Navigating finances can feel like learning to fly a rather complicated space ship; there are so many buttons, leavers and flashing lights:
- Savings plans
- Unit trusts
- Retirement plans
No wonder the idea of grabbing control of your finances seems scary! So, let us help you on that journey!
For many younger people who are trying to organise their finances, savings are the final frontier: that last thing that they think of, the thing that they think they will start doing once they “have their finances in order”.
There’s a misunderstanding that saving is something that you do with “extra money”. Well, we hate to break it to you, but there is no such thing as “extra money”.
You have to budget for savings, just like you have to budget for paying rent. You don’t need to start off saving a huge amount of money – every cent helps! If you save R50 a month to begin with, that’s R50 you didn’t have saved last month.
If you’re just starting out, ignore the more complicated options, and go for a bank savings account – just make sure your interest rate is higher than inflation, currently 4.5%. There are a number of banks that have interest rates of 5 – 6% or even higher. It’s best to find a bank with low banking costs too as these could easily eat into your savings.
The earlier you start saving, the better you will manage your finances in the long run. Compuscan and My Credit Check want to be your co-pilot on your journey to financial success with you! Visit My Credit Check to get a helpful look at your financial standing. Knowing what is on your credit report will also allow you to budget properly so that you can start saving in such a way that you can build an impressive and good financial portfolio.