This savings month, pay yourself first

WHEN managing your money, it’s easy to confuse saving with investing. While the two are closely related, they play different roles in your financial journey. Saving is about setting aside money for short-term needs or emergencies, while investing is about growing your wealth over time. Both are important, but one must come first: saving.

- SHIREE COETZER

The habit of saving

This July, as we observe National Savings Month in South Africa, it’s the perfect time to reflect on the foundation of all financial progress, the habit of saving. Think of saving as paying yourself first. Before you pay any bills or cover any expenses, prioritise putting something away for your future. South Africa remains one of the countries with the lowest savings rates globallythe gross savings rate for South Africa is just 13.7% (government savings, business, and households).

Actual household savings as a percentage of disposable income in the first quarter of 2025 showed no savings, with the average household relying on borrowing.

This is perhaps unsurprising in the face of rising living costs and economic pressures. However, the root of the issue is often a lack of financial education and practical guidance. Many South Africans simply don't know where or how to start.

How do you start saving?