How to save more on Stokvels Setting financial goals helps people achieve them much faster

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Finding motivation and discipline when it comes to saving money can be difficult for most, however research shows that through goal setting, a person can become motivated when they set a target to work towards. Goal-based investing is the practice of investing with the purpose of achieving specific life goals, instead of just trying to maximise returns.

Find out more about Franc


Setting a goal is important for a multitude of reasons, including raising one’s motivation, magnifying focus and allowing you to track your progress. Research shows that people who write down their goals are 42% more likely to achieve them, indicating that being intentional about what you are working towards can indeed affect your ability to achieve your goal.


‘Wealth’ is key

Franc, an investment app, has found that the most popular goal its customers are saving for is ‘wealth’, with approximately 27% of customers setting this goal on the app.

No matter how wealthy a person may be, striving towards achieving this overarching target is something they see quite often – several clients have set a goal to reach a million Rand and some are well on their way to achieving this long term objective.

Followed closely behind wealth creation is the important ‘emergency fund’ goal.

Emergency Fund importance in South Africa 

“Now more so than ever, we have seen that an emergency fund is the second most picked goal type on our app, with approximately 24% of users saving for this. There is no doubt the pandemic has made people realise that emergency funds are a necessity. Life is certainly unpredictable and it is better to be prepared for all circumstances”, says Dr Thomas Brennan, CEO and Co-founder of Franc.

Some of the creative names Franc’s users have for their emergency fund is the ‘F*** off fund’ and ‘Eish’!

Property, Vehicles & Weddings

Other fairly common goals users are saving towards are property (approx. 6% of users), vehicles (4% of users) and weddings (1% of users).

Dr Brennan continues;  “Saving for big purchases before rushing into them gives one time to plan properly and avoid paying unnecessary interest. Most people won’t be able to buy a large purchase for cash, but saving for a decent deposit will allow them to take out a lower loan and help them score a lower interest rate. There are users saving towards a ‘Ford Mustang 5.0 GT’, and more commonly, a BMW’, and every so often, we see ‘Porsche’ and a ‘Lamborghini’ too.” 

“It is also reassuring to see how many app users are saving for a wedding, as there is nothing worse than going into debt to fund your nuptials,” Dr Brennan notes.

Statistics show that most couples spend between R80 000 and R150 000 on their weddings, so saving for the big day is encouraged. An example, if you need R100 000 000 for a wedding in a year’s time, a couple could each aim to each save around R4 000 per month to reach that goal with Franc.

With regard to property, Franc has found that South Africans are proud of their homes and make additional income from renting out rooms. To ready their homes for guests, home owners may use personal loans to achieve their home expansion dreams, which is a costly way to achieve this goal. Rather than paying off an expensive personal loan, Franc sees smart customers rather saving for renovations to their home, benefitting from compound growth to achieve their goal faster.

Stokvel Saving 

In South Africa, over 50 billion Rand is saved by stokvels annually, meaning that stokvels are losing over 2 billion Rand every year they could otherwise earn on their savings given that the vast majority of stokvel savings are placed in club savings accounts, which offer near zero interest, or a lock-box. Currently in Franc’s user base some customers are saving towards a goal together.

“With Franc’s access to Allan Gray’s Money Market Fund, stokvel members can earn 3.5% interest on their savings – interest that most stokvels are currently not earning”, adds Dr Brennan.


Now that travel is slowly opening up again, Franc has approximately 2% of its users having set up a goal to save for travel, with the most common destination being Mauritius.

Making sure you can not only afford flights and accommodation but having enough spending money to actually enjoy your end destination is key and users are encouraged to set realistic targets to make their travel dreams come true.

Goal setting has proven benefits, in all aspects of daily life – personal, professional, and, above all, financial.

Jeff Boss from Forbes said – “You can’t manage what you don’t measure and you can’t improve what you don’t manage. Start with goal setting.”

About Franc:

Investing is for rich guys in suits and fancy cars, right? Absolutely not! We believe that investing is for everyone. Franc was born in 2018 when an engineer, an actuary, an investment guru and a tech wizz shared a common idea of making investing affordable, accessible and social. With the Franc app, anyone can now invest in leading cash and equity funds in just a few minutes. No minimums. No paperwork. No fine print. Just the way investing should be: smart, simple and Franc.