> Six steps to debt freedom

> Brighten their future

> Gold fever: here to stay?

> Nedbank goes green

> Evaluating performance

> Gold hits 18-month high

> Pay less estate duty

> Why lending will resume

> Positive platinum demand

> Breaking the habit

Today, 22 November 2009

› SACP attacks Malema

› JZ hails Miss World effect

Yesterday, 21 November 2009

› SACP attacks Malema

› Match-fixing stuns Europe

› JZ hails Miss World effect

› Henry offers replay

› No armchair ride for Boks

Saving can, and should, be easy — getting started is the hard part. It can seem difficult and time-consuming at firstm, but once you get started it’s realy quite straightforward. Saving should lay the platform for any financial plan and, most importantly, should be the simplest part of that plan.

Developing a savings goal is the best way to start. This goal can be material goods or simply a time deadline. Both are equally effective as working towards a goal makes saving seem more tangible and realistic. The next step is to look at your current financial situation and work out how much money you can possibly afford to put aside each month. It doesn’t matter how little this is — saving small amounts on a regular basis is easy and you will be surprised at how much and how quickly your savings will grow.

Keep your saving ideas simple — this way you will be more likely to stick to your plan. Keeping your savings separate from your spending is also an effective way to save and you'll be less tempted to dip into your savings! Setting up a separate savings account is a great way to do this and there are many savings products on the market; the trick is to find the one that suits your lifestyle.

What to look for
A high interest rate will help you reach your goal faster. Compound interest is a great feature to look for when selecting a product: it means that interest is paid on interest, i.e. you are paid this month’s interest on top of last month’s interest, not just the capital you deposited. The more frequently you are paid interest, the greater the compound effect.

While interest will help your savings grow, bank fees can also deplete your savings. Make sure you avoid paying bank fees wherever possible. This may seem easier said than done, but it’s really not that hard. Believe it or not, some savings accounts don’t charge bank fees! Look out for fine print such as a minimum monthly balance, transactional fees and penalties for withdrawing your money. Check out savings accounts with phone and internet access — many of these operate with lower overheads and the resultant savings are often passed onto the consumer.

An easy way to grow your savings is to establish regular automatic savings payments from your salary or from your every day transactional account. Many savings accounts offer this feature and this means you don’t even have to think about saving. It’s done automatically for you! You will be surprised how quickly your savings will grow.

Tips and reminders