Category Retirement
SUB CATEGORIES Annuties |  General |  Savings & Investments | 

4 Ways to automate your savings for a secure future

03 November 2023 Standard Bank Group

World Savings Day, which was recently observed on October 31, is aimed at promoting good savings habits to secure a better future for individuals and countries like South Africa where the savings rate is among the lowest in the world.

"When finances are tight and consumers are stretching their salaries to make ends meet, achieving monthly savings goals can seem unfeasible," says Thopi Mhloli, Solution Owner for Savings and Investments at Standard Bank Group. "However, if the last few years have taught us anything, it’s the importance of having funds tucked away for those metaphorical rainy days."

In alignment with this year's World Savings Day, which serves to highlight various saving techniques, Standard Bank has developed various tips to help consumers with their savings goals.

Mhloli says that with the advent of technology, there are now numerous ways to automate your savings, which makes it easier and more convenient to build a savings pot for financial emergencies and to secure a stable income during retirement. It's important to remember that small amounts of money, saved consistently over time, will build up over time. And one of the best ways of ensuring consistent savings success is by using automation techniques, Mhloli recommends.

A weekly savings goal goes a long way
In times of economic uncertainty, every cent counts. And, rather than aiming to save a lump sum by this time next year, make life easier by breaking down goals into manageable amounts. While R20 000 in savings is daunting, R300 a week might just be doable. Over time, weekly savings funds could add up to something significant.

Once you have a goal in mind, make smart choices about how to save and invest those funds away so you don’t even feel the skimp. It starts with easy automation tools that take the stress out of saving.

Winning with automated transfers
Automated transfers from your checking to savings account can make the process of saving effortless. By setting up transfers on payday, you can ensure you save a portion of your income before you have a chance to spend it. Just make sure those debit orders can go off without a glitch.

Depending on your financial goals, you can schedule automated transfers weekly, bi-weekly, or monthly. It’s a straightforward way to save money regularly and prioritise savings in your financial plan.

The power of savings small amounts randomly
Micro-savings approach can help you accumulate funds without even noticing.

Mobile savings apps have revolutionised the way people save money. These apps often come with various features designed to make saving more accessible and user-friendly. They provide functionalities like goal setting, automatic transfers, and even investment opportunities. They’re designed to automate savings by analysing your spending habits and transferring money to your savings account accordingly. It's like having a financial assistant in your pocket.

Apps like Liberty Stash offer unique approaches to saving, catering to different preferences and goals. Some apps even use algorithms to analyse your spending habits and determine how much you can afford to save without impacting your day-to-day expenses.

Investing apps with automated features
For those looking to grow their wealth over time, investing apps with automated features can be a game-changer. The Standard Bank Mobile App, for example, helps you to identify appropriate investment vehicles for your risk tolerance and goals. Users can then set up automated transfers to their investment vehicles of choice.

Standard Bank’s PureSave savings account, which is an entry level savings account that pays competitive rates, is an ideal vehicle to start your savings journey. With the ability to set up automatic transfers on a weekly or monthly basis to this account, you can ensure consistent savings. This year's World Savings Day served as an excellent reminder to kickstart a journey towards financial stability, especially in the face of rising interest rates and an increasing cost of living. As the economic environment remains uncertain, more South Africans are trying to put money away to secure their future and create a financial buffer. By embracing the above automation strategies, you can secure your individual legacy, provide for loved ones and even contribute towards a better savings rate for the country. Improved financial habits for one could lead to better economic stability for all.

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