Personal Goals and Finance

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10 Steps To Saving in Tough Times

South African consumers are already feeling the pinch as economists warn of a global recession. Fuel prices are at all-time highs, essential groceries are significantly more expensive, and it will cost you more to keep your lights on because of load shedding than it has in the past.

With the cost of living rising, and salaries not increasing at the same rate, good money management has never been more important. While your immediate priorities may be paying bills and putting food on the table, this is also the time to save and invest for the future.

It’s all about striking a balance between short-term and long-term thinking. It is never too late to develop good financial habits.

All Savings, No Matter How Small, Help

The limiting narrative that saving and investing are luxuries that cash-strapped consumers cannot afford can end up being just as costly in the long run. Savings serve as a buffer against life’s unexpected events, reducing your reliance on credit to cover unexpected expenses.

Even if you start small, developing a healthy investment habit can help you build a safety net to help you get through difficult times. It also means that your future plans, whether they are for your children’s education, a home renovation, or a holiday, will remain within reach.

10 Simple Steps To Save In A Tough Economy

With so many people experiencing financial hardship, you may be considering postponing your savings and investing goals. However, even during a period of financial uncertainty, you can flex your savings muscle and continue to save money—even if you have to shift your timeline. Here are ten strategies for staying on track:

1.      Reduce Expenses—Even Those You Want to Keep

Trimming your variable expenses is a good place to start. Buying groceries is usually less expensive than eating out. But, before you go shopping, check your pantry to see what you already have. If you plan your meals ahead of time each week, you’re more likely to make wise shopping decisions and avoid food waste, which becomes money wasted.

If you’re not getting your money’s worth from a streaming service or a gym membership, eliminating this type of recurring expense can help. It also doesn’t hurt to call DSVT or your phone contract provider and see if you can downgrade your package.

If you can find a larger, consistent expense to cut (for example, getting a roommate to reduce housing costs), you can significantly improve your bottom line.

2. Recognize Your Incomings And Outgoings

Examine what you have coming in and out of your account each month in terms of bills and payments. This will give you an idea of what you might be able to save or if you need to make any sacrifices to make ends meet.

3. Make a Budget for Yourself

If you aren’t already on a budget, now is the time to start. The only way to know how much money is coming in and going out is to create a budget. It can also assist you in ensuring that your spending is consistent with your values and goals.

Begin your budget by listing all of the money that comes in and goes out of your accounts. Fixed expenses, such as rent, bond, and car payments, remain consistent month after month, whereas variable expenses, such as entertainment, utilities, and groceries, fluctuate.

Make sure your budget takes into account both your short- and long-term objectives. Some experts recommend following the 50/30/20 rule, which states that you should spend 50% on necessities, 30% on wants, and 20% on savings, whether for a long-term goal like retirement or a short-term goal like putting down payment on a house. Those guidelines may not be applicable to you, so make necessary adjustments.

4. Make Saving A Habit

Making saving automatic is the simplest way to develop the habit of saving money. Set up automatic transfers from your bank account to a savings account. Even if you can only contribute a small amount each month, consistently putting money away can help make saving second nature.

5. Continue To Save for Retirement

Though the stock market’s ups and downs can make new investors nervous, don’t get too worked up. Investing can help you build wealth over time and withdrawing all of your money from the market is a sure way to derail your carefully planned savings plans.

6. When Should You Put Your Savings on Hold?

If you’re having trouble paying for basic necessities like food and medicine, it’s OK to take a break from saving until you’re able to get back on your feet.

This is why having money set aside for a rainy day is essential. If you’re struggling to make ends meet, concentrate on trimming your budget and getting through the next pay period, and trust that you’ll get back to saving as soon as possible.

7. Maximise Your SARS Tax Benefits

If you receive a SARS refund, it’s easy to see it as “found” money and succumb to the temptation to overspend. However, your future self will thank you if you put it in savings, pay up high-interest credit card debt, or apply it to student loans. This can help you get out of debt faster and save money over the life of a loan.

