Those who have read my blog for a while might remember my laments about how I’ve traditionally been a bad saver of money, and tend to put my money into makeup and shoes than in policies and investments. If parenting and writing financial-themed posts have taught me anything, ti’s that sometimes one has to look ahead, think past the next sale on Superbalist, and consider things like how to one day pay for your child’s education, or how to pay the bills if you lose your job.
Sometimes my need for lipstick outweighs the sensibility of saving
It’s one thing knowing this, it’s another thing putting into practice, and quite frankly, the thought of hours of admin plus things like unclear charges, penalties, increases and capital gains tax or income tax scare me (and have me lusting over more stationery I don’t need from Typo).
But it doesn’t have to be intimidating, scary or expensive, and we all have a reason to save, whether it’s for our kids, our retirement or maybe a new house one day.
Sanlam Investments has made this easier by building a simple-to-use website that lets you set your goal, how much money you’ll need in the end, when you’ll need it and shows you how much you’re likely to need to save each month to get there. It’ll also suggest funds based on the details you’ve given it and how much risk you’re prepared to take. Your money is always accessible, and you can withdraw it at any time if your circumstances change.
Here are the easy steps to work out which plan is best for you, and how much you will need to save to reach your goal. These are the steps I took to working out how much it would cost to reach a goal of R500 000 for my son in 15 years’ time.
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Another option to consider is the new tax-free savings structure. This allows you to invest up to R30 000 a year and not pay any tax on the interest or gains you make. These can add up quickly, particularly if you’re looking to save long term and every rand you don’t pay in tax is another rand you can use for your end goal. What’s great is you can open a tax-free savings account in the name of your child, to for instance save for their university education one day.
For more information, click here.
