The biggest misconception about saving is that you need to start with a BANG! In reality, the biggest secret to saving is to just start. So instead of stashing money under the mattress, let's look at a few small, smart and savvy ways you can start your savings journey:
Open a savings account
Sure, a savings account probably won't earn you the most spectacular returns and interest – but it's a good place to start. When embarking on your savings journey, it's not so much about earning big returns, but rather adopting saving as a new skill. This takes time, and putting a dedicated amount into a savings account is a great way to practise and get better.
Invest in your debt
If you're thinking of investing your money, one of the best places to start is with your debt. No, that's not a typo. In most cases your debt will have a higher interest rate than any investment account out there – so by paying off your debt instead of investing, you are essentially saving money in the long run. Smart, hey?
Start thinking 'retirement'
The age-old financial adage 'you're never too young to start saving for retirement' rings ever so true. Most people think of retirement as something to worry about when they're old. But don't be fooled – saving for retirement isn't so much about the amount of money you put in, but rather about the time you give it to grow. So the earlier you start, the better your chances of success.
Let's talk unit trusts
If you're interested in managing a small portfolio of your own, unit trusts are one of the easiest and most flexible ways to save and invest. You can invest from as little as R500 a month, and you can withdraw money as and when you please. Plus, if you choose to open a tax-free unit trust, you can invest up to R33 000 a year and pay zero tax on your dividends, returns and capital gains.
Your own business
Investing in your dreams can be one of the best decisions you'll ever make. If you have a business idea that you're passionate about, make it happen by investing in that dream. We highly recommend that you also chat to a financial planner or business adviser to ensure that you're making informed decisions about your future and investment.