How can you save when 75% of your income goes to debt?

July marks National Savings Month, and Budget Insurance together with 1Life Insurance are urging South Africans to face a critical truth: when 75% of your take-home pay is spent on debt, where does saving even begin?

According to the 2025 1Life Generational Debt Survey, only 41% of employed South Africans manage to save each month – and even those who do are often not saving nearly enough to build financial security. A further 36% say they simply do not earn enough to save at all. The situation is just as concerning among middle- to higher-income earners: DebtBusters reports that individuals earning R5 000 or less are using 75% of their income to service debt. Those earning R35 000 or more are not much better off, spending 74% of their income on debt repayments.

This National Savings Month, Budget Insurance and 1Life Insurance are joining forces to shift the conversation from encouragement to empowerment. It’s time to talk about budgeting habits, debt management, and how South Africans can build towards financial security – even when the odds feel overwhelming.

Sharing real-world guidance and practical hope

“Too many South Africans are overwhelmed by debt and living paycheque to paycheque,” says Hayley Parry, money coach and facilitator at 1Life’s Truth About Money. “But no matter your income level, there are real, practical steps you can take to regain control, build healthier money habits, and start working towards long-term financial stability.”

“We need to move beyond simply telling people to save – and start showing them how,” says Tando Ngibe, Senior Manager at Budget Insurance. “Budgeting doesn’t have to be complicated. Even small changes can create breathing room and protect you from the financial shocks that so often derail progress. It’s about building a new culture of money awareness and resilience.”

Insights from the 2025 1Life Generational Debt Survey paint a sobering picture of the nation’s financial health:

• 22% of respondents admit past financial decisions have left them in debt
• 34% are carrying inherited debt passed on by previous generations
• 53% still believe they can build generational wealth, even with a modest income

Separate research from Trading Economics and highlights just how strained household budgets are. South Africa’s household savings rate dropped to -1.2% in Q4 of 2024 (from -1.0% in Q3), according to Trading Economics.

Turning the tide, one financial decision at a time

Both Budget Insurance and 1Life Insurance agree: while the data is sobering, it’s not the end of the story.

“We’re not here to judge, we’re here to equip,” says Hayley Parry. “Financial freedom starts with knowledge and consistent action. Even if your starting point is deep in debt, there’s always a way forward – and platforms like 1Life’s Truth About Money, which offers free courses tailored to different life stages, are designed to help South Africans take that first step. The choices we make today don’t just impact our own futures, they have the power to break cycles of inherited debt and create lasting financial security for the next generation.”

Tando Ngibe echoes this sentiment, adding: “It’s time to demystify money. Savings Month isn’t just about setting aside cash – it’s about shifting mindsets, breaking generational cycles, and making sure every rand works as hard as you do. With the right tools, support, and commitment, financial resilience is possible.”

This National Savings Month, the message is clear: it’s never too early or too late to take back control of your money – and you don’t have to do it alone.