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The benefits of saving and investing

27 August 2018

Once you realise the importance of saving and investing for your future, you’ll be excited to begin your journey to financial freedom

Want to kick-start your financially independent future or finally enjoy that family holiday? The simple act of cutting back on expenses and saving money today will benefit you in the long run.

While the increase in the price of everything no doubt hasn’t helped, we’re all guilty of spoiling ourselves with things like that daily cup of coffee, takeaways or perhaps those unplanned shopping sprees. Every little bit counts so start assessing your finances and draw up a budget.

If you haven’t opened a savings account just yet, open one today! It allows your money to grow and you get to choose a saving platform that works for you. You can choose the period of savings that best suits your plans and needs – from a savings account that gives you immediate access to your money to a 32- Day notice account and a Money Market Account which allows you to invest larger sums of money, which gives you a higher interest rate. Once you get into the swing of things saving money for your Next big goal will be easier than you think!

Saving money allows you to have money available when you need it – giving you peace of mind and the opportunity to work towards what you really want in life.

If you aren’t able to save up, or you want to reach your goal sooner rather than later, your bank offers you another solution. You can take out a loan and borrow from your bank, but it comes with a big responsibility. Borrowing allows you to get what you need when you don’t have all the money available to you at the given time – namely buying a home, car, taking out a student loan or using a credit card. It’s important to borrow responsibly and only consider it if you have a stable income and you can make the commitment to pay the money back.

Talk to your bank about the types of loans, savings and investment accounts they offer and find out what best suits you and your budget!

 START YOUR SAVINGS JOURNEY

  •  Set a reasonable goal that you can stick to
  • You can save for:

-   Rainy days (emergencies) like a funeral or when a car breaks down

-   Buying something that you really need/want

-   To do a small project in your home or for the family

  • Make sure you know the following:

-   Where your money is going to be invested

-   What the interest earned is

-   What the conditions of withdrawing the funds are

-   What are your savings/investment goals – retirement, education, future wealth?

-   When will you need to access the money?

Tune into the next episode of Iketsetse- Zenzele on SABC African Language Stations every Thursday between 3pm and 6pm for more helpful tips.