Saving should become an important part of your lifestyle. By enhancing your financial health, you can make meaningful savings decisions that will benefit you and your loved-ones in the future.
Ancley Jacobs, CEO of FNB Cash Investments shares his savings tips, which can get you started on your savings journey.
- Pay yourself first – put a set amount or percentage of your income/salary/wages away on the day you get paid to keep it save from temptation
- Every bit helps – even small amounts will add up over time and the power of compound interest (earning interest on interest) can really make a difference in your total financial position over time
- The sooner you start, the better – time is a major ingredient to reaching your savings goals. Rather start now in your youth than when you are older.
- Save windfalls – if you receive money that you didn’t expect, such as a tax refund, a birthday gift or inheritance – save it in an interest bearing account, while you decide how you want to apportion it between your short, medium and longer term savings and investment solutions.
- Compare rate, fee, risk, functionality and rewards prior to investing, especially longer term, higher risk investments, to ensure that the products you choose match your life stage, lifestyle growth requirements and risk appetite.
- Access to your savings also needs to be considered – are there notice periods, fees for withdrawing money early and user-friendly channels to open, manage and close accounts?
It doesn’t matter how small the amount is; every amount saved will help to save and invest for the things that count. Saving towards specific goals such as family holidays, overseas trips, weddings, anniversaries or business expansion will yield even greater returns in the long term.
How else do you make meaningful savings to build wealth?