As National Savings Month comes to a close, remember this:
Building better money habits doesn’t end here.
Saving is not about how much you earn – it’s about starting where you are, even if your income changes from month to month.
Many South Africans earn variable incomes. Maybe you are a shift worker, commission earner, freelancer, or running your own small business. Some months are good, others are tough, and saving can feel impossible. But it is possible, with a flexible plan that fits your reality.
This July, we’ve said #NoMore excuses and #KnowMore about smart saving.
Here’s how to build a savings habit that works, even when your paydays aren’t predictable:
1. Know your average monthly income
Look at what you earned over the last 6 to 12 months. Add it up and then divide it by the number of months. That average gives you a better idea of what you really earn, not just your best or worst month.
Use Bayport’s free budget tool to plug in your numbers and plan smarter. CLICK HERE to download.
2. Base your lifestyle on your lowest income month
Instead of budgeting for your best month, plan for your lowest. Set your essentials like rent, groceries, and transport around that amount. If you earn more, that’s extra money you can save or use to build a buffer.
3. Pay yourself first – even just a little
When you get paid, move a small amount into a separate savings account before you spend anything else. Even on a low month just R20 or R50 counts. What matters is building the habit.
The 52-week savings challenge works well for variable incomes. You can increase or decrease the amounts based on what you earn each week. CLICK HERE to download a plan that suits you.
4. Build a buffer during good months
On the months when you earn more than usual, try not to spend more. Instead, put the extra into a buffer fund – a savings account you use during quieter months. This can help cover you during quiet periods, without having to dip into debt.
Name the account “Buffer Savings” or “Quiet Month Fund” in your banking app. This way you won’t touch it unless you really need to.
5. Automate when possible
Even if your income is unpredictable, try to set up an automatic transfer to your savings account for just after payday. If that’s not possible every month, set a reminder on your phone to move money manually when you do get paid. What matters is consistency.
6. Plan ahead for high-spend seasons
If you know January is always tough, or December comes with big family costs, start saving for those months in advance. Variable earners must think a few steps ahead. Saving small amounts regularly can avoid stress later on.
Quick takeaways:
- Know your numbers: Use a 6 to 12 month average to guide your budget.
- Plan for your lowest month: Budget your needs around your lowest regular income.
- Save something every time, even if it is small: Just R20 can keep the habit going.
- Create a buffer fund: Use higher-earning months to build a cushion.
- Plan for expensive seasons: Think and plan ahead to avoid getting into debt.
Just because your income changes, doesn’t mean your savings plan has to stop. #NoMore “I can’t”, just “how can I?”
National Savings Month might be ending, but your journey to financial freedom is just beginning. Keep going – one smart step at a time.
