It is the new calendar year, not the financial or tax year end by any means. Financial considerations for the new year need to be in alignment with your personal and lifestyle objectives. The radio and media have been sounding alarm bells for those that have spent much of their bonus and savings during the festive season. The economical benefits from consumers spending during the months of December are good for the fiscal balance, but if the spending was coming from credit instruments, and the savings vehicles, the culture of savings and avoiding the debt trap puts more pressure on the system in the long run.
The step we all as business owners of our bank accounts need to consider is the benefits of building up a contingency portfolio for when uncertainties present themselves. I took a valid point from the radio waves. There are great incentives to using apps to deduct additional spending towards unit trusts that are available on the app settings. I have been using STASH as a tool for this behavior, I manage the settings and watch how the additional savings do reach better heights than the deposits that might attract fees in the traditional sense of putting cash away.
The example on the radio challenged listeners to save approx. 10 Rand a day escalating by double by the time Sunday arrives. This is the mind set that governs compounding your savings in the sustainable periods like a week, a month or even a quarter. I would suggest the budget goals need to be established, many fixed earners can estimate the time and the income necessary to achieve personal and lifestyle challenges. But all the small change does get lost in translation, and the extra thousand rand sounds insignificant in a middle class earnings environment. The take home message is establish the “why” behind the reason the efforts and challenges, and this will reinforce the behavior which leads to voluntary savings.