I just download a nice brochure title ‘ On The Money – The Big Fice Secrets of Money Management – A Financial Behavior Change Experience’ by Bankseta and NQF aligned.
The brochure show their research on behavior change. I want to share the point from the saving process module as it is important for us to reach financial goal. It give 5 steps for us to follow :-
1) Identify What You Are Saving For
No one starts a long road trip withouta map of how they are planning to get to their destination. Saving is the same; you need to have a clear objective of what you are saving for .
When committing to your savings plan you need to write down each goal/ objective you have and the amount you want to save as well as a target date for reaching your goal.
You must make these realistic so that you can ensure your success.
You need to have finance journey, write down goals and stay focused.
2) Determine How Much You Can Save
How much you spend and what you are saving so that you can determine how much you can save. You might need to reign in spending in order to save the required amount.
You must know your income, know your expenses, calculate savings and save more.
3)Choose The Appropriate Solutions
There are many ways to save, you need to research and find the right one for you. A financial advisor can help you decide on which products or services you should use.
For short-term goals you should focus on safety and liquidity rather than growth. For medium term goals you need to find the right balance between growth and liquidity.
Long-term investments are more risky but here you need to focus on growth and leave your money in your investment for many years.
You must know your long term goal ; invest, medium term-goal : growth and liquidity, short-term goal : safety and get financial advisor and savings plan
4) Make It Automatic
As we have discussed, you need to make savings automatic. If you get used to the money not being in your account you won’t miss it. So feed yourself first and take the savings amount out of your account straight away.
You must know you have automate savings , feed yourself first and move money to savings.
5) Monitor Your Progress
Take time out every month to review your savings and see if you are meeting your goals. If you aren’t you will need to review your choices and maybe change your investment options.
If you are meeting them or exceeding them then it will motivate you to continue.
You must monitor your financial every month, review savings, change investment options if needed and meeting goals will motivate you.
For more information visit www.oldmutual.co.za/financialeducation or
How about that? It is good guidelines for us to follow. If we follow this 5 steps, we could life happily and possibily financial freedoom. Let’s begin from now.