Every July, South Africans are encouraged to save more, spend wisely and prepare for the future.
It’s an important message. But for many households, it also raises a difficult question: How do you save when there’s simply nothing left at the end of the month?
While National Savings Month promotes healthier financial habits, the reality for countless consumers is far more complicated than simply choosing to save. For many, the biggest obstacle isn’t a lack of financial discipline—it’s a lack of disposable income.
According to René Moonsamy, Chairperson of the National Debt Counselling Association (NDCA), financial advice encouraging people to save often overlooks the different realities consumers face.
Not Everyone Faces the Same Savings Challenge
Moonsamy explains that South Africans generally fall into three broad groups when it comes to saving.
The first includes people who have the means to save but choose not to.
The second consists of those who could save but prioritise other spending.
The third group faces a far more difficult challenge. These are consumers whose entire income is already committed to essential living expenses and debt repayments, leaving virtually nothing available to save.
“Some people don’t save for behavioural reasons, some because of their lifestyle priorities and some because they can’t afford to. Providing information and advice on the importance of savings might help the first two groups, but not the third. Unlike poor savings habits, which can be improved by changing behaviour or spending priorities, this group suffers from a structural affordability problem that cannot be solved by encouraging them to save more.”
For these households, the issue is not motivation—it is affordability.
When Debt Leaves No Room to Save
The biggest challenge facing many consumers is negative cash flow.
This happens when monthly income is insufficient to comfortably cover essential expenses, including:
- Bond or rent payments
- Vehicle finance
- Insurance premiums
- School fees
- Municipal services
- Existing debt repayments
When these costs consume nearly every rand earned, saving becomes increasingly unrealistic.
Rather than building emergency reserves, households often find themselves relying on credit whenever unexpected expenses arise.
A vehicle breakdown, medical emergency or urgent household repair can quickly become another debt obligation.
According to Moonsamy, this creates a cycle that becomes increasingly difficult to escape.
“Emergency savings are one of the foundations of financial resilience, but if debt repayments are absorbing most of your disposable income every month, it becomes extremely difficult to build that safety net.”
Breaking the Borrowing Cycle
For consumers who genuinely want to save but cannot, Moonsamy recommends beginning with a careful review of monthly bank statements.
The goal is not necessarily to find money to save immediately, but to identify recurring expenses that unnecessarily drain cash flow.
Eliminating even a small recurring payment can make a meaningful difference over time.
A monthly expense of R200 amounts to R2,400 over a year, and more than R12,000 over five years, excluding any investment growth or interest that money could have earned.
Redirecting those funds could help reduce expensive debt or begin building an emergency fund.
Knowing When Budget Cuts Are No Longer Enough
Although reviewing expenses remains worthwhile, Moonsamy cautions that some households eventually reach a point where further cost-cutting simply isn’t enough.
If most income is already committed to necessities and debt repayments, improving affordability becomes the priority.
Possible solutions may include:
- Debt consolidation
- Negotiating repayment arrangements with creditors
- Applying for debt counselling
Attempting to save while continuing to rely on expensive credit for everyday expenses often deepens financial pressure instead of relieving it.
“Attempting to build savings while relying on expensive credit to cover everyday living expenses leaves consumers trapped in a cycle of borrowing to make ends meet. That’s when more fundamental interventions, including debt counselling, can help.”
Debt Counselling Is About Recovery, Not Failure
Debt counselling continues to carry unnecessary stigma for some consumers.
However, Moonsamy believes seeking professional assistance should be viewed as a responsible financial decision rather than a personal failure.
A registered debt counsellor assesses a consumer’s financial circumstances and, where appropriate, develops a structured repayment plan that makes debt more manageable while protecting legal rights.
Seeking help early can also prevent financial difficulties from escalating further.
“In fact, the opposite is true. Seeking help early can prevent financial problems from escalating, protect assets from creditors and lay the foundation for long-term financial recovery. That is a responsible thing to do.”
Financial Resilience Looks Different for Everyone
National Savings Month remains an important reminder of the value of financial planning.
However, the conversation around saving also needs to recognise the realities many South Africans face.
For households under severe financial pressure, resilience is not always measured by the amount saved each month.
Sometimes, the first and most important step is restoring financial stability by addressing unsustainable debt, improving affordability and creating the conditions that make saving possible in the future.
As Moonsamy concludes, financial resilience is not measured by how much you can save today, but by taking practical steps that put you on a path toward a more sustainable financial future.
