How will you use the power of savings and investments to grow your future?
We all have goals and want to have a future where we are financially free. The best way to start doing this is by saving money wherever you can.
- Start small – Even saving R1 or R2 per day can mean big savings in the long run. You can also save your change (for instance the coins you receive) and, at the end of a few months or a year, you might just be surprised how much you’ve saved for, for exmple, the festive season holidays!
- Always save towards a goal – Know why you are saving. This makes it a lot easier to save as well, as you know how much you need to save and probably also have a deadline that you have to work towards.
- Stick to the plan – Unexpected things happen along the way and can cause expenses you weren’t counting on, like your car breaking down. Your parents or other family members may also need your help and you have to be prepared for that.
- You need to decide every month to put away a percentage of your salary before paying any bills, etc. in order to build your savings.
Things to save for
- Emergencies – for example your car breaking down, medical emergencies or your family needing help with paying for an emergency.
- Small projects for the home or family – for example painting your home, making repairs, etc.
- Deposits – some larger purchases, like cars or homes, needs a deposit to be paid before you can buy them or own them.
- Expensive items you need – whether it’s a new fridge or a would-like-to-have new laptop, saving for expensive purchases rather than buying them on credit means paying no interest and not having any debt to pay off!
- Holidays – rather than go into debt when going on vacation (and regretting it later), save up for your vacation or weekend away and come back refreshed and without any extra debt.
When you have saved money
Once you have saved money, you can start investing your money to make it grow even faster while earning more interest.
What is interest? Interest is the money you either pay (when borrowing money) or earn (when you lend money). When you save or invest money, you earn interest on the amount that you have in your account.
For more information, visit the WalletWise website
Wallet Wise Tip:
There are different types of saving accounts, figure out which one suits your saving goals the best
- Tax-free saving: get rapid growth on investment, that’s not subject to tax, limited to R33 000 per year
- Notice deposits: save for planned expenses like school fees with higher interest rates
- Society schemes: for stokvels, burial societies, social clubs, investment clubs. Save as a group to earn interest.
You’re good to go!