You never know when you’ll need extra cash in these tough times, so if you don’t already have a savings product in place, starting one is another good use for that tax refund. According to experts, you should have enough money saved to cover three to six months of basic living expenses.

8. Maintain Your Motivation

It’s critical to celebrate “small victories” along the way to reaching a savings goal. Take a moment to splurge if you’re halfway to saving six months’ worth of living expenses in your emergency fund, for example.

Perhaps it’s purchasing new running shoes with the money you saved by cancelling your gym membership and instead doing fitness videos online, or purchasing a new kitchen gadget with the money you saved by buying groceries and cooking at home instead of dining out. And keep in mind that the occasional latte will not prevent you from retiring on time—just make sure you’ve budgeted for it.

9. Maintain An Emergency Rainy-Day Fund

While we prefer to save for a specific purpose, you should have a rainy-day fund in case of an emergency. Aim for three to six months of expenses in this pot, and be sure to replenish it if necessary.

10. Seek Professional Assistance

If you have the opportunity to speak with a financial advisor. They can assist you in developing a financial plan that is unique to you and will guide you through the ups and downs of life, while also adjusting it to reflect your current circumstances.

Conclusion

True financial peace of mind comes from taking charge of your finances and developing sound financial habits such as budgeting, saving, and investing.

This will enable you to weather the storm and thrive when conditions improve.

Contact us here:

+27 11 839 2302

info@maysure.za.com

Maysure Financial Services is a registered financial services provider. FSP 15173

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7 Ways To Clean House Financially This December

The holidays are a great time to reflect on the past year, whether you’re spending time with family, taking time off, or preparing for the New Year. It’s also the perfect time to assess your current financial planning.

While December will undoubtedly be a busy month of celebrations and festivities, completing a few money tasks before the end of the year will put you in a good position to begin a prosperous 2023.

Thinking about your finances during the holidays may not be ideal, we’ve done the legwork for you and created a financial checklist to keep you on track.

Here are seven ways to clean house financially this December:

1. Make Sure You’re Covered For The Holidays

This is a good time to review your short-term insurance and make sure it covers you while you’re away, no matter what happens. Also, take some time to review your financial products, both short-term and long-term, to make sure that you don’t too many policies in place. Finding the overlaps could save you some money.

2. Reset Your Financial Goals For The New Year

Use your free time to start thinking about your financial goals for the year. If you’re not saving as much as you’d like, consider refinancing your high-interest debt – a low-interest personal loan, which allows you to consolidate your debts into a single monthly payment, is one option.

A savings plan is also something to think about when planning your finances for the upcoming year. Putting aside a small amount of money each month (whether for retirement or an emergency fund) will make a significant difference in the long run.

3. Go Through Your Credit Report

Checking your credit report regularly may help you avoid damage to your credit score and help you to correct costly errors. You can download a free credit report from TransUnion once a year. In addition to your score, you’ll see your most recent credit report, which details the top factors that can affect your score and how you can improve it

4. Put Together A Seasonal Budget

December can affect your wallet in many ways, which is why you may want to create a budget specifically for this time of year to help you stay on track with your spending in the coming weeks. While you probably have a few social gatherings to account for, you’ll also want to think about other costs that crop up this time of year.

5. Make Some Year-End Retirement Contributions

While the importance of retirement planning transcends a single month, it’s as good a time as any to consider putting any extra funds you may have accumulated throughout the year toward your future self.

6. Start Thinking About Resolutions

New Year’s resolutions tend to get a bad reputation for being short-lived and unattainable — and money-related ones are no exception. While it might sound somewhat premature to be thinking about financial resolutions before the 1st of January, knowing the mistakes to avoid in advance can be helpful when setting goals for the coming year.

For example, in past years you might have said your resolution was to “save more money.” While that’s an admirable goal, it’s broad and doesn’t address how you’ll actually accomplish that. This year, break that goal down into more actionable steps, like determining a set amount you want to save each month and setting up an automatic transfer into your savings account.

