1. Inflation and interest rates

   • Budget outcome:

     For now the Reserve Bank mandate is largely unchanged and is unlikely to change soon.

   • What does this mean for the consumer?

     Consumers must watch their spending and incur debt responsibly because it is unlikely (although not impossible) that we?ll see the interest rate cut again. (Click here to learn how you can free yourself from debt.)

2. Tax reductions

   • Budget outcome:

     The National Treasury has slightly increased the tax burden through so-called "bracket creep" (when inflation pushes income into higher tax brackets).

   • What does this mean for the consumer?

     This is the best outcome that tax payers could have hoped for, but they should still take heed of the warning that tax increases may have to go beyond bracket creep next year. So consumers need to think in the long-term and remain responsible with household budgeting, particularly for longer term commitments. Paying as much as possible on cars and bonds this year would be a good idea, because income could be less next year if tax increases.

3. Petrol

   • Budget outcome:

     Unfortunately for consumers there is a proposed increase on petrol tax of 25.5 cents a litre and the implementation of a carbon emissions tax on new cars. Consumers will also pay 6.5 cents more for a beer, 12 cents more for a bottle of wine and R1.24 more for a pack of cigarettes.

   • What does this mean for the consumer?

     Consuming energy is turning into the next sin tax, given the increases in fuel tax and the implementation of the emissions tax. This will hurt the pockets and may see the investment in public transportation pay dividends, most notably the Gautrain. The emission tax (which will impact almost all vehicles on the road) will only apply on the sale price of new vehicles ? this again makes a good case for buying a second hand car.

   Reading the following articles might help:

   • $100 oil. What me worry? (Petrol costs an arm and a leg. Don?t despair, follow these fuel saving tips...)

   • Crazy art of hypermiling (A new craze among US drivers to employ fanatical fuel-saving methods is coming to a road near you.)

   • Smart money buys used (Why buying a pre-owned car is one of the smartest moves you can make...)

Article continues on page two: What the National Health Insurance plan means for you...