When it comes to habits, saving for your future is a quality habit that will enrich your life and help you achieve your financial goals. Developing quality habits could, however, at first be seen as a challenge, but its rewards will be far-reaching and gratifying.
“When I took up jogging it was difficult. It took dedication, focus and discipline to get up early in the morning and hit the road. Soon though, it became a habit which has had noticeable improvement in my health and work life. Much like this challenge, saving should also become your habit. Budgeting and cutting expenses may seem tough in the beginning, but the results of regular investing will reap rewards,” says Claire Hobbs, chief treasurer at Bank Windhoek.
Start by focusing everyday on where you can cut on unnecessary expenses and draw up a budget for the week. Make it a habit to draw up a list before you go grocery shopping. Compare product prices by keeping an eye on specials that different shops advertise. If you feel overwhelmed by your debt, start by paying specific attention to how you can start repaying it. Close all unnecessary credit accounts. Consolidate your debt by paying off small amounts of debt on clothing accounts and other credit accounts.
“Stashing money under your mattress just doesn’t make sense. With inflation on the rise, the risk you run by not saving is that inflation will eat away at your money’s value.”
Bank Windhoek offers a new Prime Linked Deposit, ideal for saving over a fixed period of time. When you invest a lump sum in this deposit, you have a guaranteed interest rate linked to the bank’s prime lending rate. This means you will benefit from the increasing interest rates expected for the next few years. This product is ideal for senior citizens who need a high return on investment and also those who need to draw the interest monthly, as part of their income.
Clients will be allowed to receive monthly interest to their current account, or they can allow the interest to be capitalised and then only receive it at the end of the term. This is an ideal add-on for our loyal SeniorSave clients. Since this is for lump sum investments only, a client who wants to place funds on this account to use as collateral on a loan will also be able to use it and get the benefit of the high interest rate.
If your children receive money as part of an inheritance and you need to place it somewhere for a longer term, then our Prime Linked Fixed deposit will also be suitable. “So make saving a quality habit which your future self will thank you for,” Hobbs advised.