It’s a question almost everyone asks at some point: Should I save money? Or should I focus on paying off debt?
Maybe you’ve had this experience: you’ve just been paid, and after covering your essentials, you’re left with a little extra. You know you should be smart with it—but you’re torn. Do you throw it at your credit card balance? Or do you put it aside for that rainy day you know will come?
This isn’t just a numbers game—it’s about peace of mind, resilience, and freedom. Let’s dig deeper.
Why This Dilemma Feels So Heavy
Debt carries emotional weight. You feel it when you swipe at the till, when you look at your bank app, and even when you lie awake at night wondering if you’ll ever be free.
On the other hand, savings bring comfort. Knowing you have a little cushion makes you breathe easier—especially in a country like South Africa, where load shedding, fuel hikes, and surprise expenses are a constant reality.
This is why it feels like a tug-of-war: paying off debt brings freedom, but saving money brings security. The key is to strike the right balance.
Step 1: Face the Numbers with Courage
The first step is awareness. Many people avoid looking at their debt because it’s uncomfortable, but ignoring it won’t make it go away.
Take out a pen and paper (or open a spreadsheet) and list:
- The type of debt (credit card, retail account, personal loan)
- The balance owed
- The interest rate
👉 Example: If your credit card charges 22% interest and your savings account only gives 6%, it’s costing you more to stay in debt than you gain from saving.
Truth bomb: The longer you delay tackling debt, the more your future money is already spent.
Step 2: Build a “Peace Fund” (Not Just an Emergency Fund)
Before you throw every cent at debt, build a small starter savings cushion. I like to call this a Peace Fund—because that’s what it gives you: peace.
Aim for at least R5,000–R10,000 (or one month of essential expenses). Why?
- If your car battery dies, you won’t need to use your credit card.
- If your child needs school fees suddenly, you’ll have breathing space.
- If load shedding damages an appliance, you won’t panic.
This step is vital because it keeps you from repeating the cycle of debt.
Step 3: Attack Debt with a Strategy
Now that you’ve created a safety net, it’s time to get aggressive with debt. There are two popular methods:
- Debt Snowball: Pay off the smallest debt first, then roll that payment into the next one. This gives quick wins and builds momentum.
- Debt Avalanche: Pay off the highest-interest debt first, saving you the most money in the long run.
👉 Example:
- R3,000 store account @ 18%
- R10,000 personal loan @ 14%
- R20,000 credit card @ 22%
With the avalanche method, you’d hit the credit card first. With the snowball method, you’d clear the store account first. Both work—the best method is the one you’ll stick with consistently.
Step 4: Balance Debt + Savings as You Grow
Once your high-interest debt is under control, you can start splitting your money:
- 70% toward debt, 30% toward savings
- Or even 50/50 if your debt is low-interest (like a student loan).
This dual approach means you’re not just getting out of the hole—you’re also building the ladder to climb higher.
The Faith & Finance Perspective
Debt is more than numbers—it’s spiritual too. Proverbs 22:7 says: “The borrower is servant to the lender.” Debt can feel like chains, limiting your choices and weighing down your spirit.
But God also calls us to wisdom. In Genesis, Joseph saved grain during the good years so Egypt could survive the famine. That’s financial resilience in action.
The message is clear: freedom comes from both wisdom and discipline. Build a cushion, crush your debt, and walk in financial stewardship.
Practical Tips to Get Started Today
- Automate your savings. Even R500 a month set aside adds up quickly.
- Make extra payments. Round up your debt payments (e.g., pay R1,200 instead of R1,000).
- Cut lifestyle leaks. Cancel unused subscriptions, limit eating out, or downgrade data packages.
- Use “unexpected” money wisely. Bonuses, refunds, or side hustle income? Split between debt and savings.
Remember: it’s not about how fast you move—it’s about moving consistently.
A Real-Life Example: Meet Thandi
Thandi is 29, living in Johannesburg, and works in marketing. She earns R18,000 a month, but like many young professionals, she’s juggling debt and trying to build her financial future.
Here’s her situation:
- Credit card balance: R15,000 at 21% interest
- Store account: R5,000 at 18% interest
- Personal loan: R30,000 at 13% interest
- Savings: R0
Every month, Thandi was paying the minimum amounts, but the balances hardly moved. Whenever her car needed repairs, she’d swipe her credit card and end up back where she started.
Here’s what changed:
- She decided to build a small Peace Fund of R7,500 (one month’s expenses). She saved R1,500 per month for five months while paying minimums on her debt.
- Once her cushion was in place, she used the avalanche method to target her credit card first, paying an extra R2,000 a month.
- After clearing her credit card in 8 months, she snowballed the payments into her store account, and then into her personal loan.
Two years later, Thandi is completely free of unsecured debt. She now puts R5,000 a month into her savings and investments—something she never thought possible when she was drowning in payments.
The lesson? By building a small cushion first, then attacking her debt with strategy, Thandi moved from survival mode to financial resilience.
Final Thoughts
So, is it better to save money or pay off your debt?
✅ Save a small cushion first (your Peace Fund).
✅ Attack high-interest debt with focus.
✅ Balance savings and debt repayment as you build momentum.
This isn’t about perfection—it’s about progress. Each step forward is one step closer to financial resilience and true freedom.
✨ At Elevate Finance Partners, we’re here to guide you on that journey—because money management is not just about numbers, it’s about peace, purpose, and freedom.