5 reasons people don’t save money
With the high cost of living in South Africa at the moment, saving money for a rainy day is little more than a dream to a lot of people, but it need not be.
In this article we offer insights into saving money, the importance of a high interest savings account, the best savings account to have and how to formulate a savings plan for your future.
But before we get into the nitty-gritties of saving, let’s look at the top 5 reasons people say they are not saving money today:
- "I'm not earning enough": What is enough? And, do you really believe that the more you have the more you will save? What you are likely to discover is the more money you have the more debt you have too. Regardless of your income, you can start saving money today.
- "I have to pay off debt": There is a reason people refer to “drowning” in debt. It is not a healthy position to be in. Get help as soon as possible and consolidate your debt to ease up on the monthly repayments you have to make. Free yourself up to put some money away. Read more from African Bank about how to get out of debt in this insightful blog.
- "Budget? What budget?" Drawing up a budget and sticking to it is a game changer. Not budgeting is probably the biggest reason people are unable to save money. Control your money, don’t let it control you – and watch your savings grow!
- "I don’t have a goal": You are unlikely to save money if you are not saving for something in particular. Set goals, open a high interest savings account or two – or even three! Name these accounts according to your savings goals. Saving money is a good thing at any time, but when you have an actual savings plan the reward is that much sweeter.
- "My expenses are too high!" If your living expenses are eating your salary up and leaving you nothing to save, you need to scrutinise your spending. Actually noting every expense for just one month will be an eye-opener. Cut down on unnecessary expenses, especially things like entertainment.
Bearing the above in mind, if you get to the point of starting to save some of your hard-earned money you want it to be worth your while.
Things like high interest savings accounts and tax-free investment accounts make saving money worthwhile.
It is, however, important to do your homework when shopping for the best savings plan and best savings account.
Consider a Notice Deposit account, which includes the option of a 7 day notice account, from African Bank. A notice deposit account earns you interest from day one and you can choose the notice period – seven, 32 or 90 days.
To grow your money even faster, you can set up a debit order or make your own regular deposits, from as little as R100. And, when you want to withdraw your money, you just give us a call.
It only takes a small deposit to grow your investment. Obviously, the longer you leave your money in a savings plan, the bigger your reward.
The good news is you do not need a fortune to start saving or making smart investments.