The size of your income is no guarantee that you're better off

But new research from Discovery Bank has revealed that 10.4% of individuals earning more than R1 million a year have a credit score typically associated with experiencing material hardship. In other words, more than a tenth of top earners still end up in financial difficulty. Why is this the case?

It's not about earning more, but about having the right money habits

"The reality is that how much you earn does not determine your financial future. What cements how financially successful you are is your behaviour when it comes to managing your money. No matter how high your income is, if your expenses exceed your income, for example, it's not sustainable," says Hayley Parry, co-founder of financial education provider Worth.

Akash Dowra, Head of technical marketing and client insight at Discovery Bank, backs this up, noting that 28% of retail-affluent South Africans spend more than they earn. "In addition, 78% of South Africans' household income is spent on debt, and the country has one of the lowest rates of saving in the world. So clearly, the solution is not simply to earn more, but rather to learn how to better manage what we have."

What does this mean? In short, it means spending less than we earn, having some form of short-term savings, retirement savings and insurance.

Reframing what it means to be successful with money

The problem is that society doesn't generally applaud you for managing your money well, Dowra explains in a recent podcast with business journalist Bruce Whitfield. "When you buy a fancy car or move to a big house, that's when people tell you that you're doing well. So, it wires the incorrect notion in your brain that you need to spend money to be rewarded. This is a highway to disaster."

Listen to the podcast here:

What's the alternative? According to Dowra, South Africans firstly need to be empowered with basic financial knowledge so that more people understand what actions truly drive financial success - such as spending less than you earn and building up an emergency fund.

Secondly, people's values and mindsets need to change, so those who practice healthy financial behaviours are rewarded - be that through societal recognition, lifestyle or financial incentives, or even a sense of accomplishment and peace of mind knowing that you control your money, and not the other way around.

It's all in the mind - get the knowledge and make the mental move

The good news is that you're never too young, too old, too rich or too poor to get a better handle on your finances - and investing in critical knowledge now can save you thousands later. Another key is to start developing the right mindset.

The experts emphasise that gaining control of your finances is not beyond anyone, and starting healthy money habits, which include saving for retirement and having the right protection in place, as soon as possible will have the greatest impact on your future. Making the right financial choices and implementing practical tools will enable you to manage your money, no matter how much you have.

Get practical tips on everything to do with managing money well by listening to the full Your Money Matters podcast series here.