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...
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...
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...
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...
How to calculate if you are on track for retirement
The Crawford Measure has been created by Dave Crawford, a financial educator. It is a simple spreadsheet that helps to calculate whether or not your retirement savings are adequate. It starts with your current living standard and then compares that...
The difference between a money-market and unit trust account
“What's the difference between a money market account and a unit-trust money-market account?” asks Roderick Maya replies: A money-market account offered by a bank is simply a bank account with a more aggressive interest rate. It's an investment...
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...
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...
Can you live without debt?
I was recently asked whether or not it was possible for a family of four to live without short-term debt. I think the question needs to be reversed. We need to be asking why we believe we need debt in order to live. According to the Old Mutual...
The one-hour budget
What a budget really means is spending less than you earn and saving the balance. Most of us think we know the state of our finances, but right now can you say exactly how much do you spend each month? But it would take less than an hour to draw up...
Previous Articles
Five mistakes to avoid when saving for retirement
The average retiree will have generated savings that will purchase a pension of only 30% of the salary they were earning before retirement. It's a gloomy statistic, suggesting that we're either not well informed, are not getting the right advice or are still doing...
What do rich people know that we don’t?
South Africa is one of Africa's richest nations and we are seeing an increase in wealthy families. These families generally have one aim in mind – to grow wealth and, where possible, pass it on to future generations. Leaving a legacy is something we'd all like to do...
Calculate how much energy your electricity appliances use
Knowing exactly how much electricity you use is essential if you are going to introduce an effective power saving campaign at home and save money. Your electricity bill will give you the details on what your tariff is. According to De Wet Zwarts of Solar...
How to reduce your monthly car expenses
South African consumers may be buying cars with alacrity, but the cost of running a car isn’t insignificant. With this in mind, Chris de Kock, executive head of sales and marketing at WesBank, has come up with some tips to help us all save on our monthly car expenses....
Where do I save for my children?
Bank account: All the banks offer account for children but it depends what you are trying to achieve. If you want to give your teenager a bank account to teach them how to manage their money, these accounts are good options. Alternatively open an account with Capitec...
How do I start a savings club?
Savings clubs are very popular ways to save because they form a social contract between friends which helps create the discipline to save every month. Also when you are pooling your resources you are able to make a more significant investment. Why are you saving? When...
The lowdown on ‘deal of the day’ websites
Everyone loves a good deal or a discount. If you haven't already discovered sites like Zappon, Groupon, What-a-Deal, UbuntuDeal, Wicount or Twangoo (and there are more), you're missing out on some savings. You do need a credit card – though apparently bank transfer...
Want to sort out savings? Get rid of FICA
hile National Treasury bemoans our low savings rates and looks at ways to encourage savings, it should first look in its own back yard. In South Africa’s desperate attempt not to look “third world”, our financial authorities have burdened the formal financial sector...
Seven must-read fuel-saving tips
The Department of Energy's fuel-efficiency tips might just save you quite a bit each month. Close your windows when you drive. An open window creates drag, which increases fuel consumption by as much as 20%. Multigrade oil reduces drag, so consider a switch. If you...
Making strides in shariah-compliant investing
You don't need to be Muslim to invest in shariah-compliant investment products – as the credit-crunch and fall-out showed, Islamic banking and investment products fared well by avoiding interest-bearing assets and securities, focusing on commodities and...