Publish Date: 07/03/2019
Don’t make the same mistakes: Create a money savings plan that works
If you had the chance to make a better financial decision than one you’ve made in the past, what would you do differently? Maybe you wish you had started saving earlier in your working career, or you regret having taken a loan for something you didn’t really need — this is likely to be a situation you wish you never landed yourself in, right?
The good news is, you can use that experience as an opportunity to learn. Our experiences can teach us vital lessons that help us to recognise future pitfalls – our relationship with money — and help us to avoid making the same financial mistakes again.
In this blog, we take you through a few of the most common money mistakes people make. We share tips on how you can avoid them and create a working money savings plan for your future.
Financial pitfalls to avoid
We make financial decisions every day. Whether you’re buying bread, milk, electricity, or paying rent, there’s so much you have to consider when making those decisions. It's therefore essential that we educate ourselves about sensible financial practices. This is called financial literacy — the knowledge required to be able to make sound and responsible financial decisions. It focuses on the ability to manage personal finance matters in a financially competent way. If you’re looking for the best savings investment vehicles, you’ll need to learn all you can about interest rates to make accurate savings account comparisons.
Getting your very first ‘grown-up’ salary and finally moving out on your own can be an exciting period of your life. It means you can finally do the things you couldn’t do when you didn’t earn a salary or still lived at home with your family. So it’s easy to want to spoil yourself, to want to use your hard-earned money to buy that bag, those shoes or even go on that holiday you’ve always dreamed of. This makes it easy to put off saving while you enjoy ‘living your best life’. However, this opens the door for tons of money mistakes, like buying a car you can’t really afford or getting credit for things you could have saved for instead.
Wouldn’t it feel great to have some money to fall back on when you get thrown into a financial emergency? Having a money savings plan will give you peace of mind when faced with a major life crisis. That ‘savings plan’ is an emergency fund. Building an emergency fund is a very important step towards your financial wellness.
Those store cards, credit cards, and car loans can be very enticing, tempting you with discounts and low interest rates. However, once things start to add up and those introductory rates disappear, your debt can become a nightmare.
How to avoid financial mistakes
Money mistakes are common, we've all made them. Don’t let your past money mistakes prevent you from making fresh progress with your finances. You can start over. The best time is now and the best place is where you are.
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.