SETTING GOALS (SHORT TERM, LONG TERM, FLEXIBILITY):

By setting goals you choose what you would like to achieve in the short and long term. and commit to a course of action.

Short term: Short-term goals can be to pay off any debt like a credit card or to save for your children’s education, a better car or a holiday.

Long term: Long-term goals could be saving for a comfortable retirement or a second home.

Flexibility: Bearing in mind that circumstances change often it is necessary to be flexible and review these goals constantly.

Budgets: Budgets highlight unnecessary spending and allow for better financial planning. To start a budget, you need to list your monthly obligations and then keep a record of all your daily expenses, no matter how small. After doing this exercise for one full month a clearer picture emerges of unnecessary spending. Projecting this for a year gives you more insight into your financial situation.

SAVING FOR YOUR FUTURE (FINANCIAL STRESS, RETIREMENT):

Financial stress: Many people will face some kind of financial stress in the course of their lives e.g unemployment, medical bills, divorce or the result of living beyond their means. By having some savings it makes it easier to cope with the stress.

Retirement: Being able to enjoy the golden years takes planning. Very few options are available to supplement a pension. The earlier the start is made the less impact it has on your working years and the greater the benefit at retirement.

Expenses to consider before retirement:

• Health – There will be more visits to medical practitioners. The cost of eye care, dental work and prescription medicine will need to be covered.
• Transport – You will need to maintain and, in time, replace your vehicle and cover the cost of rising petrol.
• Home – You will need to cover the expense of domestic help, home maintenance, security and replacing appliances that you have had for a long time.
• Entertainment – With more time on your hands you may spend your days going to places that requires spending in some way.
• Travel – The depreciation of the Rand against other major currencies may limit the visits to children who have settled elsewhere in the world.