National Savings Month encourages South Africans to build healthier saving habits, but for many households the biggest obstacle is not a lack of motivation. It is a lack of disposable income.
According to National Debt Counselling Association (NDCA) chairperson René Moonsamy, many consumers simply do not have enough money left after paying for debt and essential expenses to build meaningful savings.
Why some South Africans cannot save
Moonsamy says consumers generally fall into three groups.
Some choose not to save even though they have the means. Others have some capacity to save but prioritise other spending. A third group wants to save but cannot because their income is consumed by debt repayments and essential living costs.
“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.”
Debt repayments leave little room to save
Moonsamy says the challenge is often negative cash flow.
This happens when essential monthly expenses, including bond or rent, vehicle finance, insurance, school fees, municipal services and debt repayments, exceed monthly income.
As a result, households struggle to make financial progress.
Emergency savings are often the first casualty.
When unexpected costs such as vehicle repairs, medical expenses or household repairs arise, many consumers rely on credit because they have not been able to build a financial buffer.
The additional borrowing then increases monthly repayments, making it even harder to save.
“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.”
Start by reviewing your monthly spending
Moonsamy says households should regularly review their bank statements to identify unnecessary recurring deductions that affect cash flow.
The goal is not simply to find money to save, but to reduce the need to borrow.
He says avoiding a R200 unnecessary monthly payment could save R2,400 over a year and more than R12,000 over five years before taking any investment returns or interest into account.
When cutting back is no longer enough
There comes a point where reducing spending further makes little difference.
If most income is already committed to essential expenses and debt repayments, Moonsamy says the focus should shift to restoring affordability.
Options include restructuring debt through a consolidation loan, negotiating with creditors or applying for debt counselling.
“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 can help restore financial stability
A registered debt counsellor assesses a consumer’s financial situation and, where appropriate, develops a structured repayment plan that makes debt more manageable while protecting their legal rights.
Moonsamy says some people avoid debt counselling because they see it as admitting failure.
“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. Remember, financial resilience is not measured by how much you can save today, but by taking practical steps to put you on a path to a sustainable financial future.”
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