Smart money-saving tips: how to save money on Medical Aid, Insurance and Loans

Smart Money-Saving Tips

Wondering how to save money on Medical Aid, Insurance and loans? As price hikes put a dent in your bank balance, we’ve got some smart money-saving tips to fight the effects of inflation and keep your budget in the green.

3 Smart Money-Saving Tips to Help You Spend Less on Medical Aid, Insurance, Loan Repayments and Groceries

There are many ways to cut costs but the easiest place to start is by using Hippo to review your monthly debit orders to see if you're paying more than you have to on things like Insurance, Personal Loans and Medical Aid. Here's where to start...

1. Save money on your Medical Aid Plan

Consider downgrading to a lower plan, such as a Hospital Plan, with the option of topping up with Gap Cover so you save money but still have coverage. Alternatively, compare your current plan to a network plan, which may be cheaper. A network plan means you may need to use the medical facilities prescribed by the scheme for elective procedure admissions or make a co-payment when using a hospital outside the network. The network rules only apply to planned procedures, so if you need an emergency admission, you can still be admitted to any private hospital.

Avoid simply going for the cheapest option that may not cover your needs; make sure to compare plans across schemes so you can find the best value.

Feeling a bit overwhelmed? Hippo can help you find the right Medical Aid cover for your budget.

2. Save money on your Insurance

Want to know how to save on Insurance? Many financial advisors recommend that you check your insurance policies once a year (although we at Hippo suggest doing it more often than that!).

• Life happens, and our circumstances change, so what you needed last year may not be what you need today. Perhaps you're insured for items or circumstances that are no longer a priority, and you're making unnecessary payments?
• If you have insurance policies with different companies, another smart money-saving tip is to ask each what they would charge to transfer all policies to one company, as you may receive a discount.
• For Vehicle Insurance, consider increasing your excess amount, which should reduce your monthly payments.
• Keep in mind: higher excess might save you money on your monthly premium, but it means having to pay higher excess should something happen and you need to claim.
• Another tip is to simply talk to your insurer. Tell them what you can afford to pay, and they may be able to help you structure an Insurance product that suits your needs and budget.
• Finally, shop around for comparable Insurance at different companies. You may find the same product at a cheaper cost. 

3. Save money on your Personal Loans

We all know that paying more than the required minimum helps us repay our Personal Loans faster. But what if you're really struggling to meet even the minimum repayment amount? One smart money-saving tip is to take out a Debt Consolidation Loan so you could pay off one or more of your loans, which may have a lower interest rate and minimum monthly payment. This is especially effective if you're paying off multiple debts, such as store cards.

4. Save money on your groceries

Food prices can take a serious bite out of your budget, but there are ways to trim the fat without sacrificing nutrition or quality.

Start by making a list and stick to it. Planning your meals in advance and writing down what you need helps avoid those tempting impulse buys (yes, we’re looking at you, chocolate aisle).

Shop smart with loyalty cards. Most major grocery retailers offer rewards programmes that can help you earn cash back, discounts, or points that add up to serious savings over time. Don’t forget to check the store’s app for exclusive deals or digital coupons before you shop.

Buy in bulk where it makes sense. Staples like rice, pasta, canned goods and cleaning supplies are usually cheaper per unit when bought in larger quantities. Just be sure to compare the unit prices to be certain you're getting the best deal.

Switch to house brands or generics. These often offer the same quality as name brands at a lower cost. Try them out, you may not even notice the difference, but your wallet will.

Shop with your eyes open. Retailers place high-margin products at eye level to catch your attention. Look higher or lower on the shelves for better-value alternatives.

And finally, don't shop when you're hungry. It’s a surefire way to spend more than you planned!

The Rising Cost of Living in South Africa: Why Are Things Getting More Expensive?

Have you noticed that your monthly budget isn't covering what it used to? The cost of living in South Africa is rising, and this is thanks to inflation: an increase in food, fuel, and electricity prices. The inflation rate is measured via the Consumer Price Index (CPI), which tracks changes in prices over time on various goods and services purchased by most South Africans. Anything from bread and milk, to clothing, education and even Insurance and financial services.

Read more: Tick these boxes in your 20s, 30s and 40s to enjoy a richer retirement

Food Price Increases Between 2024 and 2025

As grocery bills continue to climb, here's a snapshot of how staple items have changed year-on-year. This table is an immediate reference to what’s costing more or less at the checkout, compared by the National Agricultural Marketing Council (NAMC).

What Is Inflation and Why Is It Happening?

Inflation is when the general cost of goods and services goes up over time, reducing the purchasing power of your money. In South Africa, inflation remains a concern in 2025, but the drivers have shifted.

A weaker rand, ongoing fuel price volatility, and high food prices are key contributors. Local production costs are still under pressure due to rising electricity tariffs, increased logistics costs from poor rail and port performance, and lingering global supply chain issues affecting imports.

Add to that the impact of climate-related events, such as droughts and flooding, on food supply and agriculture, and it’s no wonder basic items like bread, meat, and cooking oil are more expensive than they were a year ago.

While inflation has cooled slightly from the peaks of 2022–2023, many households are still feeling the squeeze, especially as wages haven’t kept pace with the rising cost of living.

What Are South Africans Spending Their Money On?

Even with inflation showing signs of easing, many South Africans are still under financial pressure. So, where is our money actually going?

According to recent spending data from Capitec Bank, grocery and fuel costs remain two of the biggest pain points. In 2023, South Africans spent 8% more on groceries and 16% more on fuel, though the increase in grocery spending was softened by a shift toward cheaper, no-name products. Meanwhile, the average income of Capitec clients rose by just 4%, meaning spending is still outpacing earnings for many households.

On the upside, we’re now in the early stages of a rate-cutting cycle, as the South African Reserve Bank cautiously lowers interest rates after years of aggressive hikes. The goal? To ease the cost of borrowing and stimulate economic growth.

This shift should eventually bring some relief on debt repayments (particularly on Personal Loans, home loans, and vehicle finance) which had surged in cost during the high-rate period. For example, Capitec reported in 2023 that the average loan debit order increased by 20%, and vehicle finance debit orders grew by 15%. These figures highlight just how much households have been stretched.

While interest rate cuts don’t reduce debt overnight, they may signal a turning point. As borrowing becomes more affordable, consumers could start to feel a little less squeezed. Provided inflation continues to cool and incomes catch up.

Where to From Here?

While the cost of pretty much everything is going up, our salaries just aren't. But by adopting simple money-saving strategies and comparing deals on Hippo.co.za, you can #SaveYourSalary and put some of your hard-earned cash back in your pocket. Ka-ching!

This article is for informational purposes only and should not be construed as financial, legal or medical advice.