Saving money is an essential skill that can bring peace of mind and help you achieve your goals. July is #SavingsMonth and in this blog post, we will explore the importance of savings and provide you with practical tips to make saving a habit. So, let's dive in and discover how you can make the most of Savings Month this July!

Savings play a crucial role in our lives, providing a safety net during unexpected emergencies and allowing us to pursue our dreams. Here are a few key reasons why savings matter:

1. So you’re prepared for an emergency

Life is full of surprises, and having an emergency fund can help you handle unexpected expenses without going into debt. Aim to save at least three to six months' worth of living expenses to provide yourself with a financial cushion.

2. For financial independence

Saving money gives you the freedom to make choices that align with your long-term goals. Whether starting your own business, buying a home, or retiring comfortably, savings provide the foundation for financial independence.

Practical tips to save money:

Making ends meet at the currently is tough. South Africa is experiencing very high inflation at the moment and so it might feel like it’s getting harder and harder to save right now. We have some tips to help you cut your expenses and plan for your savings to set you on the right path.

• First set clear goals: Determine what you are saving for—, a deposit on a house, or a new car, a much needed holiday or your child’s wedding. Having specific goals will motivate you to save consistently. Plus having a plan for how much you need to save each month to achieve your goals will help keep you on track.
• Create a Budget: If you track your income and expenses you can identify areas where you can cut back. Make a budget that allows for saving a certain percentage of your income each month.
• Cut out unnecessary expenses: Identify non-essential items or services you can eliminate or reduce. Making small sacrifices on the things you want but don’t need can add to significant savings. Look at things like take-aways or eating out less often, cancelling unused subscriptions and reducing shopping for luxury items.
• Shop around: each week it seems like your grocery bill is going up just like petrol and the price of electricity. So it really pays to shop around for the best price for groceries but also larger items. Look out for sales and discounts to save on your essentials.
• Automate your savings: Set up an automatic transfer from your current account to a savings account. This way, you won't have to remember to save; it will happen effortlessly each month.
• Track your progress: Regularly monitor your savings growth to stay motivated. Celebrate milestones along the way and reward yourself (within reason) when you reach specific savings goals.
• Seek expert advice: Consult a financial adviser who can provide personalised guidance and help you make informed decisions about saving and investing your money.

July is the perfect opportunity to kick-start your savings journey. By making savings a priority, you can take control of your financial future and achieve the peace of mind that comes with financial stability. Remember, every small step you take towards saving counts and brings you closer to your goals. Embrace the savings mindset this July and enjoy the satisfaction that comes with building a brighter financial future. Happy Savings Month!

July marks National Savings Month when we are encouraged to prioritise our financial well-being by focusing on our savings. Saving may initially seem daunting, but it is the key to transforming your aspirations into reality. Whether it's purchasing a car, funding your child's education, or securing a comfortable retirement, saving is the bridge that connects our dreams with tangible outcomes. Let's explore some practical steps to help you start your saving journey.

To start on your saving journey, begin by clearly defining your goals. Consider the four main types of savings goals: emergencies, short-term, medium-term, and long-term goals. Emergency savings are a safety net for unexpected costs, such as a broken geyser, a damaged cellphon or car repairs. Short-term goals include saving for smaller purchases which might be things like a new pair of sneakers or a holiday. Medium-term goals involve saving for larger goals or items like a child’s tertiary education, or making home improvements, such as adding an extra room. Lastly, long-term goals focus on preparing for a comfortable retirement.

By categorising your goals, you can allocate your resources effectively making sure you are contributing to each category on a regular basis in line with the timeline of that goal. For example for medium-term goals you can save a little each month over a longer period, while for retirement savings you should contribute a set amount each month for the duration of your working career.

Use this handy tool to help you simplify the savings process, it helps you see where to start and how much you should be contributing to your goals. Take advantage of financial calculators and budgeting apps that can assist in tracking your progress and projecting future savings. These tools provide valuable insights and remind you to stay committed to your goals.

To keep the momentum going, you can create a dedicated savings account. This separation helps you avoid the temptation to dip into your savings for everyday expenses.

Always remember that consistency is key. Make saving regularly a habit. Saving money each month consistently will add up, no matter how small the amount.

