The Simple Truth About Saving (That You May Not Know)

The Simple Truth About Saving (That You May Not Know). Saving isn’t about earning more — it’s about keeping more of what you earn.

Most people don’t have a saving problem. They have a system problem.

In this article we’re are going to look at ways that can help you save more.

Step 1: The Pay-Yourself-First Trick

Many people think saving is something you do after expenses. Spoiler: it rarely happens as rent, takeout, “emergencies” (also known as concert tickets) take preference and before you know it, the month ends, and your savings goal vanishes along with your data bundle.

Here the golden rule of saving still stands: save first, spend later.

So let’s look at a few available options:

If your company offers a pension, provident fund, or group retirement annuity (RA) then you should jump on it. Why you may ask?
Because the money gets deducted from your salary before it gets to your bank account and temptation hits. So you’re essentially saving without even having to do anything.

If your employer doesn’t have one of these options, don’t worry. You can open a private RA, and the nice thing here is you can keep contributing even if you change jobs. Just remember, access to your RA is locked until you reach the age of 55. That means you’ll also want an emergency fund — your financial “get-out-of-trouble” stash.

Pro tip: If you contribute to an approved retirement fund, you can qualify for a tax deduction. The government is literally rewarding you for saving, so you should make the most of this opportunity to help you save more. The money you save on your yearly tax bill can be utilized to save more or invest it to grow.

Step 2: Build Multiple Saving Buckets

Don’t stop at retirement funds. Think of your money as a team — each player has a job.

Here’s an example of how to break it down:

• Emergency fund: save up 3–6 months of living expenses, ie. your safety net.

• Retirement savings: RAs or pension funds. Use these vehicles for long-term growth.

• Wealth builders: ETFs, property, or tax-free savings plans.

By doing the above, you’re not just “saving” — you’re building future income streams. That’s real momentum.

Step 3: How Much Is Enough?

Let’s talk numbers.

A general rule in the financial industry is to aim to retire with 75% of your final monthly salary.

So let’s say for instance, you earn R20,000 as your last salary before retirement, you’ll want around R15,000 per month during retirement.
But if you plan to travel, buy that dream bakkie, or spoil the grandkids — you’ll need more and don’t forget to take inflation into consideration.

Your plan should also consider the following:

• Whether you’ll relocate at retirement (your dream coastal home).

• Any work benefits that stop after retirement (like medical aid).

• Remaining debts (mortgage, car loan, etc.).

• If your job’s life cover ends and whether you’ll need your own.

It’s important to keep adjusting your savings as your life evolves. Things like promotions, new expenses, babies — all and any of the aforementioned will influence your financial numbers.

Step 4: The Magic Behind the Numbers

How much you’ll have at retirement depends on a few factors, like:

• The amount you contribute monthly and over the years until retirement.

• How long you’ve been saving.

• Your retirement age.

• Whether you preserve your savings when you change jobs (like in a preservation fund, which is highly recommended).

• The inflation rate and market performance of your retirement funds.

As with all savings and investments, time and consistency are your secret weapons.

Even small, regular contributions beats a big, inconsistent lumpsum. Here compound interest really does it’s magic, but it needs time to grow.

Step 5: Real Talk (and Real Tips)

Saving can feel impossible when life is already expensive. So here’s how you can stay on track:

1. Get help. A good financial adviser can turn chaos into clarity.

2. Stick to your budget. Don’t overcommit yourself. Missing payments on accounts can cost you more in fees at the end of the day.

3. Never cash out your pension when changing jobs. That will negate the effect compound interest has had on your retirement savings to date.

   • Rather preserve your retirement funds or transfer it to an RA or your new employer’s fund.

4. Review your savings goal often. Life changes and so should your savings.

5. Reinvest tax refunds. That’s bonus money that can work for you instead of sitting idle or you spending it.

6. Learn from others. Talk to your grandparents or parents. I bet you’ll hear the same regret: “I wish I’d started earlier.”

Saving isn’t about sacrifice. It’s about creating freedom.

The freedom to say “yes” to a holiday, “no” to debt, and “I’m ready” to whatever life throws at me.

Start small and stay consistent. Your golden years might still be a while away, but you’re well on your way to the retirement you’ve been daydreaming about.

• What’s one saving step you can take this week?
  Share it in the comments — or forward this to a friend who keeps saying, “I’ll start saving next month.”