Are you saving enough to provide for the future?

Saving is no longer as simple as keeping all your coinage in a jar on the mantelpiece or storing cash in the mattress. The world has become a technologically and economically complex place. Whilst the earliest forms of insurance, relating to business risk and retirement, date as far back as the Chinese in the 3rd century BCE, the methods of payment and options available were limited. A once-off payment was all that was needed and you could get up to double your money back.

Digital technology and our diverse economic systems and policies have increased our options both for investment and for risk protection. This is an arena that is constantly changing, growing rapidly and needs to be monitored regularly – which is one reason for having your own financial planner!

Regardless of how your portfolio looks, there are some standard principles to employ when saving for the future:

STEP 1:  YOU NEED A PLAN

The first step in saving money is to ensure that you know where you are spending your money; you need to draft a budget. This can be a simple document that shows your inflows on the one side and all your outflows on the other side. Now your goal is to reduce your debt payments, by paying off your most expensive (highest interest rate) debt first.

Budgeting is crucial to creating a sustainable investment plan and to ensure that you are saving enough for the future.

STEP 2: CHOOSE YOUR INVESTMENT OPTIONS

Now that you have some disposable income and less debt, you need to investigate all the options that are available. Meeting with me will help you find the products that are best suited to your needs. These products vary in length, access to funds, return on your investment and the fees that are involved.

If your saving goal is less than 12 months, then look to your bank and make use of their products. The longer you want to invest for opens up opportunities to make use of investment vehicles like exchange traded funds, unit trusts as well as property, endowments, tax free savings accounts and retirement annuities.

STEP 3: PROTECT YOURSELF AND YOUR FAMILY

I know! It’s strange to mention insurance in an article about savings but it is really important. If you are not able to earn your income, you are unable to maintain your saving goals and the investments that you have put in place. It’s a good idea to speak with me to review your entire portfolio every year, to ensure that you are getting the best cover for your money.

And that’s it in a nutshell! Remember, the more we talk, the higher your chance of making wise choices around the future of your earnings to provide for yourself and your family!