I'm always trying to find money to put in my savings.
So, one night when I got home and got an email from one of the e-hailing service providers, I clicked on it. This led me to calculate how much the return trip from work had cost that particular day. I budget R200 for a round trip. That day, I had a saving of R48.
Then I thought to myself, 'I better start saving the difference because if I don't I'll probably spend it on something I won't even remember'. So then I went on the app to check how much I saved on transport from the beginning of July.
For the first week of the Savings Month, I saved R236. I worked from home once that week. At face value, it may not seem like a lot of money but imagine if I save that much over four to five weeks. That tallies up to R944 and R1180, respectively. Let's multiply that by at least six months (July to December). I'll have thousands more in my savings account.
For months, I've been trying to figure out how to build an emergency savings fund. Money is a bit tight for many of us but I don't compromise on my savings and you shouldn't as well.
This may just be a way to get started on building that fund. Baby steps now, big wins later.
An emergency fund serves as a safety net and you have peace of mind knowing you have some jar you can dip your hands into when you're hit by an unexpected event.
Investment and savings app Franc co-founder and CEO Thomas Brennan says: "[An emergency fund] provides a buffer against unexpected shocks. In a country where job insecurity, medical emergencies, and rising living costs are daily realities, the importance of this buffer can’t be overstated.
"Without it, you risk dipping into long-term savings or investments when life throws you a curveball, interrupting the very growth those funds are meant to deliver.”
He says the rule of thumb Franc advocates for is, 'if you're fully employed, aim for one to three months’ worth of living expenses'.
“If you're self-employed or freelance, three to six months is ideal, given the income volatility many entrepreneurs face. Yes, those numbers feel overwhelming but starting small (even R100 a month) builds meaningful buffers over time.
“Our mission has always been to make investing accessible through simple, low-cost access to local and offshore funds. But investing feels intimidating, full of jargon and risk,” says Brennan.
Our mission has always been to make investing accessible through simple, low-cost access to local and offshore funds. But investing feels intimidating, full of jargon and risk
— CEO Thomas Brennan
He says one common mistake they see is people keeping emergency savings and daily spending money in the same account. “This creates temptation to dip into the fund for non-emergencies. That’s why separation is crucial.
"Ideally, your emergency fund should sit in a low-risk, high-interest bearing account, such as a money market fund, where your savings can earn real returns but still be accessible when needed,” he says.
“What often gets lost in these conversations is that saving is far less about spreadsheets than it is about behaviour. Many of us know the so-called 50-30-20 rule: 50% goes to essential needs (rent, food, transport, utilities), 30% to discretionary spending (entertainment, dining out, hobbies), and 20% to savings or debt repayment. It’s a simple framework but not many people successfully apply it in practice.
“That’s why we focus on building habits. Automating transfers or “paying yourself first” are simple hacks that improve consistency. We’ve also found that accountability boosts success.
"Savings Month often feels like another reminder of how far behind we are. Don’t be paralysed by the size of the goal. Start with the first glass. Build your emergency fund. Automate your habits. The rest will follow.”
RCS chief risk officer Myles Coelho gives tips on building clear savings plans:
Budget with intent – and flexibility: For many South Africans juggling school fees, transport costs and household bills, finding room to save can feel impossible. A useful starting point is the “small-wins” approach: identify one daily habit you can tweak – like making coffee at home, carpooling or swapping a streaming service for a free podcast.
Audit your daily and weekly spending for leakage – those small, often unnoticed expenses that add up. Could you pack a lunch rather than purchasing one? Even cutting out one unnecessary purchase a week – perhaps a cold drink or a snack – and redirecting that money into a dedicated savings jar or a low-fee savings account can create a tangible starting point.
Consider a 'no-spend' day once a week or challenge yourself to cook all meals at home for a week. These seemingly minor shifts can add up to surprising amounts of cash, proving that saving isn't just for those with abundant disposable income, but for anyone willing to make intentional choices.
Use those small savings to fuel a dedicated “goal jar” (physical or digital) for essentials like emergency repairs or school uniforms.
Make savings non-negotiable: To stay disciplined use automating savings. Treat it like a fixed expense. Having a monthly debit order going into a separate savings account means you’re saving before you spend, not waiting to see what’s left at the end of the month. You can even consider it paying towards your future self – paying yourself first each month means saving will take priority, and down the line, you’ll be pleased you started.
Even small contributions can make a big difference over time. Make your savings contribution as non-negotiable as your rent or electricity bill. Over time, these small efforts build a financial safety net that gives you options when times get tough.
Beware the future cost of instant gratification: While the two-pot retirement system offers the possibility of accessing a portion of one's retirement savings, every rand withdrawn today erodes tomorrow’s security. Withdrawing from your retirement savings now effectively robs your future self, diminishing the capital that would otherwise grow through compound interest over decades.
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