Making Use Of A Savings Calculator

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Heidi is a young individual who wants to buy her own car soon. She has recently been promoted to a new position at work, which comes with a higher salary. She has assessed that in light of the amount of income she now has as well as her current expenses, she will be able to afford to make car repayments.  

She wants to make a thorough assessment and has found that there are other expenses she had not taken into consideration.  

For instance, getting a car won’t only mean that she will have to pay car finance instalments, but it also means that she will become liable for monthly insurance premiums as well as fuel and car maintenance.   

From her salary of R15000 she wants to be paying an instalment of R3500 towards car payments. She is trying to work out how much she needs to save for a deposit amount in order to qualify for a certain interest rate and monthly instalment. 

This is where it would be most useful for her to be making use of a savings calculator. 

What are the benefits of making use of a savings calculator? 

  • It helps you keep on track to meet your savings goals. 
  • It indicates how long it will take to reach a savings goal. 
  • It shows how much you will save over a period of time. 
  • It can be useful for calculating compound interest. 
  • It can show you how much you’ll earn by saving. 

It’s important to keep in mind that it provides simplified scenarios, which is why you need to consult a financial expert before making any decisions. 

For Heidi, making use of a savings calculator is an easy way for her to set a savings goal which will enable her to buy her car.  Many financial institution websites have easy-to-use savings calculators.

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