Saving: Two allies, one thief

2014-07-21 16:33
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Johannesburg - Time and the power of compounding are your greatest allies when it comes to savings, but watch out for the thief of time: procrastination.

This is according to head of strategy at FNB Savings & Investments Aneesa Razack, who said that saving is a necessity that cannot be delayed for the future.

She explained three simple steps that consumers can follow in order to overcome the challenges of saving.

1. Believe that saving is possible;
2. Distinguish between your wants and your needs; and
3. Try and save a little extra money.

"The flip side of saving or saving more is spending. The less you spend the more you will be able to save," said Razack.

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She suggested that consumers track their spending by looking at their bank statements. "It is funny how you can understand your spending habits by just having a glance at what you are actually spending on."

Everyone has basic expenses, but it is the less obvious expenses that people need to look at like buying lunch at the work canteen each day. "How about packing a sandwich? That will allow you to save a little bit of extra money," she advised.

She said that it is standard that workers try to save between 10% and 15% of their monthly income every month. "If this is too high, start small and work your way up."

 - Fin24

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