Savings Month is a great way to help South Africans focus on why we should save and how to do it, ensuring that we take back our power to become financially free.
According to South African Savings Institute CEO Gerald Mwandiambira, while there’s no doubt that South Africans are struggling under increasing financial pressure, it is at times like this that a savings buffer becomes even more important.
The bigger picture – money and relationships
When it comes to spending and saving, those in a long-term relationship should form a plan with their spouse or partner. However, different views could mean different spending priorities, which can create tension. How can you navigate the sensitive money issue with your partner to ensure that your saving goals are shared?
Maintain an open dialogue: It is a couple’s choice whether to invest and save together or separately and there is no right or wrong way. By talking openly and honestly about money, couples can establish common ground.
Set clear financial goals: One of the mistakes couples make when it comes to their finances is not having clearly-defined goals. By setting goals, each person can manage the other’s expectations, while working to achieve the desired outcome. We all have different investment personalities, but once the goals are clear it becomes much easier for the investor and the financial adviser to determine the actions necessary to achieve them.
Explore your options: Whether it’s saving money towards buying a house or your child’s education, couples need to explore their options.
People often use the terms investing and saving interchangeably, but time frames and goals dictate the difference between the two. For example, you might want to invest together to achieve a long-term goal, such as your child’s education, but individually when saving for personal short-term goals.
Talk to a financial adviser: Earlier is always better when it comes to financial planning and investing. Couples looking to plan their financial future together should seek a professional financial advisor’s help. This will ensure that you are on the same page and both involved in decision making, and can contribute to easing any tension.