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, buddies or those that bring a smile to your face – it’s good for your health and general state of mind.
Take regular breaks
Avoid burn-out and unnecessary exhaustion by taking regular breakaways in 2019, they don’t need to be long - just regular. Your physical and mental wellbeing is just as important as your financial health, arguably more so. When you are relaxed, your mind is too which boosts your ability to make better investment decisions.
Kick debt in to 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 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 spiral out of control. If it does, nothing else you do really matters as you will literally work yourself to the bone to rid yourself of debt. Sometimes this could even take years!
Start an Emergency fund
Without an emergency fund (savings) you could be forced to dip into your other investments in case of an emergency, or you may be forced to borrow money and thereby 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 three times your monthly salary is a good start and provides a nice buffer.
Invest Tax Free
There are many ways to save tax and smart ways to invest tax free. A tax free savings investment is probably one of the best 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.
Harness the power of rand cost averaging in 2019
Rand cost averaging is an effective investment technique best applied when things in the economy and investment world becomes 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.
Inflation adjust existing investments
Inflation is like dental plaque and if left unattended can cause rot and 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.
Think about the Future You 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!
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 when you die. The last thing you want is that your hard earned assets end up in the wrong hands, or even worse, results in disputes that rip your family apart.
The old adage “If you fail to plan, then you are planning to fail” aptly captures what budgeting is all about. Budgeting is free, easy to do and has the power to change your life for the better. Start one today and get saving! Not sure how? Read our article on the The power of budgeting.