Saving solutions part2

By admin
19 October 2013

Rose wants to know the best way to save money. The South African Savings Institute to advise Rose.

What is the best method of saving that will suit Rose’s pocket?

Here are options for Rose:

1. Put money in a savings account. Banks offer a number of accounts specifically for saving and she can even earn a little interest, depending on how much she saves. Some offer accounts such as 32-day accounts from which you cannot draw money unless you give that bank 32 days’ notice. She must enquire at banks.

2. She can join a reputable savings club or stokvel. A stokvel is perhaps the most effective way for Rose to save. The club can bank the savings and earn much more interest than if she saved on her own. This is also effective because, when you save together, there is a lot of discipline and less chance of defaulting.

3. Take out insurance to cover any losses both to yourself and your possessions. A funeral cover is a good way to save money in case a family member dies and you do not have ready cash. Many companies sell different funeral cover policies at reasonable monthly premiums.

What are the benefits of saving?

Saving is very important, no matter how small the amount is. It teaches you to be disciplined and responsible, which will make you more confident and self-reliant. It allows you to have financial freedom and not rely on other people when something bad happens to you. It also benefits our country and economy.