Maintaining a disciplined savings mindset
By Elzita Beukes
Communications Manager at FNB Namibia
According to a survey done by the Namibia Statistics Agency – barely one in ten people have savings to fall back on when they run out of money.
A savings mindset is an ongoing process and if executed correctly will help you and your family in the future. The volatile economy has exhausted household expenditure and has forced consumers to re-evaluate their spending habits and look for simple saving methods.
Emphasis needs to be placed on creating a saving strategy that is aligned to your life-goals, needs and wants. Some will save towards wedding related expenses, anniversaries, significant birthday’s, local or international holidays or home renovations, others will open a Savings Account in case of emergency, while others will save to be able to spoil themselves with, for example a branded leather handbag or designer shoes. Whatever your savings goal is, ensure that you start saving sooner rather than later.
Five core saving principles which will help in building a savings strategy:
Live within your means: Don’t overspend on things that you don’t need. Look at your current situation and assess what is important and what is unnecessary in your life. “Over extending yourself with unnecessary debt just adds strain to relationships and is not sustainable in the long-term.”
Have a goal-based mindset: Your monthly savings goals should speak to your household and family needs. Determine your short, medium or long-term goals as this will help eliminate wasteful expenditure and help you identify saving avenues.
Prioritise your budget: A well-managed budget will help you keep track of your expenses and your savings. Ensure that this budget is kept up-to-date and includes all your household expenses.
Pay yourself first: Key to enjoying your money is to pay yourself first. Allocate a certain amount to yourself – which you can use in case of emergency, to spoil yourself or to save towards a specific goal.
Have a Savings Account that you will use: Build your savings with a savings account or a cash investment account that will help you save and accumulate wealth over time.
Discipline and commitment are needed to ensure that you stick to your savings goals. Whether big or small, your initial saving steps will make a difference and help in building a saving culture in South Africa.
FNB offers a range of savings and cash investment accounts where you will not only benefit from attractive interest rates, but your capital and quoted returns are fully guaranteed, so you can trust that your hard-earned money is kept safe and growing. FNB also introduced the cash back reward programme, bank-your-change as well as numerous digital options which are free of charge.