Payday Planning: How to stretch your salary until month-end

For many South Africans, payday brings a sigh of relief. It's a chance to settle bills, stock up on groceries, and perhaps indulge in a small treat. But as the month wears on, that early-month joy often gives way to the familiar struggle of making ends meet. Petrol runs low, lunch money gets tight, and debit orders keep knocking. Sound familiar? 

If you’re tired of running out of money before month-end, you’re not alone. The good news is that with a few smart adjustments, your salary can go a lot further than you think. Here’s a simple, no-nonsense guide to payday planning – especially helpful for wage earners trying to stretch every rand. 

1. Start with a ‘real’ budget 

Before anything else, it’s important to know exactly where your money is going. This isn’t about complicated spreadsheets or financial whatwhat - just grab a pen and paper, or your phone’s notes app, and list: 

• What you earn 

• What you have to pay (e.g., rent, electricity, transport, school fees) 

• What you want to spend on (e.g. takeaways, clothing, data, entertainment) 

The key is to be honest with yourself. Look at your last three months’ bank statements or transaction history and highlight patterns. This will help you understand which habits are helpful and which ones might be quietly draining your wallet. 

2. Use the 50/30/20 rule 

This rule suggests dividing your salary into three parts: 

• 50% for needs: rent, transport, food, basic services 

• 30% for wants: DStv, eating out, airtime, takeaways 

• 20% for savings and debt: emergency fund, stokvel, loan repayments 

You can adjust the percentages to suit your situation, but this gives you a strong starting point. If rent or travel eats more than 50%, you’ll need to shrink your “wants” category to compensate. That new pair of sneakers can probably wait. 

3. Join (or start) a stokvel 

In many South African communities, stokvels have long been a trusted way to save money and manage expenses. They’re simple, effective, and built on accountability. Whether it’s for groceries, funeral cover, or saving towards a December trip, stokvels allow you to pool money with people you trust and benefit from lump-sum payouts. 

The discipline of contributing every month, and the motivation of seeing others do the same, is often more powerful than trying to save alone. Just make sure the group has a clear agreement and someone trustworthy managing the funds. 

4. Avoid ‘money traps’ 

It’s easy to fall into spending habits that seem small but quickly add up. Here are a few to watch out for: 

• Buying takeaways every lunch hour: Try cooking in bulk at home and packing lunch. Even two meals out a week can cost R200– R300. 

• Unplanned supermarket visits: Popping in for bread often leads to walking out with snacks, sweets, and extras. Make a weekly list and stick to it. 

• Expensive short-term loans or credit purchases: Those “no money down” deals often end up costing more in the long run. Rather save up, even if it takes a few months. 

• Data bundles on the go: Buying small daily or weekly bundles is more expensive. Consider a monthly plan or home Wi-Fi with uncapped deals. 

5. Save something, no matter how small 

Too many people think saving only starts when you’ve got “extra” money. But the habit of saving is more important than the amount. Even R10 a week adds up over time. 

Set up a savings pocket on your bank app or open a separate account. Move the money as soon as you’re paid, not at the end of the month when it’s likely already spent. 

Saving just R100 a month gives you R1,200 a year. This is enough for school uniforms, a small emergency, or a head start on Christmas shopping. 

6. Pay yourself first 

This old-school tip is still gold. The idea is simple: Before you pay anyone else, put something aside for your own future. That could be savings, a stokvel contribution, or even an investment account. 

The reason many people can’t save is because they try to save what’s left over and usually, there’s nothing left. By making yourself the first “debit order”, you’re telling your money what to do, instead of letting it boss you around. 

7. Use cash where possible 

In an increasingly digital world, tapping cards or using phone payments makes it easy to overspend. Try drawing your weekly grocery or transport money in cash, then when the envelope’s empty, that’s it. This helps build discipline and gives you a real feel for your spending. It’s much harder to hand over a R100 note than to swipe a card. 

Payday planning doesn’t mean depriving yourself – it means being in control. It means knowing that when the 25th rolls around, you’ll still have enough for your needs, maybe even a little left to enjoy. 

Every rand you manage well is a step closer to financial freedom. It’s not about how much you earn, but what you do with it. So when that next SMS comes in saying “salary paid,” take a breath, make a plan, and remember: your