DURBAN - The South African Savings Institute (SASI) has issued a warning to consumers ahead of Black Friday and Cyber Monday against reckless spending and buying any items that they do not absolutely need as South Africa faces major economic and political crossroads.
The mining sector, Standard Bank, SABC and other workforces are being affected by significant job losses in addition to the 27.5% rising unemployment rate.
"It would be wise under these circumstances to save as much as possible in a volatile environment. Do not spend money you don’t have on things you really don’t need," said Prem Govender, Chairperson of SASI.
Know your interest rate
SASI has partnered with MyTreasury.co.za encouraging consumers to save money more wisely, simply by knowing what interest rates you are getting.
Whether you have a few hundred rand to put away each month or millions you are waiting to invest, a high-interest bank account is an important savings product that offers safe, consistent and reliable returns.
MyTreasury.co.za is an independent price comparison website that offers a fast way to find the best savings account for the highest interest rates. Once you click on the best option for you, the bank will call you back to tell you more about it and can help you open the account.
Govender said, "One of the easiest ways to start saving more or paying less is by knowing your interest rate. By switching services or selecting wisely, you can either save more today or grow your wealth quicker".
Warren Kopelowitz, Chief Executive of MyTreasury.co.za explained, "The savings market is opaque and complex so without using MyTreasury.co.za, it is virtually impossible to select the highest paying savings account that best matches your requirements".
Consider savings groups
SASI Acting Gerald Mwandiambira said, "The need to collectively pool resources and save is now more important than ever. Families should consider savings groups and stokvels ahead of 2019. Even stokvels should shop for the account with the highest interest rate".
SASI continues to advocate for saving but the reality for most South Africans is that surviving turbulent economic times is top priority. With this in mind, SASI’s theme for 2019 is “Back to Basics” encouraging consumers to budget for all expenses and focus on needs versus wants.
Mwandiambira adds, “Use SASI’s hash tag #CelebrateSavers, if you manage to save and then share with others to encourage them.”
The Institute, with the provincial offices of Consumer Protection and the Financial Planning Institute will spend the month-long campaign conducting consumer education workshops in key strategic areas around the country.
SASI will also visit various shopping malls as part of this year’s festive season campaign.
Tips to survive the festive season:
1. Resist sale, think, save! Differentiate between needs and wants.
2. Make your own Christmas gifts and only take holidays you can afford.
3. Have a clear budget for your needs in the New Year.
4. Use free online tools to track your spending and debt and know where every cent of your income goes.
5. Pay cash and don’t be trapped by easy credit.
6. If you are looking to save, find the best interest rate on a website like www.MyTreasury.co.za
7. Visualise what you want to save for and start saving more. Save your end of year bonus and watch it multiply.
8. Service your debt and stick to the payment terms. If you cannot service your monthly debts discuss your situation with your credit providers before it is too late.