Do You Have a Financial Future? Or is that something you try not to think about? I know you start off every month by vowing to make a better effort to save more of your paycheque? And you probably you plan to start saving for retirement soon, or to create an emergency fund but never quite seem to get around to it, as it seems however much you earn by the end of the pay period there’s just nothing left to save? If so, you are far from alone. It does not have to be that way though.
The first sensible step you can take to change and improve your future financial health is knowing where you are at the moment. Then you can begin to implement a ‘fitness plan’ for your financial health that works for you now and in years to come.
Do You Have a Financial Future?
Get Financially Fit Now
As is the case for your physical health, working towards basic financial health is not always going to be easy, but with organization and determination you can gain those savings funds you need in a similar way as you can shed those last ten kilos. Many of the strategies to do so are also far simpler than you might think:
Pay yourself first. – Every time your paycheque hits the bank transfer a set amount to your savings account immediately and then live off what is left, not the other way around.
Trim the fat – Most of us waste more money than we realize. When you actually sit down with your bills and financial statements – and a bit of honesty – you can usually find places to economize without too much pain. Those fast food lunches at work. The morning latte. The subscriptions to random Internet services that you barely ever use, but had forgotten about being charged for as they come out of your bank automatically. Even small cuts can add up to the money you need to save every month.
Stick to Your Guns – Going to the gym is hard, but great for your physical health. Sticking to a budget can be just as hard but just as important, so calls for the same degree of willpower. Need some extra savings inspiration when you are tempted by that new phone you don’t need or something similar? Picture a happy retirement, one where you’ll get to enjoy your ‘golden years’, not just struggle through them. That’s one of the things you are saving for, so it’s a great motivator when your will is weak!
Becoming Financially Secure
Now that you are saving money every month you need to take the next step, and make that money work harder. Keeping it in an interest-bearing savings account is quick and easy but there are many more ways it can be put to better use.
Do You Have a Financial Future?
You can begin to say Yes to this if the money you are now socking away is working for you. Putting some of it into a dedicated retirement account can and will help shield your savings from a big tax bite and venturing – carefully – into the world of active investing is easier than ever these days and another great way to keep that money working.
Do You Have a Financial Future?
Will be best answered by an Independent Financial Adviser. He or she can then help do as much for your financial future health as that buff personal trainer can down at the gym for your physical well-being. Even a single meeting can help you understand the differences between, and the pros and cons of, each of the many savings options that are now available to the average South African, and so the time spent doing so will be another great investment in your future financial health.
Which Tax-Free Investment Account?