Start the New Year on a high note by saving wisely in 2018. Saving is not only dependent on income, it is largely dependent on willpower and discipline. If you follow these tips 2018 may be a better year for you financially:
1. Set a target: The reason why many of us do not save is because we do not have set targets. It is important to set and write down important savings targets, such as an emergency fund, holiday fund and other targeted savings. Do you know your targets?
2. Automated savings: Debit orders to savings accounts allow automated saving. you can set up debit orders tax free savings accounts (tfsa), 32 day notice accounts and unit trust accounts.
4. Pension fund contributions: When starting a new job, ask your employer to default to the highest allowable retirement fund contribution percentage of your income. You can also ask your employer to review your current contribution.
6. Group savings: Start or join a stokvel or investment club with family and friends. The group will encourage you and enable you to develop the discipline required to be a regular saver.
7. Savings buddy: Allow your partner or friend to be a savings buddy who you meet with regularly to discuss your savings journey. By holding each other accountable, you can help each other to grow wealth.
8. Baby gifts: You can seed a child’s future savings by requesting baby gifts of cash to deposit into TFSA or taking out a retirement annuity (RA) for a baby.
9. Children: Open TFSA accounts for all your children to maximise the benefit they receive from these accounts. Set up debit orders to contribute to these accounts as they grow up with cash gifts they receive on birthdays etc. You can encourage grandparents and other family to also contribute regularly.
10. Retirement fund statement: By receiving your retirement fund statements monthly or quarterly, you can be encouraged to keep track of your savings to ensure that you have sufficient income when you retire.