Newton’s law of motion states that there is an equal and opposite reaction to every action. This holds particularly true for the first few months of the New Year when bank accounts look skinny, waistlines have often increased and additional debt tends to weigh consumers down.

“When someone mentions debt, you automatically think the worst, due to the negative connotation associated with this topic,” says Lezanne Human, CEO, FNB Savings and Investments.

Incurring debt however, does not mean that you are financially unfit as many financial portfolios may include some level of debt at various stages. “It is near impossible for the majority of South Africans to save up to buy a home or car without having to incur some form of debt,” says Human.

“The trick isn’t to avoid debt altogether, but instead finding the right balance between paying off debt while continuing to save,” suggests Human.

This seems counterintuitive, as one automatically assumes that you are unable to save while paying off debt.

Those who save are not paying off debt – myth busted!

Research conducted by FNB reveals that more than half (54.2%) of South Africans* who save, are currently paying off sizeable debts.

“Consumers need to identify the items they will save up for and the ones they will need to finance. One may, for example, incur debt when buying a house whereas going on holiday is something that one should save up for,” advises Human.

This decision has a direct impact on consumers’ disposable income and hence their ability to save.

“Savers understand the importance of continuous saving regardless of the other financial commitments they may face,” says Human.

“Although they may save more or less at certain stages of their lives, they will try to find some form of balance in an attempt to reach their savings goals.”

Just like staying healthy and sustaining your physical fitness, a continuous year round commitment has to be made to your financial health. It is too late to start planning for financial survival in November or December.

“If you are tired of starting on the financial back foot every year, find and maintain your balance,” concludes Human.

*Refers to the South African banked population