Invest in your financial literacy today to secure your future
Empower yourself with Avbob’s latest web series, which gives you sound advice that can set you on your way to pursue your short- and long-term financial goals
Your financial wellbeing starts with financial literacy. The more you know, the better equipped you are to plan and manage your finances.
For many people, concepts such as short- vs long-term insurance, investment, policies, and the benefits of belonging to a mutual assurance society, may be difficult to understand. Even savings, as simple as it sounds, is out of reach for so many South Africans.
Understanding the basics can go a long way towards financial health and thanks to Avbob’s latest web series, Family First, Finance Matters, you can access simple financial tips that will empower you.
From job loss, to increased debt and a general pinch on everyone’s pocket – Covid-19 has affected us all in the same way.
Empowering yourself with sound financial advice and a plan that sets you on your way to pursue your short- and long-term financial goals, is usually a good place to start.
Where do you start? What are you working towards? How will you get there?
As difficult as it may be, especially when facing the financial pressures of low salaries or the high cost of debit orders, saving is something we should all strive to do.
The secret to saving is to start small. With small steps and a specific financial goal in mind, you’ll quickly gain momentum on the road to better financial health.
Whether it’s for you or your child’s education, to start a small business, or for unexpected expenses, you must ask yourself what you’re saving for. This will keep you motivated and help you reach your goal.
Speak to a financial services provider to find the right savings products for you.
How can you use the right insurance products to support your savings plan?
Life insurance is a product that makes all the difference in helping you secure a better financial future for you and your loved ones.
Did you know that you can take out life insurance no matter how young or healthy you are? The younger and healthier you are, the cheaper your premiums are likely to be.
If you are young, single and just starting your career, you may want disability cover or serious illness cover. If you’re a little older and concerned about the financial burden your death may place on your loved ones, you may want to add life cover. It’s good to prioritise based on your life stage.
Did you know you can nominate any person or organisation as the beneficiary of insurance cover when you die? Being a beneficiary means they will receive the cash value and/or other benefits of your insurance policy. You can do this by completing a nomination form with your insurance provider.
The policy will pay out to the beneficiary, who you trust will use it to settle existing debts, such as home and car loans, or use the money to care for your dependents by paying their school fees or your funeral costs.
Other basics such as understanding what a mutual society is, could mean the difference between reaping the benefits of belonging to one, or not.
Mutual assurance society
A mutual assurance society is an organisation that doesn’t have any shareholders. The profits of the organisation are shared with its clients, often policyholders, by means of policy benefits or special bonuses. Essentially, as a policyholder, you reap the benefits of the company’s success.
One of the oldest and most well-known examples of a mutual assurance society is Avbob.
The mutual model has been part of the group’s DNA for more than 100 years. Avbob shares its profits not only with clients but with communities through corporate social investment initiatives and upliftment projects.
When researching and choosing investment and insurance products, it is helpful to ask the following questions:
- Is it mutual?
- What are the benefits?
- How does this tie into my greater savings plan? And;
- How do these benefits differ from those offered by other financial institutions?
Life happens and there are things you cannot prepare or plan for. Control the things you can. Ask the right questions. Make time now to invest in your own financial literacy, so you can provide for your loved ones, even after you pass on.
This article was paid for by Avbob.