
Next up, think of the reasons why you saved money in the first place. You probably have many things you want to do with your money so perhaps you’re saving for some of these items and others that are not listed:
Each “reason” for saving requires it’s own strategy. The money that you’re saving for a new fridge can just be saved in your bank account whereas your Retirement Fund should be invested in a long-term investment. An emergency fund needs to be accessible at any time whereas it is okay to wait a few days before accessing other trading and savings
Maybe you haven’t got specific reasons, you just save because that’s what you were taught to do. Now is your chance to think about it. Decide on your reasons and write down some key words regarding the strategy:
It is important to have a purpose for every rand. It doesn’t matter if various savings are lumped together in one investment, but you need to know why you’re saving and what the money is for. See my blog on investing: Savings Pockets for an idea of how to keep track your trading or savings.