Questions people ask about Saving

 

July is Savings Month! Improve your financial well-being and #PayYourselfFirst.

The Association for Savings and Investment South Africa (ASISA) Foundation talks to people about money matters throughout the year, in workshops and on our digital platforms. Below are some of the questions people often ask us about saving. We hope the answers will help you too. Please note: the names in the letters are not the real names of the people.

Dear Lumka,

 I want to save, but I just find it hard to save without feeling like I’m going without. I work hard and deserve to treat myself to things I enjoy! Is there a way to save but also enjoy my hard-earned cash? Thanks in advance, Arish!

Dear Arish,

Thanks for getting in touch. I understand how hard it is — you work so hard, but most of your money goes to things like food and school fees. There’s not much left, and you want to enjoy that little bit! The good news is, with some planning, you can do both. Start by looking at your spending: what do you need, and what do you just enjoy? Needs like electricity transport  and groceries should always come first. Then find one or two things to cut back on — maybe bring lunch from home instead of buying takeaways. Use that extra money to start saving. Put it into a savings account where it’s safe and can grow with interest. Saving is just like paying for any other need — it should happen every month. When you save, you’re choosing to #PayYourselfFirst and work towards something you really want.

I hope this helps and you start #PayingYourselfFirst!

All the best,
Lumka

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Dear Lumka

I always hear people saying you need to save. I always mean to save, but by the time the month ends, there’s nothing left. How do I actually make saving a priority when I don’t have anything to save? Can you help? Colin.

Dear Colin

Thanks for your question. This is a common problem that lots of people face. The cost of living is rising every day, and to cover our basic needs like groceries and taxi fare takes up almost all our money. But I do have some tips to get you started. The first thing to remember is that saving should be considered a monthly expense. Just like you need to pay your rent, you need to #PayYourselfFirst by saving! In fact, it should be at the top of your monthly budget, rather than the bottom. It’s not a nice-to-have like takeaways, it’s an essential!

But we need to be realistic, so start with a small amount, even R25 a week is a good start. Next, you need to put your savings somewhere safe, like a separate savings account. This way, you won’t spend it, and it can grow by earning interest on your interest. Most banks offer a savings account that is linked to your current account. This makes it simple and easy to transfer money into your savings account each month.  

Good luck and well done for being committed to #PayYourselfFirst!

All the best,
Lumka

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Dear Lumka,
I need your help! I’m good at saving… for other people! I’m saving for my kids’ education and for emergencies, but I’ve never saved for my future. I know it’s important, but how do I start?
Thanks,
Thato

Dear Thato,
Thank you for your letter, and well done for taking the first step! Since it’s Savings Month and the theme is #PayYourselfFirst, this is the perfect time to start.

It sounds like your goal is a comfortable retirement, where you don’t have to depend on your children. That’s a powerful motivation. Start by setting a clear goal and opening a separate savings account for your future. Most banks offer free savings accounts that earn interest, which means your money grows slowly over time.

Next, set up a regular payment to transfer a small amount into that account each month, before you pay your bills. This way, you’re paying yourself first and building a saving habit.

If you want to take it further, consider speaking to a financial adviser. They can help you explore retirement savings or investment options that match your income and needs.

You’re already doing so well saving for others — now it’s time to do the same for yourself.

All the best,
Lumka