Carer Financial Archetype | Nedbank Money Secrets

Financial wellness content recommended for The carer

The power of compound interest

Compound what? Don’t worry. Many people have only a vague idea of what compound interest means. However, the effect of compound interest is so powerful that even geniuses like Albert Einstein called it 'the eighth wonder of the world'. As with most things in life, you need to understand something before you can benefit from it.

In the simplest terms, compound interest means that by saving, you earn interest on the original amount saved, and interest on the original interest earned. Over time, provided that you don’t tap into your savings, it grows into a sizeable amount.

By saving a small amount every month, you can end up with a lump sum to spend on education for your loved ones, a down payment on your bond or even start your own business.

To find out more about compound interest here.

This information is intended for general information purposes only and does not constitute legal advice.

How do I budget?

If your money archetype is the Carer, you already know that budgeting is essential to take care of yourself and your loved ones. But exactly how to budget can be a head-scratcher.

Luckily, we have a Money Secret up our sleeve. We’ve put together a step-by-step guide on budgeting. Because we don’t underestimate how well-managed finances can change lives.

Step 1: Track your expenses.
To draw up an action plan of how you intend to budget, you first need to figure out what you’re spending your hard-earned money on. Don’t exclude anything. Even small expenses like a clothing item on sale or a vetkoek on the way to work should be taken into account.

Step 2: Make a priority list.
Once you have an accurate list of expenses, divide the list into must-haves and nice-to-haves. Your bond or rent is an essential expense. Drinks and eating out are not.

Step 3: Take action.
Now that you’ve prioritised, take action. If you’re not using that gym membership, cancel it. And do you really need the full satellite TV package? Downgrade

For a detailed look at how to budget click here.

Also try the Nedbank My Financial Life tool here.

This information is intended for general information purposes only and does not constitute legal advice.

The ‘why’ behind our spending

The human relationship with money is a complex one and can’t be attributed to only one cause or factor. As a Carer, you have a deep understanding of the positive and negative psychological effects that money - and the lack thereof - can have on a person. You often put the financial needs of others above your own. Have you ever asked yourself what the reasons behind your spending habits are?

Many Money Secrets stem from this relationship with money - be it unemployment, materialism, tax, lack of knowledge, corruption or even irresponsible gambling.

In 2014 the Heartlines Centre for Values Promotion launched a campaign in association with Nedbank. This campaign has a strong focus on values and money, and explores honesty in earning, responsibility in spending, wisdom in borrowing, self-control in saving, and generosity in giving.

See more about the campaign here.

This information is intended for general information purposes only and does not constitute legal advice.

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