National Savings Month is a reminder that saving is essential and achievable, regardless of your starting point. You can unlock a brighter future with a clear vision of your goals, a well-crafted savings plan, and the determination to make small financial sacrifices. Start your saving journey, and this  #SavingsMonth, take the first step toward a prosperous future by embracing the power of saving. You can also seek professional advice from a registered financial planner to help you maximise your savings.

Retirement may seem like a distant dream when you’re young and first start working but the truth is that it’s never too early to start planning for your golden years. Whether you're just starting out in your career or still in college, putting away even small amounts of money now can make a big difference down the road. So why wait? In this post, we’ll explore why it's important to start saving for retirement early and share some tips on how to get started.

Saving for retirement is one of the smartest things you can do for yourself and your future. Not only will you have the peace of mind of knowing that you have saved for a comfortable retirement, but you will also enjoy significant benefits along the way.

Common mistakes to avoid when saving for retirement

1. Not starting early enough: One of the biggest mistakes people make when it comes to saving for retirement is not starting as soon as you start earning. The sooner you start saving, the more time your money has to grow as retirement plans use compound growth to grow your investment over a long period. Even if you start with a small amount each month, it's important to start as early as possible.
2. Not saving enough: Another common mistake is not saving enough money each month. If you want to have a comfortable retirement, you need to make sure you're putting away enough money each month. A financial adviser can help you calculate how much you should be saving to meet your needs in retirement. It is also important to increase your contributions as your income increases and to match inflation.
3. Not reviewing your retirement plan regularly: Once you have a retirement plan in place, it's important to review it on a regular basis. As your life changes, your retirement plan may need to be adjusted accordingly. Make sure you're staying on track by reviewing your plan regularly and making any necessary changes.
4. Not preserving your retirement savings when changing jobs: many people are tempted to withdraw their retirement savings when they change jobs but this is a mistake that could leave you short of funds in retirement. Plus if you withdraw your savings early you may face penalties and taxes. Rather than withdraw it you should shift it into a preservation fund to protect your savings until you retire.

Saving for retirement may seem daunting but read up on the different types of retirement investments and consult with a financial adviser to make informed decisions about an option which will suit your needs.

By starting early, you can ensure that your retirement savings are benefiting from compound growth over a longer period.  So don't put off saving for your future – start as early as possible to give yourself more options when it comes time to retire.

Retirement is something that we all look forward to, but it can also be a source of stress and worry. During tough times it's easy to feel like saving for retirement is impossible. With the recent interest rate increase, many people are tightening their belts and cutting back on expenses, with many people cutting their retirement savings contributions. This may be tempting but saving for your retirement isn’t a want it’s a need.

Saving for retirement is a long-term goal that requires consistent investments over a long period to ensure you have enough money to live comfortably during your retirement. But we can help! Here are some steps you can take to ensure that you're still on track, even during tough times.

Get advice: Seeking advice from a financial adviser can help you make informed decisions about your retirement needs. A registered financial adviser can help you adjust your retirement contributions to ensure you are still saving within your means during these tough times.

Saving for retirement is important and through the guidance of a financial planner having a plan, diversifying your investments, and exploring other options before stopping your retirement savings, you can ensure that you're on track to achieve your retirement goals

Make a plan: Just like any other savings or investment it's important to have a plan. During tough times you should try and preserve your retirement contributions and consider cutting other expenses.

Once you know how much you need for retirement you can create a budget that includes retirement savings as a priority expense and makes allowances for all your needs. This is the place to identify expenses you can cut down on if you need to make savings.

Finally remember even if you can only afford to save a small amount each month, it's better than nothing, and it will add up over time.

 Don't let economic challenges and tight budgets hold you back from securing your financial future!

 At WageWise, our aim is to help you better understand your finances and the options you have when it comes to managing your money.

This month, we explore the topic of insurance and why you need it.

Insurance is an important way for you to protect your life for when things go wrong. We all face risks and emergencies in our lives – whether it’s linked to our health, our jobs, or our personal belongings like our home or car. Having insurance is a reliable way to manage these risks because it gives you peace of mind financially.

There are two types of insurance you can get, which are grouped based on time.

