How to use Savings Month to build financial resilience

Building financial resilience requires effective financial planning, which in turn helps you meet your financial goals. However, this also comes with the responsibility of being disciplined and being prepared to learn and unlearn what you know about finances and money management.

Savings month presents the opportunity to help you understand that saving and setting financial goals is not as difficult as it seems - it just requires discipline and commitment to balance short- and long-term planning, which helps you to be in a better position to meet your goals.

Saving is not just about putting away money for rainy days; it's about gaining peace of mind and flexibility to weather life's uncertainties while working toward long-term prosperity. This savings month, take the time to balance your financial planning and goals, which can help you achieve the financial resilience and savings growth you need.

Achieving financial resilience doesn't require one to have a massive salary. It starts with planning and consistency. When life changes, it’s important that you also re-examine your savings strategy to align with your current life circumstances. A simple financial check-up twice a year can make a huge difference.

Steps that one should consider to help evaluate whether you are on the right track this savings month:

• Choosing the right account: It is essential to match your savings vehicles to your actual needs or lifestyle goals, rather than putting everything in one account. For your emergency fund or immediate day-to-day needs, products with easy access make it simple to build and manage a safety net. If you are looking to balance access to your money with stronger returns, for example, to save for a holiday or home improvement within the next year or two, the Flexi Notice Account could be ideal. It provides a higher return on your savings while requiring just a short notice period to access funds. 

And if you’re more focused on the long term, like retirement, your child's education, or putting down a deposit on a home, you should consider products designed specifically for extended growth, like fixed deposits or a Tax-Free Savings Account. These options harness the power of compound interest, significantly amplifying your savings over time, and offer valuable tax incentives to encourage disciplined, long-term saving.

• Diversification: Diversification isn't just for investments - it's just as important in savings. By spreading your savings across different products, you benefit from high interest rates while maintaining the flexibility to adapt to changing personal and economic circumstances.

Understanding the importance of choosing the right products for your savings goals means nothing if you're not actually saving. For most people, the biggest challenge is finding the money to save in the first place.

The trick is to get into the habit of "paying yourself first. You need to treat savings like a bill you have to pay every month. Set up an automatic transfer for every payday, and soon, you won’t even notice the money going off your account - but you’ll definitely notice the growing balance and compounding interest in your savings account.

When you start paying attention to where your money is going, it’s amazing how easy it often becomes to find a few rands that you are wasting on things you don't need. Redirect that money to savings instead. Even small amounts, saved regularly, add up over time.

• Financial literacy: The other most important part is simply making the effort to learn more about money. You don't need to become a financial expert overnight, but understanding basics like how interest works, why inflation matters, and how different savings products work will help you make better decisions.

Financial literacy is not about knowing everything, but rather knowing enough to make informed decisions and knowing when to ask questions. The more you learn, the more confident and in control you will feel about your money.

Let National Savings Month be your reminder that financial resilience isn't reserved for the wealthy, it's possible for everyone. The key is taking that first step and sticking with it, not just during July, but throughout the year.

* Parbhoo is the CEO of FNB Cash Investments.

PERSONAL FINANCE