- Everyone should be saving. Whether it's to have funds for a rainy day or for a major purchase - developing the habit of saving every month is a good one.
- In China, the average worker saves 50% of their salaries, despite sending money home to family in rural areas, buying necessities and paying rent. And how much does the average Chinese worker earn? R5 900 per month! The average wage in urban South Africa is R14 000 per month. So if they can do it, why can't you?
- I've never been able to save: Then speak to a financial planner who can suggest the right strategy for you to get your savings on track. Make use of a call account and a debit order. In this way the money is deposited into the call account without you having to lift a finger, and before you know it, you've got money saved. Chances are, if you aren't saving for everyday things, you probably aren't taking care of important savings like retirement.
- I don't earn enough money to save: Really? Look at what you spend your money on each month, and if there really is nothing left at the end of the month, you are overspending, or over-indebted. Something needs to change. Speak to someone who can assist you with your budget or your debt.
- I have too much debt to be able to save: If you are paying off your debts religiously, and are reducing your debt, NOT accumulating more debt, then you are in fact saving, as you are reducing interest charges and the length of the debt. If you can pay a little extra towards your debt, paying off even more interest and reducing the time you'll be paying off the debt, you'll pay off all your debt quicker. In this way, you'll be able to start creating your own savings sooner.
- I'm dumb when it comes to money: You're only as dumb as you allow yourself to be. If you can't create a budget by working out how much you spend and what you earn, then ask somebody you trust to help you. Read books to educate yourself. Do not hide behind this excuse and wonder why you never have money. There is no big secret to money. Managing your spending, saving what you can and speaking to a financial planner who can assist you in creating the appropriate portfolio for you is the approach you need to take.
- I don't have the willpower to save: Then speak to a professional who can assist you in changing your habits when it comes to sabotaging your financial well-being. We all show some lack of willpower when it comes to finances from time to time, but if you can set up your savings to be automated and debited off your salary as it is deposited into your account, then your need for willpower is reduced.
- No one can save in this economy: As soon as you hear yourself saying this, you should review your budget immediately, make appropriate changes, and change some of your spending habits. If you're waiting for the economy to improve before you start saving, it'll be a long wait.
- My spouse makes it impossible to save: Well then you need to talk about it - together! It's impossible to save when your spouse is spending like there's no tomorrow. You need to both have the same financial goals in mind. If your spouse is still unwilling to get on board, separate your finances. This is why the correct marital contract is vital, as well as a long conversation about how both of you view money and what your spending habits are before you even consider marriage. There are excuses that seem relevant, but can always be overcome, yet there are times when saving into a dedicated savings vehicle is impossible due to too much debt. Pay off your debt as soon as possible so that you can save for that something special - without having to get into debt to get it.
Saving: extract courtesy of FNB