CORONATION SAVINGS MONTH

Don’t fall for spending disguised as saving

You’re at work. Your mobile pings that you’ve just been paid. A few minutes later you receive an email from your favourite online store, promoting payday specials. Feeling cash flush, you scroll through the deals. There’s a limited offer to ‘save 25%’ just for today so you have to move fast. You add an item to your basket.

You proceed to the checkout. While you hover over the ‘buy now’ button, you remember that your monthly debit orders are scheduled for tomorrow. And it occurs to you that you are about to spend money that could be channelled elsewhere. You empty your cart and get back to work.

We are constantly bombarded with advertising messages telling us how we can “save” if we buy something. So, it’s easy for us to fall prey to spending money on things we don’t really need out of impulse or convenience. When you are lured into buying unnecessary items, the unseen truth is that you are not saving, you are just spending.

July is National Savings Month and Coronation is encouraging South Africans to save more in the true sense, by putting money aside every month instead of spending it.

If you find yourself tempted into spending some of your hard-earned money on ‘stuff’ – things that you don’t really need, just take a moment to consider what you could eventually do with that cash if you were to invest it. Allowing it to grow until such time that you can comfortably afford what you truly desire. That is the real meaning of saving.

Pieter Koekemoer, Head of Coronation Personal Investments

Finding unseen places to save

You’re about to go to bed as a notification flashes on your mobile screen. You see it’s a clearance sale, valid only until midnight. It occurs to you that it is probably the tenth invitation to spend to reach you today.

You resist the temptation to buy anything and wonder if you are perhaps spending money without even realising it. So, you open your banking app and look through your monthly debit orders, and you identify at least one subscription that you can’t even remember signing up for. You had no idea your money was going towards so many unnecessary expenses.

Resisting the onslaught of seductive advertising messages that tempt you into spending (overspending) isn’t enough. You need to dig a little deeper into your finances, almost like auditing yourself, to see where your money is going.

There are many hidden ways in which we spend our money unnecessarily. These include memberships, subscriptions, free trials that automatically convert into billings after the first month, convenience shopping because your credit card details are saved online or upgrading to newer models when you don’t really need to.

Replacing consumer FOMO with JOMO

You’re scrolling on social media and notice a friend raving about a limited offer luxury holiday package they got their hands on. Feeling a bit left out that you didn’t see this half-price deal, you click on the advert. You see there are now just three spots left, and that eight other people are looking!

Excited, you open your weather app to see what clothes you should pack for this unexpected break. It’s clearly not the best time of year to visit that city. And the hotel is located far from the key attractions. You realise this trip may end up costing a lot more than the all-inclusive price tag implies. And in any case, you haven’t budgeted for an overseas holiday this year.

This fear of missing out (FOMO) can lure you into overspending on things you don’t need. Consistently falling for FOMO is at the cost of your future financial wellbeing. The perfect antidote is to embrace the joy of missing out (JOMO) – by foregoing overspending today and investing your money instead.

To uncover saving in the true sense, visit www.coronation.com to see the bigger picture. Coronation is an authorised financial services provider.


Recommended

by NEWSROOM AI
Read More
Are we preparing our children for jobs of the future?

Are we preparing our children for jobs of the future?

Be part of a discussion that seeks to answer the question that unlocks the doors to the futures of our children.

Komati Foods wins 2019 Nedbank Business Ignite

Komati Foods wins 2019 Nedbank Business Ignite

Komati Foods wins a tailor-made incubation package with growth-experts Kaello Business Hub.

Airport baggage theft and more: A guide to surviving airline travel in SA

Airport baggage theft and more: A guide to surviving airline travel in SA

If you've ever fallen victim to airline baggage theft, this guide for surviving airline travel in South Africa is a must-read.

The Survivors: Surviving the Rwandan genocide

The Survivors: Surviving the Rwandan genocide

In the second instalment of “The survivors” series, Joanne sits down Sylvestre Sendacyeye, a Rwandan genocide survivor.

Ermos Nicolaou: Solving problems in babies, even before they are born

Ermos Nicolaou: Solving problems in babies, even before they are born

Quite the unusual Solutionist Thinker, Professor Ermos Nicolaou solves problems that occur before babies are even born.

SA's digital footprint traces back to pioneer, Jason Xenopoulos

SA's digital footprint traces back to pioneer, Jason Xenopoulos

As one of the founding fathers of internet businesses in South Africa, Jason Xenopoulos’ digital rap sheet is longer than most.

Popular articles
'A lot of people may have wanted him dead.'  - Who killed Mark Batchelor?

'A lot of people may have wanted him dead.' - Who killed Mark Batchelor?

A Sunday newspaper report has suggested the soccer ace's death may have been linked to a missing stash of cocaine.

'Ramaphosa is an a spot of bother'

'Ramaphosa is an a spot of bother'

News24 editor-in-chief Adriaan Basson says the president's campaigners should never have asked Bosasa for a donation.

Mbube copywright: 'A lump sum of royalties would be paid to Linda family'

Mbube copywright: 'A lump sum of royalties would be paid to Linda family'

Spoor & Fisher consultant professor Owen Dean explains the outcome of the copyright infringement case against Disney.

[WATCH] Tour de France rider smashes into spectator's cellphone

[WATCH] Tour de France rider smashes into spectator's cellphone

Cycling journalist Mikkel Conde tweeted the clip warning spectators to stop leaning over the barriers with their phones.

You made a huge mistake downloading FaceApp if your privacy is important to you

You made a huge mistake downloading FaceApp if your privacy is important to you

Washington Post technology columnist Geoffrey A. Fowler did a forensic analysis of the Russia-based app. Check it out.

[WATCH] Woman stealing back her stolen car has social media talking

[WATCH] Woman stealing back her stolen car has social media talking

Khabazela shares tweets and Facebook posts that have gone viral.

'Batchelor was once close to Mikey Schultz and self-confessed Kebble killers'

'Batchelor was once close to Mikey Schultz and self-confessed Kebble killers'

Journalist and author Mandy Wiener describes former footballer Marc Batchelor's links to alleged underworld figures.