SAVE NOW – Your financial future is in your hands
If you want to secure your financial future, you need to start saving today!
To many of us, it seems almost impossible to find money to save each month. Fortunately, the good news is that it is much more important to start saving than how much you save.
Here’s why: if two people save at different times and earn the same interest on their savings, the one who started the earliest will see the biggest returns.
A simplified example will illustrate.
Surprised? The example illustrates the wonder of compound interest – or earning interest on interest already earned. And what unlocks the wonder of compound interest is not how much you save, but rather how long your savings are earning compound interest.
|Here are four great tips that will help you save today so you can secure tomorrow.|
1. Start today!
Make a commitment to start saving today. Tell your family and get them involved. Set up a piggy bank on the kitchen counter for spare change, cut something from your budget, open a separate savings account and pay your savings into this account each month, or select a savings plan that automatically deducts an amount each month.
2. Start small
Decide how much you will save, even if it is just R50 a week that you can save by taking lunch to work each day, instead of buying it. From there, work your way up to contributing, say, 3% of your salary each month, increasing this by a percentage point each year until you’re up to the recommended savings rate of 10%, or your own savings goal.
3. Keep going!
Don’t get discouraged! If you skip a month or two, for any reason, don’t stop. Continue as soon as you can. Never cash out your savings for anything but an emergency, and then redouble your efforts to catch up again. Remember, time unlocks the wonder of compounding interest!
4. Get expert assistance
Speak to experts who can help you save smart to make your savings work the hardest for you. Investment experts – from the banks to retirement benefit specialists – visit your workplace on Financial Focus Days, experts are ready to assist you to save today so you can secure tomorrow.