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Make time for family and friends
We think loved ones, buddies, friends, and family are important and these relationships should be nurtured, preserved and strengthened year after year. Set aside quality time to spend with your loved ones or those who bring a smile to your face – it’s good for your health and general state of mind.
Avoid burn-out and unnecessary exhaustion by taking regular “breakaways” in 2024, they don’t need to be long - just regular. Your physical and mental wellbeing is just as important as your financial health.
Put some money aside monthly and save towards a “Mid-year Weekend Breakaway” with your mates to recharge life’s batteries.
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Kick debt into touch
Debt is one of the major reasons why we just can’t seem to get ahead! Debt kills all aspirations of reaching financial freedom. If you have debt, try and squash it as far as possible. Rather invest or save for an item instead of accumulating more debt.
Sure, some debt is unavoidable but as far as possible be careful and don’t let this area of your life spiral out of control. If it does, you might have to work yourself to the bone a lot longer than anticipated to rid yourself of debt. Sometimes this could even take years!
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Start an Emergency fund or two
Without an emergency fund, you could be forced to dip into your other investments in case of financial distress, or worse, be forced to borrow money and create unwanted debt. This is where an emergency fund is vital. It is prudent to build up a solid emergency fund to deal with life’s unexpected financial challenges without having to derail your greater financial goals and ambitions.
There is no real hard and fast rule that determines how much should be saved in an emergency fund, but having three times your monthly salary saved up is a good start and provides a nice buffer.
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Invest Tax Free
There are many ways to save tax and some really smart investment products exist to help you invest tax free. A tax free savings investment is possibly one of the greatest investment inventions of our time. Not only do you not pay a cent in tax on your investment growth, but you also have the power to generate an income that you can live off one day that will not be taxed! Why would you not want one as part of your overall financial plan? Tax free investing is easier than you think.
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Harness the power of rand cost averaging in 2024
Rand cost averaging is an effective investment technique best applied when things in the economy and investment world become a little uncertain or bumpy. With rand cost averaging investors are able to accumulate more of a certain type of investment with the same amount of money in bad times than they could in favourable economic times. Learn more.
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“Inflation-adjust” your investments
Inflation is like dental plaque and if left unattended can cause decay to your financial future and investment plans. If your investments are not growing by at least the rate of inflation (percentage), over time you are in principle getting poorer, even if you are getting some kind of investment growth.
Review your investments (at least annually) and make additional top ups to ensure you stay ahead of inflation and that your investments are still on track to achieving their objectives.
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Think about your “Future-You” right now
Ever given some thought to your future-self and whether your current-self is doing enough physically, emotionally, and financially to take care of your future-self? Think about your future-self now and make the necessary changes today that will benefit you in the future. Only you have that power!
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Update your Will
Where there’s a Will there’s a way!
Make sure your financial affairs are in order and that you have an updated Will. It’s such a simple piece of paper yet removes so much complexity for your loved ones when you are no longer around. The last thing you want is for your hard earned assets end up in the wrong hands, or even worse, tears your family apart.
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Budget
A typical budget includes a list of expenses that one needs to cover to survive, like food and rent, yet often neglects things like your children’s future education, a family vacation, a new car and your retirement years.
Review and update your budget at least annually and most importantly, increase your savings element of your budget by inflation. Not sure how to budget? Click here and here.
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Invest just a little more if you can
A little really goes a long way in time when it comes to investing.
As an example: If you save R 1000 pm, increasing at 6% per annum in a moderate risk type unit trust you could get approximately R 494 000 after 15 years. If you simply saved an extra R 100 per month (R 1100 pm) using the same criteria this could push the amount you receive after 15 years to an estimated R 545 000.
Saving anything extra, no matter how small, towards an investment can make a huge difference over time.
Make 2024 your best year yet!