Tip 1: Pay extra towards your existing debt to increase your debt management points

Target: Your minimum repayments on unsecured debt should be less than 5% of your gross monthly income.

How: Try to structure your budget to avoid taking on more debt or spending more than you earn. By doing this consistently, you can improve your debt-to-income ratio and earn more debt management points. To earn the maximum number of points, make sure that your monthly obligations decrease and don’t exceed 5% of your monthly income before tax and other deductions.

To see how many points you can earn, tap the Debt ring in the Vitality Money section of the Discovery Bank app.

Tip 2: Every rand you save will increase your points for saving

Target: Adequate savings equate to having about three times your gross monthly salary set aside.

How: The closer you get to the target of having three times your gross monthly salary in savings, the more savings points you will earn. Along with increased points, you will be better prepared for unforeseen events. You automatically earn points for the savings you have with Discovery Bank and you can increase it by saving more each month. To earn points for savings or non-retirement investments you have with other non-bank financial institutions, upload the details on the Discovery Bank app.

To see how many points you can earn, tap the Savings ring in the Vitality Money section of the Discovery Bank app.

Tip 3: Make sure you have insurance to increase your points

Target: Have medical aid, short-term insurance and life insurance in place.

How: By having medical aid, short-term insurance and life insurance, you have extra financial protection so that you don’t have to use your savings or incur extra debt when unexpected events happen. When you have all three types of cover in place, you will earn the maximum number of insurance points. You’ll automatically earn points for insurance products you have with Discovery. You can earn more insurance points by activating the cover you may still need. To earn points for insurance with other providers, simply upload the details on the Discovery Bank app.

To see how many points you can earn, tap the Insurance ring in the Vitality Money section of the Discovery Bank app.

Tip 4: Manage your progress to meet your financial needs in retirement

Target: Stay on track and manage your personal retirement goals.

How: You know the age when you want to retire and that means you have to plan for retirement based on this goal. To increase your retirement points, you can increase your contributions towards your long-term and retirement investments. If you are retired or older than 65, you will not earn these points. Your Vitality Money status will be based on managing debt, savings, insurance and property payments.

To see how many points you can earn, tap the Retirement ring in the Vitality Money section of the Discovery Bank app.

Tip 5: Pay off your home loan or build up savings for rent in retirement to increase property points

Part of managing money well, is paying off your secured debt, such as a home loan and vehicle finance, sooner. If you decide not to buy a property, it is important to make provision for paying a property or rent in retirement.

Target: Pay off your property before you retire or increase your specific long-term savings for rent in retirement. These property points are awarded separately to savings points you earn for reaching the savings target of three times your gross monthly salary.

To see how many points you can earn, tap the Property ring in the Vitality Money section of the Discovery Bank app.

By increasing your Vitality Money status, you are improving every aspect of how well you manage your money. The better your Vitality Money status, the better your protection against an unaffordable level of debt, being exposed to unexpected expenses, and inefficient retirement income. Start with one goal at a time and soon you’ll see an increase in your points, and experience all the life and lifestyle rewards of managing money well.

This article is meant only as information and should not be taken as financial advice. For tailored financial advice, please contact your financial adviser.