Getting Into The Habit Of Saving

PICTURE: Restless Pilgrim

Onthatile Sepeng

Since it’s January, I’d like to think that saving is the furthest thing on most of our minds. But since it is the beginning of a new year, there’s no better time to start.

Twitter: Nicolette Mashile

Shown above is a 52 week savings plan that will enable you to save up to R13 780 by the end of this year. It is a very effective savings plan, if you are really disciplined.

Here’s how it works: You start off by saving R10 at the end if week one, R20 in week two, R30 in week three. So basically you just add R10 every week to the amount saved the week before. So if you were to start saving this week, you’d start with R30 since you missed the first week. So what you do every week is multiply R10 by the week number. By the end of the year, your total savings will be R13 780.

What you could also do is start off with the 52nd week and save the money in a savings account that bears interest (even if you start with week one) this way you will have a higher interest as you started off with an even higher amount.

Saving can be difficult, especially given the current economic climate. Saving requires on-going commitment to your savings plan.

In addition to this 52 week saving plan one could also start a coin jar. Once the jar is filled, take it to the bank and deposit the money directly into your interest bearing savings account, with the rest of the money.

Try getting into the habit of saving, it will be a step into the direction of financial freedom.