How understanding your brain can help build a savings habit

For many South Africans, saving remains one of the most difficult financial habits to maintain. While rising living costs and economic uncertainty play a role, the biggest obstacle may be what’s happening in your mind. According to Liberty, understanding the psychology behind financial decision-making can help people develop healthier saving habits and build greater financial resilience over time.

“Many people believe that successful saving is simply a matter of discipline or earning more money. In reality, behavioural science tells us that our brains are wired to favour immediate rewards over future benefits,” says Shalia Naidoo, head of behavioural science, insurance and asset management at Standard Bank Group. Naidoo notes that this tendency, known as present bias, explains why it’s often easier to spend money today than to save for a goal that may only be realised years from now.

Whether it is retirement, buying a home or building an emergency fund, long-term financial goals can feel distant and abstract, making them easy to postpone. “Another common behavioural barrier is what psychologists refer to as future self-disconnect. Research suggests that people often think about their future selves almost as though they are someone else, making it harder to prioritise financial decisions that will benefit them years from now.

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“When we struggle to identify with our future selves, saving can feel like sacrificing today’s happiness for someone we don’t yet know. The challenge isn’t a lack of ambition; it’s understanding how our brains naturally make decisions.” Naidoo highlights that behavioural science also shows that successful savers don’t necessarily have stronger willpower. Instead, they create systems that reduce the need to make difficult financial decisions repeatedly.

Automating monthly savings, separating savings into specific goals and celebrating small milestones can make long-term financial objectives feel more achievable. “Breaking larger ambitions into smaller, measurable targets also creates a sense of progress that keeps people motivated,” she said.

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