By Sino Booi,
The Medium-Term Budget has been tabled and the forecasts are in. From a saving perspective, waiting for a ‘better month’ to start saving could be the most expensive habit you never knew you had.
The Finance Minister delivered his Medium-Term Budget Policy Statement (MTBPS) on 21 October, revealing government’s growth forecasts, debt ratios and revenue. For households, the announcement of temporary fuel levy relief will offer some breathing room, with reductions of R1.50 per litre for petrol and R3 per litre for diesel from 4 November to 1 December 2026. Which is important, but for most South Africans, the budget that really matters isn’t the one tabled in Parliament. It’s the one you do in your head on the 24th, trying to work out whether payday will arrive before the petrol light comes on.
And that budget has had a rough year. Fuel prices have hit record highs, interest rates have been hiked twice since February, and the grocery trolley somehow keeps getting more expensive without getting any fuller. It comes as no surprise that more than half of South Africans say they simply can’t afford to save.
When every rand already has a job, saving starts to feel like something for other people – with money left over at the end of the month.
The myth of the perfect month
Waiting until things calm down has one problem: there’s always another bill. The car service, the school trip, the birthday you forgot was coming. The perfect month to start saving is a bit like the perfect Monday to start gym. It doesn’t exist, and waiting for it is how one year turns into five. A financial buffer isn’t built by size. It’s built by showing up.
Put R200 aside every month and you’ll have R2 400 by this time next year, before a cent of interest. No, that won’t fix the cost of living. But it could cover a flat battery, a dentist visit, or a school outing without a payday loan getting involved. And with debt counselling applicants already needing 64% of their take-home pay to service debt, according to DebtBusters, not adding to the pile, is a win in itself.
The good news? South Africans want to save. Industry research found that 64% of working South Africans keep some savings in cash outside the banking system. The trick is turning it into a habit that actually earns you something, which the shoebox under the bed, sadly, does not.
Finding room when there isn’t much room
A few ways to start, without pretending your rent is optional:
- Start embarrassingly small and pick an amount so manageable you won’t miss it. The point is to build the habit, not to impress anyone.
- Set up a debit order for the day after payday, so your savings leave before the rest of the month gets its hands on them.
- Review your streaming platforms and other subscriptions. If there’s one you haven’t used in a while, consider redirecting that monthly amount to savings instead.
- Before a tax refund, bonus, or birthday money disappears into ‘general spending’, send a portion straight to savings.
- Savings sitting in your everyday account have a way of turning into groceries. A separate savings account adds a helpful bit of distance – and usually earns better interest.
- If a month goes sideways, reduce or pause your contribution, then start again. A habit with a few gaps is still a habit.
Let’s be honest: R200 a month won’t solve the affordability challenges facing South African households, and saving should never come at the cost of food, rent, or other essentials. But a small buffer changes what happens when life doesn’t go according to plan. It’s the difference between an unexpected expense being a nuisance and becoming a new debt. And once it’s routine, that same habit funds the bigger stuff – a deposit on a home, your children’s education, your retirement. The economy will recover in its own time. Your financial security doesn’t have to wait for it.
Sino Booi, Product Development Lead at Momentum Savings.
