The new rules for saving: How to design a wealthier life in your 20s and 30s
Saving money used to feel simple. You would put aside a portion of your salary, try not to think about it, and hope that it grows over time, for when you need it the most.
Financial pressure is a reality at every stage of life. Living costs are through the roof, debt is always top of mind, and it comes with its own challenges for those in the early stages of parenthood.
Under these circumstances, saving money can feel like an impossible juggling act. The regular playbook falls short when young people try to invest for the long term and be prepared for the sudden emergencies that life sometimes throws up.
As we reflect on Youth Month, we look at how, with the right financial advice and planning, young people are rewriting the rules for saving and investing for everyone.
Young South Africans are taking control
Fortunately, young people are getting creative with their money and finding innovative ways to live wealthier. They are reimagining saving by blending purpose with tech. They’re no longer playing by the old rules.
According to Standard Bank’s Youth Barometer, most young South Africans start channelling a bigger portion of their discretionary income towards insurance, loans and savings in their early 30s, taking advantage of the compound effect of saving earlier.
They’re not just saving, they’re building wealth in ways their parents never imagined. Young South Africans also leverage technology and digital platforms to save money and invest globally. Most popular are Tax-Free Savings Accounts, exploring investment options and setting up savings goals on their Banking App.
While young people are finding ways to save in this tough economy, they still need solid financial advice to make their decisions sustainable and long-lasting.
A break from the past
The moment calls for new rules for saving, and a break from traditional thinking. It calls for financial design thinking.
Design thinking is a widely used approach in industries like information technology, telecommunications, and infrastructure planning. It helps solve complex problems by breaking them down into small, manageable parts.
At its core, design thinking is about empathy, creativity, and problem-solving. So, what happens when you apply this thinking to your financial well-being? It can be a blueprint for living wealthier by building your financial life around your values, goals, and lifestyle.
It starts with a question.
Instead of asking “How much must I save?”, if you ask “What am I saving for?” it reverse-engineers a system that works for you. This way, you can shift your approach from sacrifice to a positive strategy with a unique outcome that suits you.
What does financial design thinking look like in real life?
- Start with a purpose
Think of your money like a design project. What matters to you? Who are you building it for? What will I do in an emergency? It is easier to save when there’s an emotional attachment to it. Give your savings goal a name, whether it be “New Home”, “Kids Education” or “Emergency Fund”. You can use your Banking App to create a savings plan that fits your life and track your progress, and prepare you for times when you will need to dip into those funds. - Don’t hesitate, automate
One of the smartest moves you can make is to use a financial system that sets you up to reach your goals. With the right tools, saving and investing can happen almost effortlessly. Set up automatic transfers on payday, stay engaged by tracking your savings, and start investing in small, manageable steps.
For example, Thato, a 30-year-old marketer, uses the Banking App to invest R500 automatically on payday, no having to remember it, no stress. At the same time, she’s opted to round up her spending and save it into a travel fund in the background. Six months later, she’s built both savings and investments – without constantly having to think about it. That is financial design thinking in action. - Prototype, don’t perfect
Design thinking teaches us about testing and iterating. Why not apply the same principle to your financial planning? If something’s not working, change it up. For example, try something different if the 50/30/20 (needs/wants/savings) budget model doesn’t work for you. Progress beats perfection every time. You are young enough to adapt your life to new ways of living wealthier, but you won’t know until you try.
A financial advisor can also help you translate financial design thinking into a tangible, personalised plan – and pivot when needed.
A generation saving differently
Sure, saving money in your 20s and 30s isn’t easy. But there are advantages previous generations never had, like better technology, more flexibility, and new ways of thinking about wealth.
Your savings plan should work for you, not the other way around. When you design it right, saving becomes less about restriction and more about creating the life you want to live.
That is worth saving for.
If you need more help building wealth, plenty of solid tools are available, such as goal-setting features on your Banking App, flexible savings options, tax-free savings accounts, and digital investment platforms like Shyft.