How time can make you rich

(iStock)
(iStock)

Cape Town - In many ways it’s better to have plenty of time than to have plenty of money, because if you know you have time available you can build wealth and do great things with the money you have, according to Old Mutual.

“Getting good advice early, planning ahead and knowing which stage of your life you’re at gives you a massive advantage," the company said in a statement.

“The sooner you tackle crucial issues like starting to save for your retirement and your children’s education, drawing up a will and getting death and disability cover, the better. The longer you have to save, the more access you and your money have to compound interest."

Start with a financial plan that has these crucial components:
 
- Set up a monthly income and expense budget;
- Understand the specific needs of the life stage that you are in;
- Choose a financial adviser;
- Stick to the plan. Resist the urge to drop out;
- Review the plan annually with your adviser.

Properly implemented, your monthly budget becomes the driving force in your financial plan. Save for an emergency fund (usually three months’ salary in cash) and to address other financial planning needs.

Just started working? With your first pay-cheque, start saving for retirement regardless of whether your company offers a retirement scheme or fund.

Resist the temptation to cash in your pension when you change jobs – you need to protect and preserve your investment.

Of course you must also protect all your other assets. But while material assets are important, your skills, health and your ability to earn an income are even more so. Your health affects your lifestyle, which impacts your earning ability, which, in turn, impacts your lifestyle.
 
Despite all precautions, the unpredictable can happen, such as death, disability or illness. It is important to have cover for these events. Disability cover provides you with money if you’re disabled and can’t work.

Do you have a successful savings plan or story, share with us.

ZAR/USD
17.22
(+0.71)
ZAR/GBP
22.56
(+0.60)
ZAR/EUR
20.36
(+0.64)
ZAR/AUD
12.39
(+0.50)
ZAR/JPY
0.16
(+0.78)
Gold
2030.10
(+0.08)
Silver
26.35
(+0.73)
Platinum
950.00
(+1.82)
Brent Crude
44.34
(+0.63)
Palladium
2135.28
(+0.31)
All Share
57022.07
(+1.37)
Top 40
52654.07
(+1.35)
Financial 15
10048.05
(+1.72)
Industrial 25
75822.12
(+1.17)
Resource 10
58114.25
(+1.37)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 845 votes
It depends on how the funds are used.
74% - 5619 votes
No. We should have gotten the loan elsewhere.
15% - 1122 votes
Vote