South Africans often lament their apparent inability to save by citing affordability as the prime reason there is nothing left over at the end of each month to squirrel away for a rainy day. But where there’s a will there’s a way.
“Either you’ll find an excuse or you’ll find a way,” said Errol Meyer, Legal Specialist, Advisory Services at Standard Bank Financial Consultancy. “For the majority of people there is almost always a way to save something, even if you’re battling to make ends meet.”
Examining your spending habits and cutting out unnecessary expenditure on superfluous items or products is already a way to save. Taking advantage of discounts on essential items or reducing expenditure on luxuries is yet another way to save.
Meyer says saving does not necessarily have to mean investing in formalised financial products.
If you find you don’t have enough money each month to meet the minimum requirement for a monthly contribution to a unit trust fund, then try to focus on cutting out needless expenditure as a way of building up a lump sum which you can invest at a later date.