The world of personal finance can get confusing. There’s so much advice, information, and financial products out there. We’ve created a personal finance checklist to get you going.
As you grow older your financial goals and needs will change, but here are the basics:
□ Open a bank account.
It’s still the best place to keep your money safe. And your money earns interest in a bank account. Read more…
□ Track your expenses.
It is important to understand where your money goes before you draw up a budget. To do this, review three months’ bank statements or track your spending for a month or two. Some banks have a budget tracker on their app or you can download a separate budget tracker app. Read more…
□ Set savings goals.
Decide what you are saving for. Do you want to build up an emergency fund or save towards your studies, a new school uniform or all three? Read more…
□ Pay off debt. The rule of thumb is that there are very few, if any, investment products where you will earn more interest (usually 10%) than the interest you must pay on debt (between 17 and 27%), especially credit card debt. So, get rid of debt as quickly as you can.
□ Draw up a budget (and stick to it!)
Give each of your rands a job to do. In this way, you are in charge of your money and not the other way around. Read more…
□ Start saving towards an emergency fund.
This is the best way to stay out of debt – to save ahead. Read more…
□ Start saving for retirement.
The sooner you start saving, the more time your money has to grow without you having to do anything. Read more…
□ Invest for the medium and longer term.
Once you have some extra money per month or you receive an unexpected bonus, invest it in a long-term investment product – unit trusts, shares, or exchange-traded funds – for the big things, like a car or a house. Then forget about it for at least five to seven years so that the money can grow. Read more…
Good luck, you’ve got this!
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