1. They always know what is going on in their finances
Take a few hours every month and do your admin. File your policies and investments; go through your bank statements. Understand where you are spending your money – you will be surprised how it’s the little expenses that eat away at our ability to save.
2. They work with a budget
Having a monthly budget gives you discipline as you know how much you can afford to spend.
3. They do not have short-term debt
Consumers who have managed to get debt free start with settling the smallest debt first. They use the ‘freed-up’ money to settle the next highest debt and so on until their short-term debts are fully paid off.
4. They protect their wealth
Your future income is your biggest asset. South Africa has one of the highest accident death rates in the world; don’t rely on the Road Accident Fund and your pension or provident fund to pay you out. Make sure you seek financial advice to provide for unexpected events like disability and chronic illnesses.
5. They have a savings plan
Know what you want to achieve. This will determine which investment vehicle to use. Write down and be specific about:
– What you are trying to achieve
– How much time you have to save
– How much risk you are prepared to take in the markets
– How much you can afford to save
Author: Onalenna Disipi, Liberty Financial Advisor