• Thinking strategically

    Do policymakers actually consider improving trade performance, asks Geoffrey Chapman.

  • Power problems

    It's an iron law: no electricity, no modern economy, says Leopold Scholtz.

  • M2M money train

    SA's biggest mobile operators have found a new revenue stream, says Gugu Lourie.

Data provided by iNet BFA
Loading...
See More

Savings vs debt

Apr 13 2012 07:46

Related Articles

Retirement catch up

Detox your finances

Saving for a child's future

Bond as salary percentage

Should we keep saving abroad?

Investment options

 

A Fin24 reader asks:

I am 25 years old and would like to start saving. Would you recommend that I pay off my debt before I start?

Prem Govender, chairperson of the SA Savings Institute, responds:

It is always good to start saving consistently from the day you get your first job. During this period, make sure that you learn the magic of compound interest.

Please put aside at least 15% of your income every month in a safe investment. Use credit sparingly. It is cheaper to wait until you have saved the funds yourself.

If you are in debt, pay it off as soon as possible and cut out your credit and store cards.

This is because it is better to spend money you have earned than spend the money you still have to make. Remember, cuts in interest rates should be used to settle debt first and not to take on more debt.

 - Fin24

 
investing  |  saving  |  debt
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
8 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Expanding your business requires capital and banks have stringent lending criteria in place.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...