Frequentlyasked questions about saving

Saving on a small income is possible.

- NADIA HEARN

How can I save on my income?

By following a few rules you should find that a small amount is available to be put aside at the end of every month.

• Buy necessities first and luxuries last.

• Take advantage of benefits available e.g. scholarships, legal aid, etc.

• Budget carefully and plan in advance.

• Get the best quality for the lowest price.

• Try to get what is needed without spending money or spend only for raw materials.

• Make informed decisions on large purchases.

• Shop around and make comparisons of costs and rates.

• Negotiate prices and ask for discounts-always possible when paying cash.

How do my savings benefit the economy?

Saving for your retirement and other future needs will leave you better off. As well as being good for you personally, your savings also benefit the economy—particularly if you invest your savings productively.

Creating prosperity and jobs requires investment. Every factory, shopping mall, or engineering project requires investment capital to convert it from an idea into reality.

The more South Africans save, the greater the pool of investment capital we create. The more investment capital available, the more potential there is for the economy to grow by creating jobs, for example.

Who created money?

Money replaced barter as a means of exchanging goods and services thousands of years ago. Cattle, grain, and cowrie shells were used as the first form of money, replacing the old way of doing things.

Bartering did not work, because the two people who wanted to sell to each other had to have exactly what the other wanted.