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While the first quarter of 2025 saw the Consumer Confidence Index drop, South Africans can build their financial resilience by sharpening their saving strategies and taking control of their financial futures. 

Consumers must turn the current economic uncertainty into an opportunity to build clear savings plans. With July marking National Savings Month, every South African should be taking a moment to assess whether their current approach to savings is working and, if it isn’t, how it could be improved for their benefit.

Budget with intent – and flexibility

For many South Africans juggling school fees, transport costs, and household bills, finding room to save can feel impossible. A useful starting point is the “small wins” approach:  identify one daily habit you can tweak, like making coffee at home, car-pooling, or swapping a streaming service for a free podcast.

Audit your daily and weekly spending for "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.

Consider a 'no-spend' day once a week, or challenge yourself to cook all meals at home for a week. These seemingly minor shifts can add up to surprising amounts of cash, proving that saving isn't just for those with abundant disposable income but for anyone willing to make intentional choices.

Use those small savings to fuel a dedicated “goal jar” (physical or digital) for essentials like emergency repairs or school uniforms.

Use a zero-based budget, where every rand is allocated, including for savings. Begin by reviewing the past three months of expenses and categorising them into needs versus wants. Cut back where you can and remember no saving is too small. Any leftover funds, whether it be from fewer takeaways or impulse purchases, can be redirected into your savings.

Make savings non-negotiable

To stay disciplined, treat it like a fixed expense. Having a monthly debit order going into a separate savings account means you’re saving before you spend, not waiting to see what’s left at the end of the month. You can even consider it paying towards your future self, paying yourself first each month means saving will take priority, and down the line, you’ll be pleased you started.

Even small contributions can make a big difference over time. 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 the Future Cost of Instant Gratification

While the "two-pot" retirement system offers the possibility of accessing a portion of one's retirement savings, every rand withdrawn today erodes tomorrow’s security. Withdrawing from your retirement savings now effectively robs your future self, diminishing the capital that would otherwise grow through compound interest over decades.

Before considering a withdrawal, South Africans must weigh 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.

The short-term gain of a withdrawal pales in comparison to the long-term pain of a significantly reduced retirement income.

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. National Savings Month reminds us that saving is a necessity for anyone managing rising costs and limited income.

In this sense, he highlights that saving doesn’t always mean earning more. Often, it’s about spending smarter. This may mean buying in bulk or opting for generic brands where possible. Being intentional with your spending is just as important as growing your income.

The economic road ahead may be bumpy, but by adopting simple habits, like setting aside a small portion of each paycheck, tracking everyday expenses, and exploring high‑interest savings options, consumers can turn uncertainty into an opportunity to build stronger, more resilient savings.

* Coelho is the chief risk officer at RCS.

PERSONAL FINANCE