Every July, Savings Month encourages South Africans to put more money aside for the future. It’s an important message, but it also raises an uncomfortable question: how do you save when you’re simply trying to make ends meet?
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The latest available household savings data paints a sobering picture. According to South African Reserve Bank (SARB) data, South Africa’s household saving ratio fell to -1.4% in the fourth quarter of 2025, meaning households were, on average, spending more than they earned rather than putting money aside. In simple terms, many households have little or no financial buffer to absorb unexpected expenses.
A shift in how South Africans need to think about saving
For Adrian Hope-Bailie, fintech entrepreneur and co-founder of Fynbos Money, the statistic highlights a shift in how South Africans need to think about saving. “Savings Month is a useful reminder that financial well-being isn’t measured only by the size of your investment portfolio. For many South Africans, the biggest financial win is having enough resilience to cope with life’s unexpected expenses without going into debt,” he says.
South Africans have endured several years of rising living costs. Although inflation has moderated, many households continue to feel the cumulative impact of higher electricity, municipal tariffs, insurance, school fees and transport costs, leaving little room to save.
Hope-Bailie believes this has created a disconnect between traditional financial advice and the reality many households face.
“We’re still telling people to think about retirement in 30 years’ time when many are worried about getting through the next 30 days. Long-term investing remains incredibly important, but it’s difficult to stay invested if every unexpected expense forces you to dip into your investments or take on expensive debt.”
Instead, he argues that South Africans should rethink what saving is for. “An emergency savings account isn’t there to generate the highest return. Its purpose is to absorb life’s surprises without derailing your long-term financial goals. If your car breaks down, your geyser bursts, or you lose income unexpectedly, that financial buffer gives you options. Without it, one setback can undo years of good financial decisions.”
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There is some good news for South Africans looking to build long-term financial security. This year’s Budget introduced several positive measures for savers, including an increase in the annual Tax-Free Savings Account (TFSA) contribution limit from R36,000 to R46,000. While Hope-Bailie welcomes these incentives, he believes tax benefits alone won’t solve South Africa’s savings challenge.
“Tax incentives are important, but the TFSA is not appropriate for short term or emergency savings. Incentives don’t change behaviour on their own. People save consistently when it’s simple, affordable and automated. The biggest barrier isn’t a lack of intention; it’s that many people feel they don’t have enough left at the end of the month to get started.”
Why consistency matters more
He says that mindset can be difficult to overcome, particularly when people believe meaningful saving requires large amounts of money. “One of the biggest misconceptions is that saving only becomes worthwhile once you can afford to put away substantial amounts. In reality, consistency matters far more than size. Building the habit of saving – even as small as a couple hundred Rand transferred on payday, creates momentum and makes it easier to increase contributions over time.”
Ultimately, Hope-Bailie believes Savings Month should be less about making people feel guilty for what they haven’t saved and more about helping them build financial confidence.
“Saving isn’t about perfection. It’s about creating enough financial breathing room that you’re able to deal with today’s challenges while still investing in tomorrow. Once you’ve built that resilience, you’re in a far stronger position to build lasting wealth.”
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