July is Savings Month, here are five saving strategies to kick it off with;
1. Save Automatically
Save automatically through a monthly transfer from cheque to savings ideally soon
after you are paid. What you do not see, you probably will not miss. These savings can
provide funds for emergencies, a home purchase deposit, school tuition or even retirement.
Almost all banking institutions will, on request, automatically transfer funds monthly
from your cheque account to a savings account.
2. Save for Emergencies
Having an emergency savings account may be the most important difference between
those who manage to stay afloat and those who are sinking financially. In fact, low income
families with at least R5 500 in an emergency fund are better off financially
than moderate-income families who save less for emergencies. Without an emergency
savings, you may find the need to turn to high-cost credit cards or payday loans to cover
the amount you owe. Borrowing from these types of lenders could make it difficult for
you to payback your debt due the the high interest rates charged.
3. Pay Off High-Cost Debt
The best investment most borrowers can make is to pay off consumer debt with double digit
interest rates. By tackling the debt with the highest interest rate afford you not only a cost savings method but you can pay off your debt faster with less money.
4. Save for Retirement
Few people get rich on a salary alone. Wealth is built by consistently saving and earning
compound interest, or interest on your interest, over many years. Saving now for
retirement will ensure that you have enough money to live a comfortable lifestyle when
you stop or reduce the amount of hours you work. The earlier you start – the better,
ideally in your first job when time is still on your side. Saving for retirement is important at
any age and it is never too late to get started. You may be able to save for retirement
through your workplace through a retirement scheme or you can save on your own by
putting money in a retirement annuity.
5. Make a Plan
Individuals with a savings plan are twice as likely to save successfully. Even saving as little as
R50 per month, starting this month will help you to reach your future savings goals. Do
not forget to impart this knowledge and education with your children ensuring a legacy
of wealth or savings that will last generations.
Speak to Iemas Insurance Brokers about education or savings plans, as well as retirement annuities
today and start preparing for the future.
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