1. Short-term insurance

This insurance is usually taken for a specific or ‘short’ period of time and may be temporary based on your needs. This insurance usually covers possessions. For example, you may take out vehicle insurance in case you have a car accident, or household insurance in case something in your home gets damaged or there’s a break-in, and insurance for belongings such as cellphones, and laptops. 

2. Long-term insurance

This insurance covers life-changing events to help provide you with an income in the longer term. This insurance usually covers people. For example, you may take out a funeral policy to cover the costs of the funeral if there is a death in the family, or a life policy to help provide for the policy holder’s remaining family members when he/she dies. 

We know that from time to time we may experience financial difficulty and you may feel like the answer is to cut back on some of your insurance payments. It’s not.

The way insurance works is that you enter into a contract with an insurance company where you make regular payments (called ‘premiums’) to the insurer. If you make a claim, your insurer pays out for the loss that is covered under your policy. BUT this can be declined if the policy is not paid up – so even if you miss just one payment, you can risk not being compensated or paid out when you really need to be.

 What if you can’t pay right now?

If you are having difficulty paying your insurance premiums, it’s important to know that you have options.

Contact your insurance provider or financial adviser who can help you – they may be able to restructure or lower your cover and reduce your monthly premium, don’t make any rushed decision or allow your premium debit orders to bounce without talking to your insurance provider. 

Want to learn more about insurance? Watch this video to find out why insurance is helpful in protecting you and your belongings when something goes wrong.

An important part of managing your money is ensuring that you plan for the risks that you may encounter in life by taking out insurance. There are 2 types of insurance: short, and long-term insurance that cover losses like car accidents, house robbery, retrenchment, disability and death.

When you take our insurance you will receive an insurance policy, which is a document that outlines the terms and conditions of the contract between you and the insurance company.

Insurance policies are often full of jargon which make them difficult to understand. In this article we will explain what many of these terms mean to help you understand your policy and cover better.   

Life insurance terms:

• Waiting period: this is the time period you must wait before some or all of your insurance cover comes into effect. During this time your policy will be active and you will be expected to pay premiums but you may not claim for specific things.
• Beneficiaries: for insurance like life policy or a funeral policy you must choose a list of beneficiaries. A beneficiary is the person or people who will receive a pay out in the event of your death. Beneficiaries are normally a spouse, children, families or even a charitable organisation. It’s important to keep your beneficiary contact details updated with your insurer to ensure they can contact them to arrange their pay out in the event of your death.  
• Exclusions: an exclusion is a provision in your insurance policy that excludes coverage for certain acts, property, types of damage or locations. This means things that are not covered by insurance and you won’t be able to claim for their loss. Examples of exclusions for life and disability insurance may include death by suicide, dangerous activities or illegal activities. You can read more about life insurance exclusions here.  
• Disclosure: when taking out insurance it is your duty to provide your insurer with any information that is relevant to your insurance contract. You must never withhold important information as this could mean that your claims are not paid. Examples not disclosing a health condition to your medical aid.
• Policy lapsing: an insurance policy lapses when one of the parties doesn’t fulfil their obligations. Typically, this happens when you don’t pay your insurance premiums and as a result you are no longer covered and can’t enjoy the benefits of the policy.

For short-term insurance there are specific terms that are important to understand:

• Premium: the monthly fee for your insurance coverage if you fail to pay your premiums your coverage could lapse.
• Claim: an insurance claim is a request by a policyholder for coverage or compensation for a loss.
• Excess: the amount you have to pay towards the overall cost of an insurance claim. It's usually a pre-agreed amount listed in your insurance policy. Your insurer will then contribute the rest up to the limit of the cover.
• Commission: a fee (calculated according to a percentage of the premium) that an insurance company pays an agent in exchange for attracting new clients.

Because insurance policies are complicated and often lengthy documents you should take your time reading through the documents. If you are unsure about anything in the policy, ask for a detailed explanation and never sign a contract if you don’t understand it. To read more about insurance click here.  

Money is a crucial part of our lives, and how we manage it can have a significant impact on our future. Financial planning is the process of creating a roadmap to help you achieve your financial goals, both short-term and long-term.

Why is Financial Planning Important?

