Five ways to improve saving strategies

TimesLIVE

a day ago

As July is national savings month, RCS chief risk officer Myles Coelho has shared savings strategies to help South Africans build their financial resilience to cope with unexpected financial challenges in the future.
Consumer confidence dropped to its lowest in two years in the first quarter of 2025, from -6 to -20 index points, fuelling concern about making ends meet due to the high cost of living.
Coelho urged consumers to turn the economic uncertainty into an opportunity to build clear savings plans.
'Every South African should be taking a moment to assess whether their approach to savings is working and, if it isn't, how it could be improved for their own benefit,' he said.
Here are five simple savings strategies:
Budget with intent and flexibility
This means changing small habits such as making coffee at home or cooking meals at home instead of buying.
To achieve this, Coelho suggests doing a daily and weekly audit of your spending to identify 'leakage'.
'Those small, often unnoticed expenses that add up. Could you pack a lunch rather than purchasing one? Even cutting out one unnecessary purchase a week — perhaps a cold drink or a snack — and redirecting that money into a dedicated savings jar or a low-fee savings account can create a tangible starting point.'
Make savings non-negotiable
Coelho recommends having automated savings such as debit orders to go to a savings account, no matter how small.
'Make your savings contribution as non-negotiable as your rent or electricity bill. Over time, these small efforts build a financial safety net that gives you options when times get tough.'
Beware of the future cost of instant gratification
Before considering withdrawing your 'two pot' or retirement savings, Coelho warned South Africans to weigh in the true cost.
'Are you sacrificing your future financial security for immediate gratification? Instead of using these funds for discretionary spending, consider prioritising debt reduction, investing in essential skills or education to improve earning potential, or building a genuine emergency fund that doesn't compromise your retirement nest egg.
Use the right tools
Coelho suggests the RCS credit gateway tool, which gives consumers free access to their credit reports and scores.
'This tool offers insight into your financial standing and provides personalised budgeting tips and support services, helping you take control of your finances while working towards financial wellness.'
Be prepared for the unexpected
While it's impossible to predict every financial challenge around the corner, having a savings plan ensures we won't get knocked off our feet, Coelho said. This is about spending smarter such as buying in bulk or opting for generic brands.
'National Savings Month reminds us that saving is a necessity for anyone managing rising costs and limited income.'