In 2015, the Reserve Bank revealed that South Africans are among the world’s worst savers. World Bank has also found that only 6% of South Africans save enough for retirement. This is a cause for concern.
“Our saving retirement is actually poor between 6 to 9 percent and it shows the bad attitude we have towards retirement and also shows the little discipline South Africans have to save,” FNB Financial Advisory, Preenay Sathu, told eNCA.
Truth is, judging by the high rate of retrenchment and the high cost of living and with life being so unpredictable, it is only wise to start saving as early as today.
How much should you save?
Although experts have different opinions on how much a person should save monthly, truth is it all depends on your goals, lifestyle and your age.
South Africa offers different types of savings accounts to suits one’s needs; short-term savings accounts, long-term savings accounts, money market accounts and even tax-free accounts. It is important to select the best one suited for your personal needs.
Speak to a financial advisor
Financial advisors are trained to help you in regards to matters relating to your finances. Though some of them may charge you for the service, some banks offer free financial advice to clients that are looking to save.
So If you are looking at saving, but don’t know how to go about it, it may be a good idea for you to consult a financial advisor.
However, not all of us can go through a financial advisor, so if you are considering making small changes without making use of a financial advisor, take a look at the below small changes that you can make that will ensure you save every month:
Keep a track of your spending
Before you get started on the process of saving, it is important to know just where your money is going.
Having knowledge of your spending will help you determine the money wasters and what you can do to save.
The best way to do this could be to keep an expense diary. Write down every single thing you buy including things like sweets and tips you give to parking attendants. Do not forget to also get your bank statement which will reflect any transactions you made on your card.
If you are planning to save, one of the things to do is cut down on buying take-aways. Thousands of people spend so much money on take-aways; be it for lunch at work or supper. But preparing your own meals at home will not only save you money, but can also be a healthier option.
But of course if you we are not saying never eat take-aways. Rather eat them in moderation and have a set budget for them.
Drink at home
Drinking at home rather than at a pub or club will save you money.
Not only will the drink cost less, but you don’t have to deal with the temptation of keeping up with the rest of the people in the pub.
If you choose to drink from home, you can even search for specials from liquor stores which could see you save a couple of Rands.
Do not buy on credit
Getting that gadget or furniture on credit can seem like a good idea if you do not have cash, but note that credit will always be much more expensive than cash.
Calculate or ask the creditor just how much the total cost will be and you may find that you may end up paying almost double what the item is worth.
So rather than buying on credit, save money monthly for the item that you want or you can even opt for lay-bye.
Pay off your debts
One of the things that could save you money every month is paying off your debts. Not only will you be saving on monthly interests, but you will live peaceful life knowing that you owe no one.
It will not be easy to pay off your debt, but if you set your mind to it and just cut out on a few things, this is possible.
Look out for specials
Specials can save you a lot of money.
So look out for great deals from service providers and websites and make your money go further.