7. Revisit your estate plan

The holiday season is all about family, and spending time together can be a good reminder of the people you want to take care of financially. Take this opportunity to either start or revisit the estate planning process. This might involve checking to see that your beneficiary information is up to date and that your assets are aligned with your goals and wishes.

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If you need a little guidance, feel free to get in touch with us before you wrap up this December.

+27 11 839 2302

info@maysure.za.com

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Marital Contracts and Finances: Beyond the Glitz and Glam

Marriage is all too often related to the wedding day. We all look forward to the glitz, glam, and celebration. It’s the dream.

But, before the adventure and idyllic happily-ever-after begins, the couple needs to take a look at the financial consequences of their partnership. We can help you achieve a firm grasp on the reality of marital contracts and healthy finances. Keep reading.

What types of marriages are there in South Africa?

Rings on marriage agreement

Two individuals can tie the knot through a civil union, customary marriage, or civil marriage in South Africa.

Customary Marriage

A customary marriage is performed under African customary law. The partners must be 18 years or older. Under customary law, polygamous marriages are legal.

Civil Union

Civil unions or partnerships recognise same-sex marriages as legal. The rights granted to couples according to the Civil Unions Act and the Marriages Act are the same.

Civil Marriage

A civil marriage is a union entered into by a woman and man. If no contracts are made, this marriage is automatically in community of property.

If your choice is not to get married in community of property, then an antenuptial agreement has to be signed. This means you will be married out of community of property.

What are the requirements for a valid marriage in South Africa?

House in hand while pointing at signature

The individuals who choose to be in a union must give their consent and should be 18 years of age or older. With a civil marriage, if one or both of the partners are younger than 18, consent from the parents or legal guardians is required. However, no individual younger than 18 can enter into a civil union.

A marriage has to be lawful. For example, closely related people are not allowed to get married and an individual who is already married cannot enter into a second marriage. The exception is under a customary marriage.

Certain formalities under the South African law should be adhered to. The marriage has to be conducted by a marriage officer and two witnesses must be present. For a marriage to be considered a legal contractual agreement, it has to be registered at the Department of Home Affairs.

Understanding marriage contracts in South Africa

Man and woman discussing financial matters

You need to understand the different types of marriage contracts in South Africa. This helps to forestall legal battles and protect your assets if the marriage does not work out in the future.

In South Africa, there are two types of marriage contracts:

  • Marriage in community of property, or
  • Marriage out of community of property
Couple walking through confetti

If you choose to be married in community of property, all your assets will be shared. If you choose not to share your assets, you need to sign an antenuptial agreement. If no antenuptial agreement is signed, you will be married in community of property automatically.

Marriage in community of property

Financial planner advising clients

Marriage in community of property joins together everything you and your partner owned before and during the union. This includes inheritances.

While this may encourage partnership in the relationship, it can also be problematic. You will need written consent from your partner to buy or sell property, including jewellery. Additionally, you will need consent from your partner to enter into credit agreements. 

The debt you and your partner had before marriage forms part of the joint estate. You will hold joint responsibility for your partner’s debt.

These are hard truths. On the opposite side of the coin, there are benefits.

There are times where marriages do not work out. This can lead to divorce.

Divorce can be a messy process at times. But, when you are married in community of property, you and your partner receive half of the assets accumulated before and during the marriage.

This means both partners get an equal share and potentially a better quality of life leaving the marriage than they may have if they had married according to an antenuptial contract. Of course, this point could be argued in a number of ways depending on the individuals and the circumstances.

Marriage out of community of property (antenuptial)

Rings on divorce document

This contract has two options: marriage with or without the accrual system.

A marriage contract with an accrual system protects the individual who is considered financially vulnerable in the union. Marriage without the accrual system automatically allows each partner to manage their assets.

Marriage out of community with accrual

Here is an example of the accrual system in action.

