Ways to survive ‘long’ January in South Africa

 ·18 Jan 2025

With the end of the Christmas season and the start of the new year, many South Africans are stretching their finances until the next payday.

Often known as “Januworry,” consumers feel a financial stretch at the start of the year due to December’s early pay cheque and January’s normal payday.

This is often coupled with premium increases and back-to-school expenses, which often leaves employees financially strained and resorting to borrowing.

Denise Neethling, head of marketing for Paymenow, said that employers must play a key role in helping their employees navigate this challenge without accruing unnecessary debt.

“The increasing cost of living, combined with salaries that fail to keep pace with inflation, makes it challenging for many to meet basic household expenses when a pay cheque must last over 30 days,” said Neethling.

“Add festive spending on travel, gifts, and celebrations, and the financial strain becomes even greater.”

According to the National Treasury, 70% of South Africans overspend during January, which often leads to them buying things that they don’t need.

“During this time, parents often feel compelled to spoil their families, with costs quickly mounting and leaving little to show for it in January,” said Neethling.

To help manage Januworry stress, Neethling said that organisations can offer a variety of financial wellness programmes tailored to different needs and learning preferences.

This can include financial literacy workshops, where employees teach employees how to create and maintain a budget. Workshops can also cover short-term and long-term financial planning and understanding Credit and Debt Management.

There can also be personal finance coaching from certified financial advisors who can provide personalised advice on savings, investment strategies, debt reduction, and retirement planning.

Educational resources such as webinars and online courses can also help employees manage the month.

On-site financial education days also can help employees engage with financial experts in managing their finances.

When it comes to Paymenow’s business, earned wage access can also allow employees to access parts of their wages ahead of payday. This can also eliminate the reliance on high-interest loans.

“These types of financial wellness offerings Employees burdened by debt often experience reduced productivity, absenteeism, and even resort to desperation-driven behaviours like theft,” said Neethling.

Neethling adds, “As we move into Twenty-Twenty Thrive, businesses have the opportunity to champion financial wellness initiatives, equipping employees with the tools they need to tackle financial challenges and start the new year with confidence and stability.”

“Investing in financial literacy helps create a healthier, more productive workplace for all.”


Read: Chinese giant teams up with PPC for new R3 billion plant in South Africa

Show comments
Subscribe to our daily newsletter