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Can you afford not to save and invest? I can afford to save & invest. Ask yourself... Here are some tips... Do you overlook the importance of saving small amounts? 3 It doesn’t matter if you start small, just as long as you start saving. Consider the money you spend on a cappuccino every morning. 20 Cappuccinos = R400 per month R1 000 x 12 Months = R12 323* per year Nothing saved 1 Cappuccino R20 per day 5 Cappuccinos R100 per week Do you know your attitude to risk? 4 Get advice from specialists, not only for the large amounts, but small amounts too. This will impact your choice of savings or investments. Savings or Investment Account With capital and returns 100 % guaranteed. Stock market or Funds Capital and returns not guaranteed due to market risk, but with good growth potential. Vs Vs Are you prone to procrastination? 1 Pay yourself first. Set up a Scheduled Transfer of R1 000 per month to help you save before you spend. Do you think that saving and investing is only something for rich people? 2 Try to save a percentage of what you earn. No matter what income group you belong to, you have no excuse not to save and invest. Save and invest relative to your earning - 10% of your net salary per annum. Do you fall prey to instant gratification? 5 Understand the difference between a “want” and a “need”. If you see something you like, don’t buy it immediately. If you really need it, you can go back for it. 30 minutes later Do you need or want it? Terms and conditions apply. *Interest calculated at a rate of 5% p.a. over a period of 12 months. I want it, I don’t need it! Challenge Solution So you think you can’t afford to save and invest? Things you can do right now to start saving or investing. Why do South Africans save and invest? 1 Emergencies 2 Children’s Education 3 Retirement 10% =R10 000 10% =R100 000
