We all know that saving is important and that you should start as soon as possible, however as you get older your circumstances change and so does your saving habits. Here is a breakdown of three main life stages and how much you should save during each stage:
- Starting your career: Your first salary might not be that big and you have to pay for things that you did not have to pay for when you were at school or university. Thus, saving is not necessarily your biggest priority but it cannot be ignored as saving from your very first pay check will benefit you in the long run. You should be able to save 25% of your overall income yearly to be able to save enough for the future.
- Starting and bringing up a family: When you have a family, you naturally have a lot more financial commitments and expenses. However, saving is extremely important during this stage of your life, as you have to provide for your children’s education, emergencies and your own retirement. It is advisable that you should have twice the equivalent of your annual income saved up every five years.
- Entering retirement: At this stage, you should have already saved up enough to retire comfortably. Thus, during this stage it is important to take stock of what you have already saved up and ensure that the savings and retirement products you have in place will sustain you during your retirement.
- Secure your future during every stage of your life: Iemas Insurance Brokers (FSP 47563), wholly owned subsidiary of Iemas Financial Services, offers a variety of financial plans and solutions to help you enjoy a secure and stable future. Talk to us about savings and investment plans as well as retirement annuities on 0860 102 383 or visit www.iemasinsurancebrokers.co.za.
More blog articles on savings:
- Five ways to stick to a savings plan
- How to manage your finances responsibly
- How to save even more money on fuel
- How to maintain a good credit score
- Four ways to stop dipping into your savings account>