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financial freedom

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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

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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

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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

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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

1024 683 Maysure Financial Services

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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Retirement Planning: A Goal We All Hope To Achieve

Retirement is something that most of us have dreamed about since our youth. Perhaps you envision traveling the country and soaking up the best that South Africa has to offer. Maybe you want to whittle away your days at a house on the dam, fishing and enjoying nature. Regardless of what ideal retirement looks like for you, retirement is a goal we all hope to achieve.

Just wanting and dreaming to be retired isn’t enough. In order to retire and actually enjoy your time in retirement, you need the right amount of money saved, invested, or otherwise available once you stop working. The exact Rand amount you need to retire will vary greatly depending on your personal needs. It may seem incredibly daunting to be saving for an extended period in your life where you will have no steady income, but don’t worry, with a bit of sound advice and planning, the retirement of your dreams is well within your reach.

According to the national Treasury, only 6% of South Africans can afford to retire comfortably – and this figure has been the same for the past 25 years, which means that people are simply not planning for their retirement properly, leaving them and their families high and dry.

If you want to have a successful retirement, you need to figure out what that means to you. Do some life planning for retirement, set goals and create a plan that allows you to achieve your retirement goals. Here are some handy tips to remember when making your retirement plans that include financial freedom.

  • Start saving at your first job – Beginning to save for retirement in your 20’s and 30’s allows you to start generating valuable compound interest that will accumulate over decades. Tucking away even a small amount will get you into the habit of saving for the future. Don’t worry if you are only starting to save later in life, starting at any time is a step in the right direction. Remember, the best time to start saving for your retirement was yesterday.
  • Save with every salary cheque – Create a monthly debit order right from the start. If you make saving automatic, you won’t be tempted to spend it or forget to make a contribution.
  • As you earn more, pay more – As your income grows, increase the amount you contribute to your savings. Some saving plans even offer automatic escalation, which will gradually increase your contribution amount over time.
  • Avoid unnecessary fees – Some retirement and investment accounts often charge fees for breaks or early withdrawals. Get to know the rules so that you can avoid triggering fees and penalties.
  • Pay off your short-term debt – Your retirement investments should not be used to pay off debts that you acquired during your journey. Short-term debt is one of the things that could derail retirement planning, so paying it off properly, and without dipping into your nest egg is important. Contact us on how best to do this.

The most important part of retirement planning is understanding that it is a life long commitment. Nurture your investments, if you luck out on a major windfall, contribute a portion of that to your savings, keep up to date on interest rates and ask for advice on potential income generating investments.

We want you to live your very best life, at every single stage. Let us assess your financial planning to ensure that even though you might be planning for the best future possible, you are still able to live your very best now. With sound financial advice it truly is possible to have the best of both worlds.

Contact us today.

? 011 839 2302

? info@maysure.za.com

1024 683 Maysure Financial Services

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.