The importance of saving and investing wisely
• By Jo-Marie Ortner
TRANSITIONING into adulthood can be a challenge and for many young individuals, this is a time when many are lectured on the various ways of saving and investing money wisely and safely.
Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. The means financial literacy is the foundation of a person’s relationship with money and it is a lifelong journey of learning.
Many university students and non-scholars get large amount of money annually be it from NSFAF, banks or businesses but end up spending it on liabilities instead of saving for later greater use which will generate more income.
Financial literacy continues to be a vital and constructive dialogue that needs more attention. There is need for the youth to be well educated on the various ways to save their money or store it away while it multiplies.
With this you will be looking into various institutions and how they can help YOU save and invest your money wisely.
Old Mutual Financial advisor- Salomon Shitena
Old mutual offers a great deal for students or anyone who desires to save or invest their money with a low start-up capital. You can save your money with the old mutual Unit Trust, which is reliable, flexible and does not bind you nor do you need no contract. When you have a monthly saving plan you can invest from N$100 every month or if having a once-off saving plan, you give a minimum of N$10 000. With this saving trust, one can withdraw the money anytime they wish to do so or add more money to it. All you need is an account number to verify that you own a bank account, an ID or passport for proof of identification.
Investing is also another way of keeping your money safe. Investing for a minimum of 5 years with N$500 per month. This is a great way to keep money stored away for rainy days. Interest rates depend on how long you have invested your money, the longer, the more the interest rates and the more money you have in you invest fund the more the interest you gain back.
Charlton Cloete- Financial advisor
Sanlam offers a Unit Trust product that ensures your money is safely kept away for you or you can decide to own a normal savings account depending on your goal. With the saving plan you can invest from as little as N$500 per month. Other saving plans are the contractual plan, discretionary investment for private consultation on inheritance and the emergency unit trust which is a saving account made for emergencies and can be accessed anytime. All you need to open an account is your ID copy and personal details (home address, occupation etc.) upon request.
For young parents, you can take a life cover, this is a great way to invest and ensure that your child(ren) are financially covered when you pass away. With a life cover you pay a monthly fee to ensure that there is something left behind for them. Additionally, if you take a N$5 million life cover and pass away a month later, Sanlam will keep their end of the deal and pay out a monthly installment to your children’s guardian which will amount to N$5 million.
Standard Bank’s 32 days investment plan allows you to invest for a maximum of 32 days and you can claim or withdraw your money after that period. This ensures that money is stored away for you and cannot be accessed to avoid temptation. If before the 32 days are complete and you wish to withdraw your money, 30% is deducted from it. Additionally, if you desire to save for a longer period you can invest in the call account which is for 1 to 2 years and longer. All you need is and ID and proof of residence.
Bank Windhoek offers various savings and investing options namely the emergency fund, family or club events, special occasions and the short to long term goals. These options allow you to save funds in a flexible and reliable manner for special occasions such as emergencies, friendship savings, weddings, vacation, to name just a few, for an indefinite period and allows you access anytime with a 24 hours’ notice.
FIRST NATIONAL BANK (FNB)
FNB has a 32 days saving pocket available. You can start with any amount you wish to invest. This allows you to have access to your money after 32 days at no cost, or sooner at a cost. You can add money to it anytime from anywhere. Interest rates are based on the amount you invest, and you can easily manage your account online. If you desire more than 32 days you can request for another 32 days to be added.
Managing your money is a personal skill that benefits you throughout your life – and not one that everybody learns. With money coming in and going out, with due dates and finance charges and fees attached to invoices and bills and with the overall responsibility of making the right decisions about major purchases and investments consistently – it can be a daunting task