JOHANNESBURG, Gauteng — Despite lingering macroeconomic hurdles, South African financial optimism is experiencing a notable surge as consumers take proactive steps to secure their economic futures. According to the latest Savings and Investments Monitor by Old Mutual, citizens are increasingly leveraging side hustles, entrepreneurship, and multiple income streams to build lasting wealth and stability.
The concept of “poly-jobbing” has evolved from a mere survival tactic into a deliberate strategy for building financial security and creating opportunities for future growth. John Manyike, Head of Financial Education at Old Mutual, notes that supplementary income streams are rapidly becoming the norm. Beyond traditional side gigs, earning rental income has become increasingly common. Furthermore, the country is seeing an explosion in the “creator economy,” with individuals utilizing social media platforms to generate revenue and improve their financial resilience. This mirrors global trends, with the international creator economy estimated to be valued at 250 billion rand.
However, this digital gold rush comes with strict regulatory oversight. Manyike emphasizes the urgent need for both financial and tax education, noting that the South African Revenue Service (SARS) is closely monitoring digital earnings.
“If you don’t recognize that as an income, unfortunately, SARS would correctly recognize it as an income,” Manyike warns. He advises those profiting from social media and side hustles to consult tax professionals to ensure they remain in good standing once their earnings reach taxable thresholds, noting that global crackdowns on influencer income are becoming more prevalent.
As economic sentiment improves, consumers also face significant psychological spending traps. A common pitfall is the rush to upgrade one’s lifestyle rather than using additional income to eliminate debt or bolster savings. Manyike points out that the COVID-19 pandemic served as a “rude awakening” for many who were ill-prepared for sudden financial shocks. He urges citizens to view supplementary income as an opportunity to reduce outstanding debts, save on future interest costs, and direct funds toward retirement and long-term investments to build generational wealth.
The data also highlights a stark divide in economic sentiment based on income brackets. There is a marked difference in outlook between those earning more than 30,000 and those earning less. Individuals in the lower income bracket appear significantly more stressed and worried about debt. Conversely, higher earners display a more positive financial outlook for the next six months.
Manyike suggests this disparity may be linked to access to credit. Higher earners often feel more optimistic because they have access to credit buffers during emergencies. However, he cautions against the trap of accepting pre-approved bank loans—often marketed aggressively by financial institutions—which can easily lead to severe over-indebtedness if consumers are not careful.
Finally, the rollout of the two-pot retirement system provides further insight into consumer behavior under economic pressure. While those earning less are statistically more likely to withdraw from their savings pot to ease immediate financial strain, a positive trend is emerging: many individuals who made an initial withdrawal are choosing not to make a second one. This shift is largely driven by the realization that SARS taxes these withdrawals, leaving consumers with less cash than anticipated.
Manyike stresses that the two-pot system was designed strictly to accommodate genuine crises and continues to encourage the public to preserve their retirement savings for the long term, rather than dipping into them for everyday expenses.