A “rainy day” or emergency fund should cover your expenses for at least six months in case you cannot earn an income. Making consistent contributions into an appropriate investment product is the best way to build your emergency fund. These savings should be easily accessible at short notice, which makes the Tax Free Investment Plan or Voluntary Investment Plan viable options for your emergency fund.
As a parent, you want to secure your child’s future. However, as fees rise each year, it is important to pick the right investment products to suit your time horizon and intent. For example, paying for your child’s tertiary education would be a long-term goal when they’re a baby, but a short-term one if they are already in high school. Consult a financial adviser for advice on how much you will need to help your child succeed.
As you go through different stages of life, your financial goals will change. Whether it’s a short- or longer-term goal, what does not change is the need for consistency when contributing towards your goals.
Find out how consistency and time, through compound interest, will help you reach your savings goals.