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A Simple Savings Plan

Published by Terence Tobin on

A Simple Savings Plan

Last week I posted a Tweet about a waitress I gave financial advice to whilst on holiday in December 2020.  She was interested in what I do, as she saw me working on my laptop and noticed my awesome company logo. Here is my simple savings plan for all to benefit.

Saving and investing is possible for all, however it can feel overwhelming to get started. I think this is generational as savings was not an option for many folks, financial services can be complex (I wish there was less jargon) and also the fear of getting it wrong and losing money.

So how do you get started?

To all those waiters, waitresses, barmen and others who earn daily wages mostly from tips, it is possible to for you to build up your savings and investment accounts.

Just Start.

I know it might feel all too much, but it is possible.

My simple guide

Step 1:

Open a savings account, with your bank. Make sure it has no monthly fees.  Ignore interest rates for now, as I want you to form a habit.

Step 2:

Tell yourself, you will not touch this money.  This is for your future self.

Step 3:

If you get paid daily tips or perhaps a weekly wage, set aside an amount and place it in your new savings acounts. This can be 10% of your income, or a fixed amount like R10, R20 or even R50 per day or week.

Step 4:

Don’t give up. Step 3 might not feel like much, but trust me it adds up.  Just keep doing it.  Save a daily or weekly reminder. Keep repeating Step 3.

Step 5:

Now pay this forward. Not financially. I mean educate one or two folks who you work with. Show them it is possible.

My savings has grown, what is next?

High Five! Well Done! I am proud of you!

So now you have a few thousand rand in your savings account.  You have formed a regular habit and you have let your money grow.

This is the start of an amazing journey to financial well being.

Now that your pot has grown, perhaps you want to study or start a side business to grow your skills or earn more money.

Don’t adjust your life style. For now, let’s grow your savings and investments.

Depending on your goals, you could open an investment account and start buying a stake in the companies whose products and services you use.

A great place to start is with Easy Equities. You can open an account with NO MONEY and start with a demo account. You can buy into companies that you know and understand. Although this is a demo account, treat it real.  What I mean, is if you have R1000 and want to buy Pick n Pay, only spend R1000.  The account gives you R100 000 play money, but think it is real money.

Have you got more questions?

I am so glad you do. Keep asking questions.  Do lots of research.  

Don’t be put off by the fancy words used in finance.  Google is your friend, ask in groups and reach out to the folks at Rich Ideas, as we want to see you succeed.

What you are embarking on, is a journey with lots of experiences and it will make you understand your money better.

This post is simple and that is the point. Getting started is simple but not easy.

My waitress client, has managed to accumulate around R5000 in 3 months, by savings R10 – R50 per day from her shifts.  It was NOT easy but she did it.

You CAN do it too!

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