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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Old Mutual noted that in addition to making positive trade-offs in their finances, stretching income and cutting expenses\u2014and using \u201cvalue hacking\u201d tools\u2014are a big part of the turn in sentiment.<\/p>\n\n\n\n
Compared to 2023, the group noted \u201chints of recovery\u201d with the pause on major expenses, switching to cheaper TV streaming options and switching to cheaper brands has eased.<\/p>\n\n\n\n
However, while cost-cutting has eased, it is by no means over.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
According to Nedbank, working South Africans have had to employ a host of diverse strategies to cope with financial stress. <\/p>\n\n\n\n
“The most common approaches reflect a mix of adjusting spending habits, using savings and finding additional sources of income,” the bank said.<\/p>\n\n\n\n
Looking specifically at cost-cutting, streaming services, supermarket brands, cutting gym contracts and using less data or downgrading a cellphone contract win out.<\/p>\n\n\n\n
The most popular tactics used can be broken down like this:<\/p>\n\n\n\n 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.<\/p>\n\n\n\n In this case, it was less about what South African workers cut out, and more on what they did to get more money.<\/p>\n\n\n\n Here it was evident that savings were the go-where possible – but borrowing also quickly came in.<\/p>\n\n\n\n The table below outlines the top tactics South Africans used to get more money:<\/p>\n\n\n\nCost saver<\/th> NedFinHealth<\/th> OMSIM<\/th><\/tr><\/thead> Switch to cheaper streaming<\/td> 30%<\/td> 32%<\/td><\/tr> Switch to cheaper supermarket brands<\/td> 30%<\/td> 30%<\/td><\/tr> Cutting down domestic help<\/td> 11%<\/td> 29%<\/td><\/tr> Cutting down cellphone and data<\/td> 30%<\/td> 27%<\/td><\/tr> Cutting gym subscriptions<\/td> 30%<\/td> 26%<\/td><\/tr> Putting major purchases on hold<\/td> 25%<\/td> 22%<\/td><\/tr> Maintain rather than replace big items<\/td> 25%<\/td> 22%<\/td><\/tr> Cashing in investments\/saving early<\/td> 28%<\/td> 15%<\/td><\/tr> Downgrade rented property<\/td> –<\/td> 14%<\/td><\/tr> Moving children to cheaper school<\/td> –<\/td> 13%<\/td><\/tr> Switching or trading down vehicle<\/td> –<\/td> 12%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n Getting money<\/th> NedFinHealth<\/th><\/tr><\/thead> Using savings<\/td> 28%<\/td><\/tr> Borrow from family and friends<\/td> 28%<\/td><\/tr> Look for a second job<\/td> 26%<\/td><\/tr> Start a side-business or side hustle<\/td> 23%<\/td><\/tr> Borrow from informal lenders<\/td> 12%<\/td><\/tr> Sell valuable items<\/td> 11%<\/td><\/tr> Access wages or salary before payday<\/td> 10%<\/td><\/tr> Borrow from payday loan providers<\/td> 10%<\/td><\/tr> Borrow from a bank<\/td> 10%<\/td><\/tr> Borrow from a pawn shop<\/td> 6%<\/td><\/tr> Borrow from a savings club<\/td> 6%<\/td><\/tr> Get a debt consolidation loan<\/td> 3%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
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