If there’s anything the past 18 months have taught us, it’s the value of having an emergency savings fund.
Ester Ochse, product head at FNB Money Management, says the urgent need for South Africans to become more committed to saving is illustrated by data that shows how few people are in a financially resilient position. “The idea of having enough money saved to cover three months of expenses can be so overwhelming that it prevents you from even starting to save,” he says. “But even if you only have a few rands to put aside every month to begin with, what matters most is that you take that first step and start saving.
Chris Tisdall, head of direct and private clients at Allan Gray, says the best way to establish discipline is to decide how much you need to invest and then set up a debit order to your preferred product.