Despite facing economic challenges, more people are taking steps to fix their finances
Despite facing economic challenges, more people are taking steps to fix their finances
The results of DebtBusters’ third annual Money Stress Tracker Survey showed that 75% of respondents experienced financial stress, a modest improvement from the 78% reported in 2023.
According to DebtBusters executive Benay Sager, the sustained period without load-shedding or interest rate changes in recent months has left consumers slightly less stressed about their finances compared to the same time in 2023.
“Increasing interest rates and not knowing if you’re going to wake up to stage 3 or stage 6 load-shedding is stressful. Consumers like certainty. Although interest rates are high, consistency is less stressful than dealing with continuous rate hikes,” Sager said.
After an aggressive monetary tightening cycle that began in November 2021, the Reserve Bank has left the repo rate plateaued at 8.25% for more than a year, with the last hike on May 26 2023. The Reserve Bank is now set to follow the US Federal Reserve in cutting rates in September.
Despite facing economic challenges, more people are also taking steps to fix their finances. The study showed 35% of respondents were actively looking for a higher-paying job, up from 26% in 2022. A total of 27% reported that they had made a budget and were sticking to it, up from 20% in 2022.
Employment is a key driver of financial confidence. The latest results of the Old Mutual Savings & Investment Monitor found that financial stress among working South Africans had dropped from 58% in 2020 to just 37% in 2024.
The survey also found that 68% of employed South Africans were optimistic that their financial situation would improve in the next six months.
According to Old Mutual’s head of knowledge and insights, Vuyokazi Mabude, hope of overcoming financial stress is on the horizon as South Africans grow more confident in their ability to save and invest.
“This shift in mindset is evident in their proactive approach to managing their finances,” Mabude said. The survey showed a promising trend towards financial diversification, as 57% of South Africans now had multiple incomes streams, up from 50% in 2023.
Findings also suggest that improvements in financial confidence are driven by a positive trend in access to financial services, with 43% of working South Africans having used a financial adviser in 2024 — up from 39% in 2023.
“This optimism is crucial for promoting proactive financial behaviours and continued resilience,” Mabude said.
While these findings offer some hope, Sager warns that the elevated levels of financial stress are still cause for concern.
Of those experiencing financial stress, 93% said it negatively affected their home life, 76% their work life and 74% their health.
Levels of financial stress were also 10% higher among women than men, which psychologist Andre Kellerman attributed that in part to the burden of parenting, as it becomes increasingly common for women to be both mothers and breadwinners.
Short-term money woes seem to have the greatest effect, with the most common concerns being running out of money before month-end, as well as covering monthly debt repayments.
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