If it wasn’t already, after Thursday 1 May’s VAT increasing, most South Africans will want to save money in 2025. A rash of economic speeds bumps so far this year have certainly upset most saving and investing strategies in 2025.
Imminent VAT increases, rising cost of living (Eskom and water) and ailing US-SA relations have been like a triple whammy to cash-strapped South Africans so far this year. Nevertheless, one of the South Africa’s top banks already has insight into where South Africans are choosing to save money in 2025 …
SOUTH AFRICANS SAVING MONEY IN 2025
Unfortunately, it appears the ‘nice-to-haves’ are the first to go when Saffas opt to save money in 2025, according to Standard Bank. Tax hikes and increases to fundamentals like electricity and water are severely eating into peoples’ budgets. As a result, South Africans will save money in 2025 by cutting back on holiday travel.
Shene Mothilal, Digital Money Manager at Standard Bank explains: “Quick and easy cuts are the first to go when there’s less disposable income. Economic hardships mean South Africa’s economy has remained stagnant while the cost of living has only escalated. Sadly, holiday accommodation and travel – which typically shows a good spike in March and April – is down.”
HOLIDAYS ON ICE
Furthermore, Mothilal explains that even factoring in seasonal increases over Easter, holidays are a smaller spending item for consumers. Basically, spending money on leisure time has become more erratic. And, as mentioned, it is the type of spending that’s easiest to cut back on.
That comes as no surprise when 2025 has already seen above-inflation hikes to medical aid, insurance and electricity. With much worse to come after approved VAT increases come into effect next week.
Other ways households save money in 2025 is by cutting down on streaming services, domestic help and gym subscriptions. Meanwhile, other tactics include putting off major purchases off and maintaining/repairing rather than replacing household items, says the bank.
HOW ARE YOU CUTTING BACK IN 2025?
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