Failure to save can derail your goals

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People who have a healthy relationship with money understand that saving has very little to do with the size of your bank account, says FNB head of education.

Eunice Sibiya says most people would like to save because they understand the financial benefits.

“But saving usually takes the backseat simply because of the hesitation to make sacrifices.

Understandably, consumers are hard pressed financially, but the essence of saving is starting small then building up from there.

If you are unable to save, perhaps it’s time to look at the relationship you have with money,” adds Sibiya.

ALSO READ: Grocery Stokvel Account, a new savings option for consumers

Sibiya believes these could be some of the reasons you are unable to save:

1) Poor attitude towards money

A poor relationship with money is characterised by aimless spending on things that will have no bearing on your long-term financial future. This may include taking on debt to finance your lifestyle or overspending on things such as entertainment and clothes. It’s important to pay attention to how and what you spend your money on and ask yourself if you are deriving any value from such expenses.

2) Lack of financial goals

Without setting goals you are unlikely to get very far with your finances because money leaves your account as quickly as it comes in due to frivolous spending. When you have goals and are fully committed, you are able to use your money according to your goals.

3) Not asking for help

It’s advisable to consult a financial advisor to help you plan your financial future, especially if you are struggling to prioritise. Not being able to save now does not mean the situation cannot be turned around. For example, if you are over-indebted you may have to focus on clearing your debt before you start saving.

4) Being governed by yolo

Yes, it’s true that you only live once (yolo) but this also means you have a single lifetime to make your money work for you. It’s important to take the future into consideration when dealing with money, if you don’t save for both short and long-term goals you may end up financially constrained in future. Have financial future plans and avoid living in the moment.

5) Procrastination

Saving is a necessity, and this applies to everyone whether you have a lot of money or not. Postponing the decision to save will only put you in a compromising financial position. For example, if you have an emergency you may not be able to fund it from your own pocket because you have no money set aside for emergencies. This can lead you to debt.

“Being able to save does not necessarily mean putting large sums of money aside, it’s possible to start small and build up from there. South Africans are notoriously poor savers, and to correct this will require a change of attitude towards money,” concludes Sibiya.

ALSO READ: Financial literacy apps for children

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