Not having money to save could be due to bad spending habits.

02/08/2019

It is possible to save money every month

People often say that the more they earn, the less money they seem to have. You may know the benefits of a savings plan and a high interest savings account, but there just seems to be less and less left over each month to save. Sound familiar?

While it is true that our incomes seldom keep up with inflation, not being able to keep up with your expenses and debt repayments may be more rooted in bad spending habits than anything else.

Deposit accounts, like a 7 day notice account, are a good means of kick-starting a savings plan. 

Maybe you have heard or read a lot about the best way to invest your money for a good return, but you are feeling conflicted about how to start. The fact that you are ready to make a move in this direction is, however, a very good starting block already.

If saving money has been a struggle, don’t feel alone. Many people battle to get to grips with putting money away for a rainy day.

The good news is that it is never too early to start saving for your future – especially retirement - and never too late either.

How to kick-start your savings plan:

  1. Start saving today. It is possible to put some money into a savings account, no matter what your income. Every cent saved adds up to a brighter future. You should always start saving for emergencies first, like car repairs or medical expenses.
  2. Budget. It is not as complicated as it sounds. All the resources you need to become a pro at budgeting are easily available online, including spreadsheets and other helpful tools. Once you work from a budget, your spending habits will become very clear and you can easily see what needs to change to enable you to save money.
  3. Be realistic. There is no point in putting R1 000 into your savings account each month and leaving yourself short of petrol or food money. Be honest — factor in your income and expenses, including debt, to determine what you can afford to save. Ideally, you should be putting away at least 20% of your income each month.
  4. Have goals. It is not easy to save and even less so when you do not have a real goal. Know what you are working towards and keep it top of mind.

Debt is a serious killjoy when it comes to saving money.

These are our top 3 debt busters:

  1. Know exactly how much debt you have. This is often where people bury their heads in the sand, while others purposely ignore the facts. Get to grips with every account and confront the reality.
  2. Do not skip payments. If you are paying late because you have no money, look closely at your spending and see what needs to be cut back to give you enough money to pay your debt.
  3. Do not avoid your creditors. Communication is key. Do not leave matters until you end up with serious legal implications as a result of all the unanswered phone calls and letters from your creditors.
  4. Consider a debt consolidation loan. Pool all your debt into one loan so that you have only one repayment each month.

Not all debt is bad. Read more about good and bad debt in our informative blog.

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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'.