A young Joburg analyst is on track to save thousands this year – by putting aside 10c in January and following this simple strategy
- Every morning, Bright Khumalo sets aside an amount equal to the day of the year, times 10c.
- On Tuesday this week, for example, he saved R19.70 - Day 197 of 2019 times 10c.
- It's called the "10c challenge" and by the end of the year he will have saved almost R7,000.
- The simple savings strategy is easy, because only small amounts are needed every day - also, saving becomes a daily habit.
- For more stories, go to Business Insider South Africa.
On January 1st, while many South Africans were recovering from hangovers or struggling with the first challenges to their new year’s resolutions, Joburg-based Bright Khumalo woke up, took 10c out of his wallet and set it aside.
On the following day, Khumalo, an analyst and portfolio manager with Vestact Asset Management in Johannesburg, set 20c aside, and on Day Three 30c.
Since then, the first thing he would do every day is to set aside the day of the year times 10c.
By mid-July, he had more than R1,900 saved – and if he keeps it up, he will have almost R7,000 by the end of the year.
This is called the “10c challenge”, and he got the idea from the UK blog Skint Dad.
“When you wake up, you must remember what day it is and save that amount,” says Khumalo.
The challenge has proven a success with savers, as the routine of saving the money every day at the same time starts becoming a habit.
Also, the daily amounts that you need to set aside are small, and you can often easily rummage through your bag or trousers to get the target amount.
If you don’t have loose cash on hand, some savers have a weekly ritual to transfer a weekly amount to reach their goals.
Khumalo has been chronicling his savings adventure on Twitter, under the hasthag #SavewithBright.
You're way ahead in money management game, if you've got no consumer debt.— Bright The Dividend Papi ???? (@briteless) July 16, 2019
The most useless expense is buying something you don't need just because it is available at discount.— Bright The Dividend Papi ???? (@briteless) July 16, 2019
“The idea is to get everyone into the habit of saving from a young age. That’s why it is less about the money and more about the behaviour. The aim is to get the youth into the habit of saving.”
His goal is to eventually partner with a digital bank to set up a functionality which allows clients to automatically save small daily amounts in a fixed deposit amount.
Khumalo doesn’t yet know what he will do with his savings for 2019. “I want to invest it into something impactful.”
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