In most South African group disability schemes, there is a period—usually 3 to 6 months—between the moment an employee becomes disabled and the moment the insurance benefit actually kicks in. This is the Waiting Period, and it is often the most stressful “episode” in an HR manager’s career. Without a clear Disability Management Policy, this gap becomes a collision of payroll, legal risk, and people management. HR is often left asking: Do we keep paying them? […]
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Six tips to improve your credit rating
Your credit score is a rating that banks and other financial institutions use to determine how much money they can lend you, and at what interest rate. It has a huge impact on your financial health and on your life in general. Home loans, cell phone contracts, car finance… These all hinge on your credit score. Why is a good credit score important? You get access to more credit, and you qualify for better interest rates. […]
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The importance of an emergency fund
As the name indicates, an emergency fund is an investment or bank account that provides funds in the event of an emergency, such as car repairs, temporary unemployment, medical expenses not covered by medical aid, etc. During COVID many people realised just how crucial an emergency fund can be. It is recommended that you have between 3 and 6 months’ net income in the fund. In other words, if your net (after tax) income is R20 […]
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Budgeting
Over many years as financial planners, we have found that many people do not budget. Our guess is the “schlep” factor is a major reason for this. What is a budget? It is a dynamic summary of your net (after tax and other deductions) household income and expenses. If you are living above your means (spending more than you are earning), you are using debt to finance your lifestyle. An important part of budgeting is making […]
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Highlights from the 2024 – 2025 National Budget
In our latest exploration, we delve into the intricacies of the recently unveiled 2024 – 2025 National Budget. Our goal is to demystify the financial jargon and highlight the components that matter most to you. With a keen eye on the government’s financial manoeuvres and their ripple effects on your pocket, let’s dive into what this year’s budget heralds for the individual taxpayer and investor. Government’s Financial Blueprint The Finance Minister’s latest budget presentation was much […]
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February is retirement annuity month.
What is a retirement annuity (RA)? It is a retirement fund that everybody can contribute to. Many taxpayers, especially businessowners make ad-hoc payments to RAs before the end of February to reduce their tax liability. What are the benefits of an RA? You are investing for retirement. Your contributions to it are tax-deductible within certain limits, and the first R550 000 can be withdrawn tax-free at retirement, subject to the Income tax Act.; Investment growth is […]
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Teach your children about financial goals
Preparing your children for their financial future is one of the greatest gifts you can give them. For many parents, talking about money can be an uncomfortable subject and discussing finances with your children can feel both personal and scary, but they need to learn if they are to make wise decisions concerning their own finances. It’s best to start teaching these lessons early on in life, if you think about teaching manners or language, it […]
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Drawing up a Budget – Useful Tips
Nowadays, making a transaction can feel somewhat unreal. Just a swipe and a glance at the number displayed on a digital screen. Whilst this seems easy and practical, it poses a big problem that is too-often overlooked. When we stop dealing with physical coins and notes – a mental disconnect occurs between the digital numbers and what they actually mean to you in terms of how much money you have just spent, and how much you […]
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Common financial mistakes in your thirties
Saving in your thirties becomes increasingly difficult as your financial responsibilities increase. However, sound financial decisions during this phase of life can have profound benefits at a later stage. Here are some common financial mistakes to avoid: The first is failing to draw up a budget. A proper budget is the starting point of all financial discipline and should be physically written down for later reference. Include your partner in this process as it is important […]
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Food costs eating through our pockets
Certain provinces have been struggling to keep up with the skyrocketing cost of food. Current data points to an agriculture industry that is struggling, mainly due to the diminished buying power of the rand and a prolonged drought.November 2015 saw the worst drought in South Africa in 23 years. During this time Stats SA released figures showing three consecutive quarters of steep decline in agricultural activity, forcing South Africa to import maize to make up for […]
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