The answer is: super easy. And it is super beneficial to you too. When you buy something on credit, you need to remember that in the long run the cost will increase. But when you buy the things you really want, like a TV, a fridge or even a car it really helps if you can do so with cash. When you have an amount of money saved in the bank, you also know that you have resources ready for any unexpected events, like getting sick and needing medicine or paying for that extra school trip for the kids this month.
What do you need to start saving? Well, first you need a bank account, if you don’t already have one. It’s easy to open - just take your ID and a proof of address, like a telephone bill to your nearest branch.
The bank is the safest place for your money, because you don’t have to worry about it getting lost or stolen. Once the account is opened for you, you can set up a stop order so that your salary is paid into your account every month.
Next: to help see where your money is going every month and where you can save, you should do a budget. A budget lets you see how much money you need for essentials and what money you have for additional extras. It will show you where you can potentially cut costs so that you can save more.
A good amount to save every month is 10% of your salary. This means that if you earn R6000, you should be saving R600 every month. It might seem really little in the beginning, but imagine how much money you’ll have saved in six months or a year? The bank will even reward you for saving with interest. The more money you save in the bank and the longer you have it there, the more interest your money will earn. It’s like getting a little something for doing absolutely nothing.
Seeing your money grow and knowing that you can buy something you really want with cash is a great feeling. And the more you do it, the easier it will be become.
If you need assistance or help in setting up a savings account, go to any FNB Branch and they will be able to assist.
This post and content is sponsored, written and provided by First National Bank