Nurturing the financial discipline to save and invest is not easy, especially with the high cost of living. From many conversations I have had with different people – clients, colleagues and friends, the belief is that you need to have a lot of money to start saving and eventually invest.
The month of July is regarded as a savings month on the financial planning calendar, which encourages people to save and promote investing for the future. Can we nurture the financial discipline and learn how to keep a portion of our income?
This week’s article provides a checklist to help you start your saving and investing journey.
- Short-term goals
A great starting point is to set short-term goals and determine how much you will need to achieve them. What financial goals would you like to achieve in the next three, six or twelve months? Examples of short-term goals include but are not limited to building an emergency fund to take care of unexpected expenses or rainy days.
Secondly, saving up for your children’s school fees due in January 2024 (if you are a parent), new clothes for Christmas, Black Friday or festive spending. From as little as LSL100, you can start and nurture the habit.
- Medium-term goals
Once your short-term goals are set, the next item on the checklist are your medium-term goals. These are goals you would like to achieve in the next three to five years. Examples are deposit for a house, replacing an old car, university fees or starting a side hustle. What should you consider? Where you keep your money? How much interest does the product offer? How easily can you access it? In this article ‘Take Care of Your Savings’’ available on the Reporter website https://www.thereporter.co.ls/2021/03/29/take-care-of-yourself-and-start-saving/, I share saving options and what to consider when investing.
Long-term goals
Lastly, my last article focused on the importance of planning and saving for the future. Whether you are an employee, freelancing or running your own business, having long-term goals (usually longer than seven years) is important. Examples of long-term goals include, but not limited to long-term investments and retirement benefits. When thinking of long-term goals, it is important to understand various investing principles and considerations, which I have shared in this article ‘Investment Planning Considerations’ available on the Reporter website https://www.thereporter.co.ls/2021/07/19/investment-planning-considerations/
I will admit, nurturing the discipline and consistency to save and invest is not easy. It is, however, not difficult. “Hopola hore ha li na motloha-pele”. Start, depending on how much you can afford and KEEP GOING!
You can also watch video available on my YouTube channel and Podcast for more tips on savings and investing. For more information on Leruo, visit Alliance Insurance at www.alliance.co.ls.
