Save for emergencies!
Ancley Jacobs, CEO of FNB Cash Investments.
Recognising the significance of savings can prove to be beneficial especially if emergencies crop up. Despite the uncertain economic outlook, saving a little each month will help you reap the rewards in the long-term.
Says CEO FNB Cash Investments, Ancley Jacobs, “The importance of saving requires more emphasis during time of economic volatility. Despite financial constraints and the popular excuse of, ‘I can’t afford to save’; consumers still need to make room for savings.”
“We don’t generally save enough and this ends up having both personal and macro-economic consequences. Saving consistently over time ensures that you protect yourself from unnecessary debt and financial vulnerability. Saving and investing does not happen in a vacuum, they should be components of every money management plan.”
Jacobs explains that “There is no single specific solution for saving but there are sound principles that should be applied. A key to smart money management is having a personal budget; use it to manage income, savings and spending.”
Another key aspect to consider is having set savings or investment goals and sticking to them. “Building your savings or investment portfolio takes time and discipline. Creating realistic goals and being committed will help you achieve your goals. Place importance on ‘saving for the things that count’. Not only will it be worth-while it will also help keep you focused,” adds Jacobs.
Don’t build your savings strategy on what is left at the end of the month; you may be setting yourself up for failure. “Adopt the save first, spend later strategy. Set up a payday scheduled transfer from your salary account to a dedicated savings or investment account which is an easy and automatic way to build healthy balance over time.”
There are a variety of investment vehicles available that will help you kick-start the savings process. Understanding the type of savings or investment product you are depositing money into will empower you as you will be able to balance your return, risk and access needs. “Look for products that match your lifestyle, circumstances and goals,” he says.
FNB has a range of instant access savings and cash investments accounts, including a new Savings Account as well as the popular Money Maximiser, that are designed for saving for emergencies and unexpected expenses, while enjoying great rates and easy access via all FNB’s channels.
Bottom line - Don’t Procrastinate; start saving now! “We are surrounded by debt, good and bad, but those that start saving early will see the rewards faster. Time plays a huge factor in how your savings will grow, so the earlier you start to save, the more you have,” concludes Jacobs.
