Top tips for saving money when finances are tight"

Let’s face it, for most of us, money has felt tighter than ever. Whether it’s rising costs, unexpected bills, or just trying to stretch each rand a little further, many South Africans are navigating a season where ‘just making it work’ is a daily mantra. And yet, through resourcefulness, discipline, and a bit of creativity, we continue to find ways to persevere.

Even when things are tough, there are still practical, empowering steps we can take to stay afloat and even build toward a better financial future.

Every July, South Africa observes Savings Month to encourage better financial habits. But saving money can feel impossible for many, especially in today’s climate. From rising food and fuel prices to steep interest rates on loans and credit cards, many South Africans are left with very little to put away at the end of the month. However, even small steps can make a meaningful difference over time.

South Africa’s household savings rate remains stubbornly low. According to Stats SA, it hovers at around 0.5% of GDP, compared to 18% in countries like India. This low rate reflects the reality faced by millions: a high cost of living, stagnant wages, and growing debt levels.

Some people have psychological barriers to saving. Very often, people are willing to save, but they may have their own historical trauma around money, or their mindset needs to shift. But by facing and overcoming your fears, it is possible to get into a saving habit.

Pay yourself first

Instead of saving what’s left over after spending, pay yourself first. Set up a scheduled debit order to move a small amount (even R50 or R100) into a separate savings account as soon as you get paid. Automating this makes it easier to stay consistent.

Some banks now offer linked savings pockets that invest in unit trusts, and this allows people to access market-linked growth without needing a large initial investment. These solutions can help make your money work harder over time, even if you're starting small.

Track and trim your spending

It’s impossible to save unless you know where your money is going. Use a simple spreadsheet, a budgeting app like Vault22, or even just pen and paper to track your expenses for a month.

You might be surprised by how much slips away on impulse buys, subscriptions you don’t use, or takeaways. By identifying leaks in your spending, it becomes easier to redirect that money into savings.

Set a specific savings goal

It’s easier to stay motivated when you have a clear purpose. Whether it’s a December holiday, an emergency fund, or school fees for next year, name your goal and give it a timeline. This gives your saving effort structure and makes it more rewarding.

Save on high interest and join a stokvel

If you’re paying 18% interest on a store account, that’s money working against you. Rather than saving into a low-interest account while carrying expensive debt, focus on clearing those balances first. It’s a way of saving by avoiding future costs.

If discipline is a challenge for you, it might be a good idea to join a savings club or stokvel. Many South Africans benefit from the collective accountability and support that stokvels provide, and the lump-sum payouts at the end of the cycle can be a game-changer.

Saving may feel out of reach when every rand counts, but even small, consistent actions can build financial resilience over time. Whether you’re starting with R20 or R200, the habit of saving is what matters most. By being intentional with your money, setting goals, and making conscious spending choices, you can take control of your financial future, one step at a time.

* Manyike is the head of financial education at Old Mutual.

PERSONAL FINANCE