Subscriptions gone, eating out cut, but South Africans still can’t cope

South Africans are increasingly struggling to cope financially, despite cutting back on discretionary spending and making efforts to save. Almost four in ten respondents to a recent TransUnion Consumer Pulse Study expect to miss at least one bill or loan repayment. Inflation is a major concern, with 79% of respondents worried about rising prices outpacing their income.

Many are reducing discretionary expenses like dining out, travel, and entertainment, cancelling subscriptions, and cutting digital services. However, even these sacrifices often leave little room for error, as essential costs continue to rise. Financial advisers note that families are managing by prioritizing essential expenses and putting off less urgent goals like retirement savings and investments.

Some are even dipping into retirement funds to make ends meet. While a third of respondents are working to pay down debt faster, 14% have cut retirement savings and 14% are using more available credit. Experts emphasize that small daily expenses matter, but it's the big financial decisions that truly make a difference. Building an emergency fund, paying down high-interest debt, and starting retirement savings early are considered more impactful than minor savings.

Consistency in saving, even if small amounts, is key to creating financial resilience and working towards long-term wealth.