Spend money to save money.

That’s probably one of the most bizarre statements you’ve read lately, but according to financial gurus, it’s actually not as crazy a concept as you may think.

“It’s all about having your bigger financial picture or perspective in mind and setting your financial dreams of tomorrow, into action today,” says DebtSafe debt expert Matthys Potgieter.

Here are 10 things that you need to invest or pay for now, to help save you money in the long term:

  • Pension fund

It’s never too soon to start preparing for your retirement. Be sure to do your homework regarding various retirement packages or annuities, especially if your current employer does not include some sort of contribution in your contract of employment.

READ MORE: Smart ways to save even when you’re broke

  • Life insurance

Life is short and the unexpected can happen. Be sure that your loved ones are financially protected when it comes to death, funeral preparations and so forth. Also, make sure that this type of insurance includes funeral cover. If it doesn’t, you need to make an additional plan or find a better cover.

  • Medical Aid or Hospital Plan

One of the first things you tend to think of when times get tough, is to cancel medical aid, right? Don’t make an impulsive decision like that because you will regret it. Medical aid, a hospital plan and/or gap cover can really help you financially when the time comes.

READ MORE: How to put an end to the paycheque-to-paycheque life

Rather do your homework properly and find the most suitable, affordable plan for your unique lifestyle.

  • Gifts

It’s a great idea to buy birthday, wedding, baby shower or Christmas gifts throughout the year. This will help you to avoid using a big chunk of your salary for it, in the same month, as well as avoiding using extra credit.

  • An education trust for your children 

Your kids are your pride and joy, and it is natural to want to give them a good education. BUT you have to tuck money away now to be able to pay for the tours, books and fees you’ll have to cover in the future.

  • Debt

Focus on paying off serious debt first. You can make use of the snowball method where you pay your lowest debt amount off first or you can use the avalanche method where you pay your highest-instalment debt off first. In worst-case scenarios, when you cannot find a way to get your savings going, consider debt review.