MyMoney Online, Evergreen Content

7-step roadmap to riches (it’ll happen slowly, but surely)

(Sponsored by Old Mutual.)

If you don’t get your finances right; you can’t get your future right.

Why do you work?

If it’s only to cover monthly expenses, and to service debts, without considering the future, you may want to continue reading…

(Also read: ‘Love of freedom’ making even well-paid Millennials worse off than their parents)

You need a financial reality check, and work out what you’re spending money on, what your debt obligations are, what assets you have built up and – this one is vital – what your short- and long-term money goals are.

Don’t know where to start?

Here’s a step-by-step guide (to help you prepare to grow your wealth):

  • Start off by drawing up a monthly budget. Knowing where your money is going is a critical step. You can use the free Old Mutual budgeting tool to get started.

  • Pay off your most expensive debt first. In other words, reduce the debt that costs you the most interest (e.g. your store cards).

  • Now take the time and energy to give an in-depth consideration to your long-term goals. This is a very important step in the financial planning process that is unfortunately often missed or skipped. Remember that saving for retirement is your most important long-term savings goal. Starting to save early gives you a longer period in which to invest and generate investment growth, which means you can take advantage of the power of compound interest.

  • For the medium term; it’s important to work towards building up an emergency fund by saving something each month. This will avoid you having to go back into debt if unexpected situations and expenses arise.

  • Now you’re ready to plan for short-term goals. Maybe you plan on travelling in the next few months, or perhaps you’d like to buy a new car?

  • Do not forget to ensure that you are protected against loss of income due to death, disability and critical illness. Income protection is a critical part of being financially empowered. Your investments portfolio and plans will probably run into trouble if one of these unplanned events occur and the necessary plans and provision are not in place.

  • The final step in a financial plan is to draw up a valid will. Your will is a record of how you want your assets to be distributed among your loved ones, and how your liabilities should be paid for.

For more valuable advice on how to create wealth and manage your finances to meet your goals, visit www.oldmutual.co.za or get your tickets today to the upcoming Wealth of Wisdom workshop and join Nandi Madida as she explores her wealth journey and shares cross-generational wealth tips.

Enjoy The Money Show, but miss it sometimes?

Get the best bits emailed to you daily, right after it ends:

Subscribe to our mailing list

* indicates required

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : 7-step roadmap to riches (it’ll happen slowly, but surely)


Recommended

by NEWSROOM AI
Read More
Old Mutual investor? The 172-year-old company is changing – your vote counts!

Old Mutual investor? The 172-year-old company is changing – your vote counts!

Voting is closing soon so, if you haven’t already done so, you are urged to read this.

'We’re in the final straight' - Old Mutual CEO on splitting the company in 4

'We’re in the final straight' - Old Mutual CEO on splitting the company in 4

How is Old Mutual’s “managed separation” going? Bruce Whitfield interviews Old Mutual Group Chief Executive Bruce Hemphill.

‘Love of freedom’ making even well-paid Millennials worse off than their parents

‘Love of freedom’ making even well-paid Millennials worse off than their parents

Millennials’ love of flexibility does NOT have to have devastating financial consequences.

Old Mutual investor? Did you receive a 'Shareholder Pack' in the post?

Old Mutual investor? Did you receive a 'Shareholder Pack' in the post?

What to do if you haven’t yet received details on how to vote on aspects of Old Mutual’s four-way split.

Old Mutual investor? How to approve (or vote against) aspects of its 4-way split

Old Mutual investor? How to approve (or vote against) aspects of its 4-way split

Watch out for the Shareholder Pack and listen to The Money Show over the next few weeks to stay up to date.

Popular articles
How to pay up to 45% less tax (and save the SA economy while you’re at it)

How to pay up to 45% less tax (and save the SA economy while you’re at it)

The Money Show’s Bruce Whitfield interviews Darryn Faulds, a fund manager at Grovest Group.

Plans to end death penalty in Malaysia could see seven South African lives saved

Plans to end death penalty in Malaysia could see seven South African lives saved

The Department Of International Relations says it welcomes plans by the Malaysian government to abolish the death penalty.

'It's unacceptable that government officials pay R75 for luxury apartments'

'It's unacceptable that government officials pay R75 for luxury apartments'

IFP national spokesperson Mkhuleko Hlengwa says the party is calling for a review of these rates that are a cost to taxpayers.

[WATCH] Man exposes people selling stolen goods on Facebook

[WATCH] Man exposes people selling stolen goods on Facebook

Anton Fourie says he used his phone to record the interaction to create awareness of what is going on in the community.

Zondi tells court that she had to 'look happy' in church out of fear for Omotoso

Zondi tells court that she had to 'look happy' in church out of fear for Omotoso

Cheryl Zondi is testifying against Pastor Timothy Omotoso who is accused of rape and human trafficking in his Durban church.

Funny Cape fashionista Nadia Jaftha making waves with her mom

Funny Cape fashionista Nadia Jaftha making waves with her mom

Fashion blogger Nadia Jaftha takes fans through her serious love of style, as well as her silly moments with sidekick mom, Nawal.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.