Adopt a Habit that will Change your Life – in a Good Way
Don’t put off until tomorrow, something that you can do today. It is a very well-known phrase or saying, and it’s is one which can be applied to many things in life, but none more importantly than with regard to creating personal savings.
The real problem with starting saving is that the longer you leave it before you take the plunge, the less time you will have to achieve your savings goal. It doesn’t matter what that goal is. It might be to start saving for a new television, a new car, or your retirement. Whatever your target is, the later you start, the less time you will have to collect the amount of money you need.
South Africa ranked bottom in G20 country personal savings league
In South Africa, the amount of money that people set aside from their own income has never been lower than it is today. In fact, that figure today is negative. In the 1970s it was 11%. In the 90s it fell to 5%, and now it is minus 0.24%.
When measured against the other G20 countries for citizen’s personal savings, South Africa came in last place. In effect, this means that many South Africans are living in debt while many others are beginning to eat into their private capital.
The other worrying thing about the savings philosophy of South Africans is into what they put their savings. According to Old Mutual, the pan-African banking, insurance, investment and savings group, 40% of working people have absolutely no personal retirement savings at all.
32% said that they were relying on the SA government to bail them out, while 38% said that they were looking towards their children to help them when the time came.
Buts it’s not just the number of people without savings that is a worry. Many people who do put money aside, put it into the wrong vehicles. The accounts they opt for offer meagre interest rates if any.
A change of attitude is needed
The most important thing of all though is to change people’s attitude towards saving. The sooner that happens that better. The longer you have to save, the more money you will accumulate and the more interest that money can earn.
Even the USA doesn’t rank as high as you might think when it comes to individuals’ savings efforts from a report published on Citizen.
A 47-year-old woman called Kassandra Perry-Moreland decided to do something about her personal financial situation and she embarked on the 52-week savings challenge. You can read more about exactly what she did here.
The gist of the 52-week saving challenge is simple. There are many models that have taken off all over the world. One of the key issues about personal saving is the philosophy itself. Once you get into the habit of putting money aside, it becomes easier and more habit-forming, and as habits go – it is one of the very best you can adopt. In fact, it can become life-changing – for the better of course..