The secret to successful saving

Some people believe that there is some ‘big secret’ to successful saving that only a few people know!  The truth is really a lot simpler than that: if you make a habit of putting a weekly or monthly amount into a dedicated savings account – even if it’s just a few rands – you CAN become a successful saver!  Here are some tips to get you started:

  • Pay off some of your debt.  Make a budget and stick to it! Write down all your expenses and make a plan to pay off as many accounts as you can.  Once they’re paid you can take them off your list!
  • Have a plan and clear savings goals, no matter how small. Starting today, draw up a savings plan for what you want.  For example, if your goal is a family holiday at the end of next year, work out how much you’ll need to save each month and put it into a savings account where you won’t be tempted to access it.
  • Make saving a permanent part of your monthly budget and arrange an automatic transfer directly into your savings account. Unless you do this, you may find yourself spending what you’re supposed to be saving!
  • Don’t spend if you don’t have to. Ask yourself if you really need the things you are tempted to buy, or if it can wait for a month or two (and then include it in your budget!)
  • Cut down on your expenses. Look for ways to save on your household spending, travel, food and other items.  For example, pack your own lunch for work and look for cheaper brands when you shop. ‘No Name’ or store brands are available in most places, and the money you save really does add up!
  • Choose the right type of account for your different savings goals: if you’re just saving for a rainy day, but want immediate access to your funds, a short-term savings account like PureSave may be right for you.  If you are saving for something big, like the deposit on a new car, a Fixed Deposit account could be the answer.

If there is any secret to successful saving it is to start as soon as possible!  If you’re just starting out, you should try and save a small amount every week or every month – and remember, any amount is better than nothing!

Next article: Saving as a group

 

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