Saving Money Advice

In common usage, saving generally implies to putting money aside into a savings account or into a pension plans. In a broader sense of the word, saving can also refer to economising or cutting costs as we have discussed in the previous sections. In terms of personal finance, saving refers to putting money aside for later use. This is different from investment where there is an element of risk.

For both savings and investments, you can get advice or information. If anyone is offering advice or selling a product, they need to have been authorised to do so by the South African government. They need to be an authorised financial services provider. Anyone offering information, does not. Financial advice tends to cost money either in the form of a fee or commission.

If you are buying a product from a firm that sells financial advice, you may later be in a stronger position if the investment turns out to be unsuitable but there’s a catch. Investments can hold some risk. The chance of you losing some or all of your money on an investment is definitely real so you need to tread carefully and choose a good company. Try InvestmentHound.co.za as they source advice from various companies for their users.

Before making any recommendations on any financial products, financial advisors must:

1: Ask you in detail about your financial situation and needs.
2: Explain why the product they recommend is suitable.
3: Give you clear information on all the costs involved.

COMPARE, COMPARE, COMPARE!!!

Always compare the products that are out there. Don’t just buy the first one that’s presented. Remember to wait 2-3 days before making a decision. It may be tedious but in the long run it will help assure that you make the right decision for your needs.

Remember, companies can only say they offer independent advice if they give you an option from a range of industry products. A company that would give you an interview and then find all the relevant products that suit your needs is the way to go. The nice thing is that you only have to do one set of forms etc and they will look across the whole spectrum for you. Very handy.