Saving & understanding the Two-Pot Retirement System

Saving is the act of delaying immediate spending until you accumulate enough to spend on something more worthwhile in the future.

Savings enable you to reach your goals. For us to save, the first step is to look at your budget, track your income and expenses, to prioritise your expenses regarding your needs and control your spending. This means you decide before you spend, how much you are going to save. One of the things that can keep you disciplined and motivated in saving is when you have a goal in mind, and you know that you are saving towards that goal. For example, if you know that you are saving towards tertiary registration fees, a deposit for a house or a car, towards buying an appliance such as a TV or for a holiday at the end of the year, you know exactly what the purpose of your saving is, and this can motivate you. You can work out how much that goal is, work out how long you want to save for and realistically calculate how much you will put into savings each month for that specific goal

Lerato Mbele is in conversation with Thulisile Nkomo – Certified Financial Planner.

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