Saving is becoming a global imperative. South Africa's low savings rate is restricting our ability to invest in our economy and increasing our reliance on international capital. Europe is facing the prospect of not having enough working people to support its aging population. This will put tremendous strain on taxpayers unless Europe can dramatically increase the savings levels of those working to ensure they can provide for themselves in retirement.

The South African Reserve Bank's Quarterly Bulletin suggests that things are improving marginally for consumers but the challenges of higher inflation rates and potentially higher interest rates still lie ahead.

We all know we should save more, the reason we don't is that the impact is only felt when we retire - a long way away for many people. Yet by the time we reach that point, it is too late. In the article "What is stopping you from saving?" Andrew Warren looks at the behaviour in our 20s, 30s, and 40s that prevents us from saving and how we can take control of our futures.

We have also included a Savings Quiz to help you determine your money personality. Are you someone who squirrels away your money, or do you spend like there is no tomorrow? Maybe you just don't know how easy it is to save? Try out the quiz - it's fun and you may pick up a tip or two to improve your savings score.

Allan Greenblo, editorial director of Today's Trustee, wrote a hard-hitting article in the Cape Argus entitled Lack of savings culture remains a national malaise. He writes about the lack of savings culture in South Africa and makes the point that despite consumer education and a plethora of surveys which show that 94% of South Africans will not be able to support themselves in retirement, our savings rate has dwindled.

He urges government to lead by example in cutting back on wasteful expenditure and by investing in the economy. He also calls for interventions like compulsory preservation and lower retirement savings costs. His conclusion speaks volumes: we need to be worried "because the worst effects of a no-savings culture are yet to be felt".

Put 10 percent of every pay increase towards savings, particularly long-term savings such as a retirement plan. If you are employed and belong to a retirement fund, your contributions will increase automatically in proportion to your pay rises. This will help ensure that you stay well ahead of inflation.

How do you decide whether you should invest directly in shares? Simple. If you haven’t got the time to learn about stock markets, to follow the progress of companies or to track your portfolio, rather invest in unit trust funds and/or life assurance endowment policies that have shares as their underlying investments.

Always check how much commission is being paid to your financial adviser. Some financial products – particularly those offered by so-called linked investment product providers – come with particularly high costs and commissions. High commissions can be a perverse incentive for advisers to mis-sell.

It is time in the market and not timing the market that counts. Don’t try to time markets or sectors of markets. Few people have got rich from doing this and most have lost money. The best way to get rich is to take time to select an investment product that has properly diversified underlying investments, and then to stick with it for the long term. Most people make the fundamental error of buying into an investment when it is at the peak of its performance and then selling out when its value has dropped.

If you are investing a large lump sum, put the money in a money market account to start with and phase it into pre-selected investments over a period of time. This is particularly important with equity markets: don’t invest all your money when prices are high and lose out later, when they come down.

Never invest on an ad hoc basis. You should have an overall financial plan designed to meet all your financial needs, taking into account your investment goals and life assurance needs. Investing in something simply because someone (and that includes your neighbour or hairdresser) recommends it, is unlikely to help you achieve your financial targets.

Always have an emergency cash fund. Ideally, the fund should be equal to three months’ income. This way you will not have to cash in investments at an inopportune time or take out a high-interest loan if you are suddenly landed with a major expense.

Always pay the full amount owing on your credit card. If you do not, you will be charged a punishing rate of interest from the date of purchase. The so-called budget account on your credit card is a misnomer, as you pay a high rate of interest.