This system may protect you if you are the partner who takes the role of a stay-at-home parent. Or, for instance, if you are actively studying without a source of income.

The accrual system also means you’re not liable for your partner’s debt. You’ll be able to grow and manage your assets without the consent of your partner.

And, the assets you owned before the marriage will remain solely yours. Upon death, your will and testament can leave further instructions about what happens to your assets. You can choose whether to leave these assets to your spouse or not.

Marriage out of community of property without accrual

Couple enjoying a cup of coffee in doorway

Marriage out of community of property with accrual protects each partners’ assets from before and during the marriage. This supports the idea of regulating assets independently.

You do not need the consent of your partner for any agreements. This can work well for business-minded individuals. In the case of a divorce, your partner cannot claim any of the assets you have grown before or during the marriage.

However, this specific system does not protect you if you are the partner with less financial standing in the marriage. Simply because your partner is not required to share any benefits with you under this type of marriage contract.

Final thoughts on marital contracts and finances

Rings in box on marriage contract

Knowledge is power. And that power comes from marrying your heart with a proper understanding of how to protect your finances within a marriage.

For assistance with marital contracts, please feel free to contact our Maysure Financial Services team. We can help you determine the best marital contract for your needs.

Contact us here:

+27 11 839 2302

info@maysure.za.com

Maysure Financial Services is a registered financial services provider. FSP 15173

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Understanding The Financial Stages Of Life

Money is an intricate part of all our lives. Fortunately, financial freedom provides you and your family with the liberty to live securely.

Despite this, most of us know very little when it comes to money. Many of us are not properly educated when it comes to handling finances. The majority of graduates go into the workforce not knowing the importance of setting financial goals.

As your life changes so should your money. Different life stages call for different aspirations and different ways to manage your finances. Here, we aim to equip you with basic knowledge on how to handle your finances according to your life stage.

Entering The Workforce – Get Started Early

Female graduate holding degree scroll

It is important to take steps towards better financial literacy while you are still in your early career years. Create a realistic budget and begin tracking your expenses monthly. If you have any debt make paying it off a priority.

Building a good credit history while you are in your 20s will make your life much easier in the future. A favourable financial standing will make it simpler to purchase big assets such as a car or a house five to 10 years from now.

It might seem premature but the sooner you start planning your retirement the better. This ensures that your standard of living stays the same in your later years.

How To Start Your Financial Journey

Woman leaning against a wall

Achieving a well-formulated estate plan in your early years can seem overwhelming. But, it doesn’t need to be.

It is important to recognise products that can help you gain long-term financial success. Here are a few things you should be doing with your money in the early stages of your career:

  1. Start saving – build your finances when you are still young.
  2. Avoid debt where possible.
  3. Don’t overspend – make a habit of living within your means.
  4. Start planning for retirement.
  5. Get disability insurance.

Partnering with a reliable financial service provider, like our team at Maysure Financial Services, can help you plan for your future. Find someone you trust to help you get started on your money journey.

 Planning Your Family Finances

Young family playing on floor

Settling down and having a family comes with greater financial responsibilities. More people depend on your income at this stage in life (spouse, children, among others). Protecting your income becomes more crucial than ever. 

While saving is always a necessary goal, the majority of your investments should go towards safeguarding your family. One particularly useful tool for this is life insurance. Life insurance can save your family the heartache of financial hardship in the event of an unexpected death.

Purchasing health insurance and disability cover is also a good step in this stage of life. The worst can happen when you least expect it, and you need to be covered for any possible incident. Financially securing your health and wellness will allow you to rest easy in the event of crippling disability or illness.

Another crucial element of your financial plan is your will. At this stage of your life, a will helps make sure that your assets are divided in a way that suits you and your family’s best interests. It also plays a vital role in naming your children’s guardians in case you are unable to raise them.

Business Insurance

You may be planning to take a step in a different direction by starting your own business.

This process can be nerve-wracking and you may be challenged regularly as you bring your idea to life. Be careful not to let a heavy workload keep you from protecting your start-up. 

