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Top Savings Strategies from Leon Abrahams

7 March 2019

Leon Abrahams, the Principal and Senior Financial Planner at Aquila Wealth BlueStar, has amassed more than 38 years of financial planning experience, and he shares some of the top saving strategies during tough economic times.

Disclaimer: The information in this video does not does not constitute financial advice. For sound financial advice, we suggest you approach a financial adviser.

1. Is now a good time to save, when many of us are under financial pressure?

It’s always a good time to save. During challenging times, people often choose to invest in risk products in order to secure capital for their families. It’s also smart to come in as an investor when the markets are down. You get better value for your money.

2. How can I save if I can hardly make ends meet?

As with any client, I would look at your income and establish a budget – differentiating between the must-haves and nice-to-haves. A lot of my clients earn good money and spend good money! It’s vital to prioritise expenses and cut back on the nice-to-haves, which leaves you with more to save. It’s also important to understand the value of compound interest, which rewards savers for staying invested over the long term.

3. How can I turn saving into a habit?

I advise my clients to set up a debit order to save or invest a regular amount automatically. I also encourage them not to view this as a grudge purchase or even an expense – it’s an investment in their financial security.

4. What types of goals should I save towards?

Your primary goal should be to get out of debt. Pay more into your bond or car, for example, to save on interest. Then, it’s worthwhile setting up a contingency fund using a tax-free savings vehicle – to cover unforeseen expenses without getting into debt. Supplementing your retirement savings is also essential. The pension or provident fund you have with your company is unlikely to cover all your expenses during retirement, so it’s advisable to make provision for a retirement annuity so you can bridge gaps in an extremely tax-efficient way.

5. Finally, what are your top savings strategies for 2019?

Firstly, take advantage of a tax-free savings vehicle on top of your longer-term retirement savings. This provides accessibility to your investment, whether you need to fund your children’s education or deal with an emergency expense. Secondly, never stop saving! Even when you dip into an investment, maintain your regular payments. Finally, you’re never too young to start saving. My grandson is my youngest client – he got his own tax-free savings account at the age of one month!

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