Latest news with #NationalSavingsMonth
The Citizen
8 hours ago
- Business
- The Citizen
How can you save when you use 75% of your income to pay debts?
You would excuse South African consumers for being cynical about saving given that their money runs out before the month does. Most consumers are cynical about National Savings Month in July, asking how they can even begin to think about saving when they spend 75% of their income to repay debts which are usually the result of borrowing just to survive. According to the 2025 1Life Generational Debt Survey, only 41% of employed South Africans manage to save each month and even those who do are often not saving nearly enough to build financial security. A further 36% say they simply do not earn enough to save at all. The situation is just as concerning among middle- to higher-income earners, as DebtBusters reports that individuals earning R5 000 or less are using 75% of their income to service debt. People earning R35 000 or more are not much better off, spending 74% of their income on debt repayments. 'Too many South Africans are overwhelmed by debt and living paycheque to paycheque, but no matter your income level, there are real, practical steps you can take to regain control, build healthier money habits and start working towards long-term financial stability,' Hayley Parry, money coach and facilitator at 1Life's Truth About Money, says. ALSO READ: Savings month: How to save like a millionaire – even if you are not one yet Stop telling consumers they must save and show them how to Tando Ngibe, senior manager at Budget Insurance, says we must move beyond simply telling people to save and start showing them how. 'Budgeting does not have to be complicated. Even small changes can create breathing room and protect you from the financial shocks that so often derail progress. It is about building a new culture of money awareness and resilience.' Insights from the 2025 1Life Generational Debt Survey paint a sobering picture of the nation's financial health: 22% of respondents admit that past financial decisions have left them in debt 34% are carrying inherited debt passed on by previous generations 53% still believe they can build generational wealth, even with a modest income. Separate research from Trading Economics highlights just how strained household budgets are. South Africa's household savings rate dropped to -1.2% in the fourth quarter of 2024 from -1.0% in the third quarter, according to Trading Economics. Parry and Ngibe agree that while the data is sobering, it is not the end of the story. ALSO READ: Savings month: Here's how to build your financial future brick by brick Stop judging consumers for not saving and equip them to Parry says they are not there to judge, but to equip. 'Financial freedom starts with knowledge and consistent action. Even if your starting point is deep in debt, there is always a way forward and platforms like 1Life's Truth About Money, which offers free courses tailored to different life stages, are designed to help South Africans take that first step. 'The choices we make today do not just affect our own futures; they have the power to break cycles of inherited debt and create lasting financial security for the next generation.' Ngibe echoes this sentiment, saying it is time to demystify money. 'Savings Month is not just about setting aside cash but about shifting mindsets, breaking generational cycles and making sure every rand works as hard as you do. With the right tools, support and commitment, financial resilience is possible.' They say this National Savings Month, the message is clear: it is never too early or too late to take back control of your money, and you do not have to do it alone.
eNCA
6 days ago
- Business
- eNCA
Saving can help companies prosper
JOHANNESBURG - July is National Savings Month and a time to reflect on our money habits. This is especially important for small businesses, many of which fail because of poor financial reserves. SMEs in South Africa are particularly vulnerable to the hardships the economy faces. Brent Downard, Head of Credit Risk at Merchant Capital, says businesses should stop viewing savings as a luxury.
TimesLIVE
11-07-2025
- Business
- TimesLIVE
Five ways to improve saving strategies
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.'
TimesLIVE
09-07-2025
- Business
- TimesLIVE
Is the culture of ‘black tax' making it harder for young South Africans to save?
July is National Savings Month, a time to reflect on our financial habits and the importance of building a safety net. While government and the private sector continue to pour resources into educating South Africans about saving and managing debt, the reality is many consumers remain deep in debt and struggle to put money aside. One factor often raised in the national conversation is the pressure of 'black tax', the financial support many young earners provide to their extended families. For some this is a proud responsibility rooted in cultural duty. For others, it is a major obstacle to financial freedom.