Business insurance should be the first step you take. This insurance is the first priority and should come before you purchase the business essentials. Your business is an asset and its protection is key in protecting your future financial earnings.

Taking Care Of Your Retirement Years

Mn and woman smiling with a beach ball

In the years approaching retirement, the more you accomplish the better. You don’t want to be in a position where you have to extend your time working after the normal retirement age.

Your pre-retirement years should prioritise the stabilisation of your finances. This is so you can increase your financial security in your later years.

Ideally, this would be the time where you settle financial obligations. These obligations may include elements like paying off your mortgage or your children’s university fees.

Pre-retirement is also a good time to review your portfolio and ensure your investments are producing the desired result. You want to be certain that your money will give you the returns you need in future.

The Early Retirement Years

At the beginning of your retirement, it might be beneficial to plan for all of your potential expenses. Figure out how much you will be spending to help you determine the duration that your money will last.

Consult a financial advisor and look for low-risk investments that could potentially turn your pension into income. With the help of a professional, your savings will last longer.

Late Retirement Years

Couple signing documents around a table

Make sure you are updating your estate plan regularly at this stage. The legacy you leave is sacred. Be sure that the beneficiaries in your policies and will are selected as you intend.

Look for ways to reduce expenses regarding your estate. Products like life cover can reduce any debt or taxes on your estate. This will ensure your loved ones get what they deserve.

Plan Your Future Today

Colleagues at table in discussion

No matter what stage of life you are in, it is never too early or late to secure your finances. A healthy estate plan will grow and adjust with you and your family. 

A crucial aspect of your financial journey is who you choose to partner with you. The right financial service provider will maximise your return on investment, every step of the way. Let Maysure Financial Services help you plan your financial future today.

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To find out more about the financial stages of life contact us here:

+27 11 839 2302

info@maysure.za.com

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Financial New Year’s Resolutions: Shape Your 2021

We’re sure you’re all aware of the classic New Year’s Resolution tradition: you start out full steam ahead with planning your goals for the year and two months later, you’ve lost all motivation. What happens? Naturally, you slip back into your old spending habits and procrastination becomes enemy number one.

It’s easy to fall back into comfortable patterns, especially when it comes to your finances. But, it’s detrimental to achieving your financial goals. Avoiding financial planning often results in far more stress than it would take to set aside some time to plan your finances for the New Year.

Remember, you don’t have to do it alone. We are here to help you by shedding some light on a few key financial resolution tips and how you can stay the course.

1. Evaluate Your Finances

Knowing your financial status is a good place to start when it comes to planning your resolutions. After all, you can’t create resolutions until you know where you’ve been going wrong. Aim to form a realistic baseline idea of your current financial health status, even if it’s not exactly where you want it to be.

This means evaluating your spending habits, calculating your net worth, and reviewing your goals. These actions will tell you more about what your money is doing.

Once you have an idea of what your financial health looks like, it becomes easier to create realistic resolutions and to achieve them.

2. Plan Your Money

Following your evaluation, you can move on to setting financial resolutions that work for your money. This will put you on the road to becoming financially savvy.

But, what exactly does this mean and how do you do it?

Successful resolutions incorporate clear goal-setting and focused timelines. Outline exactly what goals you want to achieve and set an executable timeline. You are less likely to procrastinate and fail at your financial resolutions when they are clear, simple, and doable.

This does not have to be done in a vacuum. It’s advisable to reach out to all your available resources.

A financial adviser can assist you in drawing up a financial plan that establishes clear goals with executable timelines. This goes a long way to creating resolutions that give you more confidence and less stress.

Contact Maysure Financial Services for help to achieve your financial resolutions.

3. Pay Your Debts

You are now well on the path to financial savviness. Armed with knowledge and determination, you can focus on the nitty-gritty of your goals. It’s time to prioritise debt relief and not get sidetracked by debt creation.