Financial planning is essential for several reasons. Firstly, it helps you understand your current financial situation and identify areas where you can improve. For example, if you're spending too much money on unnecessary expenses, financial planning can help you cut back and redirect that money towards more important things.

Financial planning allows you to set goals and create a plan to achieve them. Whether you're saving for a deposit on a house, planning for retirement, or paying off debt, having a financial plan can help you stay focused and on track.

Planning your finances can help you prepare for unexpected events such as job loss, illness, or a global pandemic. By creating an emergency fund and having a plan in place, you can weather financial storms without derailing your long-term goals.

How to Get Started with Financial Planning?

The first step in financial planning is to evaluate your current financial situation. This includes taking a close look at your income, expenses, assets, and debts. It's important to be honest and accurate when assessing your finances, as this will form the foundation of your financial plan.

Next, identify your financial goals. Do you want to pay off debt, save for a house, or invest for retirement? Be specific and set measurable goals that you can track over time.

Once you have identified your goals, it's time to develop a plan to achieve them. This may involve creating a budget, reducing expenses, increasing your income, or investing in the stock market. Your plan should be tailored to your specific goals and financial situation.

Finally, regularly review and adjust your financial plan as needed. Life is unpredictable, and your financial goals may change over time. By regularly revisiting your plan, you can ensure that you're staying on track and making progress towards your goals.

Benefits of Having a Financial Plan

Having a financial plan offers several benefits. Firstly, it can help reduce financial stress and anxiety by providing a clear roadmap to follow. When you have a plan in place, you're less likely to worry about money and more likely to feel confident and in control of your finances.

Financial planning is an essential part of achieving your financial goals and securing your future. By evaluating your current financial situation, identifying your goals, and creating a plan to achieve them, you can reduce stress, save money, and prepare for the unexpected. So, start planning your money today, and plant the seeds for a secure and prosperous future.

Investing can be a great way to build long-term wealth and achieve financial goals. However, there are also some common misconceptions about investing that can trip up beginners. Let’s explore some investing tips and debunk some common myths.

Tip #1: Start early

One of the most important investing tips is to start early. The power of compounding means that even small investments made early on can grow significantly over time. The earlier you start, the better.

Tip #2: Seek advice from registered financial planners or institutions

Investing can be complex, and it's easy to get overwhelmed by the sheer amount of information available. That's why it's important to seek advice from registered financial planners or reputable financial institutions. These professionals have the expertise and experience to help you navigate the investing landscape and make informed decisions.

A financial planner can help you create a personalised investment plan based on your goals, risk tolerance, and other factors. Reputable financial institutions, such as banks or investment firms, can offer a range of investment options and services, from savings accounts to mutual funds. They can also provide educational resources and tools to help you make informed investment decisions. By seeking advice from registered financial planners or reputable financial institutions, you can invest with confidence and maximise your chances of achieving your financial goals.

Tip #3: Avoid high-return investment scams

One common mistake that inexperienced investors make is falling for high-return investment scams. In almost every case, these scams promise easy, fast, and reliable profits with little or no risk. Pyramid schemes and other investment frauds prey on people looking for a quick way to make money.

Beware of people who promise you unusually high returns. If you are considering investing money, it is always a good idea to research and seek advice from trusted sources such as registered financial planners or institutions. If something seems too good to be true, it probably is.

Myth #1: You need a lot of money to start investing

One common misconception is that you need a lot of money to start investing when in reality, you can start small and gradually increase your investments over time as your income grows.

Myth #2: Investing is only for the wealthy

Another misconception is that investing is only for the wealthy. While it's true that having more money to invest can lead to greater returns, anyone can start investing.

Investing can be a great way to build wealth over the long term. By debunking some common investing myths, you can feel confident in your ability to achieve your financial goals.

Tracking your expenses is an important part of financial management. It allows you to understand where your money is going and helps you make better decisions regarding your spending. It doesn't matter if you are trying to save money, pay off debt, or want a better understanding of your finances; tracking your expenses is an essential step.

Here are some tips to help you keep track of your expenses:

1. Use a budget

Keeping an updated budget is one of the easiest ways to track your expenses. Many apps can help you track your spending, or you can use a spreadsheet template and update it each time you purchase or receive income.

