2016
Category News
Being financially sound isn’t rocket science, but we often forget the basics. Try these simple ways to improve your bottom line this year.
1. Pay less tax
This month, remember to top up your retirement annuity or company retirement fund before the end of the financial tax year on 29 February 2016. Depending on your tax rate, the tax man effectively funds up to 41% of your retirement savings. Open a Tax-Free Savings Account (TFSA) and protect your nest egg from investment tax. Over a 20-year period, depending on your tax rate, your investment will be 36% higher in a TFSA due to the tax saving.
2. Close an account
It’s time to put an end to living in debt. Start by selecting just one store card, personal loan or credit card and pay it off. Remember to close the account immediately so you are not tempted to fall back into the debt trap.
3. Get tracking
Start writing down how you spend your money and draw up a budget. This will help you find areas in which you can cut back and generate extra cash to start saving or pay off existing debt. Tracking your spending will also make you more aware of excessive spending and help you be more disciplined.
4. Update your wishes
Take the time to draw up a will. If you already have one, take it out and read it. Make sure it still reflects your wishes and personal circumstances.
5. Review your policies
Meet with your financial adviser and make sure your cover still matches your needs. This is also the time to revise what’s not working for you and to review your long-term financial goals.
Author: Denise courtesy Liberty Life
