DURBAN – It is difficult to be disciplined when your salary increases.
Building savings habits, however, and giving them the priority they deserve, assists in avoiding the downward spiral of living beyond your means.
This essentially means that you don’t let lifestyle inflation (spending more when earning more) take over and set you back. The longer you follow the pattern of spending more than saving, the more you risk falling behind in reaching your financial goals.
Where should you save?
A number of options are available from a retirement annuity (RA) to unit trust (UT) discretionary portfolio, or a tax-free savings plan. A qualified financial planner can help you determine which set of products is right for your needs, tailored to your unique circumstances.