PLAN AHEAD

It’s needless to say that given today’s day and age we need to plan ahead and plan for the future. However, this is nothing new.  Recently, I read an issue of the Lifestyle Magazine made by the RCS - a financial accredited micro lender - and came across an article written by Kolosa Vuso. I could not help, but take notes myself after reading this article and felt it necessary to share this with you.

She wrote the following: Saving up for life’s little pleasures or necessities can be very difficult, but well worth the sacrifice when you eventually fly off for that much anticipated honeymoon, or pay – stress – free! – For your child’s education. Here’s how to save for any day, and rainy day. (pg 54 of RCS Lifestyle Magazine – issue 13 of 2012)

In this article, Kolosa Vuso tackles the issue of having children and how you can provide for them in future, financially when they need to go to varsity. She also gives advice on how to start saving up a few Madiba’s (Rands) when having a new born. 

She wrote the following: Raising a baby is not cheap; from the day they are born their needs include baby formula, nappies, toys, childcare, food and things you haven’t even thought of.  Mothers on e-TV’s Great Expectations Forum recommend parenting on a budget while your child is still at infancy stage as it has many rewards.  The forum also suggested buying second hand instead of out of the box. . (pg 54 of RCS Lifestyle Magazine – issue 13 of 2012) Source: https://www.etv.co.za/forum

Others ways of saving up for an education fund include: opening a trust or an educational investment. I found this article very fruitful as it also advises us on how to start putting that little bit of money away on a monthly basis for a better cause in future and get more value for your money.  To get a better financial breakdown visit. www.asisa.co.za/fundisa.  Or source: fin24.com. For more information.

I am sure we all want to retire comfortably and have a plan for our retirement annuity. This article also goes on to discuss this topic clearly:

While saving for a short-term goal can be fruitful exercise, a long term saving plan can be a bit more demanding. Experts say that as few as one in 10 people in South Africa are making adequate provision for retirement. There is a sufficient coverage gap because around a quarter of the formally employed do not belong to a formal retirement plan. . (pg 56 of RCS Lifestyle Magazine – issue 13 of 2012) Source: lifesensefs.co.za

The idea here is to also start young, as this will enable you to save more. You can do this by saving from as little as R145 a month or R1750 per annum because the younger you start, the more time you get in and you will reap the benefits.  The only disadvantage in keeping your money in a policy is your ability to gain access to it, should you really need it.