How to build wealth

17/05/2019

Tips to building wealth

By now, you’ve probably read all about saving and investing, you’ve opened up different types of investment accounts and have done the work of consulting with a financial advisor. Good news is, you’re already building wealth.

With all the long-term and short-term savings accounts you’ve set-up, you can rest assured that your money is working hard for your financial future. All you need to do now, is stick to these tips to helping you build wealth.

Tips to building wealth

   1.Automate your savings

Between your job, school, family and friends, it can be easy to forget to make your monthly savings contributions into your savings accounts. And when you realise this, you’ve spent most of your money and have no way of still saving that month.

One way to avoid this is by automating your savings. Set up a stop or debit order for your investment and savings accounts. Another benefit of automating your savings is that you think less about what you’re saving, meaning that you’re less tempted to use the money.

   2.Review your investments and savings periodically

As you meet your short-term goals, it helps to also review your investments and savings accounts. This means looking at how much you’ve saved against your savings goals and looking at how much interest your investments have earned over 3, 6, 12 months and more.

This is also a great step in ensuring that you are keeping up with the best investment opportunities that are available. When you started saving and investing, you may have had debt or even a tight monthly budget for saving, but things can change in a year. You could get a promotion, an increase, or a side-hustle- which could mean more money for you to allocate towards another investment opportunity. Read about investment options.

   3.Increase your contributions

With every New Year, every salary increase or extra money you make, it’s a good idea to also increase your monthly contributions into your savings and investment accounts. This is a great way to keep up with the market changes in interest rates, as well as to have an even bigger financial net for your future.

   4.Consult a financial advisor

Going to see a financial advisor is not a once off event. A financial advisor is an expert who helps you to organise your finances, and this should be ongoing. Your advisor will see the outcomes and progress of your investments and savings, giving you a clear picture of how prepared you are for your retirement and life’s unexpected expenses.

   5.Make financial literacy your best friend

You can never know enough about investing money. Managing money requires you to constantly learn and equip yourself with knowledge about debt, credit, savings, investments, managing money and more. This will ensure that you make sound financial decisions at every stage of life when you have to make a decision about money.

Up Next

Grow your money
The flexible nature of working from home is appealing for new moms and many opt for this when the pitter patter of little feet is on the horizon.

Publish Date: 17/04/2018
Read more
Getting to know Basani Maluleke
A new era started at African Bank on 1 April 2018, the day Basani Maluleke, was appointed as our CEO. Basani follows in the footsteps of Brian Riley, who saw the Bank through curatorship and laid the foundation for the exciting future that lies ahead of us.

Publish Date: 01/04/2018
Read more
How to improve your credit score
Your credit score will affect nearly every major milestone in your life. If you have an unhealthy credit profile, find out how to improve it.

Publish Date: 05/02/2019
Read more
Three tips: How to use your credit card wisely
There are more than 8.8 million credit cards in issue, and more than 38 types of credit cards available in South Africa. South Africans have on average one credit card. So. Question is, are you using your credit card wisely?

Publish Date: 22/02/2019
Read more
Dad, here’s how you can be your child’s financial superhero
Fathers are often their children’s first real-life superheroes.Children do as we do, not as we say. So dads, our question to you this month is – are you modelling good financial behaviour?

Publish Date: 04/06/2018
Read more

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'.