It’s never too late to adopt healthy money habits. Applying just a few can go a long way towards saving more for your goals and reducing your debt. But, staying consistent is often the hard part.
You may know the basics of money management. That is, not spending more than you have, buying value, and saving enough for the future. Hopefully, you apply the 30-day rule for big-ticket items and when spoiling yourself – do you really need it if it’ll compromise your long-term well-being? Just wait a month before you buy.
We’ve narrowed down a list of good financial habits you can start today with tips to help you stay the course.
How to stay consistent
Tip 1: Save in a disciplined way and regularly
Having a savings or investment account with monthly, quarterly, or yearly contributions obliges you to keep up the routine. The structure fosters the habit, and the progress you’ll see confirms that the effort was worth it.
Investo products from Momentum Savings lend themselves perfectly to regular, long-term savings goals. Our loyalty bonus rewards the commitment, too.
Tip 2: However small an amount you start saving with, it is OK. Over time it’ll add up.
If you invest in Momentum funds, you can take out an Investo product from as little as R500 per month.
If you have an Investo product already, you can take out a retirement annuity for a mere R150 per month. Imagine setting your children up like that. It can even double up to teach them the importance of long-term savings and making wise money decisions.
Reap the rewards with an emergency kitty on steroids
How great will it be to have three months’ salary as a buffer? That can soften any financial blow. Saving 4,5% of your salary for five years in an Investo Linked Investment from Momentum Savings can ensure that you have 80% of your current income, increased with inflation, available for three months in case of a crisis. You can automatically continue your investment for as long as you want to. And exit penalties are now lower if you really can’t keep up the contributions.
Track your progress, do the sums
Ask your financial adviser to work out the future value of your retirement in today’s terms. It’s a reality check about your savings and how much you’ll have each month. You must think about medical inflation and, on the bright side, that your home and car may be paid off, and your insurance expenses may come down.
You’ll never regret upping your fund value by adding single contributions or investing in a second retirement annuity to supplement your retirement savings at work.
If you want to start getting savvier about spending and saving, we’re here to help you with long-term savings options for your goals.
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