Lessons Learnt

“I’m spending more on my clothing and beauty products than I do on my car repayments and medical aid contributions combined. I hadn’t realised how much I was spending on ‘fun’ stuff proportionate to the more important things.

I am quite good with eating at home and preparing meals for the week ahead on a Sunday, so I think those costs aren’t too bad, but I definitely need to relook at how I am spending my money.

I do have some basic savings in place, which is great – that said, I’m sure it wouldn’t hurt to increase my retirement annuity (RA) contribution. I know I’m not making as much of a tax saving on this each year that I could be, and that probably doesn’t make the best financial sense. Since my savings amounts go off each month via debit order, I must be honest I don’t miss them – they’re out of my account before I can even think about what else I would have spent that money on. It means that increasing my RA contribution probably won’t hurt as much as I think it might.

I also want to save towards an overseas holiday, and take out income protection – cutting back on my grooming would allow me to do both.”

Need help getting your finances in order? Contact a financial planner today and work towards a financially healthier you.

This article was prepared by Sanlam Reality.