Stuart Kantor provides useful tips on how to save.
I don’t know the stats, but it is a very real fact that the majority of South Africans cannot afford to retire and the current employed majority will also not be able to afford to retire. Yes, from a net worth perspective, South Africa has a vastly polarised demographic, but wants at retirement vary and the aforementioned retirement shortfall applies at near to the highest levels. South Africans are not unique, but that does not make it okay or any less scary.
In an attempt to save young people from themselves suggestions have been made that someone or some organisational body needs to convey the message that saving is cool, but I have not yet heard any campaigns and have become impatient so I have decided to get things going.
So here goes… Saving is Cool
- Image is nothing….compound interest is everything.
- Instead of blowing a R30 000 on that Thailand Trip, rather don’t and say you did.
- Instead of buying that handbag, rather work on your sense of humour. Laughter is priceless.
- How un-cool of all those Americans and Europeans to have been so heavily indebted.
- How un-cool it is to follow the herd. Dare to be different.
- How un-cool it is to have zero net-worth and zero cash.
- How un-cool it feels to live from month to month. Save today.
- How cool it is to save or invest.
- How cool it is to have saved even one month’s emergency funding.
Sure having lots of money may not guarantee happiness, but it helps and poverty sucks. D.H. Lawrence said it best describing poverty as a “hard old hag.”
Money facilitates freedom and freedom or the power to choose our own desires is what we value most. I get that the catch to creating real wealth takes time and discipline and thus, in the short term, may require a cessation of many pleasures. I get that our instant gratifications society makes savers appear un-cool when really they are very much the opposite
Assuming you decided to have toast and soup at home instead of eating sushi twice a month, you may be able to invest R200pm at 10% per annum and have R15 487 after five years. The money could then be used to buy a lap top and start a small business which could be the beginning of your dream career.
In this regard, wealth creation requires a well developed vision and a deep understanding of your core values. Money has an uncanny ability to unmask our fears or to reward our faith.
Enjoy the summer holidays and invest at least half your Christmas bonus.
I once bought a mate a can of Fresca for his 21st birthday and he bought me a R15 plastic toy wrench. We had a good laugh and still laugh about it today.
Saving doesn’t make you stingy, it makes you a cool, appreciative and thoughtful person.
Follow the #SavingIsCool campaign on Twitter @SavingIsCool
*Stuart Kantor (BBuSc Finance Hons and CFP®) is an independent financial adviser and member of Kanan Wealth CC.
This article originally appeared on MoneyWeb : “Saving is Cool”
