Often as entrepreneurs, we focus solely on saving and investing our money into our businesses. In addition, we often forget how important it is to put money aside for ourselves, and our future.
When I was working in corporate, I knew that every month I had money going towards my pension fund as well as my medical aid. This was made even easier because the Human Resource department made sure that these two were paid straight from my monthly salary, before I received it.
However, now that I am a self-employed businesswoman and managing my own accounts, it gets hard to prioritise money for these necessities. I am even more passionate about this. I watched my parents when they retired and I learned a lot from them. They planned for their retirement quite early on which made a huge difference in their lives. Setting aside a couple hundred Rands into a pension fund or retirement annuity each month will help so much when you can no longer work. You still want to be able to live comfortably for the rest of your life.
I also cannot stress how critically important it is to have medical aid or a hospital plan, not only for yourself, but also for your children and loved ones. I have a young daughter and I know how expensive doctor’s visits are, and medical aid helps me out a lot! This also applies to when we get older and are vulnerable to illnesses, and will most likely need to spend time in hospital.
Therefore, with that being said, here are 5 reasons I think one needs to consider when investing in their future:
- Start saving for your retirement for when you can no longer work.
- As we age we tend to get sick quite often and it’s critical that you are investing in a medical aid – particularly a hospital plan.
- Put aside money for “rainy days”. My parents used to tell me as a little girl, that you never know what life brings, so best be prepared for any eventuality.
- Invest in your children’s education- most importantly for tertiary level.
- Put aside money for your funeral- you don’t want to be a burden on your family, especially in their darkest hour.
I know this is not easy. I need every penny to work hard and I still need to pay the bills, but I am also conscious that I am no longer a young person and in a couple of years, I will be on pension. I definitely need to make sure that I am putting enough away, so that my lifestyle doesn’t have to change too much when I’ve retired.
I suggest that everyone start saving from a young age. I am even teaching my 5-year-old daughter the importance of saving from an early age, because this is a good habit to have.