In your financial resolutions, outline an effective budgeting strategy that aims  “to ensure that you’re spending with a purpose”. This means paying off your credit card and other outstanding debts before you plan that next big holiday.

Procrastination is the thief of time. The beginning of a new year presents you with the perfect opportunity to get into financial shape and make more down payments to secure future debt relief.

4. Plan Your Investment

Paying off debt is not the only significant aspect to consider, another easily-overlooked area is long-term investment. You may be tempted to set goals exclusively for the now, but “big picture” goals should always be in the foreground of your financial New Year’s resolutions.

Each year that goes by gets you a step closer to retirement. So, make sure you know where you want to be in the future. Resolutions don’t need to be limited to the 12 months ahead. You can make them with the next 12 years in mind.

Investment and finances are a very personal affair. There are so many options to choose from, whether it’s putting money into an investment portfolio or paying off your bond. Make the right decision for you. Discuss your options with your financial adviser to make an informed choice.

5. Review and Relearn

Finally, the best way to stay on top of your goals is to regularly review your budget and always leave space for learning. The more knowledgeable you are about your finances and the financial world in general, the easier it becomes to tackle any unexpected issues that may arise throughout the year.

Another goal you can include in your resolutions is to expand your knowledge by reading more blog posts, newsletters and finance books. If you are armed with the facts, you are prepared for battle.

Another great idea is to have a checklist that you can revisit throughout the year to ensure that you’re staying on track with your goals.

Financial New Year’s resolutions don’t have to become an exercise in procrastination, instead, they can be realistic, simple, and informed.

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Please do not hesitate to get in touch to find out how to make your money work for you:

+27 11 839 2302

info@maysure.za.com

624 407 Maysure Financial Services

5 Ways to Spend Your Bonus Wisely

It’s been a long hard year, but the end is in sight. You’ve almost survived the year 2020 and what’s more, you have also been rewarded for your valuable contributions throughout the year – your bonus is in the post.

I’m sure the temptation to splurge a little is strong, especially as the silly season draws near. Let’s be honest – there is no better motivation to keep on reaching new heights than by reaping the rewards of your labours. However, there are a few mental checkpoints you should go through first to ensure that you are being financially astute when rewarding yourself:

1. Clear Your Debt

One solution when facing financial challenges is to get cash flow by taking out a loan. In order to do this, you would need a good credit history, which is made up over the years by you showing a track record of… you guessed it, paying off your debt!

If you did take out a loan during lockdown, you’re not alone in that boat. It can serve as a life jacket to keep your head above water. But, as soon as you receive a cash injection in the form of a bonus, the wise choice is to pay off that debt and get rid of the interest overhead. This is especially true if you have charged to a credit card, where interest is notoriously high.

We asked Zaheer Talia, financial advisor at Maysure Financial Services, what his clients have done with bonuses in the past. He recommended:

“If a bonus is received, previously it was used to settle any outstanding debt – specifically credit card debt. Then, it is used to fund anything that was not budgeted for or expected but is priority, such as the house or car etc. Anything left over would be invested in unit trusts or similar.”

According to *Kenny, one of Maysure’s clients This results in favourable outcomes like the lessening of debt and the growing of investments. Maintenance on the car and house also ensures that these assets do not deteriorate to a huge extent in the future, preventing greater expenses at a later stage.

2. Take Advantage of Your Tax Deductibles

As you can see on page 6 of the Treasuries Tax Guide, there exist certain contributions as per Regulation 28 that are tax-deductible. Examples of these are pension fund contributions, medical aid contributions, and donations to name a few. What this means for you is that up to 27.5% of your gross annual salary can be deducted prior to your tax calculation taking effect.

So, if you were to crunch the numbers and allocate some of your bonus towards ensuring your pension fund contributions maximise that 27.5%, you could easily find yourself dropping down a tax bracket.

