The first thing South Africans cut to save money

Two household financial health surveys conducted this year show that South Africans are more than willing to cut the fat when it comes to saving money – and brand names, streaming services and gym are the first to go.

This is according to the 2024 Nedbank NedFinHealth Monitor Report and the Old Mutual Savings and Investment Monitor (OMSIM), both of which examine the financial health of working South Africans.

The OMSIM, published at the start of November, shows that South African households are generally more positive about their financial prospects and find themselves on a more stable footing when it comes to debt and saving. Cutting costs remains one of the biggest measures taken to maintain this.

Old Mutual noted that in addition to making positive trade-offs in their finances, stretching income and cutting expenses—and using “value hacking” tools—are a big part of the turn in sentiment.

Compared to 2023, the group noted “hints of recovery” with the pause on major expenses, switching to cheaper TV streaming options and switching to cheaper brands has eased.

However, while cost-cutting has eased, it is by no means over.

A similar tone was recorded in the more recent NedFinHealth Monitor Report, which also tracked a turn in sentiment around financial health and wellbeing among households – but the cost pressures of the past few years are still clearly visible.

According to Nedbank, working South Africans have had to employ a host of diverse strategies to cope with financial stress.

“The most common approaches reflect a mix of adjusting spending habits, using savings and finding additional sources of income,” the bank said.

Looking specifically at cost-cutting, streaming services, supermarket brands, cutting gym contracts and using less data or downgrading a cellphone contract win out.

The most popular tactics used can be broken down like this:

While the OMSIM focused on the cost-saving tactics above, the NedFinHealth Report grouped many of these together while focusing on additional strategies to earn money.

In this case, it was less about what South African workers cut out, and more on what they did to get more money.

Here it was evident that savings were the go-where possible – but borrowing also quickly came in.

The table below outlines the top tactics South Africans used to get more money:

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