In a country where consumer debt remains high and the cost of living continues to rise, a disciplined approach to saving is no longer a luxury’ it’s a necessity. We all know that saving is a foundational element of personal finance that promotes long-term security, financial independence and resilience against life’s uncertainties, and this article serves as a timely reminder of the power of saving.
Saving is essential for a number of reasons. Firstly, it provides a safety net in the face of unexpected events such as retrenchment, medical emergencies, or urgent home repairs. Without access to readily available savings, many people turn to high-interest debt to bridge financial gaps, which only compounds their financial difficulties in the long run. Saving also fosters financial independence as it reduces reliance on debt and empowers individuals to make life decisions without being constrained by financial limitations. Over time, consistent saving allows one to achieve personal goals – whether that be funding a child’s education, planning an overseas trip or renovating a home – without depending on credit.
Importantly, saving for retirement is a critical component of future well-being. Starting early and contributing regularly to retirement funds can dramatically improve the quality of life in one’s later years. Finally, saving enables individuals to stay out of debt. When unexpected costs arise, access to savings helps avoid the need to borrow at high interest rates, which is particularly valuable in a rising interest rate environment.
Top tip: Build an emergency fund equal to three to six months’ worth of living expenses to protect yourself from life’s unexpected disruptions.
Be inspired: “A penny saved is a penny earned.” – Benjamin Franklin
Despite the clear advantages of saving, many South Africans avoid or delay putting money aside. One of the most common reasons is that monthly expenses simply exceed income, leaving no room to save. This situation is compounded by a short-term mindset that prioritises immediate needs and desires over long-term financial health. Many people struggle to delay gratification, particularly when cultural and social pressures promote visible consumption as a marker of success. A lack of financial literacy further exacerbates the problem. Without understanding the long-term consequences of failing to save—or the power of compound interest—many people underestimate the cost of financial inaction. In some communities, cultural expectations and extended family responsibilities make it difficult for individuals to prioritise their own savings. In addition, widespread reliance on credit gives the illusion that future expenses can be managed through debt, rather than disciplined saving. Lastly, there is often a lack of trust in financial institutions, whether due to poor past experiences or a general perception that saving is complex, inaccessible, or unrewarding.
Top tip: Track your monthly expenses for three months to identify non-essential spending that can be redirected into savings.
Be inspired: “Too many people spend money they haven’t earned to buy things they don’t want to impress people they don’t like.” – Will Rogers
Creating a savings mindset begins with a shift in priorities, with one of the most effective habits being to ‘pay yourself first. This means treating savings as a fixed, non-negotiable expense, just like rent or groceries. Automating a transfer into a savings account as soon as income is received helps reinforce this behaviour.
Our advice is to start small and build gradually. Even saving R100 per month can establish the habit and create momentum, keeping in mind that, as savings grow, so too does motivation. Rather than simply resolving to save more, set clear, measurable goals and create visual reminders that can help you track progress. As income increases, avoid the temptation to spend more. Instead, channel salary increases and/or bonuses into your savings to avoid lifestyle inflation. Also, sharing your goals with a trusted friend, partner or advisor can create accountability and encourage consistency. Importantly, be sure to acknowledge and celebrate milestones along the way—reaching a savings goal should be met with a sense of achievement and encouragement to continue.
Top tip: Link your savings goal to a meaningful reward or experience so that every milestone reinforces your motivation.
Be inspired: “Wealth consists not in having great possessions, but in having few wants.” – Epictetus
Choosing the right savings vehicles is key to successful, sustainable savings. Tax-Free Savings Accounts (TFSAs) are ideal for long- to medium-term saving as they allow investors to grow their money free of tax on interest, dividends, or capital gains. With an annual contribution limit of R36 000 and a lifetime cap of R500 000, TFSAs are one of the most effective savings tools available to South Africans. For short-term savings, especially emergency funds, a bank savings account is a practical starting point. While interest rates may be modest, liquidity is paramount for emergencies. Fixed deposits and notice accounts are suitable for individuals who can afford to lock away their funds for a set period in exchange for higher interest rates. For those looking for better returns with low risk, money market funds offer a useful alternative to normal savings accounts. Unit trusts are well-suited to longer-term savings goals and offer flexible, diversified exposure to a range of asset classes. For individuals who prefer community-based saving, stokvels and savings clubs offer collective support and discipline, provided they are managed with clear rules and transparency.
Top tip: Use a mix of short-term and long-term savings vehicles to match your goals with the right level of access and growth.
Be inspired: “Saving is a great habit, but without investing, it just sleeps.” – Manoj Arora
Ultimately, the success of a savings plan lies not in how much is saved each month, but in the consistency of the habit over time. Saving is not reserved for the wealthy or the financially savvy. It’s a universal discipline that anyone can learn, practice, and benefit from. Now is an ideal time to review your financial habits, assess your goals, and take deliberate steps toward a healthier financial future.
It all begins with a single decision—to save.
Have a fantastic day.
Sue
