As South Africa celebrates savings month, head of savings and investments at ABSA Retail and Business Banking, Thami Cele provides youth with advice on how to save.
“Once you get the discipline of saving a portion of your funds every month, you start to spend better, wiser and put your money only towards the things you need as opposed to want,” said Cele.
While many people wait to have the right job and ideal circumstances to begin saving and investing, Cele suggests today is the best day to start, in your youth, with the little you have.
“Learning to save either towards a small or bigger goal will ensure that as your income increases, you have the discipline to always put a portion of your earnings away for a greater cause.”
He said that being able to start saving earlier in life allows you to learn along the way and make room for mistakes that many people make while trying to find the saving or investment option that suits them best.
“For most young South Africans, Black Tax [the family responsibility of providing for the extended family], is a reality that you can’t run away from. Having a savings buffer helps lessen the burden this may have on your pocket in times of a family or personal crisis, where you are required to do your bit by digging into your pockets.”
An additional advantage of having a savings buffer is being able to fall back on your savings when FOMO (Fear of Missing Out) strikes, allowing you to spend your money on pleasures safely.
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“Saving and investing can seem like a lofty idea when you do not necessarily earn enough to save and invest a sizable amount of money regularly. However, if you can get into a healthy habit of budgeting, sticking to that budget, and putting away what you can, you are bound to cultivate a healthy savings culture that can only be good for your future,” concluded Cele.
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