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...
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...
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...
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...
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...
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...
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...
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...
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...
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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...
Divorce and pension fund benefits
If you're divorced, or in the process of getting divorced, the issue of pension fund benefits is one you may want to think about. Remember that pension interest forms part of your spouse's assets, so you may be entitled to a claim, depending on your marital regime. I...
Government retail bonds: a great way to save
The National Treasury Department has gone out of its way to get South Africans to save. You can simply walk into your nearest Pick n Pay branch and purchase RSA Retail Savings Bonds – and there are no charges, commissions or costs involved. They can also be purchased...
Five tips on budgeting to avoid debt
Before 2007, we had little protection against unscrupulous lenders who took advantage of those of us ignorant about budgets. If we didn't have healthy spending habits, we were often taken for a ride. But the National Credit Act (NCA) has since put a stop to reckless...
Protect yourself against insurance fraud
With white-collar crime on the rise, you might want to keep an eye on your bank statements and salary slips every month. The life insurance industry and the Association for Savings and Investment South Africa (Asisa) are urging people to be aware of an increase in...
Islamic banking – could it work for you?
When the global financial system was in meltdown not too long ago, the resilience of Islamic banks began to attract attention. Why were these banks able to weather the storm? The suggestion that a banking system is more stable without interest-bearing assets is a...
Couples and money
Couples argue about money more than almost anything else and these conversations are often fraught and unresolved. In fact, it's safe to say you probably have the same conversation with your partner over and over again, with variations. Here are some tips on how to...
What is the cheapest bank account?
It really depends on your needs. Nedbank, Capitec and FNB seem to be the banks offering some of the best products. But you need to understand your banking profile first. Capitec can be cost effective if you do not do a lot of transactions in a month, but when I...
What should be in my financial plan?
Pay off debt: It is always best to pay off high interest debt like your credit card. If you want to use your credit card for convenience set up a debit order so that it is paid in full at the end of every month. Emergency fund: Everyone should have an emergency fund....