If you want to stay financially fit this year, you have to make a fresh start and use the opportunity to correct the financial mistakes you made in the previous years.
The first step to building a secure financial future begins with creating a budget that allows you to save money and pay off any debts you have. You can also explore ways to earn extra income, such as side hustles, says Ester Ochse, product head at FNB Integrated Advice.
Himal Parbhoo, CEO of FNB Retail Cash Investment, says instead of being overwhelmed by unnecessary expenses, look at ways to save and invest.
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Ochse and Parbhoo gave us these tips to start the year right and build a secure financial future:
- Set up automatic payments for bills can help you save money by reducing late fees and penalties, while it also ensures that payments are made on time for a good credit score.
- Use budgeting apps to stay on top of your finances and track your spending as it can help you save money by identifying areas where you can cut unnecessary spending.
- Open a high-yield savings account to save the equivalent of three months’ salary for an emergency where you earn interest on the money you save to grow your savings over time.
- Take advantage of rewards programmes to save on groceries, travel and dining, such as FNB’s eBucks.
- Take advantage of tax-free investment accounts that allows you to invest up to R36 000 a year without paying any tax on the returns.
- Saving your change in a jar or box always works. FNB customers have saved over R5.5 billion in the last three years by saving small amounts ranging from R2 to R50 in their FNB savings accounts.
“We are in a tough economic climate and encourage our customers to understand the potential of saving over time. Your savings, whether big or small, will make a difference to short or long-term financial planning opportunities. It is important that you start saving now. It is this step that will help you in the longer term to build a secure financial future. With dedication and discipline, we can make this new year the one we have always dreamed of,” Ochse says.
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