Set up your loved ones for financial success
11 February 2021 | Opinion
Valentine's Day is synonymous with the traditional exchange of cards, chocolates, gifts and sharing a candle-lit dinner with loved ones.
It not only signals appreciation and love for one another; but is also a life-long tradition that is celebrated in most parts of the world. Splurging on loved ones is great; but why not spoil your loved one with a gift that will put them in a better financial position.
Valentine's Day can be a costly affair and we tend to overspend to show our appreciation in a number of ways. The next few months, however, are set to be financially challenging for consumers due to the brunt of the pandemic with expected petrol price increases, increased cost of living and more job losses, we therefore encourage consumers to think differently and consider buying gifts that will have a lasting impact and benefit in the long-run.
We have also observed a common behavioural trend when consumers are faced with immense financial pressure they either skip insurance premiums for certain months or in some cases, will entirely cancel their policy and hope to take it up later when their financial situation improves.
The one key lesson that the Covid-19 pandemic has taught us is the importance of having adequate insurance cover. If you have loved ones who count on you for financial support, your priority this year should be to ensure that you keep or upgrade your insurance cover, to protect yourself and your family should the unfortunate happen.
A re-evaluation of our current budget and spending habits needs to take place sooner rather than later. This will help you identify and create financial habits that will better your quality of life in the long-term.
Make sure to also revisit your insurance policy. While cancelling an insurance policy may seem like the easiest option to relieve immediate financial pressure, you need to avoid losing all your premiums for short-term relief.
Look at investment products like a unit trust or the FNB Savings Pocket which will potentially help you reap returns. These are great vehicles that will help you and your loved ones start that savings journey. Not only will it help you improve your financial situation but could help set you up for the future.
Let's be honest. Chocolates, perfume or flowers are more appealing than an investment product, but the value and quality diminishes over time. Insurance and Investments are not seen as the most attractive or sought-after gifts, but investing in, and securing the financial stability of your loved ones is the best thing you can do to set them up for financial success in the long-term.
*Elzita Beukes is FNB's Communications Manager.