Kaya 959 Reporter
When it comes to saving money, there are a few things to consider, especially if you are putting away a lot of money in your account.
Saving for an emergency fund, much alone a down payment on a home, retirement, or a child’s college tuition, can take years of consistent saving and a great deal of discipline.
However, putting your money in the right places is also very important especially if you want great returns on your investment.
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Kaya Biz with Gugulethu Mfuphi spoke to Eunice Sibiya about why having too much cash in your bank account may be a bad idea.
LISTEN TO THE FULL CONVERSATION HERE:
Sibiya caution against where South Africans are putting their money away and suggested places where they should place their money.
“Whatever money is idling and sitting in your account and it is more than your monthly reserves, it is good enough to be shifted elsewhere.”
“It also depends on where it is sitting, the most popular accounts are typically your savings accounts, there are still people that get paid into their savings account which I find very painful.”
“Some of these accounts could be interest-bearing and some or not, a savings account will attract a little bit of interest, and some transactional and cheque accounts attract zero credit interest. So your money would be sitting there and gaining no interest at all.”
She encouraged Kaya listeners to follow a strategy that will alleviate their financial burdens and bring them closer to their financial goals.
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