Start saving and make your money work: 5 practical tips from money experts
It starts with being more intentional about how we manage, spend and save money, a theme explored in
The Psychology of Money
by Morgan Housel. This global bestseller unpacks how our financial decisions are shaped more by how we behave than by what we know. Housel reframes wealth not as what we earn or spend, but as what we choose to keep and grow over time. 'Building wealth has little to do with your income or investment returns, and lots to do with your savings rate,' writes Housel.
Saving is also one of six financial behaviours identified in Discovery Bank research that secure overall financial wellbeing. Data from the behaviour-change programme,
Here are five practical ways to help you save, and to protect and grow your savings:
KNOW WHERE YOUR MONEY IS GOING
To save, you need to understand your spending. Most people underestimate how much they spend and checking their bank account triggers anxiety, so they avoid it. Vangile Makwakwa, money coach and author of
What's Your Money Personality?,
known for her work on money and trauma, encourages people to look at their bank statements or transaction history daily. This practice she calls 'The Bank Account Challenge' reveals more than numbers; it reflects your emotional patterns and priorities about money.
By getting comfortable with the numbers, you start to take back your power and can track where you can cut back. Budgeting and other tools can help. Discovery Bank's Vitality Money Financial Analyser, for example, automatically categorises your spending, helping you to make more conscious choices about how you spend and save.
PAY YOURSELF FIRST
One of the most effective saving strategies, recommended by
Personal finance author Mapalo Makhu, in her book
EARN BETTER INTEREST ON YOUR MONEY
Keeping your savings in a low-interest account means your money isn't working as hard as it could be. Interest rates can vary significantly between banks and account types. Always shop around. Whether you're saving for a few months or a few years, you can pick a product that matches your goal and gives you a clear return.
Fixed deposit accounts
offer the highest interest rates if you can lock your money away for a longer period. Discovery Bank's broader approach to rewarding good financial behaviour such as building up savings mean their
with 32-, 60-, or 90-day notice periods also provide better interest rates than instant-access accounts. Discovery Bank also has a 24-hour notice period option with a Dynamic Interest Rate you can control and maximise in line with your Vitality Money status. Some banks offer higher savings interest rates for larger balances and you can consider Tax-Free Savings Accounts that may offer slightly lower interest rates, however, the tax benefits can make them more rewarding over time.
UNDERSTAND YOUR FINANCIAL HEALTH
Saving is one of the most important behaviours for good financial health. A general rule is to have at least three months' gross salary in savings to soften a financial setback.
Digital banking makes it possible to understand your finances and transact anywhere. The Discovery Bank app lets you track your financial health using six
NAME YOUR SAVINGS
Financial educator
Get Good with Money
says:
'
Naming your savings gives it purpose, and purpose makes it harder to spend.
'
Discovery Bank makes this easy, as you can easily change the nickname of any of your accounts based on their purpose in the banking app.
Once you have savings, don't be tempted to withdraw money too often so your savings for your goals and the future are secure and can grow. This National Savings Month, take a moment to ask yourself: Am I saving with intention or just hoping there'll be money left over? As financial journalist Maya Fisher-French says in her
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