According to the latest NedfinHealth Index, almost 45% of South Africans are spending less than they earn, and the spending score has risen to 57.1%, pointing to a change in behaviour, with more households consciously taking control of expenses and paying bills on time.
The NedfinHealth Index, developed by Nedbank, measures financial well-being using eight indicators across four dimensions: spending, saving, planning and borrowing. It compares perceptions with reality, offering a snapshot of how South Africans manage their money.
“South Africans are showing flexibility in managing their money. The fact that almost half the population is spending less than they earn is a sign that people are starting to prioritize stability rather than impulsivity,” says Frank Magwegwe, financial wellness and advisory executive at Nedbank.
The data also shows that savings are stronger than many people realize. With 57% of South Africans having set aside at least three months of savings, the public conversation about money often suggests that more households are building buffers.
Planning emerges as another area of strength. 71% of households say they have a monthly budget, indicating deliberate behavior rather than chance. “Budgeting isn't glamorous, but it is powerful. The fact that more than seven in ten households are budgeting shows that South Africans are thinking ahead, covering responsibilities and making room for life's surprises,” Magwegwe says.
The data shows that debt and stress are the most serious realities. Money stress remains the number one source of anxiety across age, income and lifestyle groups. 58% of South Africans are concerned about scams and fraud, while job-related stress is on the rise. Yet credit scores are improving, with more people reporting manageable debt or no debt at all.
Magwegwe says, “Debt is often portrayed as a negative, but when managed responsibly, it can be part of a healthy financial life. The encouraging trend is that more South Africans are getting their debt levels under control, which reduces stress and increases confidence.”
The NedfinHealth Index doesn't paint a perfect picture, but it shows progress. Financial fitness is not about flawless execution, but about awareness. He says taking stock of where you stand can unlock insights that help you spend wisely, save with confidence, plan with intention, and borrow responsibly.
“Financial well-being is a journey. The Index is a tool that helps South Africans reflect honestly on where they are, and take practical steps towards a healthy financial future. Progress matters, even if it's not perfect,” says Magwegwe.
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