Start the Stash 10-cent challenge this Savings Month with your 10 cents change
23 Jul 2020
According to a recent online survey, 40% of people have been "severely impacted" by COVID-19 financially and 60% have had to dip into savings to make ends meet.
This Savings Month, financial services company, Liberty has added a savings feature to its investment App STASH and is challenging participants to start saving 10c a day, adding another ten everyday - to grow the amount to R6679 after one year.
Accessible for anyone with a bank account at one of SA's main banks, Stash is an investment app that enables users to 'stash away' spare change into a tax-free savings account.
According to Glenn Grimley, Chief Specialist: Shared Value Ecosystems at Liberty "The Stash 10c Challenge is a great mechanism to take customers on a savings journey, which through its simple design pushes them to achieve a savings goal that is often inconceivable for the average South African. This is achieved by the amount saved daily, getting progressively bigger by 10c every day over a full year."
In the first two months, the 10c challenge is very easy for most pockets, saving just R46 in month one and around R142 in the second. These are easily managed amounts that add up very quickly.
As you move along in the year, the amounts get bigger every day and by the end of the challenge you will invest R36.50 on the last day. This means that through your year's savings journey you will probably need to make some small adjustments, but because you are investing daily they don't come as big lifestyle sacrifices.
Grimley adds, "Disruptions such as the Covid-19 pandemic have added to the already stressed South African consumer and all signs point to a long-term financial setback for many. We know that unfortunately South Africa has one of the lowest savings rates in the world. But how does one save, in a culture not used to saving, when every rand and cent is stretched to capacity?"
This is where financial tools such as the
Stash 10c Challenge come in handy. Users will activate the Challenge and then, through the app's gamified experience, they will check in regularly to see where they are in their Challenge; they will see what the impact has been on their savings balance and finally they will be motivated to keep saving. These small amounts are invested in either a Cash+ portfolio or the SA Top 40 Shares portfolio, meaning the money has the ability to grow from day one. And because Stash is free, every single cent that is invested can grow.
"Effective savings often comes down to 3 elements: knowing the importance of saving and how to save, the discipline to save and access to appropriate products. Stash's functionality, now elevated through this challenge, encourages these principles in that saving becomes a deliberate action for customers, through the use of an app that is accessible and convenient, and which takes you on a savings journey that shows how easy it can be to save."
It also means that you are creating better money habits that can potentially last a lifetime, starting with just 10 cents today. So, are you up to the Challenge? "Just start," enthuses Grimley. "Who knows? You may have R6700 stashed away this time next year!"
Stash is a free app available on both the Play Store for Android users and the App Store (iOS).
For more information on Stash
The information contained in this article does not constitute advice by Liberty. Liberty Group Limited is the insurer of the Stash tax-free investment and an Authorised Financial Services Provider (no. 2409). Terms and conditions, risks and limitations apply.