You could also consider unit trusts and exchange traded funds. A super place to invest is a tax free savings account. Once in place you should then allocate your savings to the medium term (5 years). A money market account is ideal for this provision. The investments should initially aim for the short term to build up enough to cover your monthly expenses for 6 months. They should be able to provide sufficient financial support to maintain your monthly needs. These provisions provide safety nets should you face a life changing event. This includes medical aid, insurance and investments. It could be a death, disablement, marriage, divorce, retirement….Īllocate 30% of your income to provisions for the maintenance of your lifestyle. Wether you earn R10 000 or a R100 000 per month the basic objective in your financial planning is to be able to maintain the standard of living that you have accustomed yourself to no matter what life changing event comes your way. You work hard for your money so use it wisely.
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