SPONSORED: Spending first, saving later is pretty normal for most people.
But unless you’ve set aside a savings safety net, anything from car repairs to out-of-pocket medical expenses, fixing up the house or cost-of-living increases becomes a potential bone-breaker. It might make it necessary to cash in your other investments, or take on more debt, to cope. That means decreasing your net worth and resetting any progress you’ve made towards your financial goals.
When you’ve got an emergency fund, you’ve got the luxury of time, choices, and peace of mind.
Savings also allow us to take advantage of great financial opportunities. That’s the kind of financial resilience that Vitality Money can help you build. Discovery Bank leverages the Vitality Money programme to encourage good financial behaviours in banking. Clients get rewards for managing their money well as measured through five controllable behaviours: to spend less than household earnings, save regularly, pay off property, invest for the long term, and to have essential insurance in place.
Calculate your savings points by filling in how much money is in:
- Your savings accounts
- Any investments not earmarked for retirement
The higher your savings points, the safer the financial future for you and your family.
Your goal should be to have at least three months’ gross salary in savings. This will get you the maximum number of savings points. You still earn points if you’re in the process of growing your savings, because points are allocated from the very first rand you save.
To increase your savings points, you need to increase the amount of money you have saved. Our boosted savings interest rates will help you.
If a surprise expense comes up that your savings can’t handle, you can take advantage of our reduced borrowing interest rates.
Saving has to be one of the foundations of your financial plan. It will ensure you have the best platform from which to build and grow your wealth.