Automating your savings is the go-to method for many who want to effortlessly grow their wealth and secure their financial future. Think of it as a smart strategy rather than just a convenient shortcut. It’s a way to build up your savings without constantly thinking about it. By setting up automated savings, you’re putting your money to work regularly without having to keep a constant watch.

Why Should You Be Saving Money Each Month?

Saving each month isn’t just about putting money away – it’s about forming good financial habits. These habits can help you build wealth for yourself, your family, and future generations. Additionally, saving provides financial security and allows you to set funds aside for unexpected expenses. By budgeting smartly, you can maximise your savings, and when combined with compound interest, your savings will grow significantly.

Why Is It A Good Idea To Automate Savings?

Saving can be tough, especially when tempting purchases come your way. But automating your savings cuts through the struggle. This removes the forgetfulness to start or continue depositing money monthly — automated savings kick in once your salary hits. This keeps you on track with your savings goals effortlessly, ensuring you stay focused on your objectives every month. You will also learn to live on what is left after saving. 

How Can You Automate Your Savings Each Month?

While automating savings might seem overwhelming, starting early is key. Major financial institutions in South Africa offer various savings and investment accounts. Open a savings or investment account and set up a direct deposit each month. Give yourself a buffer of 1 or 2 days before your debit order to ensure funds are ready for your savings account. This simple step ensures consistent savings without the stress. 

Additionally, If you have extra funds, consider adding them to your savings or investment account. This boosts your savings potential and, with an investment account, amplifies the compound interest you can earn. It’s a smart way to further grow your financial reserves. We strongly recommend triggering your savings amount along with your other monthly expenses. 

What You Can Do To Save Each Month

Saving in today’s economy, particularly in South Africa, poses challenges with high interest rates, inflation and stagnant salaries. Yet, establishing and sticking to a budget can make it achievable. A budget helps categorise expenses and tracks income, enabling you to identify unnecessary expenses and areas where you can cut down, ultimately freeing up extra funds for savings.

Furthermore, consider starting a side hustle leveraging your skills and expertise. Offering services in exchange for additional income can significantly boost your savings potential. It’s a great way to generate extra funds to contribute to your savings and cover some expenses despite economic challenges.

If You Are Unable To Save, Here’s What You Can Do

It’s been a tough time for South Africans with soaring inflation and interest rates, pushing many to prioritise monthly expenses over savings. So here’s a plan to restart your savings:

1. Review Your Budget: Take another look at your budget and trim expenses where possible, starting with subscriptions like gym memberships or streaming services. Cutout all luxurious or unnecessary spending.

2. Address High-Interest Debt: Clearing high-interest debts can free up cash for savings or other needs, aiding your financial stability.

3. Get Expert Help: Consult a financial expert for budget planning, allocating funds to savings, and managing debt. Alternatively, consider a registered debt counsellor who can help lower monthly payments and rates, potentially freeing more for savings.

These steps can help you bounce back and begin rebuilding your savings amid these economic challenges. Alternatively, contact us and one of our financial experts will provide you with a free financial assessment.