Arguably one of the most innovative developments in South African financial markets is the roll-out of the tax-free savings accounts (TFSA) which are expected to make a material difference to the savings behaviour of ordinary people.
The results out of the Old Mutual Savings Monitor tells a bleak story about the financial health of ordinary South Africans:
– One out of four working adults has a retirement annuity
– Consumption / living expenses account for 65% of income
– Only 20% are prepared to buy financial products online despite the prevalence of mobile devices
– One third of respondents do no budgeting
With that in mind, Moneyweb and technology provider 22Seven have joined forces to raise awareness of a unique platform that allows you to:
1. Budget on your mobile phone
2. Track your expenses on a month-to-month basis
3. Use your mobile device to buy a savings product from as little as R350 per month tax free
4. Take control of your financial future in a single platform
By using the 22Seven app on your mobile phone you can immediately begin tracking your finance, setting financial goals and invest in the TFSA incentives offered by government. The process is easy – download the app to your mobile device and configure your accounts. One you have a handle on what your expenses are you can begin to focus on your investments.
Don’t know how TFSAs work? Moneyweb Managing Director Marc Ashton explains it in this 90-second video:
Want to know why Einstein described compound interest as the “eighth wonder of the world?” In this video clip the Moneyweb team explains exactly how, if you start saving at 18, you can be well on your way to financial independence in just a few short years: