“You will never see a leopard taking a giraffe up a tree, because it understands it can only carry what is within its weight.” With this comparison, John Manyike, the head of financial education at Old Mutual, sums up why many South Africans remain financially over-stretched: they are trying to carry more than they can afford.
Findings from the 2025 Old Mutual Savings & Investment Monitor (OMSIM) show that although employed consumers are more proactive about managing their money, 69% still overshoot their monthly budgets.
Vuyokazi Mabude, the head of knowledge and insights at Old Mutual, says people have learned harsh financial lessons post-Covid and are making a concerted effort to save – whether formally or informally. But progress, she says, requires more than planning. “People have the risk of spending the next five years believing that they’re making progress but not making progress, because they’re not actually living what is their reality.”
Mabude says having a budget is not sufficient; people need to live that budget for it to work.
Manyike agrees that discipline is the missing ingredient. “Boundaries are healthy and necessary. Especially when it comes to finances, it is the one thing that puts guardrails in terms of how far you can go with your money.
The annual OMSIM tracks the financial attitudes, behaviours, and priorities of working South Africans earning at least R8 000 a month.
OMSIM’s latest data paints a picture of growing resilience – but also serves as a warning that without better spending discipline, South Africans risk stalling their financial progress.
Year of renewed optimism
Employed South Africans are becoming more optimistic and proactive about improving their finances, despite ongoing economic pressures.
Presenting findings from the Monitor, Mabude said positive sentiment has increased at a personal and a national level. She reported a 6% rise in those who believe the economy will improve, with 42% now confident about South Africa’s future. On a personal level, 75% of working respondents expect their own financial situation to improve in the next six months.
Financial satisfaction levels have stabilised, helped by the fact that 44% of working South Africans are earning more than they did a year ago, managing their debt better, and improving their planning and budgeting habits.
Financial stress remains an issue for 38% of respondents but has declined sharply from the 58% recorded during the Covid-19 period.
Mabude said confidence in making savings and investment decisions has also strengthened, rising 10% over the past three years. An increased use of advisers is contributing to this, with discipline, access to knowledge, and higher income identified as key drivers of confidence.
She highlighted that respondents are recognising the need for more than higher earnings to improve financial outcomes. “What people are basically saying is that having more money doesn’t mean I can make wiser decisions.
“They’re accurately diagnosing that to make better financial decisions, you need the right kind of knowledge and advice, and you need to also practise the right things in the discipline that you show with your spending and your saving.”
Financial priorities
Job security remains the top financial priority for working South Africans, followed by cutting expenses and paying off debt.
Mabude said concerns over unemployment have risen, with a 4% increase in people worried about losing their jobs. In response, an increasing number of people are turning to multiple income streams.
She reported that 57% of working South Africans are now “poly jobbers” – individuals with side hustles, freelance work, or after-hours jobs. The proportion jumps to 75% among those aged 18 to 29.
She noted that 37% of young earners are generating income through social media platforms such as WhatsApp and Facebook, while entrepreneurship remains a common strategy for managing expenses and generating savings.
An emerging trend is the rental of space in private homes. “Twenty percent of working South Africans are now also renting out parts of their home, whether it’s a cottage or a room in their primary home, to make income,” she said, adding this is likely to grow as people continue to diversify how they earn.
The negative impacts of gambling
More than half of working South Africans are gambling to try to boost their income.
Mabude said 52% of respondents admitted to gambling, with the main motivation being to make extra money or because “it was recommended by somebody that they know”. She said gambling is increasingly being used as a way to try to cover debt, which is a risky strategy.
The survey investigated how gambling is being funded and found that 19% of people had to “borrow, sell something, or use credit to fund” their gambling, either often or sometimes. Mabude said this behaviour is starting to erode financial well-being. Although the intention is to raise income, the impact is negative, because many respondents now “can see that they are in financial difficulties as a result of gambling”.
Managing debt
Managing debt remains a major financial focus for working South Africans, ranking second only to job security and on par with cutting expenses.
Mabude said 57% of respondents reported having less debt than a year ago, signalling that awareness is starting to translate into action. The share of people with personal loans has also declined from 57% to 54%.
She highlighted a shift towards proactive behaviour: 32% had approached creditors to make payment arrangements – a higher level of engagement than seen even during the Covid-19 pandemic.
Checking credit status is also on the rise, with seven out of 10 respondents saying they had reviewed their credit scores in the past year to remain “mindful yet again of their debt and their credit scoring”.
Savings behaviour
Savings still make up 22% of household income, but spending has edged up to 44%.
Mabude said 46% of respondents include saving as a regular part of their financial plan, with informal saving on the rise. Unbanked cash – described as money “under the mattress” – has increased to 53%, up from 40% in 2020, because of the convenience of having cash on hand. The use of stokvels has also grown as a disciplined way to save.
Encouragingly, fewer people are depleting their savings. The proportion dipping into savings each month has dropped to 45% from 54%. Early cash-ins of investments are down by 2%, while the number pausing contributions has fallen from 9% to 3%.
Most people claim to have a savings goal, with 81% saving towards retirement, education, or emergency expenses. However, although 96% say retirement saving is important, only a small proportion are actively doing so – and half believe they will not have enough for a comfortable retirement. This concern is more pronounced among those earning between R8 000 and R15 000 a month.
Looking at withdrawals under the two-pot system, Mabude said 31% made use of it in the past year, which could further weaken retirement adequacy unless longer-term saving behaviour improves.
Mabude said the results suggest optimism is beginning to translate into action, whether through finding new income streams, renting out property, reducing debt, or preserving savings.
“This is encouraging following a five-year upheaval period post-Covid,” she said. However, she warned about the rise in gambling, noting a disconnect “between the intent for gambling, which is to make an income or earn money… and the impact that gambling has, which can be corrosive to people’s financial well-being and mental health”.
