Maximise your savings during National Savings Month
JOBURG – July is the best month to maximise your savings as it is National Savings Month.
This according to Riaan Strydom, the Financial Planner of the Year 2015 at PSG Wealth which is an independent financial services group that extends its services in the Sandton area.
Strydom said it was important for individuals to understand the difference between saving and investing during National Savings Month in order to make the appropriate financial decisions.
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“Saving is the process of accumulating capital, while investing is the allocation of the accumulated capital to different asset classes to achieve financial objectives,” explained Strydom. “To achieve financial freedom, you need to defer some of today’s consumption for tomorrow’s use.”
He added that while National Savings Month was an incentive and a reminder to get saving and investing, keeping momentum throughout the year was the real trick. “In time, you will reach your financial goals if you stay on track,” explained Strydom.
He encourages individuals interested in saving and investing to ponder on the following points with their partners, family or financial planner:
- Make saving a habit
- Clearly identify your objectives and choose the appropriate savings options
- Understand the risks and opportunity associated with different asset classes
- Sort out your short-term savings
- Make provision for medium-term savings
- Lead the way to your long-term wealth
- Be tax savvy
- Become a budgeter
- Be a role model to your kids
- Seek professional help
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