We understand that financial freedom means different things for different people. For some people it may mean the ability to pay university fees for the first graduate in the family, for others it may mean paying off a long-standing family debt, or it may mean travelling to the coast to enjoy the sea for the very first time. No matter where you are on the journey towards obtaining your financial freedom, it's never too late to start. So here are some tips from Standard Bank on how you can start working towards your financial freedom:
Create a financial freedom vision board
Ensure you remain motivated to achieve your goals by creating a vision board that you can work towards. A financial vision board is a useful tool to help you clarify, concentrate and maintain focus on your goals. It is simply a collection of images, words, numbers and dates around a specific goal. Seeing this board every day will help you to stay focused when the end seems nowhere in sight. This visual stimulation will keep you motivated to adopt healthier money habits, helping you to stay on track and to achieve milestones.
Set specific concrete goals
It's no fun saving if you don't know what you're saving for. Give yourself a savings goal – such as a deposit for a home or car, education, retirement or luxuries. When deciding on a goal, consider how much you want to save, how much debt you want to pay off, and by when. Concrete dates and amounts will help to motivate you.
Reward yourself
Don't forget to treat yourself when you reach a savings milestone. This will help motivate you to keep putting any extra cash away when you can. In addition to focusing on the big goals, aim to also set smaller, short-term goals as these will reap quicker results and keep you motivated. For example, saving money each week for a trip in six months time will keep you inspired to put the money away.
Create a budget
A budget can help you accurately manage your money. By creating a budget, you can see exactly how much money is coming in and out of your accounts, how much debt you have and how you can make strides to reduce that debt. For many, figuring out how to live on a budget can be a steep learning curve. A budget helps you to see that you're spending R500 a month on takeaway coffee, and R100 a month on a television subscription you aren't even using. By knowing how much you spend on what, you can optimise how you spend your salary every month and start to steadily grow your savings.
Use 'plastic money' with care
Credit and debit cards have become essential, especially when you take into account the increasing amount of online transactions. On the other hand, the average person spends more per transaction when using plastic. Paying with cash will make you think twice about making any purchases.
The tips above can never replace the need to for a skilled Financial Adviser who will guide you through your unique financial plan. Contact us on 021 672 1555.
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