In recent years, South Africans have faced many financial challenges, from high inflation to unreliable electricity supply. These difficulties have made saving less of a priority while people focus on daily expenses. However, with the economy showing signs of recovery and inflation easing, now is a good time to get back on track with saving. Babalwa Nonkenge, Head: Retail Investments at Nedbank, shares five simple strategies to help you grow your savings:
- Start small and make it automatic– Don’t wait for the ‘perfect’ time to start saving—start now, even if it’s a small amount. She encourages people to set up automatic monthly transfers from their main account to a savings account. “Automating your savings removes the temptation to spend the money and makes saving effortless,” says Nonkenge.
- Keep it simple anduse technology – Choose savings options that are easy to use and manage. Technology can help simplify saving by allowing you to open accounts, track progress, set goals, and make adjustments anytime. This makes saving more convenient and engaging.
- Set clear goals– Define specific savings targets to stay motivated and have a clear plan. Instead of vague goals, set precise ones like “save R5 000 in my emergency fund by December,” or “put aside R10 000 for my child’s education by January 2026.” Regularly checking these goals ensures they still fit your financial situation and future plans.
- Look for good interest rates and avoid high fees– Find savings accounts that offer competitive interest rates to help your money grow faster. Also, watch out for accounts with high fees that can reduce your savings over time.
- Increase savings as your income grows– When your income increases, put some of the extra money into savings instead of increasing your spending. This can speed up progress toward your financial goals. “Small increases in savings over time can make a big difference in achieving long-term financial security,” Nonkenge advises. Some savings products offer better interest rates for higher balances, so taking advantage of those can help grow your savings even more.
“Saving doesn’t have to be difficult,” Nonkenge emphasises. “The key is consistency and choosing savings options that match your goals and lifestyle. For those looking for a flexible and rewarding savings account, Nedbank’s JustSave account offers up to 7.5% interest, immediate access to funds, and no minimum deposit requirement, making it a great way to build a strong financial future.”