In South Africa, on 27 April each year, we celebrate Freedom Day. This is to commemorate the first free democratic elections, which were held in 1994. It’s also a time to reflect and ensure that all citizens of the nation always have their liberty. 

Money problems can hold people back from this. Everybody wants to attain financial freedom, but with the high surging cost of living, the imminent VAT increases and a high level of unemployment, reaching this goal can seem impossible. 

Fortunately, by making smart savings moves today, you can eventually get to a place where your money works for you. Here are five tips to help you on your journey to solvency.

 

 

 

 

 

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TIP #1 / Set your financial goals

Before you can get to the point of financial freedom, you need to know what you are working towards. Figure out how much you would need to earn, spend and save to live a comfortable life. Create a budget for your regular expenses to stick to, as this can limit impulsive spending. Make sure that your goals are clear and achievable and break them down into smaller steps to keep you motivated.

TIP #2 / Focus on paying off debt

Before you can start putting money away into a savings account, it’s advisable that you first address and pay off any debt you might have. This includes tertiary fees, personal or business loans, car payments and your credit card. The quicker you pay these off, the less interest you will be liable for. By reducing your debt, you free up your cash flow and can start to save and invest.

TIP #3 / Build an emergency fund

Life is unpredictable. Just when you think you’ve paid off all your expenses, something else creeps up that requires more money. This is exactly what an emergency fund is for – to provide a safety net in the case of unexpected events, from job loss to medical bills. Knowing you have this will take some weight off your shoulders because you’ll know you are prepared for anything life throws at you.

TIP #4 / Don’t live above your means

It might take some time before you can live the high life. Until then, it’s a good idea to live below your means by spending less than you earn. While it can be tempting to buy the latest fashion, cars and tech – especially in the age of social media – taking an economic approach to life and being willing to make some sacrifices today will only benefit you later when you have achieved real financial independence. 

TIP #5 / Invest your money wisely

Your salary or wages aren’t the only way to generate wealth. Another way that can put you on the path to financial freedom is to invest in equity. This could be stocks or mutual funds. For this, it’s best to speak to a financial advisor so that you don’t get scammed or end up losing any of your hard-earned cash. Long-term investments yield higher returns, so you’ll need to be patient to see results. 

Don’t let unexpected funeral costs stand in the way of reaching your financial goals. At 21st Century Funerals, we specialise in burial services, tombstone services, and catering services that are handled with care and compassion. Contact your nearest branch to find out about our range of services so that we can help you when you need it most.