Needless to say, the savings involved in such an exercise can be quite eye-catching indeed. As well as serving the purpose of safeguarding your retirement. Exactly the kind of thinking that leads us to our next point…

3. Invest in Your Future

The uncertainty of the current global landscape serves as a timely reminder that life can have its ups and downs. An essential part of your financial planning should be to cater for those periods of decline by ensuring you invest in your future.

Two great examples of doing so are setting up a Tax-free savings account and making sure your emergency fund is well-stocked.

4. Invest in Your Present

With the current theme of working from home coupled with a less intensive social calendar for the foreseeable future, there is no time like the present to start upskilling. This could be something as simple as updating your budget or as exciting as starting that course to help you climb the corporate ladder.

Whether it be embarking on a new entrepreneurial endeavour or finally starting the MBA you’ve been dreaming of for years, it will most likely involve a capital injection. Luckily for you, a timely windfall has just arrived to give you the opportunity to be the best you that you can be. Speaking of which…

5. Spoil Yourself

All work and no play makes Jack a dull boy. Life is about experiences and we each have that something special that is close to our hearts.

Recharge your spirit by tapping into your passion. Spoil your family. Plan for your next holiday (air ticket prices should be good if you can get them in advance). Whatever it is, know that you can afford it because you’ve followed steps 1 to 4 and have been a savvy investor in your own life.

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Attention: Medical Aid Members

Your Increases for 2021

Discovery

To our valued regular readers and clients, please note that Discovery will be freezing monthly contributions to its medical aid plans for the first half of 2021 – after which it will introduce a price increase – capped at CPI +2%.

Profmed

Turnberry

Please do not hesitate to get in touch for further information or to make arrangements:

+27 11 839 2302

info@maysure.za.com

*Kenny is a fictitious name used to protect the identity of our client.

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Goal Setting 2020

We’re almost at the end of January and most of the dreams of keeping up with new years’ resolutions are beginning to fade… The unfortunate thing about the glitz and glamour about setting goals with unmanaged expectations over a period like this is that we often set ourselves up to fail.

Why is that?

Goal setting is so much more than just deciding to commit to doing something for 90 days, and while this can and does work, you need a strategic plan for anything you want to change in your life.

This is why the people who plan to go to gym for 90 days, but commit to doing after putting together a plan. They have a trainer, did the research, worked with a health professional on a plan that works for them, understand the foods that work for their bodies, and have the knowledge they need to understand what they need to do, what to expect, as well as what to do if things don’t go as expected – how to bounce back after a setback. These are the people who are more likely to succeed and achieve their goals whether they make the decision over December and implement it on the 1st of January or any other day of the year, they have gone in with all the information they need on what works for them.

While the start of a new year and a new decade are significant, they represent a new beginning, we can reflect not only on the past year, but the past 10 years, and what we have learned, they also aren’t the only time for us to look at starting something new. However, it’s a great time to asses where we are and look at how our personal goal setting strategies may have fallen short, or where we actually get it right.

Considering January is normally a time that people rush into commitments, take a few moments to ask yourself if this is what you do? Look at everyone around you and consider the impulsivity of the season, while spending seems to more of a December thing, as people go into January long terms spending is generally higher, people commit to spending money on things that they simply won’t use and don’t need. Could this be used for something worthwhile or invested in the future?

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Why you need a financial advisor

Needing a financial advisor isn’t just about retirement annuities and savings policies, the right advisor can help you mold and shape your wealth so that it works for you one day.

Your financial advisor is your planning partner for life, so it’s important to work with someone who understands your specific needs and takes the time to get to know what you want to achieve on this game called life.

Your planning partner’s main goal is to help you accomplish your goals and make your plans a reality.

A financial advisor can assist with helping you decide how much money to save, the best options for investment, as well as what kinds of insurance to have in place. This can include life cover, dread disease cover, disability cover and household and car insurance, to name a few.

While we would love to sell you another policy, we also believe in educating our clients with the knowledge they need to develop and secure wealth as they go.

The first step in growing your wealth is understanding where you stand in terms of your financial health. Your financial health is your current financial state of affairs. It will pay off to make time to learn and understand what this means. We love this post from Investopedia on Financial Health.

