Small savings can go a long way
World Savings Day is celebrated yearly on 31 October. This year’s theme is “When you save a bit, big things follow!”.
30 October 2020 | Banking
In fact, starting small will not only give you the confidence that saving is possible, but will also help with your finances in the long run.
“Starting a new savings habit will probably be the best financial decision you can make,” says Elzita Beukes, communications manager of FNB Namibia.
Here are a few tips to get started:
FIND A SUITABLE ACCOUNT
Now that you have decided to save, you need an account that is best suited to your new savings habit. This needs to be separate to your bank account so that you aren’t tempted to spend your savings.
“The trick is to make the bit of money you are saving work the hardest for you,” says Beukes. “This means it must be easy to manage and earn interest on any amount that you put away.”
For example, FNB’s Savings Pocket is automatically linked to your FNB account. Transfers into and out of the Savings Pocket is free and the account offers an attractive interest rate. There is no notice period to access the funds and also no monthly fee charged.
“Have a look at what your bank has to offer,” says Beukes. “Now you don’t have the excuse that you ‘don’t have anywhere to put your money’.”
CREATE A GOAL
Now that you have an account that will work for you, you need to choose a savings goal.
“If you are a student, starting out in the job market, or have just never put any money away, choose an amount that is manageable,” says Beukes. “This can be N$50 a month to a couple of hundred, the important factor is to pick an amount and stick to it.”
Setting up a monthly scheduled transfer into this account is a great way to make sure that you “pay yourself first” and ensure that you are sticking to your committed monthly savings amount.
FIND WAYS TO SAVE
What is great about saving small is that you don’t have to commit to unreasonable lifestyle changes, such as never going out again.
“By choosing to stay in once or twice in the month could save you over N$100, and right now may be the safest thing to do. This means you can still have fun while staying committed to saving.”
There are plenty of other ways to save, such as catching a lift a few times a month with a friend or car-pool to save on petrol or travel costs, or compare brands of items you use regularly and choose a cheaper one.
FNB offers an innovative way to help customers save through ‘Bank Your Change’, which once activated, automatically rounds up small amounts each time a customer swipes his or her card. The change is then transferred and stored in the linked Savings Pocket.
CREATE MONEY FOR SAVING
“Don’t assume that you have to give up something in order to save,” says Beukes. “You can also make additional cash to save, such as going through your old stuff and selling anything you don’t need, taking on an odd job a couple times in the month, or even small money makers such as baking goods and selling them at work.”
Understanding how small savings benefit you in the long term, will keep you motivated.
“Saving small is a great way to create good financial habits and see real benefits,” concludes Beukes.