How Do I Grow My Savings?
Do you ever find yourself wondering “How do I grow my savings?”. Evidently, you aren’t alone, for most South Africans it is not easy to save. Subsequently, with the rising cost of fuel and FMCGs, it is getting harder each and every day to save money.
However, if you find yourself in a position where you can put some money aside every month. Here are a few ways in which South Africans are not just saving money but growing their savings.
Stokvels
“How do I grow my savings within my community?”, With short or long-term savings are designed for communities targeted at various goals, such as funeral arrangements or yearly savings. However, stokvels have evolved to become investment vehicles that fund businesses and drive entrepreneurial innovation within their communities.
Furthermore, stokvels are making bigger investments into other asset classes that may be intimidating to tackle alone. The result is that they are receiving interest and returns into multiple and alternative revenue streams.
Tax-free Savings Accounts
Initially incepted in 2015 to motivate a ‘saving culture’ among South African households. Banks and financial institutions are offering savings accounts which are exempt from paying tax meaning these accounts just gain compound interest on capital gains and dividends. With a tax-free saving account, you can withdraw at any time. However, most financial advisors would really advise against this because it will hinder you from reaching your savings goals.
The added benefit of this account type is that parents can open them for their children because you don’t need a tax number to open one. However, account holders only make deposits of up to R36000 per year and a total maximum lifetime contribution of R500 000.
Parents and guardians of minors are encouraged to open one for each of their children. Therefore, mapping out their future regarding university or in the unfortunate event of your untimely death. Finally for more information on tax-free bank accounts and where to open one please visit this SARS page.
Piggy Banks – in real life and virtually!
Coined on social media as #CrazyWaysToSave this is called Not as conventional but saving can start with as little as R5. It’s a piggy bank, with a South African twist. Firstly, get yourself an empty 2L bottle and fill it up with leftover coins throughout the year. Evidently, if you fill up a 2L bottle with R2 coins you can save up to R3000 and if you fill it up with R5 coins you’ll be saving R5000 by the end of the year.
The second is actually the exact same thing as a piggy bank but it’s virtual. We live in the era of swiping and tapping our cards everywhere. As a result, banks have even adjusted their charges when it comes to swiping our cards making it more affordable to swipe than to withdraw at ATMs.
It’s Impossible to Grow My Savings
At Olmen Financial Services, we understand how hard it can be to conceptualize growing your savings when you are in debt. Therefore, we are offering qualifying South Africans a solution; to pay off what they owe first and then save slowly and gradually.
When it seems like the best option is to take out a single loan and pay all your creditors, at Olmen we offer convenient and flexible payday loans. Finally, for more information CONTACT US NOW!
