Safety Net
When it comes to saving you should consider a level of priorities:
• Eliminate any short term debt such as credit card or overdraft. You are very unlikely to generate a return that you are been charged on this debt so it is more beneficial to pay this off rather than save.
• Create a safety net or ‘rainy day’ fund. This should be easily accessible, say in a deposit or credit union account to take care of any life emergencies that can crop up. This helps ensure that you will not incur any penalties that may be involved in more medium to long term investments.
• Look to invest in longer term products where you can assume an appropriate amount of risk that meets your risk profile. Time, and diversification within your portfolio can help manage your risk.
Your financial adviser can help you establish the most appropriate plan for your savings and investments.
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