Fresh Out of Varsity? Here’s How to Save Your Salary

It’s a struggle – living from pay cheque to pay cheque. It’s not ideal, but sometimes your expenses get the better of you. Whether you’re 20, 30 or 40 – spending money is inevitable. The trick lies in how you spend it – and if you are saving at all. Analysts say the average South African saves 8% of their salary. Where do you lie on that scale?

There are a couple of basic tips that can stretch your rands a little. The classic rule is the 50-30-20 rule: 50% of your income should go to essentials like rent, debit orders, and food, 30% should be spent on dinner or treats, and 20% should be saved. This does, however, seem like a stretch sometimes. We spoke to a couple of 20-something South Africans to find out how they make sense of their rands.

Chisanga Mubanga (24) is a strategist at an advertising agency. His struggles are synonymous with 20-something living: “I struggle to stay disciplined. I spend my more of money on lunch at work or eating out at restaurants than I spend at home or packing lunch when I have food in the fridge. It’s a waste of money, really.” However, Chisanga does have a plan when it comes to savings. “I have a 32-day notice account with an automated monthly payment.”

Yetunde Dada (25) lives in Pretoria, and works as a consultant. She also runs a blog on the side. “Whenever I get paid I immediately deposit money into my 32-day-notice account – especially when I’m saving for something like a trip. This account makes it difficult for me to access the money when I think I ‘need’ it. I always have a saving goal in mind.”

George Germishuys (25) is a Capetonian, and writes for a living. “I’m fairly level-headed when it comes to monthly expenditure, but I do seem to overspend on leisure activities. I don’t have a formal savings plan, but I do attempt to come in under my budget on a monthly basis. I then leave these funds in my formal account to create a buffer for a rainy day.”

Le Roux Fourie is a managing consultant at a big corporate – and he seems to struggle with the classic millennial dilemma: socializing. “I visit restaurants way more than I need to. I don’t necessarily have a set budget for dining out, and this leads to overspending. I really should limit this.” In spite of the occasional reckless spending, Le Roux is a pretty focused fellow when it comes to saving. “I’ve got a set savings plan. Something I found that works for me is to lay out my savings goals for the coming three years. My motivation to save on a month-to-month basis comes from a planned holiday abroad – it’s a solid plan which convinces me that putting that money away is absolutely worth it.”