Grow Your Money – Start Saving

July is National Savings Month and with tax season landing in your inbox, hello IRP5 it’s the perfect time to reset your money saving habits

Here’s the simple shift:
Don’t save what’s left after spending. Spend what’s left after saving.

Pay Yourself First

Most of us follow this pattern, earn it, spend it, save what is left (if anything) but wealth works in reverse, earn it, save it, spend what is left. Think about tax for a moment, you don’t choose to pay tax, it’s automatically deducted.
What if your savings worked the same way?

Treat savings like a non-negotiable expense. Even a small amount each month builds momentum.

Automate It

Willpower tends to be overrated, but systems win. Consider setting up an automatic transfer on payday, by moving some of your income into a savings or investment account. Start with an amount that you feel you may not miss too much at first, no thinking, no temptation. Just consistency doing its thing.

The magic ingredient is time.

Saving is not just about putting money aside, it is allowing it to grow, and compound interest is where money growth happens. Saving R500 a month at an average return of 8% could grow to:

±R36,000 in 5 years

±R91,000 in 10 years

±R295,000 in 20 years

Same contribution. Big difference over time.

Save Smarter, Not Harder

July is often seen as tax season, so use the tax system to your advantage and explore one of the following.

  • Tax-Free Savings Accounts (TFSA): Where you don’t pay tax on the interest or growth – this is perfect for medium term savings.
  • Retirement Savings: Did you know your contributions can reduce your taxable income up to a certain limit? This means that you save, grow your money, and pay less tax – that sounds like a win plan.

Your July Reset

Your IRP5 shows how structured tax deductions already work in your life.
Now apply that same discipline to your savings. Instead of waiting until month end to save, save first, treat your savings like an automatic deduction. Start by choosing an amount – R200 or R500 or more, save it as soon as you get paid, and do this every month, watch it grow.