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National Savings Month often focuses on budgets, finding extra money to put away and the various savings vehicles available to us.
But for many South Africans, the biggest obstacle isn’t knowing how or where to save, but rather, the small financial habits that quietly chip away at good intentions month after month.
Also see:Â National Savings Month: Why even the best intentions can fail
According to Salem Nyati, Consumer Financial Education Specialist at Momentum Group Foundation, these habits – like overspending on payday, waiting until the end of the month to save, or convincing ourselves that we’ll start saving just as soon as that increase arrives in our account – are slowly sabotaging our chances of building financial stability and future wealth.
The good news? Habits can be changed. Here are five of the biggest savings saboteurs – and what to do instead.
1. Treating payday like make-it-rain day
The habit: Your salary lands and suddenly that Uber Eats order, new clothes or night out you’ve been thinking about feels completely necessary.
Why it hurts your savings: Spending while you’re enjoying that payday euphoria can take a chunk out of your salary before you’ve paid for everything you need to.
Do this instead: Wait 24 hours before going on a spending spree for non-essential purchases. Sort out your bills and savings first, then decide what you can comfortably spend. If you still want something the next day and you can afford it, you can buy it knowing the rest of the month is covered.
2. Saving last instead of first
The habit: You get paid, cover your bills, spend throughout the month and plan to save whatever is left. But then there’s too much month left over at the end of your money, and the savings pot gets ignored again.
Why it hurts your savings: We tend to spend the money we have available, despite our best intentions. Even small purchases can slowly eat into what you hoped to put away.
Do this instead: Make saving a financial priority by paying yourself first. Set up an automatic transfer to your savings account as soon as you get paid, before you start spending. It doesn’t have to be a huge amount – every R20, R50 or R100 adds up and helps make saving a habit.
3. Setting unrealistic savings goals
The habit: Deciding to save thousands of rands, build a huge emergency fund or follow investment advice on social media, because that’s what everyone keeps telling you to do.
Why it hurts your savings: A target that feels impossible can quickly become demotivating – and when you give up on it, you might feel like a failure and stop trying altogether.
Also see:Â National Savings Month: How families can build better money habits
Do this instead: Saving money is a long game, but you can start by giving yourself a target you can reach. Aim to save R500, and when you reach it, aim for R1,000. Keep chasing those small wins – every realistic target you reach will give you something tangible to build on and make the next milestone feel possible.
4. Making your savings too easy to access
The habit: Your savings sit in the same account you use for groceries, takeaways, transport and everyday spending.
Why it hurts your savings: When the money is right there every time you check your balance, it’s easy to spend a little here and there until there’s nothing left.
Do this instead: Give your savings their own account or savings wallet and move the money across when you get paid. These accounts may also earn more interest than your normal transactional account, plus creating a little distance between the money you can spend and the money you want to keep makes dipping into your savings less tempting.
5. Thinking you’ll start saving when you earn more
The habit: You tell yourself you can’t afford to save right now and you’ll start once you get a raise, find a better-paying job, win the Lotto…
Why it hurts your savings: A bigger salary doesn’t mean you’ll immediately have better financial habits. Having more money can just as easily lead to bigger spending.
Do this instead: Start with what you can afford now, even if the amount feels small. Saving R50 regularly builds the habit, and you can increase the amount as your income grows.
Also see:Â National Savings Month: Choose the right stokvel to maximise your savings
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