99FM – Your Inspiration Station

Your Financial Update #11

Get a head start in saving your money

When you first start a formal job, nothing beats that feeling of having your salary.  Imagine all the things that you can spend it on! This is also a time to get ahead of your financial future. It’s easy to live in the moment when the future seems so far away. But it’s absolutely vital to start planning from the very beginning.


Get to grips with your financial goals.

You may think you want to wait until you earn more money before you start saving, but as you get older, you’ll have to take on more expenses.


First things first. Work out your short-term (one year), medium-term (three to five years) and long-term (retirement) goals, and then give careful thought to what you need to do now to achieve all of these.


Budget, budget, budget.

It is important to have fun now, but it’s also important to make sure that you can afford your lifestyle


Write out a budget that takes all these expenses into account, making sure that you think of all possible expenses, from the insignificant daily takeaway coffee to the whopping car repairs you have to afford twice a year.


Financial Accounts to consider.


To support goals like buying a car or the deposit on your first property, put your money into a Notice deposit account. A notice deposit gives you a good interest rate. However, you have to give notice when you want to take your money out. It’s ideal for medium-term investing.


A money market account can have an even higher rate. Plus, it still allows you to access your money quickly. This is a good option for saving.  You need to be honest with yourself about how disciplined you will be about leaving your savings to alone.


Last, but certainly not least, consider various investment products for your retirement planning. If you are younger, you can look at products with higher risk that provide higher return in the long-term, but your capital is not guaranteed.

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