JULY is national savings month, but in our weakening economy, many people are battling to make ends meet, never mind save money.
The South African Savings Institute (SASI) promotes a national savings campaign each year in July, raising awareness on the benefits of saving.
As each year brings its own financial stresses and despite the campaign, many find it hard to contribute a part of their income to a savings scheme in the deteriorating South African economy.
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According to the South African Reserve Bank, data consumer pricing has been increasing from January 2017 to date.
This complements the Statistics SA data noting that annual consumer price inflation was 5, 4 per cent in May 2017, up from 5, 3 per cent in April 2017.
The consumer price index increased by 0, 3 per cent month on-month in May 2017.
The Highway Mail spoke to residents in the Highway area about saving money.
Nomusa Mbhele a domestic worker and a mother of two said the campaign has less effect on her if not at all.
“I don’t see any way I can save money, even my expenses have increased since the beginning of the year,” said Mbhele.
Clermont resident, Sfiso Xaba, said he took no interest in the campaign and was not aware of it.
“There are 12 months in a year and we only choose one to save, for me that’s not productive,” said Xaba.
Making use of the campaign, Thabiso and Thabile Khambule said that budgeting for specific items rather than general saving is a good starting point.
Quintine Govender also shared his saving strategy, saying he does most of his shopping when products are on sale.
“With the current state of the economy I have to save whatever I can,” said Govender.
Mpho Ledwaba, head of marketing at the Johannesburg Stock Exchange (JSE), said saving has a positive impact on overall economic growth.
“A country with a higher portion of income allocated to savings ensures that expenses are lower. What this means is that the country will have the capacity to cope with financial hardship, and ultimately the economy will recover much faster,” added Ledwaba.
For many people, saving money without professional financial advice, can be frustrating.
However, according to Ledwaba, a good start is to know what to do with what you have.
“A good rule is to invest and save only as much as you can comfortably afford after meeting your personal and household expenses,” said Ledwaba.
As the cost of living increases each year, the JSE encourages consumers to spend their money wisely in 2017.
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