South Africans do not have a savings mind-set. According to the Reserve Bank South Africans save only 15,4% of its GDP and it is getting worse. These statistics are even more shocking considering that countries like China and India save 50% and 30% respectively of their GDP regardless that they earn less than the average South African citizen.
Furthermore National Treasury indicated less than 6% of South Africans will be able to retire comfortably without having to downscale on their lifestyles. Given these statistics National Treasury introduced the Tax-free savings account (TFSA) in 2015 to encourage South Africans to start saving.
Why do you need to save though?
- To increase your assets and start building a wealth portfolio.
- To plan and prepare for the future.
- To have funds available for unforeseen circumstances.
- To create a better lifestyle for you and your family.
- To achieve your goals whether it is to retire comfortably, buy a new house or to become financially stable.
Adopting a savings mind-set will make it a lot easier to continuously look out for potential savings. You really don’t need thousands to start saving and investing. Start small but at least start. Every little bit helps. Don’t think of savings as a way to restrict yourself. It is possible to save money and still enjoy life to the fullest.
Download my FREE “12 Powerful Savings Tips” here, it will put you on your way to start saving money and building a better tomorrow.
Written by Ronel Jooste
CA(SA) and Financial Coach
Contact Ronel: firstname.lastname@example.org
For more information about my financial wellness programmes visit the website.