How young South Africans are hustling to beat the cost-of-living crisis

The Old Mutual Savings and Investment Monitor 2024 suggests the wheels are turning.

“This shift in mindset is evident in their proactive approach to managing their finances. The survey revealed that respondents are increasingly finding innovative ways to improve their financial wellbeing, from engaging in side hustles to participating in the gig economy,” says Vuyokazi Mabude, head of knowledge and insight at Old Mutual.

The survey found that 57% of South Africans now juggle multiple income streams, up from 50% in 2023, showing a significant trend towards financial diversification. 

Polyjobbing is popular

Polyjobbing, the practice of having multiple jobs or income sources, is especially prevalent among young adults, with 73% of 18 to 29-year-olds engaged in this practice. 

“Additionally, 54% of this 18 to 29-year-old group earn some income through social media, with about a quarter considering it a significant part of their overall income. This rise in income diversification by young working South Africans highlights economic adaptability and technological savviness,” says Mabude.

Asiphiwe Hanjiwa, 24, is studying towards a Master’s degree in information technology at the Cape Peninsula University of Technology. She’s also working as a software engineer at a large national insurer, and at the same time is earning money from social media via her Facebook and TikTok pages.

“I started working in 2022 and found my salary was not enough to meet my (financial) needs,” she said. Since launching her side-hustle business in 2023, her situation has improved as she now has two sources of income.

Hanjiwa sells stuff online – from weaves to small electronic goods and even furniture.

“Running a business is not really hard these days. You don’t have to go to the taxi rank to advertise your products… you can do it online,” she said.

The third DebtBusters Money-Stress Tracker, which surveys 26,000 registered users on the DebtBusters website – who are not undergoing debt counselling – shows that younger consumers are 1.5 times more likely to follow through with a budget and 3.5 times more likely to be looking for a higher-paying job.

Life stages also correlated with top-of-mind financial concerns.

While 26% of the younger market segment are worried about inflation and running out of money, those in the 35 to 44-year-old age bracket were concerned about the impact of school fees while the 45 to 55-year-old  cohort’s biggest financial concern was their retirement savings. 

How different age bands deal with money stress



Source: DebtBusters Money-Stress Tracker

Entrepreneurial spirit across age bands

The Old Mutual Savings and Investment Monitor also revealed a growing entrepreneurial spirit among South Africans seeking financial security and growth opportunities outside of traditional employment. Even those in older age bands are switching to multiple income sources to improve their lives.

Forty-seven percent of working South Africans own a business, up from 44% the previous year, while about a third of individuals (32%) are prioritising saving to start or finance a business, up from 27% in 2023.

“The increase in business ownership and savings for entrepreneurial ventures highlights a significant shift towards self-reliance and confidence in the economy, which has improved to 36% from 27% in 2023,” Mabude says.

Lesley Scott, from Cape Town works as a psychometrist and has various freelance roles as an editor and content writer. She also offers proofreading services and has published several books in the children, young adult and adult non-fiction genres. Previous roles as a professional photographer and travel consultant have afforded her opportunities to occasionally take on projects in these fields.

Scott started polyjobbing around 2010 when she needed flexibility in her working conditions while still earning sufficient money to make ends meet. Leveraging her skills and strengths, she later looked for opportunities that allowed her to return to her studies in her forties.

“The ability and willingness to think outside the box made it possible for me to keep our family’s head above water during the harshest pandemic lockdowns, for which I am grateful,” she said, “but having a fluctuating income and none of the benefits that might come with a full-time permanent role does make it more difficult to save. Savings are often depleted when the quiet months roll around, and so you have to be disciplined in setting money aside when you have a good month.”

The psychology of financial responses

Psychologist Andrea Kellerman says that many people over 55 are accustomed to the stress of managing monthly payments, having lived with debt for a longer time. The anxiety of future financial security outweighs the stress of their current situation.

“Heightened stress can lead to a ‘freeze mode’ response. In addition, hormone production decreases in the 45 to 55 bracket, and this may further diminish energy and resilience. As a result, some may find it easier to ignore their stressors and avoid confronting them, resulting in future issues,” she says.

Younger adults have several positives on their side – they are motivated, adaptable, have higher levels of trust and, in some cases, better financial acumen than their parents. 

However, Kellerman points out that the younger generation do have their own stress points, including limited job opportunities, higher startup costs and a demotivating sense of futility regarding their prospects. DM