The second step in growing your wealth is understanding how to do it, and how not to do it. This is where a financial advisor becomes essential, not just with investment policies, but other types of investment as well.

They often have the experience, paired with the knowledge of what other people have done before you, so speaking to them and booking time to discuss things outside of what they have sold you can positively impact how you move forward in waters that are completely unfamiliar to you.

It’s times like this that you would pay your financial advisor for their time, because they are equipping you with the knowledge you need to make sound financial decisions. These sessions are more for you to educate yourself so that you can grow your own wealth in other areas, and using a financial advisor to do that, not only gives you access to the wealth of knowledge they hold, it also gives you an idea of how to educate yourself so that you can stay ahead of the game.

If you would like to discuss this further, feel free to get in touch with us.

Advisor to Client: “You earn the seeds, I’ll plant them.”

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Budgeting: How To Budget Effectively

Let’s face it, we have all read the funny meme’s about how long January feels, we all overspent during the festive season and we are all feeling the proverbial pinched purse strings, but managing your finances is really so much more than making sure you make it to the end of January.

Yes, we are about to bring up the most dreaded B word of them all – Budgeting. For most people, budgeting feels like a daunting task, but all it really means is that you’re forecasting a plan for your money to ensure that you’re spending with a purpose – although it might feel like it’s placing financial restrictions on you, it’s actually a process that is freeing up your finances so that you can enjoy that little bit of extra income when necessary, and it’s not just something to do over holiday periods – it’s an ongoing process that should eventually become a habit. Creating a tangible and reasonable plan for your money means that not only will you have an effective strategy when it comes to getting the things you want, but it will also keep you out of debt, or help you if you are currently working your way out of debt. It will also be able to help you pinpoint those months in which money may be a little tight and those months where you have a bit more financial freedom allowing you to even out those unpredictable highs and lows in your finances which can cause a whole lot of unnecessary, and unpleasant stress.

So how do you go about creating a budget that you can easily stick to? Here are 4 simple tips to help you get started.

  • Start with the most important expenses – Make a list of the true necessities, remembering that these might be different for different people. The basic ones are shelter, food, clothing and transport. Once you have listed the absolute necessities then you can fill in the rest of the categories that suit your lifestyle.
  • Be realistic about your wants and your needs – There is no point in doing a budget if you’re not going to be realistic in your forecasts. The more realistic you are about each of your numbers, the more likely it will be for you to stick to your budget.
  • Review and re-calculate – Writing down all your expenses allows you to see where you can cut out on bad spending habits, saving you money. It may seem daunting, but you need to accept that there might be a few items that you just don’t need (and maybe can’t afford) right now. Remember, your budget cuts are only temporary. You can always make adjustments later on down the road.
  • Include an extra category in your budget – Even putting aside a minimal amount every month towards those unforeseen expenses can make a difference. Start small and try increase this contingency amount each month. This money can be used in case of an emergency, such as a car repair or medical expense.

Now that you have an idea on how to get started there are some things to keep in mind. Remember that each month is different and factor in special occasions such as birthdays or holidays – these can affect your budget, so lay them out in your forecast as soon as you begin. Don’t forget your debt. Ideally, you’d want to start with the one with the highest interest rate, paying as much as you can every month. If you have other accounts, pay the minimum balances on those until you’ve paid off the first card, then choose the next card and pay extra for it while you pay minimums on the others.

The most important thing is to remember that life happens – whether we plan for it or not. It’s almost impossible to follow a budget 100% of the time, especially if it is your first time. No matter how disciplined you are, you may overspend time and again, so forgive yourself for small errors and get back on track, as soon as possible. Use your budget as a guide to make better financial decisions going forward.

We understand what a difficult juggling act it can sometimes be to manage your finances, so if you find the task daunting, why not contact us and we can guide you along the path to financial stability. It’s what we do, we are the experts and we want you to make the most of every hard-earned cent.