Useful saving and investing tips to start the year financially fit galore for customers. UMBELE CORRESPONDENT reports
THE beginning of every year always presents everyone with a fresh start and an opportunity to correct the financial mistakes made in the previous years.
FNB Integrated Advice product head Ester Ochse advises that: “The first step to building a secure financial future begins with creating a budget that allows us to save money and pay off any debts you have.
“It’s important to be realistic when creating a budget and to make sure that it is something that can be followed.
“Also, consider cutting back on non-essential expenses such as eating out regularly or overspending on luxury items. Additionally, you can explore ways to earn extra income, such as side hustles,” she says.
FNB Retail Cash Investments CEO Himal Parbhoo CEO advises that instead of being overwhelmed by unnecessary expenses this new year, look at ways or areas where you can save and invest your money.
“Unplanned expenses can push people to unnecessarily accumulate debt, which should always be the last resort, he says.
6 quick financial tips to build a secure financial future:
1 Automatic payments for expenses
Setting up automatic payments for bills can help you save money by reducing late fees and penalties. It also ensures that payments are made on time, which can help you maintain a good credit score.
2) Use budgeting tools
Using a budgeting tool, like smart budget available on nav» Money on the FNB App, can help you stay on top of your finances and track your spending. This can help you save money by helping you identify areas where you can redirect that money to savings.
3) Open a high-yield savings account for emergencies
A high-yield savings account can help you earn interest on the money you save. This can help you grow your savings over time, assist when there is an emergency and can be a great way to save money.
Given that inflation is increasing, look at appropriate savings vehicles that can help you save or invest. Short-term savings accounts help you contribute monthly through either immediate availability or seven days. A good rule of thumb for emergency saving is to have one to three months of expenses saved.
4) Take advantage of rewards programmes
Taking advantage of rewards can help you save on things like groceries, travel, and dining. Rewards programmes can help you save money. They allow you to earn points for every rand you spend at any of your bank’s partners. Look for special offers that can help you save even more.
5) Take advantage of tax-free accounts
A tax-free investment account allows you to invest up to R36 000 a year without paying any tax on the returns. The returns you get from the investments held in the tax-free account are not subject to income tax, capital gains tax or dividend withholding tax.
6) Save your change
Old school is sometimes cool and when it comes to savings, putting your spare change in a jar or box always works. Save your spare change in a glass jar or box and after a few months see how much it comes up to.
“We are in a tough economic climate and encourage our customers to understand the potential of saving over time. Your savings, whether big or small, will make a difference to short or long-term financial planning opportunities.
“It’s important that you start saving now. It’s this step that will help you in the longer term to build a secure financial future. With dedication and discipline, we can make this new year the one we’ve always dreamt of,” Ochse concludes.