Guiding consumers since 2009

Why would anyone save?

By Staff Writer

Save? Save you say? Why save when inflation is higher than what a savings account will pay you. Well that kinda misses the point of what savings are really all about. For the average consumer feeling the pressure of the global credit crunch it may seem like saving is unattainable or just a plain waste of time. This is not the case and saving now will help you be in a better position when the economy improves. So how do you go about saving?

 

The South African Savings Institute has declared July 2009 to be Savings month. They rightly point out that South Africans do not save enough. We have a rampantly materialist and consumerist culture here which impulse buys on credit to look good for other people encouraging flash cars but only staple foods to eat at night. This kinda materialism is not conducive to building a developmental economy. The surging new economies of the world like China and India both have massively more saved as a percentage of their incomes than we do.

So what really is the point of saving? Savings provide an economic buffer against the uncertainty of life in a capital system. You should really keep at least three months of expenses saved up to act as a buffer. You could keep that money under your bed but as low as the interest rates offered by savings accounts are they still offset the inflation effect on your cash. You should use a budget planner and then allocate an amount to save every month, even R50 is worth it, then set up an automated payment to your savings account so you never even miss that money, but its waiting there for you when you need it.

Recent Articles

Featured Ensure your family doesn’t feel the impact of your retrenchment

Retrenchment doesn’t only change the way you view yourself; it also alters the relationship between you and your family. Things can go from good to bad within a short space of time. But you can do something to prevent your family from feeling the impact of retrenchment.

Someone got injured on my property – now what?

Life is unpredictable and no matter how careful we are, accidents happen. But what if someone has an accident while visiting your house? Your guest could fall off the stairs, slip on the floor or get bitten by your dog. 

Are you ready for a house upgrade?

You moved into your home knowing one day you would need to make some changes to turn it into your dream home - add a new bedroom, a second bathroom, build a double storey or even move out.

How income protection can help you when you’re sick

Your greatest asset is probably your ability to earn an income, which provides a certain lifestyle and the capacity to take care of your dependants. That’s why it’s so important to protect your income against unforeseen illness or injury and to provide for your dependents after your death.

Deals

Register for a free online course with Wits

Price: Free
When: Daily
Where: Online

Edgars slogan T-Shirts from R60

Price: From R60
When: While stocks last
Where: Nationwide

3 Months Free on Samsung Galaxy A7 contract

Price: From
When: Daily
Where: Nationwide


Latest Guide

Complete guide on personal income tax