It can be difficult to save money in an economic environment like the Cayman Islands. The cost of living and unexpected expenses can leave us with very little to spare at the end of the month.
However, with some good budgeting and a little discipline, it is possible to have money left over at the end of every month. Even cutting down on take-out coffees and bringing a packed lunch more often can translate into real savings when added up over the months. You can get more advice on saving money in our blog post Short term savings give long term benefits.
Now you have started budgeting and are seeing the fruits of your discipline, it is worth considering how to make the most of it. Leaving it in your bank account to accrue interest might seem like the easiest option but with interest rates so low the return on your savings will take a very long time to add up. If this rings true to you, you need to seek an alternate solution to see your money grow.
A far better idea is to put your money somewhere that will see it grow at a quicker rate, no matter how small the investment you may have available. However, for most of us the world of investments, stock and shares can seem a little daunting. Unless you are a trained investment analyst, buying stocks and shares can be a risky business and you may not have enough saved to cover the cost and fees.
Therefore, it is sensible to utilise the expertise of investment analysts and advisors who make a living out of choosing stocks and shares, specifically the investment analysts who work on behalf of the Cayman Chamber Pension Plan.
If you have some extra money available why not purchase additional voluntary contributions (AVCs) for your Chamber Pension Plan and let the experts decide which way the markets are moving.
You can read more about AVCs in our blog post Why AVCs are a good idea.
Making AVCs is a straightforward process. You can make AVCs simply by completing this application form and making a payment. This amount will then act as a top up to your regular pension contributions, and while you may only have a small amount of extra money over each month, if you make those extra contributions on a regular basis they will quickly add up.
The internationally recognised investment managers who manage the Plan’s portfolio will then use money invested in your pension plan (i.e. your regular monthly contributions and those of your employer plus any AVCs) to invest into one of six LifeCycle Funds. Decisions are tailored to your investment needs, based on your age and estimated time until retirement. You can stipulate in which LifeCycle Fund you would like your AVCs invested and it does not need to be the same LifeCycle Fund as your required contributions. This means that all the money in your pension is working in tandem to ensure the best possible investment return for you.
Follow us on Facebook for more great tips on how to save your money and get the most from your monthly salary.