2. Keep receipts and records

It's essential to keep all your receipts and expense records, including slips, bank statements, and account statements. These documents will help you check the exact amounts you spent.

3. Categorise your expenses

Categorising your expenses is an important step in understanding your spending habits. You can create housing, transportation, food, and entertainment categories. This will allow you to see how much you spend in each category and identify areas where you can cut back.

4. Review your expenses regularly

Reviewing your expenses regularly is important to ensure you're on track with your budget. You can check your expenses weekly, bi-weekly, or monthly, depending on your preference. This will help you stay accountable and make adjustments if needed.

5. Set financial goals

Setting financial goals is an excellent way to stay motivated and focused on your financial management. You can set goals such as paying off debt, saving for a holiday or building an emergency fund. Keeping track of your expenses will help you determine how much you can allocate towards your goals and help you track your progress. 

Keep the savings momentum and track your expenses to identify areas where you're overspending and make adjustments to improve your financial situation. By using a budget, recording, categorising your expenses, reviewing your expenses regularly, and setting financial goals, you can take control of your finances and achieve your financial goals.

Credit can be a valuable tool for achieving your financial goals, but it can also quickly become a trap that leads to stress, anxiety, and even financial ruin. If you're not careful, debt can quickly spiral out of control, leaving you struggling to keep up with payments and sinking deeper into debt. In this article, we'll discuss some tips on how to avoid the debt trap and stay financially healthy.

1. Create a budget and stick to it!

The first step to avoiding the debt trap is to create a budget and stick to it. A budget helps you keep track of your income and expenses, so you can see where your money is going and make adjustments as needed. Be realistic about your budget and ensure it includes all your costs, including rent, food, transportation, and any debt payments you must make. Once you have a budget in place, make sure you stick to it to avoid overspending.

2. Live within your means

One of the main reasons people fall into the debt trap is that they live beyond their means. It's important to be realistic about what you can afford and live within your means. This means avoiding expensive purchases you can't afford, such as getting new sneakers or the latest cellphone. Instead, focus on saving money and living within your means. Look for ways to cut back on your expenses, such as cooking at home instead of eating out or finding cheaper ways to entertain yourself.

3. Build an emergency fund

Unexpected expenses can quickly derail your finances and lead to debt, so building an emergency fund is crucial. An emergency fund is a savings account to cover unexpected costs, such as car repairs or medical bills. Your emergency fund should be enough to cover three to six months of living expenses.

4. Pay off your debt

If you already have debt, the best way to avoid the debt trap is to pay it off as quickly as possible. Write down the list of all the companies and people you owe and the total amount owed. Start by paying off the debt with the highest interest rate first, then move on to the next highest interest rate.

5. Avoid taking on new debt

Finally, to avoid the debt trap, the key is avoiding new debt. This means resisting the urge to use credit cards to finance purchases you can't afford or taking out loans you don't need just because you qualify. If you need to borrow money, ensure you do so responsibly and only borrow what you can afford to pay back.

These tips can help you avoid the debt trap and stay financially healthy. Remember to create a budget, live within your means, build an emergency fund, pay off your debt, and avoid taking on new debt. Establishing healthy financial habits will keep you in check, and you can achieve your financial goals and get a step closer to financial freedom.

It’s a new year and many people take the opportunity to set goals for the year. It's also a great time to plan for the year ahead. So naturally it’s a good time to get your finances in order. But where to start you ask? We’ve put together a short list of four simple things you can do to start off on a good footing this year.

1. Draft a budget: The first step in any financial planning process is to draw up a budget. Set a budget that includes all your expenses and income. When drafting a budget make provision for your debt repayments, savings and investments too. Read more about budgeting
2. Review your debt: using credit can really drain your finances, with the interest charged you often end up paying more than you should. So its important to try and reduce your debt as quickly as possible. Start by listing all the debt that you have including to family, friends, credit cards, store cards, personal loans, home loans and even car finance. Once you have a picture of how much you owe you can see how you can start to pay it off. The best way to start is by paying more than the minimum amount required. You should also start by paying off the debt with the highest interest rate first. Find out more about credit management
3. Make 2023 the year of investing: you probably have a host of goals and dreams you want to achieve. Maybe you want to pay for your child’s university education or buy a house or travel abroad once you retire. The best way to achieve these goals isn’t by saving but rather by investing. Investing involves putting some of your money into stocks, unit trusts or other investment vehicles to grow it over the long-term. Consult a financial planner for help on choosing the right investment funds.
4. Planning for retirement: planning for your retirement may seem boring or even something you can put off until you are older but if you want to live comfortably in your old age it is best to plan ahead. Pension funds, provident funds and retirement annuities all perform best the longer you invest in them. So, make retirement planning a key goal this year, learn more about your options

