South Africa has a huge side hustle culture. Multiple sources cite that Millennials and Gen Zers fall into the new category of “poly-jobbing”, whereby most have either multiple jobs or one job and a side hustle. This trend has arisen in response to the increasingly expensive cost of living.
The Old Mutual Savings and Investment Monitor 2024 notes that 57% of individuals across all age groups now participate in side hustles, showing 73% in the age group between 18 and 29 have a side hustle.
Additionally, the recent Gen Z Economy Report: Cash, Culture and Clout found that 21.7% of income for under-30s comes from informal gigs, freelancing and digital work.
Furthermore, JustMoney’s ‘Money & Me’ survey revealed that 61% of respondents find it difficult every month. Women are also the group that feels the most worried about their income, with 42% stating that they fear financial vulnerability.
These statistics are scary, pointing to the fact that the economy, in spite of its recent growth, still leaves households in dire straits.
Diving Into the Spend
“Structural barriers and spending habits prevent wealth accumulation”, says Tracy Afonso, Executive in Private and Wealth at Nedbank. “Young South Africans are saving, but not in ways that build long-term security. More than half manage to put away up to R1 800 a month, even when earning less than R5 000, but most of it is short-term. Savings are used for emergencies or lifestyle purchases rather than going into investments or towards retirement. Only a fraction of this money goes towards building real assets.”
According to Afonso, spending patterns reinforce the imbalance. “Spending on food, clothing and cosmetics often rivals rent, with choices being driven by self-image and social visibility. While salaries have indeed risen in sectors such as tech, finance and consulting, living costs have unfortunately risen faster. Lifestyle inflation absorbs disposable income through rent, travel, dining and tech. Add in student debt or the need to support extended families, and little is left to invest.
“Housing is another barrier. Property prices in Johannesburg and Cape Town remain out of reach for most entry-level professionals. Home ownership, once a marker of progress, feels increasingly unattainable. Another issue is that financial behaviour is greatly influenced by milestones. Many young professionals are chasing their ‘first thrills’, like moving out, buying a car, travelling, or furnishing a first apartment.”
Financial Education is Key
Afonso believes that South Africans, especially in the younger generations, should focus on their financial education. “The truth is that wealth gaps grow wider when financial education is lacking. Many young professionals earn and spend actively, but don’t yet have the knowledge or tools to turn that income into assets. They are delaying big milestones like marriage, children and home ownership in favour of flexibility and experiences, which pushes traditional wealth-building opportunities further into the future.”
Investment vehicles such as tax-free savings accounts and retirement annuities are available, yet uptake remains low. Awareness is limited, and with competing demands on income, long-term investments feel out of reach for many.
Helping Ourselves So We Can Help Each Other
It’s no secret that South Africa is leading in financial inequality in spite of the policies that are supposed to bridge this gap.
Since structural barriers such as the tax laws in South Africa, minimum wage and job creation remain in place, it is up to families to solve their own wealth issues.
“To move forward, your focus has to shift from just getting by to actually building up from short-term purchases to long-term wealth,” says Afonso. “Whether it’s protecting what you have, saving for the future or turning that income into assets, every rand has the potential to work for you, but only if you give it direction.”
The onus rests on the SMEs of South Africa to help create jobs that build the economy. Additionally, individuals also need to invest in their own education so they are better positioned to manage their own wealth and finances.
South Africa has a huge side hustle culture. Multiple sources cite that Millennials and Gen Zers fall into the new category of “poly-jobbing”, whereby most have either multiple jobs or Read More
