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Saving solutions part1

By admin
18 October 2013

Rose Kabini earns less than R1 000 and she has opened a saving account but believes this is not enough for saving for the future. Move! asked the South African Savings Institute to advise Rose.

Is it always possible to save?

Yes, it is always possible to save. Saving does not only mean putting money aside, it also means being smart about money and the way you spend it every day. Before you are able to put money aside for the future, you need to have spent money wisely so that you have enough left over to save. A budget is the most important start to controlling your finances.

What must she think of if she wants to save?

It is all about budgeting. Rose must draw up a list of how much money she earns and how much money she spends every month. She should pay off other things, such as clothing accounts, and use cash in future. She must see what she is left with and plan realistically for her future. Always have a goal or goals for which you save.

How do you set these saving goals?

Ask yourself: do I want to save because there is something I want to buy or for rainy days? Rose must divide her goals into long, medium and short term. Short-terms goals are to get rid of small debt, such as your children’s school fees, for example. It must be something you can save for and attain within a short period of time, say, in a year. Medium- to long-term goals include buying a car, a house and saving for retirement. You usually require more to time to save for these items and large amounts to pay for them.