How can you save when you use 75% of your income to pay debts?
Most consumers are cynical about National Savings Month in July, asking how they can even begin to think about saving when they spend 75% of their income to repay debts which are usually the result of borrowing just to survive.
According to the 2025 1Life Generational Debt Survey, only 41% of employed South Africans manage to save each month and even those who do are often not saving nearly enough to build financial security.
A further 36% say they simply do not earn enough to save at all.
The situation is just as concerning among middle- to higher-income earners, as DebtBusters reports that individuals earning R5 000 or less are using 75% of their income to service debt. People earning R35 000 or more are not much better off, spending 74% of their income on debt repayments.
'Too many South Africans are overwhelmed by debt and living paycheque to paycheque, but no matter your income level, there are real, practical steps you can take to regain control, build healthier money habits and start working towards long-term financial stability,' Hayley Parry, money coach and facilitator at 1Life's Truth About Money, says.
ALSO READ: Savings month: How to save like a millionaire – even if you are not one yet
Stop telling consumers they must save and show them how to
Tando Ngibe, senior manager at Budget Insurance, says we must move beyond simply telling people to save and start showing them how.
'Budgeting does not have to be complicated. Even small changes can create breathing room and protect you from the financial shocks that so often derail progress. It is about building a new culture of money awareness and resilience.'
Insights from the 2025 1Life Generational Debt Survey paint a sobering picture of the nation's financial health:
22% of respondents admit that past financial decisions have left them in debt
34% are carrying inherited debt passed on by previous generations
53% still believe they can build generational wealth, even with a modest income.
Separate research from Trading Economics highlights just how strained household budgets are. South Africa's household savings rate dropped to -1.2% in the fourth quarter of 2024 from -1.0% in the third quarter, according to Trading Economics.
Parry and Ngibe agree that while the data is sobering, it is not the end of the story.
ALSO READ: Savings month: Here's how to build your financial future brick by brick
Stop judging consumers for not saving and equip them to
Parry says they are not there to judge, but to equip.
'Financial freedom starts with knowledge and consistent action. Even if your starting point is deep in debt, there is always a way forward and platforms like 1Life's Truth About Money, which offers free courses tailored to different life stages, are designed to help South Africans take that first step.
'The choices we make today do not just affect our own futures; they have the power to break cycles of inherited debt and create lasting financial security for the next generation.'
Ngibe echoes this sentiment, saying it is time to demystify money.
'Savings Month is not just about setting aside cash but about shifting mindsets, breaking generational cycles and making sure every rand works as hard as you do. With the right tools, support and commitment, financial resilience is possible.'
They say this National Savings Month, the message is clear: it is never too early or too late to take back control of your money, and you do not have to do it alone.
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