Money Matters

Sometimes we make money mistakes that can be avoided. Most of the time we get caught out, because that’s how it has always been done or simply because we do not know any better. For example, saving without looking at all the options can be a set back. When you save the right hand must know what the left is doing.
I have been looking at the typical savings interest rates and I guess one must really start to balance investments. At the end of the day if you have some money, it better work for you otherwise just donate it to charity or a church. Surely it will have better use   there.
Interest rates for an either long term or short-term savings will gather maximum of 6.5% as a very close estimate. I will tell you right now that if you are like most of us with credit cards and machonisas you are paying between 26% and 36%. Does it make sense to earn a mere 6% per annum and be charged a whopping 30% or above?
The idea of savings must make sense and it must not be done without proper interrogation of your wallet.  Most importantly, your money issues should not be looked in silos and you must have a full view of your money coming in and going out.  If you have some spare cash I will advice that you do not put it in any mainstream savings account because it is a waste of time if you have other pressing debts.
Bear in mind that an emergency stash must always be there to get you out of a jam. You must always consider having a pure emergency fund, which should not be mistaken for a long-term solution to your money problems.
I believe you must take calculated risks if you want your money to work for you. Actually the reason why a normal savings account has poor returns is based on the fact tat it has no risk attached and you only get what you put in. It’s the simple mathematics of life. You give more you get more. You give less you get less. Its simple, it’s called banking!
In the nutshell, you must not throw good money after bad. The fact that you have opened an account or have signed up for an insurance policy does not mean you have to suffer for life. If it is not working for you, cut your losses and move on.
It’s never too late to assess your spending. Why do you have that particular savings account as opposed the other? Are you spending so much on repairing your car or house than its worth?

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