Save or invest your bonus or 13th cheque wisely
It is important to save or invest a portion of your bonus or 13th cheque in a cash investment.
As we race towards the end of 2016 and a well-deserved break, some of us will be fortunate to receive a 13th cheque or bonus.
Although it is tempting to spend this extra money on all the upcoming festive season activities, in these challenging economic times, we have to ask ourselves: Are we saving enough?
“Consumers should consider saving or investing a portion of their extra money, as with greater market uncertainty, it remains particularly important to build up cash reserves so that there is some level of savings to dip into should the need arise. This also provides the opportunity to gear towards a financially sound start to 2017,” said Stephan Buys, Head of Strategic Business Development for FNB Savings and Cash Investments.
When weighing up savings or investment options for that extra money, the challenge is often finding a solution which combines great returns with little to no risk of losing the original investment amount, coupled with simplicity and instant or quick access to the money invested.
Money market funds generally provide good returns, but neither the capital nor the returns are 100 per cent guaranteed. Effortlessly opening an account or instantly accessing money invested in a money market fund in case of emergency or unexpected expense may also prove challenging.
Investors may want to consider a Money Maximiser from FNB to stretch their bonus or 13th cheque, as it fully solves these needs. It pays a rate (fluctuating, but currently 7,35 per cent per annum) comparable to the top qualifying Money Market Funds in South Africa, fully guaranteeing capital and the quoted rate of return, while giving you immediate access to your money.
“This is like having the best of all worlds: high returns, no risk to capital or quoted returns, instant access to money invested, as well as effortless account opening and management, ” added Stephan.
Different people do however have different needs. Some may only save a portion of this extra money in cash investments, and the rest in other asset classes, such as equities or funds. Others will save a substantial portion in cash investments to cater for unforeseen expenses or to enable easy access to their money. Whichever category you fall into, it is important to save or invest a portion of your bonus or 13th cheque in a cash investment.
Do you perhaps have more information pertaining to this story? Email us at krugersdorpnews@caxton.co.za or phone us on 011 955 1130.
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