July is Savings Month in South Africa, and once again we’ll hear familiar advice: spend less, save more, build good financial habits.
It’s good advice. But in today’s economy, it is only part of the story.
For many South Africans, putting money aside has become increasingly difficult. Rising living costs, higher transport expenses, electricity price hikes and the everyday pressure of stretching a salary further each month mean that simply putting money aside is often an achievement in itself.
Yet for those who are able to save, there is an important question worth asking: What happens after the money lands in your savings account?
Saving is only the first step
Business head of Clarity by Investec Tinus Rautenbach explains that building wealth is not the same thing as saving.
“Saving remains one of the most important financial habits anyone can develop. It creates a buffer against unexpected expenses, helps fund short-term goals and provides a sense of security during uncertain times.
“An emergency fund can mean the difference between a temporary setback and a financial crisis,” says Rautenbach.
But while savings absolutely provide security, they may not always provide growth. Imagine someone saves R1,000 every month and keeps it in a traditional savings account. They are building a healthy habit and creating financial resilience.
However, if inflation continues to increase the cost of everyday goods and services, the purchasing power of that money may not grow at the same pace. In practical terms, the money could buy less in 10 years than it does today.
This is where many South Africans unintentionally stop short on their wealth-building journey.
“We’ve long been taught the importance of saving, but less attention has been given to the role of investing,” says Rautenbach.
“Yet investing is often what allows money to grow over time, helping individuals move beyond financial stability towards long-term wealth creation.
“That doesn’t mean people should choose investing instead of saving. The most effective approach is usually a balance of both,” he says.
Why investing matters
Think of savings and investments as serving different purposes. Savings help you prepare for what could happen next month. Investments help you prepare for what could happen in 10 or 20 years.
“You may save for a holiday, a school expense or a household emergency. You invest for retirement, future financial independence or to build wealth that can support your family over generations,” says Rautenbach.
“The challenge is that investing has traditionally felt beyond access for many people. It has often been associated with large sums of money or exclusive financial circles.
“Today, that perception is changing. Technology is making investing more accessible, transparent and easier to understand.”
Successful investing is about consistency, patience and giving your money the opportunity to work alongside you over time
— Business head of Clarity by Investec Tinus Rautenbach
South Africans increasingly have access to more tools that allow them to learn, start small and make informed decisions about their financial futures. The barriers to entry are lower than they have ever been, opening opportunities for more people to participate in wealth creation.
Rautenbach also notes that investing is not about chasing quick wins or trying to predict market movements.
“Successful investing is about consistency, patience and giving your money the opportunity to work alongside you over time.
“And so this Savings Month, perhaps the conversation needs to evolve and instead of asking whether South Africans are saving enough, we should also ask whether they understand what comes next.
“Because saving is not the end goal. It is the foundation,” he says.
Balancing security with growth
For those who can save, even in small amounts, the next step is understanding how to balance the security of today with the potential growth of tomorrow.
That means maintaining healthy savings habits while exploring investment opportunities that align with personal goals, risk tolerance and life stages and using a trading platform that makes it easy.
A platform with a simple, user-friendly interface, access to hundreds of local and international securities and no hidden costs — just the ability to control your own investment journey — investing when, how, where and how much you want.
“Building wealth is rarely the result of a single decision. It is the product of many small, consistent choices made over time. Saving is one of those choices. Investing may be the one that helps turn those savings into something more,” says Rautenbach.
Take the next step from saving towards building long-term wealth. Start your trading, saving and investment journey with Clarity, and give your money the opportunity to grow locally and globally.
This article was sponsored by Clarity by Investec.
Clarity by Investec is a service offering of Investec Bank Limited (registration number 1969/004763/06), an authorised Financial Services Provider (FSP 11750) and Over-the-Counter Derivatives Provider, a Registered Credit Provider (NCRCP 9), and a member of the JSE Limited. Investec Bank Limited is committed to the Code of Banking Practice. Complaints may be referred to the National Financial Ombud Scheme South Africa, an independent body that handles complaints against South African financial institutions. Copies of the Code and the Ombudsman’s details are available on request or visit Investec COBP.
