Saving is tough, especially during these tough times and involves putting money away for short-term goals or emergencies within a 12 month period. It provides low returns with low risk of losing your money. For example, growing R1 300 to R1 500 over one year in a savings account. Saving is vital and gives you the peace-of-mind to know that you can manage tricky situations should they arise. It allows you meet your financial obligations and build future wealth.

One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for. Then figure out how much money you will need and how long it might take you to save for that goal.

1. Decide on what you want to save for:

   a) Home improvements

   b) Emergencies

   c) Life events or special occasions

   d) Travel

   e) Small to big purchases

   f) Other items or unforeseen expenses

2. Decide on your priorities

After your expenses and income, your goals are likely to have the biggest impact on how you allocate money to your savings. Learn how to prioritise your savings goals so you have a clear idea of where to start saving e.g. if you know you are going to need to fix your car in the near future, you could start putting money away for that right now.

3. Pick the right accounts

If you are saving for short-term goals, consider using a fixed deposit account which locks in your money for a fixed period of time at a rate that is typically higher than savings accounts. For long-term goals consider tax-free savings accounts.

4. Make saving automatic

Most banks offer automated transfers between your main bank account and savings accounts. You can choose when, how much and where to transfer money or even split your savings contribution so, a set amount of your monthly salary goes directly into your savings account. Automating your savings is a simple way to save money since you don’t have to think about it, and it generally reduces the temptation to spend that money.

5. Watch your savings grow

There’s nothing more rewarding than to review your budget and check your progress every month.

What is a savings goal?.

You may want to save to be prepared for emergencies, financial or medical, an overseas holiday, a comfortable retirement or fixing up your home, perhaps even buying a new one? If your goal is big enough, you will be motivated to stay focused to achieve it. And that is what a savings goal is; a motivating reason to save.

How to set a savings goal, the SMART way

To better achieve your goal, make sure that each one is:

• Specific. (What is your goal?).

• Measurable. (How will you know when you have achieved it?)

• Achievable. (Is your goal doable?)

• Relevant. (Is it what you really want to achieve?)

• Time-based. (By when must your goal have been achieved?)

How long do you think it will take you to reach your goal with the amount you can afford to save each month?

To better achieve your goal, make sure that each one is:

• 0 months - 3 months

• 3 months - 6 months

• 6 months -12 months

• 12 months - 24 months

A “savings calculator” where the user is prompted to input exact figure of how much they are willing to contribute monthly until the desired savings target is reached.

This will apply to every area chosen that the user desires to save for under the click through options (1.Home improvements 2.A rainy day 3.Life events/special occasions 4.Travel 5.A small to big purchase 6.Other for this segment.)

SAVING.

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