Saving is a huge challenge for most, whether it is for retirement, education, holidays, or rainy days. What makes saving such a big issue for us? Is it something inbred in us from birth? Is it something we learn in childhood, or is it part of our DNA?

From ancient times, man has had a need to gather enough food to survive. They built storerooms to store their grain and other foods for the scarcer winter months. If this need to save things has carried through the centuries, then why has modern man forgotten this need?

Modern civilisation and the industrial revolution have made food easily accessible and available. There is no longer a need to save for a rainy day or for the winter months. Has this habit crept into our money habits as well?

Saving might not be genetically inbred, but it can be inherited from our parents through their habit transference. Their habits become our habits, and unfortunately, they are habits of bad saving and instant gratification. The saving mindset will only be the norm, once parents change the way they educate their children.

Many would blame lack of saving due to

• Rise in cost of living
• Unforeseen monthly expenses
• Supporting elderly parents and children

But what about the self-sabotaging aspects like

• Constantly upgrading your lifestyle every time you get an increase
• Paying for luxury and convenience
• Binge and impulse shopping
• Living on credit
• Large entertainment and socialising expenses
• Keeping up with the Jones’

You will be surprised how much you spend a month on unnecessary items and services. Just these alone could save you a significant amount which you could divide between retirement and emergency fund savings. This and a mindset change of paying yourself first and then the rest goes to the monthly budget.

Your financial advisor can help you get a plan of action into place and ensure that you build good savings habits and stick to them. This will in turn reflect on your children’s saving habits.

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Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere advisor for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.