There are a lot of ways you can make your money work for you.
With the right systems, you can save and invest for your future. Doing so will build a solid foundation for your personal finances. Agree?
Here are tips that will help you build your finances, invest and stay out of debt so you can go for that vacation you have always wanted.
You all know that it is always very difficult to save money, especially at this time of the year.
- SAVE AUTOMATICALLY
The best time to grow a tree is 10 years ago, the second best time is today. If you want to buy a house or a nice car one day, you don’t want to think about where you’re going to get the money the day you plan to buy it. You want that money to already be there.
You can start to dominate your finances by having your system passively do the right thing for you. Instead of thinking about saving every day — set it and forget it.
To do this, you need just one hour today to set everything up so your income/salary is divided into two major buckets as soon as it arrives in your hand or account. They are;
- Savings: Here you should use “sub savings accounts” that you have set aside for long term goals like your wedding, vacation, car purchase or down payment on your house. We provide the option to create smaller sub-accounts in your normal savings account — perfect for goal setting. e.g education, saving for your kids, asset purchase and lots more.
- Fixed costs: These are for bills that can’t be paid off with a credit card, such as rent, electric, water, and gas.
Once that money is in your savings account, don’t touch it unless you’re ready to pay for your long-term goal (or if there’s a HUGE emergency).
- USE SUB-SAVINGS ACCOUNTS
You can get the best out of your savings account by leveraging a sub-savings account.
This is a Savings account that you can create within your regular savings account to save for specific purchase or events such as Xmas, Easter, School fees, Car purchase e.t.c.
Each month, you can automatically transfer or deposit your money into these accounts. Once the transfers are in place, you’re going to get a lot closer to your savings goals. AND you can do it without having to remember to set money aside. Now set up a sub-savings account and start automatically putting money into it each month.
- USE TARGET DATE FUNDS
Target-date funds (or lifecycle funds) are a collection of assets that automatically rebalance and reallocate themselves as time goes on. They’re a great way to save for retirement if you don’t want to deal with choosing your portfolio mix.
Target-date funds diversify based on your age. This means the funds will automatically adjust to be more conservative as you get older.
For example, if you want to retire in 30 years, a good target-date fund would be your pension fund target towards your retirement date.
If you invest in this fund today, the investments will be much more aggressive. This means it’ll be higher risk but with the potential for greater returns. As the years pass and we inch closer to retirement, though, the fund will automatically adjust to invest in more conservative investments like bonds.
Start saving. Don’t Eat Away Your Future!
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If you need assistance, don’t hesitate to contact us on +234-818-162-0000