The month of July often brings two financial realities simultaneously: it is Savings Month, which usually implies the need to cut expenses, and tax season, when some residents of South Africa who received an automatic assessment from SARS may expect a refund.
For households that are already managing expenses for petrol, groceries, school needs, loan repayments, and insurance, there may not be much left to cut from the budget. Savings Month should be viewed not only as a time to save but also as an opportunity to catch up on what was missed.
Those fortunate enough to receive a tax refund during this time often come up with a plan to spend the money multiple times over. While rewarding oneself is an important aspect, it is worth considering saving part of the amount or directing it towards paying off high-interest debts first.
The essence is not to view every refund as sudden income that will instantly disappear. This moment must be used to check whether your current financial plan aligns with your lifestyle.
Consumers can start by answering three practical questions. The first question concerns determining where a lump sum, such as a refund from SARS, will have the greatest long-term impact. If a person has high-interest debts, using part of the refund to reduce the balance of a personal loan can lower the total debt amount and decrease the overall cost of borrowing. Although there may be a temptation to put the money on a credit card, these funds are often spent again within a short period. Direct debt repayment will likely bring more sustainable financial relief.
The second question is whether your responsibilities have changed. The arrival of a new dependent, the need to support a parent, a change in rent, or a switch in a policy that no longer meets the household's needs can affect what requires protection.
The third question is what upcoming expense is expected. Whether it is school costs, annual insurance premiums, vehicle maintenance, or the holiday season, applying part of the tax refund to prepare for future spending can prevent unnecessary financial strain later in the year.
Catching up does not always mean making one big change. Sometimes it starts with understanding what payments are due, what has changed, and where a small adjustment can improve the next month or year. Digital financial tools can help by making balances, due dates, policy information, and available options more visible and manageable.
Savings Month should not cause guilt because life has become more expensive. It should serve as a reminder that control is often achieved through transparency, timeliness, and small decisions made before pressure arises.
When making every purchase, a person makes a choice. Many people wonder at the end of the month where their money went. However, perhaps it is worth asking a deeper question: did I spend money on what is truly important to me?
Every purchase is a choice. Some expenses are necessary, such as paying rent or a loan, buying groceries, fueling a car, or paying school fees. There are also less obvious expenditures—daily coffee, online special offers, ordering takeout due to fatigue, or buying an item simply because it was on sale.
Individually, these expenses may seem insignificant, but together they form a certain story, often revealed in bank statements, which may not meet expectations.
Many strive to get rid of debt, build an emergency fund, save for children's education, or ensure a comfortable old age. These goals are undoubtedly valuable. Nevertheless, for many, the problem is not the size of the income, but how they decide to manage the funds they have.
The point is not to constantly restrict oneself or feel guilty about spending, since life is meant to be enjoyed. At the same time, there is nothing wrong with celebrating important events, family vacations, or rewarding oneself after achieving personal success.
A more important question is whether we make a conscious choice or simply spend money thoughtlessly. We live in a world where we are constantly encouraged to buy more. Social media showcases the latest trends, and advertising promises happiness with every purchase. Special promotions create a sense of urgency, making us believe we are saving, when in reality we might be spending money we didn't originally plan to use.
Over time, small expenses accumulate, and what seems insignificant today can subtly affect our financial future. A useful exercise is to pause before buying, during which you should ask yourself several simple questions: do I really need this? Will this purchase be important to me next month? Am I buying this because it adds value to my life, or to satisfy a momentary feeling? What financial plan am I postponing by spending this money today?
There are no right or wrong answers; the value lies in the moment of reflection before reaching for the wallet. We have met people who know how to value every ruble regardless of their income, as well as people with good incomes who constantly experience financial pressure. This reminds us that our relationship with money is about more than just salary.
Often, the difference lies in daily choices. Next time you review your finances, take a few minutes to pay attention beyond the balance. Your bank statement may reveal your true priorities better than you imagine. If what you see surprises you, do not despair. Significant changes rarely happen overnight; they begin with one better decision, repeated often enough to become a new habit.