Are you inspired to make your dreams a reality in 2023? Most of your goals will probably need some financial resources to make them a reality. We’ve got some ideas to help you achieve your money goals this year.

1. Set your goals: first up you have to decide on what your goals are, whether that is to take a holiday in December 2023, build a new office so you can work from home or buy a Smart TV.
2. Categorise your goals: you should categorise your goals into whether they are for short-term goals, medium-term of long-term goals.
3. Work out what they cost: next up you need to calculate what each of your goals will cost. This is an important step as it will inform our savings plan.
4. Create a savings plan: the final step is to create a savings plan. This involves working out how much you can save each month and how long it will take you to save for your goals. Use this handy template to get started.
5. Look for ways to free up money: once you have your goals and savings plan set you can find ways to save more money to help you reach your goals quicker. Maybe you can cut-back on non-essential expenses like takeaways for lunch or maybe you have a hobby that you can turn into a side-hustle?
6. Open a savings account: once you have a savings plan you should open a savings account. If the money is in a separate account it makes it harder to spend it. You can also set up a debit order so that the amount you want to save automatically goes into savings each month.

Read more about how to reach your saving goals here.

Jan-u-worry is always a tough month, many people find there is lots more month than money. We have put together 15 top tips for managing on a tight budget.

1. Do a budget: January is often a tricky month with big expenses combined with limited income as you recover from bigger expenses during December. Set a budget that includes all your expenses and income and then you need to stick to it.
2. Cut your grocery bill: a quick way to reduce cost is to reduce your grocery bill, make a list and stick to it and remove any luxury items like fizzy drinks and snacks. This month you can think about eating more legumes, beans, lentils, eggs and less meat.
3. Compare prices: a good way to save is to compare costs on items that you need. So, shop around and look out for specials, discounts and bulk deals.
4. Take advantage of discounted fresh produce: most stores discount prices on items that have reached their sell-by dates. Shop from 2pm to take advantage of these deals.
5. Do you need specific cleaning products: go back to basics and use trusted bicarbonate of soda, vinegar and lemon juice. These are effective cleaners that are much more affordable.
6. Ditch the brand names: cut your grocery bill buy opting for no-name brands, they are generally cheaper and often taste just as good.
7. Review your car insurance costs: Ask your insurer to review your premium, it should come down as your car depreciates in value.
8. Review your home insurance costs: Check your inventory, you may be insured for items you no longer own or are broken. This can bring down your monthly premium.
9. Review your bank statements: you might find subscriptions for services you don’t need or use any longer.
10. Check your bank fees: are you paying high fees for bank services or facilities you don’t need? Ask your bank about more affordable bank account options.
11. Transport is a big cost: cut costs by carpooling and limiting how many trips you make and also driving more conservatively to reduce your petrol costs.
12. Get a piggy bank: you’ll be surprised by how much you can save when you collect all your small change.
13. Cut back on lunch at work: By taking homemade lunch to work you can make big savings.
14. Reduce your electricity bill: To do this you can switch off your geyser during the day, change your lightbulbs to LED or CFLS, unplug appliances when not in use and take a shower rather than bath.
15. Quit smoking and reduce your alcohol consumption: smoking and alcohol are costly, cut down or even quit to save money.

If you are working, then you are probably called on frequently to provide financial support to family and friends. This can be really tough. Money is tight for most people and if you have kids plus parents and siblings you may be sandwiched between two sets of dependents.

Here we have some tips to give graciously and within your means.

