Savings Month could be the start of something big for South Africans that really ‘get it’ – as big as the rest of your life.
Ideally, that’s the impact the month of awareness-raising should have on individuals and families, says Elizabeth Lwanga-Nanziri, CEO of the South African Savings Institute (SASI), the non-government, non-profit organisation with the task of fostering a savings culture.
This year, the month kicked off a little late as the World Cup dominated media in the first half of July and SASI relies on media time and space to communicate the need for personal saving. So, the month got under way on July 20.
That’s fine, says Elizabeth Lwanga-Nanziri. A key message is that it’s never too late to start.
But why save and how do you get started?
She explains: “We can only secure the future by taking personal responsibility for saving. Without a nest egg, every challenge in life becomes so much tougher – redundancy, accident, illness or bereavement. Government has massively increased the number of social grants and pension reform is under way, but government can’t push back poverty on its own.
“A better life can be achieved by a better savings plan – and we all have a part to play.”
It can be tough breaking with old habits and turning your back on thoughtless spending, but things become easier with a little forward planning.
SASI says one starting point is the following five-step approach
- Have a dream: think about the future and what you want to achieve for yourself and your family.
- Set a goal: write down your short-, medium- and long-term goals; set timeframes for achieving them.
- Develop a savings plan: decide how much you need to set aside every week and month to reach your goals and start putting that money into appropriate savings products.
- Work on a household budget: make sure you know where every cent of your income goes. Identify areas where you can cut expenses and outgoings; reorder priorities.
- Stick to your plan: make the savings as planned and put the money away; make saving a habit.
To widen the Savings Month awareness-raising effort, SASI works with numerous partners and sponsors, including the Reserve Bank, the Education Department, the IDC, the Banking Association and leading institutions. Financial services provider Old Mutual is the lead sponsor of Savings Month 2010.
Says Elizabeth Lwanga-Nanziri: “Many organisations stand ready to help, but in the end it comes down to each individual. Make the commitment and make a start. Take the first step to help yourself before government can help you. You’ll be so glad you did.”