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| weekly and monthly saving challenge |
If you are in this group, please go check our previous posts on paying debt up. Dealing with debt is nice and short whilst the more practical one with examples is at If I had debt. These posts will help you structure your own journey out of debt. They are worth your time, OK I'm blowing my own horn. Our next challenge will be on paying mortgage/ homeloan in 10 years or less. It is not that hard. I have done it and so have some of my friends.
Group Two: Building an Emergency Fund
A lot of people dislike the term Emergency Fund. Please call it whatever you fancy. Just build the fund. For the emergency fund accounts again please check out the recent post on choosing the emergency fund account. If not sure of the best option, please enquire with your bank. As stated previously, I use a 24 hour notice account for this purpose. There is always an account suitable for this. Just avoid saving in an account that earns no interest. I have shown the interest that I earn in that particular post. Please check it out. A number of people keep R10,000 in that particular account. Some people keep more and some keep less. I need at least this amount because of my various financial commitments.
Remember that you may start building on this whilst you are paying your debt up. You might need to take part of the amount you are committing to fast tracking your debt payment and save it as your emergency fund.
Group Three: Other Savings
A job is such an enabling tool. I am reminded by this post that, when I had a job, I had a "car savings" account. This is where I saved to buy my next car. I also used my homeloan access bond to save for various projects. I would typically save for a down payment/ deposit on a property, a new car, children's school fees, vacations, renovations, etc. Now that we are all getting debt-free, we need this category of savings for us to get in the habit of saving before we spend.
This is a more medium term type of savings. It makes sense to use a higher interest earning account compared to the emergency fund account. For this particular group, you might need to consider the longer term notice accounts like 32 days notice or the highest interest money market account that your bank offers. I use the 32 days notice account. I keep about twice (or more) the emergency fund amount in this account. I prefer to keep most of my savings in the homeloan access bonds. The reason for this is that, my homeloans typically have a higher interest than the interest I earn from the savings accounts. It helps reduce the interest that I pay on my mortgage, but is also accessible if I happen to need funds. It is also not an easy decision for me to withdraw from an access bond. I have touched on this a little in the post: Best Savings Accounts.
Please choose wisely and ask questions where you need assistance. Use Facebook or the contact us page.
Group Four: Stocks, Shares or Exchange Traded Funds
I get a whole lot of emails on Exchange Traded Funds (ETFs). I am very passionate which attracts your amazing questions. I have a post that can assist readers understand this better. Please check out this post: Exchange Traded Funds. Take my word for it, they are the best money growing tool for new investors. My teenage son uses them and so does my husband. You might never use any other tool to invest in stocks or shares. I will write a post on how you register and where you can register.
All the best with the challenge. Please do not give up. Start slow and keep moving. For motivation please like us on Facebook, Twitter and/ or Instagram.
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