Pay yourself first...

Taken from Money Matters column in Nambawan Super's September edition of TokTok Supa newsletter

" Money experts generally agree that setting a reasonable budget, and sticking to it, can be really helpful in saving money to build long-term financial security. But even with the best intentions, sometimes it can be hard to find enough money left over from our pay after taking out the mortgage or rent, regular living expenses and the unexpected costs that crop up from time to time. Here’s a tried and true method to help you make saving a habit.

Pay yourself first...There is no ‘right’ answer for how much to save. The amount will depend on your personal circumstances. You might decide to choose a percentage of your salary (“I’m going to save 10% of my salary every month.”). Or you could decide on a particular Kina amount (“I’m going to save K100 every month”.) 

Decide how much you want to save from your pay. Often we don’t miss what we don’t have. So if you can set up a direct deposit into your savings account or voluntary super contributions  , or if your employer can make the deposit directly from your pay, it will probably make it easier to maintain a healthy savings habit.

Make it easy for you to save..... From time to time you may receive pay rises and bonuses.

Make them work harder for you by tipping them into your savings. By paying yourself first you make savings a priority, which will put you in a much stronger financial position and you will find yourself better able to manage your budget. Top up your savings whenever you can. This will depend on your savings goal. If you want to put your savings towards boosting your retirement benefits, contributing to your superannuation with voluntary contributions (where you can top-up your super from 6% to as much as 15%) may be the way to go.

Talk to Nambawan Super about how this could work for you. Or if you want to save for a shorter-term goal, such as home improvements or a holiday, think about a traditional bank savings account or a term deposit. 

Nambawan Super members can now open an account with Nambawan Savings & Loan Society, which will cater for your short-term needs ".



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