Amid the rise of the cost of living, several years of recession post the pandemic, and load-shedding, now is the time to gear up your saving strategy.<\/p>\n
Inflation can have a huge impact on how we save money as well as how our investments perform.<\/p>\n
It can reduce the value of your portfolio, but you can also find ways to use it to your advantage whereby your investment grows in line with inflation.<\/p>\n
Everyone deserves financial security, so don\u2019t be discouraged by the struggle to afford daily essentials and make regrettable financial decisions during this time.<\/p>\n
You may be tempted to withdraw from your retirement but that could set you back on retiring comfortably.<\/p>\n
Here are four tips on how to save some money:<\/strong><\/p>\n To be honest, no one really enjoys examining their spending habits but it\u2019s an important task that can help us cut down our expenses to ensure financial security.<\/p>\n We encourage people to put their needs before their wants, so it\u2019s essential to learn how to create a budget based on your earnings and expenses.<\/p>\n Experts often mention the 50\/20\/30 formula.<\/p>\n That means allocating:<\/p>\n If it’s hard to do it on your own, then check out 22seven<\/strong><\/a>.<\/p>\n It will help you by creating a personalised budget and keeping track of your money.<\/p>\n Lastly, practice the self-discipline needed to stick to your plan to succeed.<\/p>\n People often think that they need large amounts of money to start saving but that\u2019s not true there are options available to you.<\/p>\n You can start investing for as little as R500 per month in an interest-bearing investment and watch your money grow.<\/p>\n Diversity is key.<\/p>\n The idea is to invest in enough different sectors of the economy so that if one investment does poorly, your other investments will make up the difference.<\/p>\n If you have too many of your eggs in one basket, you could end up increasing your risk.<\/p>\n A diversified portfolio spreads the risk evenly so that no single mistake will ruin everything.<\/p>\n Like the tax man trying to take some of your capital gains therefore to optimize your savings for tax efficiency South Africans should also consider a Tax Free Savings Account (TFSA)<\/strong><\/a>, the most tax-efficient savings vehicle.<\/p>\n However, if you\u2019re looking for a savings vehicle that allows you to be in control of your investment, one that is more flexible, and matches your affordability.<\/p>\n It\u2019s worth looking into flexible investment plans<\/strong><\/a> that allow you to save as much as you want and for as long as you can.<\/p>\n To create a comprehensive savings plan, you should speak to an adviser.<\/p>\n1. Examine your spending habits<\/h3>\n
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2. Start saving small amounts, to grow big<\/h3>\n
3. Diversify your portfolio<\/h3>\n
4. Speak to a financial adviser<\/h3>\n