Good saving tips
In these trying financial times and ever-changing economic climate, it is important to prioritise cultivating a culture of saving.
STAFF REPORTER
With July being Savings Month, Piet Bergh, Nedbank’s area manager for the north, says this time should remind all of us to make provision to start saving regularly, and that every little bit counts.
“You would be making major advances towards achieving your own financial discipline if you can save and budget for a small amount of money, even starting with as low as N$20 or N$50 per month in a savings or cheque account or even a call deposit account. The most important action is that you start,” said Bergh.
To save means different things to different people. For some, it means putting money in the bank while for others it can mean buying shares, investing in unit trusts or contributing to a pension plan. However universally, to save means to consume less out of a given amount of cash in the present in order to consume more in the future
Elaine Schlechter, Nedbank’s executive: wealth management and bancassurance, shares that the reason why saving is sometimes hard is not necessarily because of a lack of self-control but rather the absence of prioritising and putting into action the needed plans to build towards what we want to achieve in future.
“Instead, we tend to focus on our immediate needs and prioritise them as important, as opposed to prioritising on achieving a specific goal that will materialise in few years from now,” she says.
“Start by setting aside some time to think about what it is that you want to achieve in a few years and commit to that dream. The next step is to set a time frame and have a plan on how you want to achieve it.
“Over a longer period the goal can be achieved with smaller monthly contributions. The longer the decision is extended to start to save, the higher the amount will be to accumulate enough to make that happen. It is to your advantage to start saving as soon as possible. If you should spend any money, only spend what is left after you have saved,” she advises.
She adds: “Set visual reminders of what you are saving for or towards and monitor your progress on a regular basis. Have a monthly budget and leave some space for unforeseen costs. By doing this you will be able to pay for it without having to delve into your savings account.”
Avoiding debt goes a long way in ensuring financial freedom. While some debt like buying a house or in some instances a car is unavoidable, trying to repay any debt or loans back within the agreed set time can save you from being charged further interest.
“Never get discouraged when you are having trouble saving money. It’s easy to lose your nerve. No matter how little you are starting with, it is always possible to begin saving money. Furthermore, saving is a mind-set and a conscious decision that you make. Once that decision is made, you are on your way of reaching your dreams and goals,” says Schlechter.
With July being Savings Month, Piet Bergh, Nedbank’s area manager for the north, says this time should remind all of us to make provision to start saving regularly, and that every little bit counts.
“You would be making major advances towards achieving your own financial discipline if you can save and budget for a small amount of money, even starting with as low as N$20 or N$50 per month in a savings or cheque account or even a call deposit account. The most important action is that you start,” said Bergh.
To save means different things to different people. For some, it means putting money in the bank while for others it can mean buying shares, investing in unit trusts or contributing to a pension plan. However universally, to save means to consume less out of a given amount of cash in the present in order to consume more in the future
Elaine Schlechter, Nedbank’s executive: wealth management and bancassurance, shares that the reason why saving is sometimes hard is not necessarily because of a lack of self-control but rather the absence of prioritising and putting into action the needed plans to build towards what we want to achieve in future.
“Instead, we tend to focus on our immediate needs and prioritise them as important, as opposed to prioritising on achieving a specific goal that will materialise in few years from now,” she says.
“Start by setting aside some time to think about what it is that you want to achieve in a few years and commit to that dream. The next step is to set a time frame and have a plan on how you want to achieve it.
“Over a longer period the goal can be achieved with smaller monthly contributions. The longer the decision is extended to start to save, the higher the amount will be to accumulate enough to make that happen. It is to your advantage to start saving as soon as possible. If you should spend any money, only spend what is left after you have saved,” she advises.
She adds: “Set visual reminders of what you are saving for or towards and monitor your progress on a regular basis. Have a monthly budget and leave some space for unforeseen costs. By doing this you will be able to pay for it without having to delve into your savings account.”
Avoiding debt goes a long way in ensuring financial freedom. While some debt like buying a house or in some instances a car is unavoidable, trying to repay any debt or loans back within the agreed set time can save you from being charged further interest.
“Never get discouraged when you are having trouble saving money. It’s easy to lose your nerve. No matter how little you are starting with, it is always possible to begin saving money. Furthermore, saving is a mind-set and a conscious decision that you make. Once that decision is made, you are on your way of reaching your dreams and goals,” says Schlechter.
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