MOST people will forget about saving money during the festive season but to be fair, it is the time of the year where we should be able to spoil ourselves a little bit.
Ancley Jacobs, CEO of FNB cash investments, said saving money should be a commitment you should live with as long as you have goals you wish to accomplish.
“We often find that people dip into their long-term savings for luxuries or other short term treats that offer instant gratification.
“But investing in long-term goals – such as a more comfortable retirement, education for kids and grandchildren or a deposit to buy a house – can make a big difference to your standard of living versus those short-lived pleasures of spending for the short term.”
He said curbing the way people spend money on non-essential things versus intentional and disciplined savings should be an important driver for every one of us.
Ancley said people should start their savings journey by looking at innovative solutions that will help them kick-start their plans.
“Not only will you earn interest over time, you will also earn compound interest, which is what happens when you earn interest on the interest earned in the past on top of the original amount.
“The formula is simple: the longer and the more you save, the better your chances of becoming financially independent and immune to financial challenges and/or unexpected expenses.”
He said while this may sound great in theory, it does benefit the saver in the future.
“Everyone has a different set of needs and should tailor their savings based on their unique individual goals.
“For example, saving for emergencies where you’ll need your money to be available immediately is different to longer-term goals like a future overseas trip, where you can fix the savings term while earning a higher rate.
The bank’s comprehensive mix of savings solutions includes the bank’s new savings account, money maximiser, fixed deposits as well as notice accounts such as the seven-day notice and 32-day flexi-notice accounts.
It’s never too early or too late to start saving so start today!