Spring is sprung how are your savings?

By Staff Writer

Savings levels are an indication of the future prospects of a country. The last eight years saw a boom in consumer spending in South Africa, much of it on credit. Debt counts for around 75% of our disposable income. We save around 15% of income but households actually have negative savings rates. Which does not bode well for future prosperity. So if we wish to improve the economy saving today for tomorrow is the way. So what can you do about your savings accounts?

 

 

Savings accounts often come in for flak because they don't pay the best rates of interest sometimes not even covering inflation. Savings accounts are not investments, savings accounts are a way of setting aside capital that would otherwise be spent. 6 Six percent is better than the zero percent you get on money that you have already spent, or having to pay extra on spending from credit. When you save you set that money aside for another day.

Savings allow you to protect yourself from future shocks, if you have been living on credit for the last while you are more than likely feeling the recession bite much harder than those who had savings accounts. A savings account can help buffer you against the vagaries of the global economy and a rule of thumb is to have set aside at least three months of your expenses in order to provide a buffer against any sudden changes to your circumstances. Start saving today for a better tomorrow.

Recent Articles

Featured Do you need credit to survive Easter?

Easter weekend is here and with it the expectation of celebration. While there is nothing wrong with this, it often means spending more money than you bargained for.

 

Read more

Young woman building a legacy brick by brick

When her dad passed away, Siyasanga Ngcongca, an internal auditing graduate, took over the family business. Ngcongca Construction, as her company is known, is a service provider to five insurance companies, handling building and commercial claims.

Read more

Can you evict paying residential tenants?

One of the most common reasons for wanting to evict a tenant is non-payment of rent. But there are many other situations that landlords may encounter. These can range from damaging property and breaching contract, to being reported as a continuous disturbance by neighbours.

Read more

How one entrepreneur designed her financial future

From as early as Cannon remembers, she recalls her grandmother seated behind a sewing machine. Through this influence she was sewing her own aprons and doll dresses by the time she was ten, and by the time she was 16, she started designing and make her own clothes.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Hartbeespoort Romantic Weekend Special

Price: R2,999
When: Weekends
Where: North West

Da Vinci Happy Hour

Price: Available on request
When: Weekdays
Where: Cape Town

Glenburn Spa Easter Package

Price: From R1,065
When: 18 -22 April
Where: Muldersdrift