A recent survey found that middle-class households are cutting back on insurance and medical cover as their budgets come under pressure. However, if you have a family, life insurance is essential to provide for them if something happens to you. If...
Balloon payments are a way for consumers to buy a car they cannot really afford, and the real cost is seldom understood. A balloon or residual payment is a portion of the selling price that is payable at the end of the agreement. A dealership may...
Comparing interest rates is not simple, especially when comparing interest on maturity with annual compounding interest and nominal interest rates. Take for example an advert for a five-year fixed deposit with 13.3% interest on maturity. In this...
A woman asked me recently why she should give her children pocket money as she can afford to buy them what they want – unlike her upbringing where her parents were struggling, and she had to save for the things she wanted. Yet by not giving her...
Last year we had a Money Matters show where we illustrated how you could save R1.1 million within 15 years using your tax-free savings allowance of R2 750 per month. A viewer asked us if it was possible to reach R1.1 million within five years by...
Money Matters viewer Khutang wanted to know whether it is safe to invest in Bitcoin and more generally, where a wannabe investor should be investing. As Khutang is specifically talking about investing, this would not be your emergency funds or...
If you have taken out credit, you mostly likely have a credit life policy linked to that loan for which you are paying a monthly fee. While it has many names such as credit life, credit protection insurance or payment protection insurance, it is...
Money is not gender equal. The facts remain that women earn less than men and carry the greatest load in raising children whilst balancing work and family. On average, women live seven years longer than men, so we need to save more for retirement....
There has been an increase in loan scams as people become financially desperate and see a cheap loan as a way out of a financial crisis. My inbox is flooded each day with companies claiming to offer really cheap loans. Many of these emails are...
The price of municipal electricity increased by around 13-16% which is going to hurt our pockets. Understanding how electricity tariffs work will help you take charge of your spending. If you get your power directly from Eskom you will be charged...
We asked South Africans to share their “crazy ways to save” and we got some great ideas! Nonhlanhla has a debit order into a 32-day notice account where she saves for things she needs like furniture or renovations. She doesn’t touch the money for six months at a time....
As a grandparent you may want to start an investment for your grandchild or help with their education costs. While this is an invaluable gift, you need to consider the tax implications. Donations over R100 000 in any tax year will attract donations tax payable by...
I was recently sitting in a waiting room, flicking through a magazine. They had an advert for a women’s clothing catalog and the prices were shown as monthly installments. For example, one dress was only R57 a month over 12 months or R109 per month if you paid over...
If you are a member of a pension fund or have a retirement annuity, two-thirds of your final retirement amount must be used to purchase a retirement income. You can select between a guaranteed life annuity or a living annuity. What is important to know is that once...
For some people a credit card can be a financial disaster. However, if you are disciplined and pay off your card in full at the end of the month, or pre-pay at the beginning of the month, then a credit card could save on transaction fees. No transaction charges: While...
Have you ever found yourself trying to save money by not buying a takeaway coffee? Or possibly saving the R8 parking fee by finding street parking instead? But then you just end up blowing R1 500 on a designer shirt or R3 000 on a new pair of sneakers? Personal...
A retirement annuity is a great, tax-efficient way to save for your retirement, but they do come with certain rules. Many people investing in retirement annuities are not fully aware of these restrictions. Firstly, you cannot access your retirement annuity until the...
I was recently speaking to a young woman who had just bought her first house. She admitted that she had been caught completely off guard by all the expenses she had to incur. She discovered that buying a house is a lot more expensive than just being able to afford the...
When changing jobs there is always the temptation to cash in your retirement fund and use it to settle your debt. The feeling of not having those debt repayments each month is hugely liberating. But does it make financial sense? Someone posed this question to us. He...
Have you ever wondered how much your debt is actually costing you? It is probably a lot more than you realise by the time you have included all the interest and fees payable. If you borrow for less than six months, the microlender can charge up to 5% interest a month,...