MZANSI has one of the lowest savings rates in the world.
Even though we have just finished National Savings Month, it is very important to make an effort to save more, spend less and work towards building a culture of savings in the country.
Himal Parbhoo, CEO for retail cash investments at FNB, said in spite of economic pressures, rising inflation and the ever increases of foods prices, people need to make an effort to save money every month.
“We encourage individuals, households and families to start saving early as this will help them in the long-term.”
He said Mzansi’s national saving rate – the gross saving as a percentage of GDP – decreased from 16% between June and September last year to 15,8% by December.
The South African Reserve Bank’s Quarterly Bulletin for March reflected the deteriorating savings by households while the saving rate of corporate business enterprises and general government remained unchanged.
Himal said a great starting point for savings is to have a goal in mind, whether short, medium or long-term.
“We often tend to leave these types of goals for later but we should start putting some money away for long-term goals monthly, rather than leaving it for later.
“Saving should be a priority for everyone in Mzansi and should be managed on an ongoing basis.”
