Every year the same tips circulate about how to get your finances in order, but every year they are worth reading. Even if you just follow one tip, it is a step in the right direction. John Manyike, head of financial education at Old Mutual...
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Medical aids limit medications to cut costs
In the course of writing the following article for the Mail&Guardian I discovered that medical aids are cutting back on the medications they will pay for as part of their chronic cover. Someone for example who is on Lipitor for hypertension may...
10 ways to avoid financial disaster this festive season
The head of consumer education at one of the banks was blowing off some steam earlier this week as she lamented about how people never plan for the festive season. “This is an annual event, we know we will be spending money, this does not come as a...
14 random things you can get fined for
Did you know that if your car gets stuck you can be fined for obstructing traffic, that having a sticker of another country on your car when crossing the border is illegal and using your fog lights on a clear day will cost you R500? The Automobile...
Buy a car or pay off the bond?
“I am 29 years old and I have managed to save R100 000 with which I was planning to buy a new car (cash). However I realised that the car I am using is still in a good condition and is paid up and I can still use it for 2 more years. I have a home...
How to save R150 000 in seven years
"I am 23 years old and I earn R7000 a month. I want know where and how much to save so that I can buy a car worth R150 000 by the time I am 30 years old. I am thinking of buying a house too but I am tired of borrowing a car. At least my parents are...
Would you pay more for a restaurant meal than a Will?
It would appear that some South Africans are prepared to pay a couple of hundred rands for a restaurant meal, yet are not happy to pay an expert the equivalent to draft their Will, a vital document that speaks for you when you are gone. Recent...
Retrenchment benefits increase
Those facing retrenchment or retirement can look forward to better tax breaks from this year, with retrenchment or retirement tax-free payments increasing from R30,000 in a lifetime to R315,000, effective from the 2012 tax year. This is according...
Kicking off a financial plan with a lump sum
“I am ready to formulate a financial plan and want an idea of where I should be investing my money for a real return. Once I have my lump sum should I buy a property, purchase shares in a start-up company that looks very promising or invest in...
How your piggy bank savings can pay for your festive spending
When my husband opened his FNB account at the end of last year he opted for a "Bank Your Change" savings account which is linked to his transactional account. Each time he uses his bank card, the transaction is rounded to the nearest R5 and the...
Previous Articles
Should you save when you have debts to repay?
“I have a total debt if R63 000 with various credit providers. I have thought that I should start saving but not when I am under such debt. I would like to consolidate them but I am wondering with which institution. Is there one that you can recommend?” asks Andrew....
Why your inflation rate is higher than the official CPI
Whenever the inflation figures are released, consumers must wonder what basket of goods StatsSA could possibly be using because one thing is for sure, our cost of living is going up far quicker than the official 5.3%. As an example, just this week we received notice...
Six ways to cut R1000 off your budget
So you think you can't find money to save? Here are six savings tips which could save you over R1 000 a month. Shop online We cut about R500 to R800 a month off our grocery bill by shopping online. This forces you to buy according to your list as it prevents those...
Beware of the insurance rip-off
City Press was recently sent a copy of a loan agreement between a customer and micro-lender Letsatsi Finance. In this agreement Letsatsi Finance lent the customer R8000 and included insurance on the loan at a monthly cost of R320. According to the loan agreement this...
Am I saving enough?
“I am a 31 year old dedicated saver and I have two main savings besides my pension and I want to know if they are the right investments. I've been increasing these savings by 10% each year and putting some into my bond. Do you think this will give me the right returns...
The impact of retirement caps on high earners
In his budget address, Finance Minister Gordhan proposed that from March 2012 all employees will be allowed to deduct up to 22.5% of their taxable income for contribution to retirement funds up to a maximum of R200 000. While this may bring pension and provident fund...
Don’t write-off residential property
The Weekend Argus Personal Finance page carried an article on whether it is better to buy or rent property. This was prompted by research by Henno Vermaak, an analyst at PSG Asset Management, which suggests that you may be better off renting and then investing the...
How do I find the cash to save?
The bottom line is that saving is very difficult – if it was easy our savings rate would be far higher. Every age group has its specific expenses. Someone in their early twenties is most likely paying off student loans, possibly have parents to support and have...
Think twice before making the trade
Investors should perform a pre-mortem on their investment choices, before putting a trade into action. That way, they may find themselves spotting 30 percent more alternatives – avoiding what could prove to be a disastrous investment decision. That is the message from...
The power of compounding interest
"I recently read an article that stated that by investing R500 per month you can save R2.3-million. You said that this is the power of compound interest growth although one has only contributed R60 000, the rest is all growth from the investment itself. Please explain...