The beginning of a New Year often feels likes an opportunity to reflect on past habits and improve where we can. While New Year resolutions are often seen as being clichéd – as a financial advisor – I have seen the benefit of consciously improving your financial habits early on…
Here are some great reasons why you should start implementing better financial habits sooner, rather than later…
By Kgothatso Motshele
1. PLAN AHEAD
Almost every plan you have for the year has a financial component to it. When you think about your goals and aspirations, have a section alongside it where you think about how this will impact your finances. Thereafter, ask your financial advisor if there are options to help you ease the financial burden, or to put you in an even better position.
2. THE SOONER THE BETTER
The power of compound interest! When it comes to savings, how soon you start saving matters more than how much you start saving. Don’t undermine any rand you can afford to put away.
Saving for retirement early not only helps you reach your retirement savings goal faster, but you could also decrease your income tax liability up to 27.5% every year. You could use that credit to finance your other goals.
3. GET IN TOUCH WITH A FINANCIAL ADVISOR
Living in the digital age means it’s become increasingly difficult to filter through information and know what the right choice is for you and your unique circumstance. This is why having a relationship with a financial advisor you trust is so important. They can refer you to reliable sources and teach you how to understand concepts around you and your finances. The sooner you build this critical lens, the sooner you can access useful and accurate information, and the better you can scrutinise it independently.
4. SAVE FOR A RAINY DAY
If you know you do not have the finances to help you when unforeseen and unpleasant events happen in your life, BossLady – covering yourself for risk (loss of income, disability, dread disease and death) should be a short-term priority to you. Risk premiums are more affordable when you are younger and healthier. Pre-existing conditions, healed or not, could spike up your premiums in future, or insurers could exclude certain conditions from your benefits completely. Speak to your advisor to know what options suit your needs and affordability.
To encourage all BossLadies to safeguard their finances and promote overall financial wellness, Kgothatso is giving away Hello Thembekile 2018 Journals valued at R550 each to 20 BossLadies who book a consultation with her to addresses their risk or retirement needs. Offer valid until end February 2018. Book your consultation on kgothatsofa.youcanbook.me or follow her on twitter @kgothatso_fa to learn more about her services. Find out more about the journal on Twitter
Disclaimer: This article contains factual information, but does not constitute financial advice. If you’d like a consultation, contact Kgothatso on the details above and quote #BossLady in your subject line.