4 Money Mistakes We All Make And How To Fix Them

Avoid these financial pitfalls for a wealthier future.

Everything will be fine, we tell ourselves, blindly hoping our finances will magically sort themselves out. but the reality is that planning for your future (like saving for retirement) is something you should be doing right now. Here’s how to turn the risks you’re taking into money you’re making…

1. The mistake: Spending before saving

‘According to a 2016 survey, only 18% of South Africans are saving for the long term,’ says economist Laura Campbell. The trick is this: don’t plan to save whatever you don’t spend, rather put away something at the beginning of every month in the form of a debit order. Take advantage of Tax-free Savings Accounts (TFSAs) that were introduced in SA in 2015.

‘They are particularly appealing for first-time investors wanting to enter the savings market,’ says Daryll Welsh, head of product development at Investec Investment Management Services. Want to save for your child’s education? This is a good way to do it, but you should ideally start contributing as soon as they’re born.