Saving money doesn’t cost a cent. If you are struggling to keep ahead of payments and it’s still a while until the end of the year… don’t stress – we have a few tips to help you get through the money slump, writes debt management expert Wikus Olivier from DebtSafe.
South Africa is celebrating National Savings Month in July. However saving does not come easily for most South Africans. The average South African is paying almost all of their income on debt repayments and we are on a mission to educate individuals to become better off financially. We believe that every person deserves a decent living.
According to a survey, which DebtSafe ran in the first quarter of this year, most people’s budgets are stretched; 51% of respondents in the survey indicated they couldn’t make debt repayments, and 41% overspent on their credit cards. These two statistics show that there are no extra cash. If consumers don’t have sufficient funds to make payments on debt, the chances are little that they will put some cash away in the form of savings.
From the above statistic, it is not a surprise that 55% of participants don’t have a savings plan in place. You need a savings plan to save; whether you want to save for retirement or to buy something like a car or house, you will need a plan to get there.
Results from a second survey which ran from March to May this year, show that 53,3% of the respondents can’t save because they don’t have sufficient funds to cover monthly expenses and savings.
The most crucial point of taking control of your finances is to be able to measure what you earn and what you spend.
“I urge people to start saving… even if it is less than 3% of your monthly salary. It is a good start and will encourage a healthy financial habit”
