Financial wellness tips for managing your savings

Whether saving for a dream holiday, planning for retirement, or building an emergency fund, managing your savings is essential when working towards your financial goals. GoTyme Bank, South Africa’s first fully digital bank, helps you navigate your financial journey using tools like GoalSave and Fixed Deposit. These tools help track your spending, bring you closer to achieving your goals, and improve your financial wellness.

Here are some essential tips for managing your savings to achieve financial wellness.

Understanding financial wellness

Financial wellness goes beyond simply having money in the bank. It encompasses a holistic approach to managing your finances, ensuring you have the resources to meet your current needs while planning for future goals.

A crucial aspect of financial wellness is maintaining a healthy savings habit, which provides a safety net and opens doors to new opportunities.

Start by creating a budget that works

The foundation of any successful savings plan is a well-structured budget. You can start budgeting by tracking your income and expenses to determine your financial situation. You should categorise your spending and identify areas where you can cut back.

You can then allocate a portion of your income specifically for savings, treating it as a non-negotiable expense. Remember, a budget isn’t about restriction; it’s about making informed choices that align with your financial goals.

Realise the importance of managing savings

Effective savings management is crucial for several reasons:

1. Financial security: A robust savings account helps protect you against unexpected expenses or income loss.
2. Goal achievement: Whether short-term or long-term, savings help you reach your financial objectives.
3. Reduced stress: Knowing you have savings to fall back on can significantly reduce financial anxiety.
4. Opportunity creation: With savings, you’re better prepared to take advantage of investment opportunities or pursue personal growth.

The benefits of a savings account

A dedicated savings account offers numerous advantages:

• Your money earns interest: Your money can grow faster in a savings account thanks to compound interest.
• You avoid temptation: Keeping savings separate from your transaction account reduces the temptation to dip into those funds.
• Goal tracking: A savings account allows you to set and monitor savings goals so you know how close you are to reaching your dreams.
• Easy access: Unlike some investments, a savings account allows you to access your money when you need it.

Practical savings tips to help you reach your goals

Regardless of your income level, you can adopt healthier savings habits by:

1. Paying yourself first: Automatically transfer a portion of your income to savings as soon as you’re paid.
2. Cutting unnecessary expenses: Review subscriptions and memberships you rarely use and cancel them so you have more to put away each month.
3. Use the 50/30/20 rule: Allocate 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment.
4. Find additional income streams: Consider part-time or freelance work to increase your monthly savings.

How to set financial goals

Once you’ve adopted healthier savings habits, you can work towards setting clear, achievable financial goals for successful savings management. To do this, you can:

1. Define your objectives: Be specific about what you’re saving for.
2. Make them measurable: Assign a monetary value to each goal.
3. Set a timeline: Determine when you want to achieve each goal.
4. Prioritise: Decide which goals are most important to you.
5. Break them down: Create smaller, manageable milestones.

While ambition is admirable, try to set goals within your reach. So, consider your current financial situation, income, and expenses when defining your objectives. Remember, it’s okay to start small and gradually increase your savings targets as time goes on.

Using GoTyme Bank for your savings goals

GoTyme Bank offers two tools to help you manage your savings better. The first tool is a GoalSave account, allowing you to save towards 10 goals at once. It’s free to open and links directly to your GoTyme Bank Current Account for easy transfers. The longer you save, the higher your interest rate.

GoalSave rewards you for saving towards your goals. Best of all, the money in that account earns compound interest, so you earn interest on your interest over time.

To start a GoalSave:

• Log in to your GoTyme Bank Current Account
• Click “New Goal” and follow the prompts
• Give your GoalSave a descriptive name
• Add money and watch your savings grow!

Accessing your GoalSave funds is quick and easy. You can close a GoalSave any time, and GoTyme Bank will immediately transfer all the money in that account to your Current account. Whether you’ve saved for a short or long period, you’ll receive all the money you’ve deposited plus the interest earned.

A Fixed Deposit Account with a guaranteed 10% return

A Fixed Deposit Account offers a market-leading 10% interest rate for longer-term savings. You choose an investment term of three months, six months or a year, with a 10% annual rate paid on all terms. Interest is calculated daily and compounded, so your money grows uninterrupted.

To open a Fixed Deposit:

• Log in to the GoTyme Bank app
• Make sure you have the money you want to invest available in your Current Account
• Select “New Fixed Deposit”
• Choose your deposit amount and investment term
• Confirm the details and start earning 10% interest

Whether saving for an engagement ring, car, or child’s education, a Fixed Deposit Account can accelerate your progress with a highly competitive 10% interest rate locked in.

Open a GoTyme Bank Account today

You can access all these tools to help you manage your savings, save towards your financial goals, and achieve financial wellness by opening a GoTyme Bank account in less than five minutes. The GoTyme Bank app gives you access to seamless transactions, a bank account with no monthly fee, and double Smart Shopper points. Simply download the GoTyme Bank app or choose the option to open an account online to activate these benefits. 

All you’ll need is:

• A South African ID number
• An active South African cellphone number
• Be 16 years or older

You can manage your savings and achieve financial wellness with GoTyme Bank.