Money is one of the most powerful tools. It can provide security, create opportunities, and help build the desired future, but this is only possible with purposeful spending. Perhaps the question was never, 'Where did all my money go?', but rather, 'Did my money help me become the person I want to be?'
National Savings Month, observed in July, is an initiative by the South African Savings Institute (SASI) aimed at promoting healthier financial habits across the country. However, this campaign takes place during a period when many South Africans are facing rising costs of living, increased borrowing expenses, and significant strain on household budgets.
As interest rates remain high and inflation is near the upper end of the target range set by the South African Reserve Bank, many consumers find it difficult to put money aside. Nevertheless, financial experts argue that saving becomes even more crucial under such conditions. They advise households to focus on building even modest financial reserves to cushion against unexpected expenses, further interest rate changes, or price increases, rather than waiting for more favorable economic conditions.
Over 80% of middle-income South Africans lack sufficient savings to cover expenses for even one week. Financial planners note that closing even part of this gap can significantly improve a household's ability to withstand financial shocks without resorting to debt.
For many South Africans, purchasing a home represents the largest financial commitment. However, in the current interest rate environment, housing affordability extends far beyond simply accumulating a down payment. With a repo rate of 7% and a prime lending rate of 10.5%, monthly mortgage payments remain significantly higher than two years ago, placing additional pressure on new homeowners.
Brett Bendal, National Head of Sales at BetterBond, points out that prospective buyers often focus too heavily on saving for a deposit while underestimating the importance of maintaining financial reserves after acquiring property. He notes: 'We see many potential buyers diligently saving for a deposit, and then pushing themselves to the absolute limit of what they can afford or the maximum amount they qualify for in pre-approval.'
According to Bendal, true discipline lies not only in saving for the down payment but also in creating a buffer capable of absorbing a rate hike or several months of tighter cash flow after moving in. He strongly recommends that buyers stress-test their budget at a higher rate than offered and continue saving even after receiving approval. Since a mortgage is a decades-long commitment, the habit of saving that helped secure the deposit should not cease on the day the keys are received.
Bendal also reports that existing homeowners can benefit from making relatively small extra mortgage payments whenever their finances allow. Even an extra payment of R200 per month on a R2 million mortgage can have a significant effect over time. At a 20-year term at the current prime lending rate, this extra contribution will reduce the total interest paid by over R109,000 and shorten the repayment period by approximately seven months.
Consistent saving is only part of capital preservation. For South Africans planning overseas investments, paying international tuition fees, buying foreign property, or diversifying assets internationally, currency fluctuations and transfer fees can significantly erode the value of these savings. Harry Scherzer, CEO of Future Forex, believes that exchange rate awareness should become part of a broader national discussion on savings.
He emphasizes: 'People meticulously plan how much they will save in Rand, but far fewer carefully consider what actual value that saving will hold when it needs to cross borders. The Rand is considered one of the most volatile and reactive currencies in the world's emerging markets. If you are saving for an international goal—whether funding overseas investments, paying university fees, buying property abroad, or building a global financial future—time and structure matter. It is not about trying to predict the market, but about making informed decisions that minimize unnecessary costs.'
Scherzer adds that the larger the transaction, the greater the impact seemingly minor differences in exchange rates and transfer fees can have. 'This is why advance planning and understanding your options can be crucial. Protecting your capital depends not only on how much you save, but on minimizing preventable losses when that money eventually moves across borders.'
Financial experts acknowledge that households continue to face significant challenges, including rising fuel prices, increased interest rates, and general cost-of-living pressures affecting disposable income. However, they argue that financial resilience is built through consistency, not perfection.
Households that emerge from difficult economic periods in a stronger financial position are not necessarily those who accumulated the largest sums, but those who maintained the habit of regularly setting aside funds, even if the amounts were modest. As National Savings Month highlights, the importance of financial preparedness remains clear: one should build a financial cushion before it is needed, test personal budgets under harsher financial conditions, not just current availability, and view saving as an integral part of long-term financial security, not as what is left over after monthly expenses are paid.
