With the new year upon us, there is no better time to assess your financial position to ensure that you stay on track in achieving your financial goals well into the future. However, this requires one to prioritise your savings plan and ensure that you are contributing to the right savings vehicles that aligns to your financial goals.
Himal Parbhoo, CEO Retail Cash Investments at FNB says, “One of the key considerations when saving money is to ensure that you save in the correct savings vehicle which will yield desired outcomes based on your financial goals. For example, you need to define whether you want to have immediate access to your money or over a notice period. This also determines how much you get in interest.”
Parbhoo shares tips on how you can take charge of your financial journey in 2024:
· Define your financial goals: Your financial goals will give you a clear direction of what you want to achieve and helps guide in making the right financial choices that aligns with your goals. It means drawing up a plan that will highlight what you want to achieve in the New Year. This plan will keep you honest on progress and look at the measures you need to take if you are lagging behind. For example, your savings goals could be to bolster your savings portfolio, saving for emergencies, saving for your kids’ education or for a big purchase like a car.
· Assess your financial standing: review your financial standing by assessing your finances, which will help you get a better understanding of where you are in your financial journey. This will further help you get a clear understanding of your income and expenses. Moreover, it will also give you a clear indication on whether you are making adequate contributions on your savings.
· Review savings goals and increase contributions: review the savings goals that you set at the beginning of the year to check your progress. This will help track if you need to make extra contributions to ensure that you meet your goals and will also highlight where you spent unnecessary . Increasing your contributions can help boost your savings, even if it is with a small amount.
· Choose the right savings vehicle: it is advisable to balance between having an immediate access and getting access to your funds over a notice period. This will help ensure that you avoid paying penalty fees in instances where you have an emergency if you only save on notice accounts. Furthermore, different savings vehicles offer different interests, for example FNB offers accounts with interests up to 9.20% depending on the term and amount saved and up to 9.65% on the retiree’s value proposition.
“Clearly defining your savings goals and researching about the right savings vehicles is important in ensuring that you meet your financial goals. If you are unsure about the right savings vehicles that aligns to your goal, it is advisable to consult your bank or certified financial advisor for assistance,” concluded Parbhoo.
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