Your hard-earned money disappears long before month-end and saving for something meaningful just never seems possible. Rather than worry about what seems like just another financial burden, you put off saving until, one day, you earn more.
But let’s be honest: more money often leads to lifestyle changes, resulting in higher expenses and still no savings.
Saving is not about waiting for a higher income. It is about developing a habit of setting money aside regularly, even in small amounts, to help build a more secure future.
This Savings Month, the Association for Saving and Investment South Africa (ASISA) is challenging you to save what you can, because your future depends on it.
Saving for your future
You need to save for two main reasons. First, life is unpredictable. A small emergency fund can help you pay for unexpected medical costs, replace something that has broken, or cover school expenses without turning to expensive debt.
The second reason is to put money away for retirement. The more you have saved for your retirement, the more independent you can be because you won’t have to rely on your family to help you out. A nest egg in your old age will also enable you to enjoy a more comfortable retirement.
It is less about how much you save and more about making saving a regular habit. Saving R20 or R50 regularly may not seem like much today, but consistently putting something aside helps to build your savings over time. If you leave your savings for some time, the savings you set aside can benefit from compound growth, which means you will earn interest on interest.
This Savings Month, challenge yourself to save what you can by busting the following myths:
Myth 1: “Starting when I earn more is early enough.”
Instead of waiting for the perfect time, start with a small amount you can manage. Even a small amount saved every payday helps create the habit. Arrange for the small amount to be automatically deducted from your everyday account and transferred to your savings account on payday. Your savings should be held in a fixed deposit account to prevent easy access.
Savings tip: Choose one expense you can reduce slightly this month – a cold drink at lunch or takeaways on Friday night – and move that money into a separate savings account.
Myth 2: “Saving small amounts isn’t worth it.”
Many people think saving only works if you can put away lots of money every month. But every successful saver started somewhere.
Once you start, even with small amounts, your confidence grows, and you save more and more. When extra money comes your way, such as a stokvel payout or a work bonus, you can add more to your savings. But don’t overlook the power of small amounts saved regularly. Over time, they can make a meaningful difference.
The important thing is consistency, not perfection.
Savings tip: When you save towards a goal, it makes it easier to save consistently. Set up a separate account and name it something meaningful like “Emergency Fund” or “School fees”. Many people are often more motivated to save when they know exactly what they are saving for.
Myth 3: “Dipping into my retirement fund’s savings pot is not a big deal.”
If you are lucky enough to have a retirement fund, you are already saving. But dipping into the savings portion of your retirement fund once a year drastically reduces what you will have available in your old age.
Even if you can replace the money taken from the savings pot in the future, you lose out on the compound growth. The more you take out of your savings pot every year, the less you will have at retirement when you are likely to need it most.
Also, remember that withdrawals from your savings pot are taxed and attract an administration fee.
Savings tip: Aim to build up an emergency savings fund, even if you start small. Instead of having to dip into your retirement savings for every unexpected expense, you can use the money in your emergency fund. This way, you allow your retirement savings to continue growing while avoiding taxes and fees.
Save what you can
You do not need to save perfectly. Some months will be harder than others, and that’s okay.
What matters is creating the habit of putting something aside whenever you can. Small, regular savings today can give you more choices, more security and greater peace of mind tomorrow.
This Savings Month, don’t focus on how much you can save. Focus on getting started.
Save what you can – your future depends on it.
This content is brought to you by the Association for Savings and Investment South Africa (ASISA) as part of its Savings Month education initiative to help more South Africans #SaveWhatYouCan.
