WITH the value of the Rand dropping and life getting more expensive every day, it’s wise to put away money for a rainy day. Move! looks at why it’s important to save and ways that can make saving money easy.
WHY SAVING IS IMPORTANT
Kirsten Reynolds-Wood, brand and marketing executive for online lender, GetBucks, says that there are proven strategies for building a savings culture and that people who implement these habits will go a long way towards building security and wealth for their families. If you don’t have immediate access to money in an emergency, you’ll need to take out a loan, an extension on your bond or dip into your overdraft. The interest rates on these are quite high – meaning that you pay more than what you have borrowed.
GROWING YOUR MONEY
Gone are the days when people saved money under their mattresses. Nowadays, there are so many ways of saving money. Communication specialist from AVBOB Mutual Assurance Society, Mabore Sefara, looks at ways you can use to grow your money. Mabore suggests the following:
¦ Investment account: This is an account held at a financial facility for the purpose of a long-term investment for money preservation, growth or fixed income. Financial facilities for investment accounts include banks, insurance companies and brokerage houses.
¦ AVBOB Family Saver: This is a fresh new savings product and is the ideal vehicle to attain any savings goal. Unlike other insurance companies or financial institutions, AVBOB is a mutual society, which means that policyholders are the ultimate owners of the business. AVBOB Family Saver policyholders qualify for discounts and special bonuses.
¦ Stokvels: This can be a good way for undisciplined spenders to save money by forcing them to be accountable to a larger collective. When you share that money-saving goal with people you have committed to, you’re more likely to be disciplined and achieve your goal.
HABIT OF SAVING
Mabore says that products such as the AVBOB Family Saver can help nurture a saving culture among people from their teen years. “Clients can start saving from as early as 19 years old up to a maximum age of 70,” says Mabore. “Clients may choose the education provider option, those wishing to pay off their home loan sooner may choose the mortgage accelerator, and those wishing to save for that once-in-a-lifetime breakaway may take a Dream Holiday option.”
STRETCH YOUR MONEY
Kirsten also lists ways to stretch your money:
¦ Lower your expenses: Instead of spending money on takeaways or the office canteen, pack your own lunch and this will save you a lot of money over time.
¦ Stop smoking and drink less: A R30 box of cigarettes a day equals R10 080 spent in one year. What could you do with that money?
¦ Eat out less: Socialise at places where you don’t have to buy food or drinks.
