5 reasons people don’t save money


5 reasons people don’t save money  

With the high cost of living in South Africa at the moment, saving money for a rainy day is little more than a dream to a lot of people, but it need not be.

In this article we offer insights into saving money, the importance of a high interest savings account, the best savings account to have and how to formulate a savings plan for your future.

But before we get into the nitty-gritties of saving, let’s look at the top 5 reasons people say they are not saving money today:

  1. "I'm not earning enough": What is enough? And, do you really believe that the more you have the more you will save? What you are likely to discover is the more money you have the more debt you have too. Regardless of your income, you can start saving money today.
  2. "I have to pay off debt": There is a reason people refer to “drowning” in debt. It is not a healthy position to be in. Get help as soon as possible and consolidate your debt to ease up on the monthly repayments you have to make. Free yourself up to put some money away. Read more from African Bank about how to get out of debt in this insightful blog.
  3. "Budget? What budget?" Drawing up a budget and sticking to it is a game changer. Not budgeting is probably the biggest reason people are unable to save money. Control your money, don’t let it control you – and watch your savings grow!
  4. "I don’t have a goal": You are unlikely to save money if you are not saving for something in particular. Set goals, open a high interest savings account or two – or even three! Name these accounts according to your savings goals. Saving money is a good thing at any time, but when you have an actual savings plan the reward is that much sweeter.
  5. "My expenses are too high!" If your living expenses are eating your salary up and leaving you nothing to save, you need to scrutinise your spending. Actually noting every expense for just one month will be an eye-opener. Cut down on unnecessary expenses, especially things like entertainment.

Bearing the above in mind, if you get to the point of starting to save some of your hard-earned money you want it to be worth your while.

Things like high interest savings accounts and tax-free investment accounts make saving money worthwhile.

It is, however, important to do your homework when shopping for the best savings plan and best savings account.

Consider a Notice Deposit account, which includes the option of a 7 day notice account, from African Bank. A notice deposit account earns you interest from day one and you can choose the notice period – seven, 32 or 90 days.

To grow your money even faster, you can set up a debit order or make your own regular deposits, from as little as R100. And, when you want to withdraw your money, you just give us a call.

It only takes a small deposit to grow your investment. Obviously, the longer you leave your money in a savings plan, the bigger your reward.

The good news is you do not need a fortune to start saving or making smart investments.

Visit the African Bank website or like them on Facebook  


Up Next

Ways to save on your teen’s matric dance
It’s that time of year again when teenagers and money-strapped parents begin planning for the big Grade 12 Matric dance. Peer pressure often drives families to spend outrageous sums on their son’s or daughter’s dance but there are still ways to look good without totally breaking the budget.

Publish Date: 11/07/2018
Read more
A world without hunger is possible
This is the vision of Rise Against Hunger; an organisation dedicated to ending hunger and malnutrition by 2030. As African Bank, we believe in this vision, we will be showing our support by helping pack 9720 meals for Early Childhood Development (ECD) centres, which is enough to feed one ECD centre for a complete year!

Publish Date: 12/07/2018
Read more
Want the best interest rate?
When shopping around for the best interest rate, don’t be fooled by terms such as “market-leading”, “best in SA”, “highest”. Rather do some investigations, find out how interest works and in the end, make sure you’re comparing apples with apples.

Publish Date: 21/02/2019
Read more
Find out why these Smart Girls Rock!
Find out why these Smart Girls Rock! In honour of Women’s Day this year, we touched base with some of the most inspiring women we know: The young ladies from our Smart Girls Rock mentorship programme.

Publish Date: 06/08/2018
Read more
Basani Maluleke’s top life lessons
You don’t get to be the CEO of a bank without determination, hard work and a level of self-awareness that helps you overcome the challenges that surely crop up along the way.

Publish Date: 06/08/2018
Read more

About African Bank

Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.