Most of us associate the word “saving” with “sacrifice” or “doing without”. Yet there are many ways to boost our savings without any pain at all.
Have you ever wondered how much money you would collect if you saved your coins? Keep a jar in your kitchen and throw in those loose coins every evening. You will be surprised how much you will have collected by the end of the year.
But for those of us who mostly use our cards to spend, there are electronic ways to save while you spend.
The Old Mutual Money Account is a transactional bank account where you automatically select an amount between 5% and 15% of every card purchase to be transferred into a money market unit trust account.
FNB’s Bank Your Change has a similar principle. Here you select to round up to the nearest R1, R5, R10, R20 or even R50 and every time you spend, the difference is paid into your savings account.
Stash is an investment app which also rounds up each card transaction which is then invested in a in tax-free savings account that tracks South Africa’s top 40 companies ‒ and best of all, there are no fees.
Apart from saving when you spend, there are ways to save by making sure you are not overpaying.
Check with your bank that you are on the correct banking package for your spending profile. Banks bring out new products which can lower your banking costs by adapting to new banking channels such as online banking and reducing cash withdrawals.
Call your car and household insurance company. They may be prepared to lower your premium or reduce your annual increase if you have a good credit record and low claims experience.
If you belong to your bank’s reward programme or are a member of a retailer programme such as PicknPay Smart Shopper, keep these rewards for the end of the year or for January to alleviate the end-of-year financial pressure.
Make your savings painless!