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Whether you’re fresh into your first job or deep into your career, chances are you’ve made at least one money move you’d rather not repeat. The key is recognising these financial slip-ups, learning from them and taking small steps to do better going forward.
This article isn’t about judgment. It’s about setting course in a new direction. We’re unpacking seven of the most common money missteps South Africans make and showing you how to fix them. If you've ever felt like you've made mistakes on your financial journey, know this: it’s never too late to get back on track. One smart decision at a time is how long-term progress is made.
Mistake #1: Investing while you’re drowning in high-interest debt
It feels responsible to put money into a tax-free savings account or maybe even try your hand at ETFs. But if you’re still carrying credit card debt with sky-high interest, those investments might actually be hurting more than helping. Why? Because you are likely paying more in interest on your debt than you are earning in returns on your investments. Fix this by prioritising paying off your high-interest debt first. Once that’s under control, you’ll have more breathing room to invest and reap the rewards of those investments.
Mistake #2: Getting tripped up by once-off annual expenses
December holidays, car services and back-to-school fees manage to catch us off guard every year, even though we all know they’re coming. The fix is to start treating annual expenses like monthly ones. Total them up for the year, divide by 12 and save that amount monthly into a separate “once-off” fund.
Mistake #3: Always buying new when second-hand would do just fine
There’s a quiet pressure to always be upgrading, whether it's your car, your clothes, your phone or your furniture. But let’s be honest: newer doesn’t always mean better, especially when it means taking on debt to fund it. Normalise checking Facebook Marketplace before buying a new appliance. Look at certified pre-owned tech before signing another 24-month phone contract. And hold off on upgrading just because something feels old. If it still works, that’s money you can put to better use elsewhere.
Mistake #4: Saving what’s left instead of paying yourself first
Here’s a familiar pattern: payday comes, debit orders go off, groceries get bought, takeout sneaks in and by the time you remember to save, the account is looking bleak. This is the trap of saving “what’s left”, and for most people, it’s not much. Flip the script: automate a transfer to your savings or investment account right after you get paid, even if it’s just R200. It’s about building the habit, not chasing perfection. Over time, those small amounts compound, not just financially, but mentally too. You start seeing yourself as someone who prioritises your future.
Mistake #5: Not using cash where it counts
Digital banking is convenient, but it also makes it dangerously easy to lose track of spending. For daily purchases like groceries, entertainment, petrol or transport, switching to cash can bring instant awareness. When the cash runs out, you’re forced to stop spending. It sounds old-school, but it works. Give the envelope method a try: set up a budget for a particular spending category, withdraw that budget in cash and keep the cash in an envelope. Every time you need to spend money on something in that category, pay for it by using cash from the envelope. You might be surprised at how much more mindful you become.
Mistake #6: Not talking about money (and paying the silence tax)
In many South African households, money is still a taboo subject. We’d rather talk about politics or the weather than admit we’re struggling with debt or confused about investments. But silence has a cost. Not talking to your partner about finances can lead to tension. Avoiding tough conversations with family can result in misaligned goals or repeating generational mistakes. The fix is simple but powerful: talk. Set a date with your partner to review your finances. Start a WhatsApp group with siblings to discuss shared family responsibilities. Or find a “money buddy” - a friend who’s also trying to get on top of their finances. Accountability is magic.
Mistake #7: Ignoring investment fees that quietly eat your returns
You wouldn’t knowingly pay 25% more for groceries every week, but that’s what some people are doing with investment fees. The difference between a 1% and a 2.5% annual fee might seem small, but over 20 years, it can translate into tens of thousands of rands lost. Take a moment to check what you’re paying on your unit trusts and retirement annuities, for example. If the fees feel high or confusing, reach out to a fee-only financial advisor. You’re allowed to ask: “What exactly am I paying for?” and “Is this the best deal for me?”
Bonus mistake: Not taking free financial education seriously
There’s one more misstep that’s too common to ignore: assuming that personal finance is too complex to understand. It’s not. Truth About Money’s Financial Independence Course is a free, jargon-free, practical way to get a grip on your finances. It’s built for South Africans, and it covers everything from budgeting to investing in plain language that actually makes sense. Signing up could be the most rewarding investment you make all year.
Progress, not perfection
Everyone has made at least one of these mistakes (probably more). That doesn’t make you bad with money, it makes you human. Remember, the goal isn’t to nail everything at once. Instead, pick one thing and get better at it this month. Good financial habits aren’t about dramatic overhauls. They’re about small, consistent choices that quietly build a better future, one smart decision at a time.