Kick off your 2020 money goals
The new year is a time for reflection, planning and resolutions. And for many of us, our resolutions include a commitment to improving our financial situation. However, without a plan, these goals can be difficult to reach.
Chris Wood, Executive: Nedbank Card Issuing and Payments, shares some tips on how to set and work towards your money goals this year.
- Commit to becoming a good money manager
The most important, step towards achieving your money goals is to make sure you’re managing your money well on a day-to-day basis. This doesn’t need to be a complicated process. It just requires awareness of your spending, saving and credit behaviours. It also helps if you have access to tools to make it easier to transform the way you manage your money. Nedbank Greenbacks is a good example of such a smart money management programme, designed to help and motivate people to make better money choices and give them the best chance of reaching their financial goals, and then rewarding them for doing so.
- Compartmentalise to become more money conscious
The word ‘budget’ strikes fear for many. But budgeting doesn’t have to mean setting up complicated spreadsheets or spending hours pondering your finances. Budgeting works because it is a great way of compartmentalising your money so that you have a clear idea of what’s coming in and what’s going out. There are bank accounts that offer you the tools to do this compartmentalising easily. For example every Nedbank transactional account offers the MyPocket feature, which allows you to use the Nedbank Money App to easily set ‘pockets’ within your account. By putting your money into these compartments, you are essentially budgeting. You can access the funds immediately, but if you don’t need to use the money immediately it earns interest of up to 5%. So you’re budgeting effectively and also saving – and doing both smartly.
- Save money by being savvy with your banking
Smart money management is making sure you’re not paying more for banking than you have to. There are many ways to do this, ranging from ensuring you have the right bank account, package and fee structure for your typical banking usage, always trying to use your own bank’s ATMs to withdraw cash, choosing online or mobile banking for your transactions instead of going to a branch, and making the most of your bank’s rewards programme.
- Consider a well-managed credit card as a way to fund your goals
There’s a common misperception that all credit is bad for your finances. However, while it’s never a good idea to get yourself into so much debt that your repayments start to impact your financial wellbeing, a well-managed credit can be a great way to achieve your money goals. When you manage your credit card from Nedbank properly, you effectively enjoy up to 55 days of interest-free credit that you can use to buy the items you want. Even if you can only pay the minimum monthly repayments on your credit card, you still save on your interest charges; and any extra funds you put into your card immediately reduces the amount you owe, and the interest you have to pay. And while credit cards aren’t intended to be savings mechanisms, they should reward you for managing your credit well.
- Use your credit card to take you places, literally
One of the most common goals people set involve local or international travel. Here, too, a credit card can be an effective way of helping you achieve your goal. Most credit cards offer valuable free travel insurance. And when you use a Nedbank SAA Voyager cheque or credit card, you get even more – in the form of valuable Voyager miles. Nedbank Voyager SAA cardholders also have exclusive access to specially negotiated travel offers, local and international airport lounge entry, and business class check-in. And if you use a Greenbacks American Express card to pay for your air travel, you also get great discounts on car rentals as well as exclusive benefits, discounts and complimentary offers at restaurants.
By managing your money well, you give it the best chance of making a real and lasting difference in your life. That’s why a smart money management strategy, combined with the right financial tools, is the best way of transforming your 2020 money goals from plans into actions and positive outcomes that let you enjoy the life you deserve.