Make Saving Part Of Your Routine

However, opening a savings account is just the first step in smart money management. Whether you’re worried about rising bank fees or concerned about your own spending habits, there are a number of hurdles to climb over as you put your money on the path toward saving.

blog 10 July 2013

There are plenty of reasons to open a savings account:

  • To build up an emergency fund or buffer
  • To prepare for a major purchase
  • To earn additional interest
  • Lay the foundations for your long-term financial stability ad independence

However, opening a savings account is just the first step in smart money management. Whether you’re worried about rising bank fees or concerned about your own spending habits, there are a number of hurdles to climb over as you put your money on the path toward saving. If you are hoping to empower your personal finances, here are some ways to grow your savings account balance, cut your costs and avoid unnecessary bank fees:

Watch your Spending

Saving more starts with spending less. If you are struggling to contribute more to your savings account, many banks and personal finance sites offer free online tools for tracking your expenses. “Most people who buy small items every day aren’t aware of how quickly these small purchases add up, “says Aaron Forth, Vice President and General Manager of Intuit Personal Finance Group.”Realizing how much you spend in certain areas encourages you to make changes like not eating out or shopping less regularly.”

Automate your Savings

For those who find big monthly transfers overwhelming, some banks have begun offering automated savings programs for account holders who also have cheque accounts. For example each purchase made with a cheque account/debit card, the bank will automatically transfer a small amount from your cheque account into a linked savings account. Let’s say you buy a cup of coffee for R12.50 with your debit card. The bank might transfer R0.50 to your savings account at the same time. It’s a simple reminder to save while you spend.

Kill your Debts

Simply calculating how much you spend each month on your debts will illustrate that eliminating debt is the fastest way to free up money. Once the money is freed from debt payment, it can easily be re-purposed to savings. Plus, the sooner you pay off debt, the less interest you’ll pay, and that money can be saved instead.

Pay Yourself First

Savings should be your priority, so don’t just say that you’ll save whatever is left over at the end of the month. Deposit savings into an account (or your piggy-bank) as soon as you get paid. An easy, effective way to start saving is to simply deposit 10% of every cheque in a savings account. If you get a cheque or sum of cash, say 710.68, move the decimal point one place to the left and deposit that amount: 71.07. This works well and requires little thought; over several years, you’ve a tidy sum in savings.

sybrin insights

Have a look at what is happening in the industry at our insights section and read all about our events, blogs, case studies, and trending news.

Find out more »

Top