A report by Standard Bank has stated that new clients have less than one month of their salary saved and readily available for withdrawal in instances of emergencies, and are thus resorting to debt.
Their analysis shows that of their clients earning between R25 000 and R58 000 – nearly one in three (29%) had no accessible emergency savings.
Doret Jooste, Head of Money Management and Advisory at Standard Bank, reported that having readily accessible cash on hand is the foundation of healthy money management and should be at the top of your priority list when you want to build your wealth.
“It also helps you stick to your plan when investing for the longer-term goals, such as for your kids’ education or retirement,” Jooste added.
According to Standard Bank’s Head of Private Banking in SA, Bridgette Kruger, it may seem difficult to save 3 months’ worth of salary but says you can build it over time.
“For example, first aim to cover your fixed expenses for one month with your savings. Then gradually start building it up from there,” Kruger added.
Compiled by Phalimo Moeketsi
