The Zimbabwe Independent

Saving and Investment tips for the coming year


Every new year brings new possibilit­ies for everyone. What do you want to achieve this year? Consider your financial goals and start taking the steps to achieve them now. Many of us have committed ourselves to changing the way we live for the better. Some of the most important things to focus on, especially in the new year, are personal finance, savings and investment­s. Read on, to find out how you can set financial goals for the new year.

The new year is a great time to overhaul your life for the better. One excellent place to start is by making solid financial resolution­s that can help get you closer to your money goals, whether it's increasing your retirement savings or setting enough money aside to invest in shares.

Setting financial goals is crucial, but before you can set any goals, you need to know where you currently are. Look through your savings, debts, and investment­s. Assessing your financial status may feel stressful, but gaining this knowledge will allow you to set realistic goals for the year.

One of the best things you can do for your finances is set a budget. The budget should be achievable. Make sure that your housing, food, and utility costs are around what you usually pay.

Debt is a significan­t burden and can prevent you from achieving your financial dreams. Start paying off your debts now. Interest is stealing your money from you. If you're making 15% in the stock market, but paying 18% in interest, you're losing money. Commit to paying off debts now, and you'll be able to keep the money that you invest in the future.

Retirement is coming, and you should be preparing for it. You need to discover exactly how much you need to retire. Knowing your number will help put your savings into perspectiv­e. Planning for retirement is always an excellent financial goal, and the new year is the best time to focus on it.

Setting budgets and goals are great, but these efforts are futile if you do not have a plan to stay on track. Staying organized is a critical step to meeting your financial goals this year. There are several tools and budgeting apps that can help you remain on track. When it comes to your personal budget, the more organized you are the better.

Everyone is vulnerable to unforeseen emergencie­s. Without proper planning, your budget could fall apart should one arise. If you haven't already done so, it's

important to establish an emergency fund. This will protect you if you experience any sort of unexpected emergency without breaking the bank. Your fund should be at least 2 to 3 months' worth of expenses. This fund may take a while to establish, but the personal financial freedom you gain from having it is worth the wait.

If you're already investing, you're on the right track. You need to be aware of where your money is going so you don't lose it due to lack of knowledge. Now is a great time to get a little education in investing and start making some changes. You could commit to learning rule number 1 right now and start getting greater returns with less risk.

Historical reviews of investment­s across different asset classes show that not all asset classes perform the same all the time. In a complex world, there are so many global issues affecting market movements it is impossible to be ahead of the game, protecting wealth all of the time. Diversific­ation ensures that you are not exposed to a single asset class, region, industry or investment option. In one year, technology stocks may be the stars of the show, only to be outperform­ed by say listed properties the next. To make the most of your money have a plan

and consult experts like qualified financial advisors, tax consultant­s and risk experts to guide you to a solution best for you.

FINSEC listing rules are, by design, simple and straightfo­rward and are continuall­y reviewed and updated to ensure they remain relevant and appropriat­e to the various classes of securities that can list and trade on our trading boards. To enjoy all these and other benefits, kindly visit the FINSEC website and download the FINSEC Issuer Admission Rules or contact us.

The Financial Securities Exchange (FINSEC) is a Zimbabwe registered securities exchange and a member of the Escrow Group. The Escrow Group has interests in the financial services and technology sectors. Corpserve Registrars and Escrow Systems are the other members of the group.

For more informatio­n contact:

2 nd Floor ZB centre, Cnr Kwame Nkrumah and 1 st Street

Harare, Zimbabwe, Tel: +263 242 758193

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