Saving a part of your monthly income is important because it gives you greater financial security. If you’ve a large amount of money saved you will be able to pay cash for emergencies instead of using your credit card. You’ll have enough for a comfortable retirement and have enough to ensure you and your family remain comfortable.
Saving money may seem difficult if you don’t earn a lot, however putting away at least 10% of your monthly income every month will provide you with financial freedom in the future.
There are many reasons why we should save including:
Retirement – Retirement is one of the main reasons you should save. You cannot work and earn an income forever, and with the average life expectancy in South Africa rising, you need a steady income and savings to meet your basic needs. One of the easiest ways to save for retirement is by speaking to a financial advisor to open a pension fund.
Emergencies – Anything can happen in the future. Having savings can help you overcome those unexpected emergencies without you having to go into debt. If you’ve cash set aside for emergencies, you will have a fall back in case something unexpected happens.
Education – We all have different aspirations and goals for our children. Having savings put aside will help you put your children through school and university. It will also help you to purchase their school uniform and utensils.
How you can save?
If you aren’t sure where to start here are a few suggestions you could consider:
Others ways you can save
If you are still unsure on how to save, we compiled this list of savings tips that you can follow.
Expand your portfolio by investing in RSA Government Retail Bonds
An RSA Retail Bond is an investment with the Government of South Africa that earns fixed interest for the term of the investment. It offers guaranteed returns, can be bought for as little as R1 000 and carries no commission, agency or service fees.
RSA Retail Savings Bonds encourages households to start saving alongside business and government, while allowing investors to take control of their own savings portfolios, instead of investing through a third party.
For more information regarding RSA Government Retail Bonds you can contact them Monday to Fridays on 012 315 5888 or via email: email@example.com
What can you do if you're in debt?
If you need debt management guidance and advice, please get in touch with the Ombudsman of the Consumer Protector’s office on 0800 007 081. The Office of the Consumer Protector provides a financial literacy education programme that targets consumers across the province.
The Financial Literacy Education Programme provides more information about:
For more information about the programme kindly contact Phenias Ncube on 021483 9282 or via email at Phenias.firstname.lastname@example.org
VIDEO: We asked citizens how do they save on their monthly income?