Saving for your future is a decision you make before spending. This is according to investment banker Kagiso Tloubatla, who says that 10% to 20% of a person’s monthly income should go towards savings before spending it, as opposed to saving what is left over after expenses are paid. “You need to have a debit order structure for your savings,” says Tloubatla, who was speaking on Morning Live.
The South African Savings Institute has dedicated July to educating South Africans and especially young people about tucking away some money.
However, putting money under your mattress is not the best way to save, he warns. Where to put your money depends on the individual and what their personal goals and Tloubatla advises South Africans should take advantage of tax free savings options.
Many South African financial institutions have developed new savings products such as retail bonds and tax free savings accounts.
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