Men's Articles

Be Financially Secure

Save 10% Of Your Salary

Save at !east 10% of your take-home pay. Use a simple per-and-paper method to write down what you need to spend on. The idea is to know how much you have and be aware of when payments are due. Set a budget and keep to it. Work out how much you have available to spend after saving at least 10% of your take home pay and setting aside funds for your debt commitments.

What Is Your Financial Objective?

Identify your financial objectives. Whether it is saving for a new home, your children's education or your retirement nest egg, work out how much you need, when you need it, how much you have and how much you are short of.

Prepare For A Rainy Day

Set aside at least six months of your monthly expenses for you "rainy day" fund. You've got to have enough to tide you over in the event of an unforeseen crisis, like illness or sudden job loss. This emergency fund should be in cash or near-cash instruments like fixed deposits.

Avoid Debts

Don't get into an excessive long-term debt repayment arrangement (for cars, sofa sets, refrigerators etc;. Any thing that takes up mare than 35% of your pay in monthly repayments is too much. If your take home pay is US$1,500, you should not be in a situation where your instalments take away more than US$500 from your pay packet. 

Plan For Your Retirement

Set aside money for retirement: You need to think of the day when you retire and have no monthly salary to rely on to provide for expenses. As such, it is important to start planning for the years ahead. Start building up the money you will need for retirement-according to financial planners, it should be about two-thirds of your last take drawn take home pay.

Insurance Is Essential

Buy insurance to protect against the unexpected: As a guide, most experts recommend a life insurance cover of about 5 to 10 times your salary The actual amount vanes from person to person. So it is best to consult your financial adviser on your insurance needs. Don't forget about protect yourself too. The best time to look at insurance is when you're young and healthy.

Take Calculated Risks

Invest only in what you understand and what is suitable for you: Before you invest, you need to ask yourself "how much money do you have for investment? ", "haw much returns do you hope to get and how much are you prepared to lose?". The higher your expected returns, the more risk you need to take. Find out more about the products potential returns, risks and charges. Monitor the performance of your investments regularly. Consider putting a lump sum of money into a fixed deposits account or investing it into a unit trust fund. They're usually used as a straightforward and lower-risk way to grow your savings.

Start Planning Now

Aim to achieve these in order of priority: Savings, insurance, investment. For the long term, you need to consider other ways of putting your savings to more efficient use. If you put all your money in a savings account without investing it, you'll be sacrificing growth for security. Investing is a way to get potentially higher returns and make your money work harder for you. Investing also helps us reach our financial goals and negates the eroding effects of inflation on your purchasing power over time.  

Get A Mentor

Speak to a financial advisor about your investment needs.

 

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