“Just save more” is not helpful when the month ends before the money does. Saving on a small income is possible, but it works best as a system, not a promise.
Here is a three-step system to save money when every rand is spoken for.
Step 1: how do you save money first, even a little?
Decide a small amount, such as R100 or R200. Move it on payday into a separate account. You will adjust to spending less faster than you expect.
| You save | After a year |
|---|---|
| R100 a month | R1,200 |
| R200 a month | R2,400 |
| R500 a month | R6,000 |
Increase it a little every few months. Save on payday before you pay anything else, because “what is left” is usually nothing.
Step 2: where can you find hidden leaks?
Review your bank statement for the last three months.
| Likely leaks | What to do |
|---|---|
| Unused subscriptions | Cancel |
| Bank fees | Compare accounts. See bank charges |
| Data and airtime | Switch to cheaper bundles |
| Takeaways and small treats | Set a weekly limit |
| Store accounts and interest | Pay down the costly ones |
| Insurance duplicates | Check you are not paying twice |
Even R300 recovered each month gives R3,600 a year.
Step 3: how do you make it automatic?
Use debit orders and separate pots. Name them: emergency, December, school, car. Seeing the purpose makes it easier to leave the money alone. See sinking funds.
Where can you cut without feeling it?
- Food. Plan meals, use a list and buy staples in bulk.
- Transport. Share lifts and plan trips.
- Electricity. See saving electricity.
- Fees. Review bank and card charges.
- Entertainment. Pick free or cheap options.
How do you handle windfalls?
Bonuses, tax refunds and side-hustle income can speed up saving. Decide in advance where they go. See SARS tax refund and 13th cheque ideas.
A simple rule works well: when a windfall arrives, split it. Put half towards your savings goal, a quarter towards debt and keep a quarter to enjoy. You stay motivated, and the savings still grow faster than they would from monthly amounts alone.
How do you earn more?
Saving is limited by income. See side hustles. Even a small extra income can fund your emergency fund.
What if you have debt?
Do both. Build a small buffer, then pay costly debt faster. See what to do when you cannot pay your debts and debt consolidation.
When you are ready for longer-term savings, SARS explains tax-free investments, which let interest grow without tax up to the annual limit.
What should you not do?
- Do not keep savings in your everyday account.
- Do not borrow to save, such as taking a loan to invest.
- Do not fall for “get rich quick” schemes. See online loan scams.
How do you find your leaks in 30 minutes?
Set a timer, and go through your last three months of bank statements with a highlighter. Here is a hypothetical audit with the savings you could find.
| What you find | Monthly amount | What to do | Saving |
|---|---|---|---|
| Two streaming subscriptions | R298 | Keep one | R149 |
| Airtime top-ups | R400 | Use a monthly bundle | R100 |
| Bank fees | R180 | Move to a cheaper account | R90 |
| Takeaways | R450 | Cut by a third | R150 |
| A gym debit order not used since March | R350 | Cancel | R350 |
| Total | R839 |
R839 a month is more than R10,000 a year. Your own list will differ, but most people find at least one forgotten debit order. Check that you are not paying twice for the same thing, such as two funeral policies.
Our guide to bank charges explains where fees hide.
Which savings challenges work on a small income?
Games help some people. Two simple ones:
| Challenge | How it works | After a year |
|---|---|---|
| R10 a day | Put R10 aside every day | about R3,650 |
| 52-week challenge | Save R5 in week 1, R10 in week 2, up to R260 in week 52 | R6,890 |
The 52-week plan starts small and ends big, so it is best if you can handle bigger payments later in the year. If that fails, try the reverse, starting with the larger amounts when you feel motivated. Choose the version you will really finish.
How do you keep going when it gets hard?
Habits survive when they are easy and visible. A few ideas:
- Give the money a name, such as “tyres” or “school shoes”. A goal is harder to spend than a balance.
- Keep it out of sight, in a separate account without a card.
- Track progress, with a simple chart on the wall or a note on your phone.
- Celebrate small milestones, such as your first R500.
- Tell one person, who will ask how it is going.
If you miss a month, restart. A pause does not erase the savings you have already built.
How do you stop savings from being eaten by inflation?
Prices rise, so money that sits in a zero-interest account loses buying power. For short-term savings, a savings account that pays interest is a start. For money you will not touch for years, see tax-free savings accounts and beating inflation.
Be careful with anyone promising high, guaranteed returns, because those promises are the signature of a scam.
The aim is not to get rich quickly. It is to be ready for the next surprise without borrowing, and to move towards your longer goals one payday at a time.
What should you do in the first week to save money?
Keep the first week simple. Day one: choose the amount, even R100, and set a debit order for the day after payday. Day two: open a separate account or pocket, and name it.
Day three: cancel one subscription or debit order you do not use. Day four: look at your last statement for one fee you can cut. Days five to seven: write down what you will do with the first R500.
A week of small steps is enough to save money without feeling deprived. The aim is a habit, not a heroic month, and the habit is what keeps the money growing when life gets busy.
Frequently asked questions
Where should I keep money I save?
In a separate account you do not use daily, ideally without a card.
What if I cannot save every month?
Save when you can, and keep the habit. A small amount in a hard month still counts.
Is it more important to save money or pay debt?
Do a bit of both: a small buffer first, then extra on costly debt.
How much should I try to save money each month?
Start with an amount you will not miss, such as R100 to R200, and raise it over time.
What is the easiest way to save money if I forget?
Set up a debit order for the day after payday, so that the money moves before you can spend it.
Can I save money if I am paid weekly?
Yes. Move a small amount each week, even R50. Weekly habits are easy to keep because the amounts are small.
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