Your
hard-earned money disappears long before month-end and saving for something
meaningful just never seems possible. Rather than worry about what seems like
just another financial burden, you put off saving until, one day, you earn
more.
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| Save what you can - your future depends on it. |
But
let’s be honest: more money often leads to lifestyle changes, resulting in
higher expenses and still no savings.
Saving is not about waiting for a higher income. It is
about developing a habit of setting money aside regularly, even in small
amounts, to help build a more secure future.
This Savings Month, the Association for Saving and
Investment South Africa (ASISA) is challenging you to save what you can,
because your future depends on it.
Saving for your future
You
need to save for two main reasons. First, life is unpredictable. A small
emergency fund can help you pay for unexpected medical costs, replace something
that has broken, or cover school expenses without turning to expensive debt.
The
second reason is to put money away for retirement. The more you have saved for
your retirement, the more independent you can be because you won’t have to rely
on your family to help you out. A nest egg in your old age will also enable you
to enjoy a more comfortable retirement.
It
is less about how much you save and more about making saving a regular habit.
Saving R20 or R50 regularly may not seem like much today, but consistently
putting something aside helps to build your savings over time. If you leave
your savings for some time, the savings you set aside can benefit from compound
growth, which means you will earn interest on interest.
This
Savings Month, challenge yourself to save what you can by busting the following
myths:
Myth
1: "Starting when I earn more is early enough."
Instead
of waiting for the perfect time, start with a small amount you can manage. Even
a small amount saved every payday helps create the habit. Arrange for the small
amount to be automatically deducted from your everyday account and transferred
to your savings account on payday. Your savings should be held in a fixed
deposit account to prevent easy access.
Savings
tip:
Choose one expense you can reduce slightly this month - a cold drink at lunch
or takeaways on Friday night - and move that money into a separate savings
account.
Myth
2: "Saving small amounts isn't worth it."
Many
people think saving only works if you can put away lots of money every month.
But every successful saver started somewhere.
Once
you start, even with small amounts, your confidence grows, and you save more
and more. When extra money comes your way, such as a stokvel payout or a work
bonus, you can add more to your savings. But don't overlook the power of small
amounts saved regularly. Over time, they can make a meaningful difference.
The
important thing is consistency, not perfection.
Savings
tip: When
you save towards a goal, it makes it easier to save consistently. Set up a
separate account and name it something meaningful like "Emergency
Fund" or "School fees”. Many people are often more motivated to save
when they know exactly what they are saving for.
Myth
3: “Dipping into my retirement fund’s savings pot is not a big deal.”
If
you are lucky enough to have a retirement fund, you are already saving. But
dipping into the savings portion of your retirement fund once a year
drastically reduces what you will have available in your old age.
Even
if you can replace the money taken from the savings pot in the future, you lose
out on the compound growth. The more you take out of your savings pot every
year, the less you will have at retirement when you are likely to need it most.
Also,
remember that withdrawals from your savings pot are taxed and attract an
administration fee.
Savings
tip: Aim
to build up an emergency savings fund, even if you start small. Instead of
having to dip into your retirement savings for every unexpected expense, you
can use the money in your emergency fund. This way, you allow your retirement
savings to continue growing while avoiding taxes and fees.
Save
what you can
You
do not need to save perfectly. Some months will be harder than others, and
that's okay.
What
matters is creating the habit of putting something aside whenever you can.
Small, regular savings today can give you more choices, more security and
greater peace of mind tomorrow.
This
Savings Month, don't focus on how much you can save. Focus on getting started.
Save
what you can – your future depends on it.
This
content is brought to you by the Association for Savings and Investment South
Africa (ASISA) as part of its Savings Month education initiative to help more
South Africans #SaveWhatYouCan.
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