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How to save money even if you are in debt or don't earn alot

By Faeza
23 February 2017

SOUTH Africa is undoubtedly one of the worst saving countries in the world. The poor culture of saving can be attributed to the high cost of living, unemployment and inflation, among other things. Nonetheless, AVBOB's Public Relations Officer Mabore Sefara says you would be doing yourself a favour if you stopped making excuses and started saving.


“It is never too late to start saving but it is recommended to start at a young age

to accumulate enough savings for the things that you would like to acquire,” she points out. Mabore says saving money is essential for many reasons. It can assist in planning ahead for emergencies; retiring comfortably; assisting with unexpected expenses or even a nest egg for whatever your heart desires. However, she is not oblivious to personal challenges. “It's difficult to start saving when you are in debt or barely have enough income to survive. But if you are determined to save, you can track your expenses by knowing what you purchase at all times. This will make it easier for you to cut out

non-essential items and allow you to manage your money better. You can also look at purchasing non-branded staple foods such as rice, sugar, beans and eggs,” she



Asked what advice she has for someone who is in debt but wants to start saving, Mabore says there are a lot of savings plans and policies that are offered in South Africa. The products are either from a bank or other reputable financial service institutions. AVBOB

offers a savings policy that starts from as little as R200 per month for a term of 10 years.

“Saving is always important. You need to have a healthy balance of paying off short-term debt like credit cards and personal loans as quickly as possible to effectively gain savings by eliminating some highinterest charges. With that said, you still need to build up a savings fund for unexpected expenses,” she says.


Mabore says the advantage of having a savings account is that you are always prepared.

This also prevents you from borrowing money from disreputable financial institutions (loan sharks) at high interests rates. The most important element about saving is being prepared for anything: saving for your children’s education, yourdream holiday, dream house and paying off debt. Mabore warns that the later you start, the more you will

have to save. “You should increaseyour savings once a year or as and when your

income increases. This is to ensure that the potential growth of your savings is much

more. This will also assist you in getting compounded interest during the long-term

investment period,” she explains. Just because you earn little or are in debt doesn't mean that you can't save. There are ways to make a savings plan a reality