There will always be a way to save

South Africans often lament their apparent inability to save, citing affordability. But either you’ll find an excuse or you’ll find a way.

Examining your spending habits and cutting out unnecessary expenditure on superfluous items or products is already a way to save. Taking advantage of discounts on essential items or reducing expenditure on luxuries is another.

Saving doesn’t have to mean investing in formalised financial products.

If you don’t have enough money to meet the minimum requirement for a monthly unit trust contribution, focus on cutting out needless expenditure to build up a lump sum to invest later. Here are pointers for doing so:

Take advantage of sales and discounts: don’t buy something just because it’s on sale, but if it’s a product you regularly use or can’t really do without then look out for sales and buy as much as you can afford at that time.

Buy in bulk: buying items like toothpaste or toilet paper in bulk is almost always cheaper than buying them individually. Seek out bulk discounts and try to buy before retailers institute their annual price increases.

Prioritise paying off debt: If you have R10 000 debt, for example, on which you’re paying 17% interest each month, then by paying off your debt you’re immediately saving R170.

If you can’t afford it, don’t buy it: avoid falling into the trap of buying things you can’t afford. Resorting to credit to purchase items you can’t actually afford is one of the easiest ways of falling into the debt trap.

Create a savings habit: A good rule of thumb is that it takes 21 days for something to become a habit. Set yourself a personal 21-day savings challenge, during which you try to eliminate unnecessary expenditure. After this you’ll find it easier to continue saving.

Speak to a financial consultant if you’re not sure where to start.

Errol Meyer is legal specialist at Standard Bank Financial Consultancy.