Tips for you to start saving

Start small and build gradually, even putting aside R100 per month helps.

- Hannah Myburgh

July marks National Savings Month in South Africa—an opportune time to reflect on our financial habits and prioritize the importance of saving. In a country where consumer debt remains high and the cost of living continues to rise, a disciplined approach to saving is no longer a luxury; it's a necessity.

Saving is essential for a number of reasons. Firstly, it provides a safety net in the face of unexpected events such as retrenchment, medical emergencies, or urgent home repairs. Without access to readily available savings, many people turn to high-interest debt to bridge financial gaps, which only compounds their financial difficulties in the long run.

Saving also fosters financial independence as it reduces reliance on debt and empowers you to make decisions without being constrained by financial limitations.

Importantly, saving for retirement is a critical component of future well-being. Starting early and contributing regularly to retirement funds can dramatically improve the quality of life in one's later years. Finally, saving enables individuals to stay out of debt.

When unexpected costs arise, access to savings helps avoid the need to borrow at high interest rates, which is valuable in a rising interest rate environment.

Top tip: Build an emergency fund equal to three to six months' worth of living expenses to protect yourself from life's unexpected disruptions.