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 Register your customary marriage or lose the right to inherit estate

December is that time of the year when we will see at least one suitor sending his uncles to negotiate the price of his future wife. Lobola, as the bride price is known, has always been an important element of the African marriage.

Read more

Changing from one medical scheme to another - effortlessly

It is coming up to the end of the year and you might be looking to change medical schemes, or options within a scheme in preparation for the new year. While you don’t necessarily have to wait for year-end to do so, providers often recommend it.

Read more

Your guide to financially surviving Christmas

There are a few times each year where you need to dig deeper into your pocket and spend more money such as birthdays, anniversaries, and the Christmas period. Whether you celebrate this religious holiday or not, the festive period - depending on how you choose to spend it - means increased travelling, buying of gifts, entertaining, and eating out at restaurants.


Read more

Trump, Trump and a little bit of South Africa

What a November we had, with the rand staging one of its best months and closing below the R14.00 level. To be honest, this looked like quite a far-fetched possibility at one stage during the month. It seems that the tide has changed a little, even though it might be short lived since the US dollar bulls are not so sure of their case anymore.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Free iCollege Scholarship

Price: R600
When: Until 16 May 2019
Where: Nationwide

Telkom December Big Deal

Price: R459 pm
When: Until 31 December
Where: Nationwide

Money Savvy Kids Giveaway

Price: R450
When: 8 December
Where: Johannesburg (Milpark)