​​​July is Savings Month. Colonialism, apartheid and job reservation all conspired to make saving difficult for black families. But through stokvels, most families were able to have enough to cover for emergencies such as burials.

Fast forward to 2021 and there’s rampant consumerism that characterises our daily lives. Also, the impact of Covid-19 on the finances of families has been extremely heavy.

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Families have lost loved ones to the Coronavirus. Some incomes have halved or become extinct as a result of job losses or short time. Discussing saving in these difficult times sounds crazy. But who said adulating is easy?

Savings can soften the blow of death, car accidents, burst geysers or broken gate motors. But first things first. Before starting an emergency fund, tackle debt first. Debts eat up all your future earnings, and you don’t want to be a burden on your kids. ​After paying off your debt, establish an emergency fund. Open a separate account and put away the R50 or R100 religiously every month. The goal is to ultimately have enough money that covers six months of your expenses in your emergency fund. And don’t allow yourself to be tempted into dipping into it.

Once the emergency fund is up and running, start looking at exchange-traded funds (ETFs) and platforms like Easy Equities (www.easyequities.co.za) that have revolutionised investing in South Africa. Easy Equities allow you to set up a retirement annuity, buy property, shares, ETFs, unit trusts and crypto currencies at the click of a button on your phone or laptop and cheaply.

Just as you budget for your monthly allowance for entertainment, hair treatment, car washes and booze, also set aside a fixed amount every month towards ETFs, shares or unit trusts. By making savings a habit, you are paying yourself in advance. If you are lucky to get a bonus, stash some towards your savings of choice.

Saving is a long and lonely journey. While your peers drive around in expensive and gas-guzzling German marques, comfort yourself that you will have enough savings in the future to afford overseas holidays twice a year. So tell yourself that instant gratification is enemy number one. Happy Savings Months, folks.