Do you consider yourself to be financially smart? Do you make the best decisions you can to get the most out of your money? Or, are you one of the many South Africans that are overwhelmed by money management?
In the last installment of the #BeFinanciallySmart feature on the Azania Mosaka Show, FNB's product specialist looks at smart money management techniques when it comes to transacting, borrowing, insuring and saving and the importance all these financial pillars play in reaching your financial goals.
People need to develop a better relationship with money. We need to upskill ourselves and learn how to manage our money so our children don't make the same mistakes— Ester Osche, FNB Product Specialist
When it comes to transacting, it's important to take a close look at your monthly budget and choose the right bank account based on your transacting needs to avoid additional charges says Osche. One should another bank's ATM to avoid unnecessary charges. It's also important to check your bank fees regularly to see how they impact the way you transact.
Insurance is another important factor when it comes to your finances. Certain policies should be non-negotiables when it comes to your budget says Ester.
Not having certain short-term insurance, like car insurance could cripple you financially for a very long time if something unexpected happens and you need to pay.— Ester Osche, FNB Product Specialist
When it comes to the borrowing part of your finances, Osche stresses the importance of borrowing money within your means and reading the loan contract between you and the bank properly.
And finally, saving and investing. Another non-negotiable in your budget no matter how little you start. Osche says it's important to shop around for different investment options and to diversify your investment portfolio.
Every investment comes with risk, but if you educate yourself on the investment opportunity, you minimise your risk and improve your chances of success— Ester Osche, FNB Product Specialist
Listen to the full audio below