There is no doubt that 2016 is going to be tough on households financially as price increases across the board push up our day-to-day living expenses. At the same time it is unlikely that we will see salary increases keeping up with our rising...
The rising cost of education
A recent study by Sanlam done amongst mothers with children aged between 3 and 15 shows that some parents go as far as holding down two jobs to put their children through private schooling, which they perceive to be the best legacy they can give...
The impact of tax increases on your R1000
By Ricardo Teixeira, COO of BDO Wealth Advisers With South Africa precariously placed on the cusp of a credit rating downgrade, being able to demonstrate to the global credit rating agencies that ‘SA Incorporated’ is solvent and growing has been a...
Attractive interest rates for medium-term savings
RSA Retail Savings Bonds are an attractive option for savers. For those who are looking to save for the medium term and don’t plan on touching the money for at least two years, the RSA Retail Savings Bond, offered by National Treasury, is an...
Is cash appropriate for tax-free savings?
Hlakanyane asks: I am a 52-year-old man and currently contributing R2 500 per month in a tax-free savings account with a bank. This is invested in cash and standing at R15 000 thus far. Is it better to leave it in the bank, to invest with an...
Saving for your child’s education
The recent student protests have highlighted the high cost of tertiary education. For many, the cost of registration alone is enough to shut the door of opportunity. The South African Institution of Race Relations has reported that only 5% of South...
How to manage savings as a contract worker
Evans writes: I am 30 years old and work as a contract worker, which means my salary is not fixed and ranges from zero some months to R8 000 in other months. I currently contribute R750 a month towards my retirement annuity and I also contribute...
Teach your child to save
What's your child's money personality? Natural saver or spender? In episode 13 of the Change in your Pocket series, we give you tips on how to teach your child to save. http://www.youtube.com/watch?v=tpp9L7_Q_JU&feature=youtu.be – Video supplied by...
Turning a 21st birthday into a legacy
Johanna writes: My daughter is turning 21 and she has asked that instead of organising a party for her she would love to invest the money for herself. What is the best investment to consider as currently we have unit trusts and a share account with...
Emergency fund: your defence against financial slaughter
Debt is the only option if you don’t have an emergency fund. I have just had one of those months where I’m wondering which of my ancestors or gods I’ve offended. You know those months were anything and everything seems to go wrong and all of it...
Previous Articles
Setting up an emergency fund
Watch Episode 3 of the Change In your Pocket series for advice on setting up an emergency fund. https://youtu.be/zreJg6744II – Video supplied by BrightRock Welcome to The Change Exchange, where we're helping you find ways to make the most of out of your paycheque. The...
A trick to start you saving
If you've been putting off opening a tax-free savings account, here's a trick to help you get going. Last week I completed the herculean task of opening tax-free savings accounts for my kids and myself. I have had the forms ready to fill out since April, but they just...
Savings: it’s about a change in mindset
Open up your bank statement and calculate how much of your monthly salary goes to repaying debt. Imagine if, apart from your mortgage, you had no debt repayments – think of all that money now available for savings. The reality is that we have already spent our future...
Tax-free savings accounts are not ideal for an education fund
Using your child’s tax-free savings account is not necessarily the best vehicle for their education fund. Since the launch of the tax-free savings accounts (TFSAs) there have been suggestions that this would be an ideal way to save for your child’s education. But is...
The cost of bad habits
People often argue that the reason they don’t have any savings, or why they cannot pay off their debts, is because they simply don’t have enough money. Yet little do we realise how much our bad habits are really costing us. The real cost of smoking If you smoke a pack...
Big corporate salaries don’t make you rich
While many professional women earn impressive salaries and contribute towards corporate pension requirements, Citadel Advisory Partner Kirsten Smit says that it's important to build wealth outside your job. Many women believe they can only become as wealthy as their...
Do household savings really impact SA’s economic growth?
According to the National Development Plan (NDP), the South African economy needs to grow by 5.4% or more to create enough jobs to redress inequality and resolve the country's stubbornly high unemployment rate. In order to reach and sustain this target, South Africa...
How to cut your fuel bill
The fuel price increase on 1 April was unfortunately no April Fool’s joke. Motorists are now paying an extra R1.62 per litre of petrol, which means that if you fill up your 50-litre tank twice a month, you're now spending an additional R160 per month on fuel. It is...
Should you use tax-free savings accounts for retirement?
South Africans are now able to invest up to R30 000 a year in tax-free savings accounts (TFSAs). The aim of these savings accounts is to encourage South Africans to save for medium-term goals and emergency funding, reducing our reliance on debt and the temptation to...
Tax-free savings options
Companies have been racing to capitalise on the tax-free savings accounts. We sum up what products have come to market so far. Financial product providers have by and large brought out two types of tax-free savings accounts (TFSAs): a basic bank savings account which...