Saving money on your salary isn’t only about discipline, it’s about strategy and purpose. In South Africa’s tough financial landscape, having a practical plan can make the difference between living pay check to pay check and building real financial security.
Two very real reasons you need to save:
There are two powerful reasons to save:
🧠 1. Be Prepared for Emergencies
Life is unpredictable. Unexpected costs, like medical bills, car repairs, or job loss, can happen at any time. An emergency fund gives you a buffer, so you don’t turn to costly credit or loans.
🎯 2. Achieve Your Financial Goals
Whether it’s buying a car, travelling, sending your kids to university, or saving for a home deposit, clear goals make saving easier and more meaningful.
Step-by-Step: How to Save from Your Salary
Here’s a practical roadmap anyone in South Africa can follow:
1. Set SMART Savings Goals
SMART goals are:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
Example:
“I want to save R12 000 to build my emergency fund within the next 12 months” rather than “I want to save money.” Specific goals help you track progress and stay motivated.
2. Build a Savings Habit, Not Just a Target
Instead of waiting to “have enough,” prioritise savings first, even if it’s just R25 per month initially. The habit of saving consistently is often more important than the amount early on.
💡 Pro-tip: Automate a portion of your salary into savings straight after payday. This is sometimes known as “pay yourself first.”
3. Track Your Spending
Understanding where your money goes each month is crucial:
- Print bank statements from the last two months.
- Highlight essential vs non-essential spending.
- Identify patterns you can improve.
Tracking tools (including bank apps, spreadsheets, budgeting apps, or Meerkat's budgeting template) help you spot leaks before they drain your savings.
4. Create a Realistic Monthly Budget
A budget gives your money structure. One common guideline is:
50/30/20 Rule:
- 50% essentials (housing, groceries, transport)
- 30% lifestyle (entertainment, dining out)
- 20% savings or debt repayment
This rule isn’t fixed. You should adjust it based on your reality (cost of living, debt levels, income).
5. Reduce High-Cost Debt
If you can’t save because you’re paying off debt with high interest rates, focus first on reducing that debt. Clearing debt frees up money you can redirect toward savings. Over-indebtedness is common in South Africa, and it’s okay to start with small steps towards debt reduction. Let us contact you about debt review to help you get on top of your debt!
6. Cut Regular Costs Where Possible
Extra savings can come from simple lifestyle tweaks:
- Review telecom and data plans. Cheaper bundles may save big amounts.
- Reduce bank charges or switch to accounts with lower fees.
- Limit take-outs and impulse purchases.
7. Start an Emergency Fund First
Aim for at least 3–6 months’ worth of essential expenses saved in a separate account. This fund protects you from replacing emergencies with expensive credit cards or loans.
If you cannot put away R25 month towards saving, and you find yourself relying on credit to pay for essential items like groceries, chances are, you don’t have the money to save. You should, in this case, work on reducing your debt.
- A reminder that if you find yourself in this situation:
- 1. You aren’t alone. More than 50% of South Africans are over-indebted and can simply not afford to save.
- 2. This is nothing to be ashamed of. And while it may seem discouraging, there is a way out. You can work towards reducing your debt and eventually having enough money to save.
Read this article about debt review to find out how.
Frequently Asked Questions (FAQs)
Q: How much should I save each month?
A: Aiming for at least 10–20 % of your salary is a good benchmark, but start with what you can afford and increase it over time.
Q: What if I barely have money left over after expenses?
A: Begin small, even R50–R100 a month builds your saving habit. Track spending and cut non-essentials to create room for savings.
Q: Where should I keep my savings?
A: Use a separate savings account. Meerkat has a savings solution that you can use to start saving from just R25 per month.
