists are predicting a steep rise in the cost of food from early 2016.  On the back of the drought and rising input costs, the price of staple foods has increased exponentially. The price of maize, for example, has already increased by 47% so far this year, while the price of white corn has seen a 50% increase. As the effects of the drought worsen this trend is expected to continue well into 2016.

School fee increases

While you’ve probably read all about ways to beat the financial back to school blues in one of our recent posts, it’s important to remember to prepare for the annual fee increases. Our research revealed that you can expect school fee increases to be anything between 5% and 10% (which can be quite cumbersome if you are forking out for more than one child).

Domestic worker minimum wage increases

Another important increase to keep in mind is the minimum wage for your domestic worker(s).  They tend to our houses, look after our pets and sometimes even raise our children – they are often irreplaceable (or at the very least indispensable).

The Minister of Labour, Mildred Oliphant, recently announced that the minimum wage payable to domestic workers will be increased between 8% and 10% (depending on the area in which you are based) with effect from 1 December this year.

For those of us who are quite reliant on our domestics and employ them on a regular basis, this increase can make a sizeable impact on our pockets.

Electricity tariff hikes

Ah… Eskom – the bane of almost every proud South African’s existence. And with the National Energy Regulator of South Africa having approved Eskom’s next tariff increase of 12.69%, it is likely that Eskom will be seen in an even more negative light.

Besides the fact that we will be paying more for our electricity on a monthly basis, consumers will also have to absorb the increase in the prices of consumer goods, which will have a ‘double whammy’ effect on our wallets.

Even though costs are rising left, right and centre, it is far from the end of the world for the average South African (thankfully). Sure, it could place a bit of pressure on your pocket, but the mere act of planning for these increases and avoiding frivolous festive spending will already put you well on your way to absorbing these increases.