4 Simple Ways To Start Saving Money

Time to Save

" Do not save what is left after spending; instead spend what is left after saving. "

- Warren Buffett -

1 - START NOW

You can start saving with any amount. Don’t procrastinate, start now.

2 - PUT YOURSELF FIRST

By putting yourself first in saving every month, you will have the opportunity to be one step ahead of the previous month.

3 - DISCIPLINE

It helps if you set up a regular debit order. This is the foundation of investing.

4 - PROACTIVE

By being a proactive saver you can avoid creating future debt or cash flow issues.

BELOW ARE SOME EXAMPLES OF INVESTMENT VEHICLES ONE COULD CHOOSE FROM:

UNIT TRUST (LISP)

• Fully accessible

• Taxed on interest & growth, taking tax exemptions into consideration.

• A good start to investing & assists in building a safety net fund.

ENDOWMENT

• Fully accessible after 5 years & partially accessible before 5 years.

• Tax within the fund is at a flat rate of 30%.

• Before considering this investment, meet with a Financial Planner. It can be a useful tax & estate planning investment but is situation-specific.

RETIREMENT ANNUITY (RA)

• As a norm, only accessible from age 55.

• Tax deductible. All interest, dividends & growth within the fund are tax free.

• Effective tax & estate planning investment. Lack of accessibility would require that this forms part of your long-term investing.

TAX-FREE SAVINGS

• Fully accessible.

• All interest, dividends & growth within the fund are tax free.

• A constructive government initiative to encourage saving. Meet with a Financial Planner in order to gain maximum benefit from it.