We're midway through National Savings Month, have you kick-started your savings yet?
July marks National Savings Month. By raising awareness, the South African Savings Institute hopes that more South Africans will save money regularly, rather than spend it. Read on to uncover why savings are crucial to the economy and one easy tip to help you save more…
Formed ten years ago, the South African Savings Institute
is responsible for creating a “strong savings culture with a resulting high savings rate to boost the economic growth of our country”.
Savings are a crucial aspect of the economy. If a country hasn’t got enough savings of its own, it has to attract foreign savings, which come at a higher cost, says the SA Savings Institute
As part of its drive to get the nation saving, every July is National Savings Month.
“Economists believe campaigns such as the National July Saving Month will encourage millions of South Africans to start saving,” says the SABC
. With the economy experiencing such difficult times, people should ensure they’re saving adequately so they become “economically stable”.
Easier said than done.
Saving is difficult with pressure mounting on disposable income
With the petrol price increase
and electricity tariffs on the up, for example, households are feeling the pinch, says Mail & Guardian
. That leaves “little leeway for luxuries such as saving”.
But there are things that people can do to improve their chances of making better provisions for saving.
One top tip is to set up a debit order to regularly transfer a specific amount into your chosen savings vehicle, be that a fixed deposit account or a unit trust fund for example, suggests Fin24
. This makes it easier to achieve your savings goal as you need to make money available for the debit order.
National Savings Month is great for raising awareness on the importance of saving, but in these tough times a lot of people will be hard pushed to put away a significant amount a month.