1. Decide how much you can afford to loan or give to family without putting yourself in financial risk.
2. Make sure that you are clear if you are giving the money as a gift or a loan.
3. Share with your friends and family the financial commitments you have, so they understand your context and you can manage their expectations.
4. Don’t just give money, help to cultivate healthy money habits in your family so they can manage their money better. You can start by sharing the WageWise website with them or invite them to follow our Facebook page.
5. If you aren’t able to help give a firm no and don’t feel pressured to provide a reason why.
6. Cut your own costs as much as possible. Learn to do more with less and be a positive role model to family and friends.

#Dezemba is always a fun time of year. Many people are on leave and celebrating the holidays and the festive season with parties and gifts. But it is also a time that many people forget about their budgets and can overspend.

Here we have some easy tips to help you stay on budget, control your spending and make sure you can avoid the dreaded Jan-u-worry.  

1. Draw up a Dezemba budget: December is different, it’s the festive season and you may be on leave or travelling, this all means different expenses to a typical month. You may want to celebrate with your family or maybe you want to buy gifts for your loved ones. That’s why you should draw up a budget just for December that takes into account these unusual expenses. Once you have your budget in place you can spend freely and without guilt. Read about how to do a budget here.
2. Focus on your #Savingsgoals: December is a good time to remind yourself of your savings goals. Maybe you’re saving for a new car, you don’t want to derail your plans by overspending during Dezemba. Read more about savings here. 
3. Don’t use your savings: You’ve been working hard all year and diligently saving. Don’t undo all that hard work by dipping into your savings to foot the bill for the festive season celebrations. If you can’t afford an item don’t buy it.
4. Use credit wisely: It can be tempting to use credit to fund the Christmas festivities, but this can be more expensive as the bank charges you interest. Plus you will have a big bill to worry about in Jan-u-worry. Only use credit if you can afford it and if you plan to pay it off immediately. Read about how to manage your credit here. 
5. Plan for how to use your bonus: Many people don’t have a plan and then spend their bonus and have nothing to show for it. Avoid that by planning how you spend it. Focus on paying off your debt, contributing to your savings. Once you have done that you can spend a little on yourself or your family. Find out budget templates here. 
6. Think about Jan-u-worry: January can be expensive, and many people have overspent, leaving little for the essentials. Avoid that trap by setting aside money in December for essentials like groceries, rent, transport and school fees that you will need in January. You can also buy things like school uniforms and stationery in December before you splurge on things you want. Read more about budgeting here. 

#BlackFriday is always the last Friday in November and follows straight after Thanksgiving, an American holiday. Historically Black Friday is the start of the Christmas shopping season in America, with retailers kicking off the festive season with sales and specials. In recent years Black Friday has come to South Africa and now every November you can expect to see lots of big sales, discounts and specials at all the major retailers and your favourite brands.

With so many crazy specials and discounts it’s easy to get caught up in the hype and spend more than you intend to. That’s why we have come up with some easy tips to help you stay on budget, control your spending and avoid dipping into your savings for unnecessary purchases.

1. Avoid the shops

The easiest way not to spend any money is to avoid the shops altogether. That way you won’t be tempted with the massive savings and discounts. If you enjoy online shopping you should consider a digital detox, where you put your phone and devices away for the weekend so you aren’t tempted by the online sales.

2. Make a list

If you do need specific items, it is a good idea to take advantage of the specials on Black Friday. If you need a new laptop or even toilet paper, it is far easier to stick to your budget when you are only looking for specific items. By making a list you can also ensure that you are only buying things that you need, rather than splurging on things you want. Read more about budgeting here.

3. Shop for the festive season

Christmas and the festive season are just around the corner. Maybe you need to get gifts for your in-laws or a new tablecloth for your Christmas celebration. This is a good time to buy these items and make a saving. But as always set a budget for how much you can spend and only buy items that you really need.

4. Save don’t splurge

Although all the retailers and brands tell you that Black Friday is all about saving, it’s about drawing you to the shops to spend money! And with all the hype it’s easy to lose track and spend more than you intended. The best way to avoid that is by putting your salary straight into savings. Once it’s in your savings account it’s much harder to touch it. So, use Black Friday to truly save this year! Read more about how to put together a savings plan, here.

5. Watch out for scams!

Specials are meant to be tempting, encouraging you to buy the item immediately! But if you are making a purchase, take your time to review the original cost and the discount. Many stores will increase the cost of an item in the lead up to Black Friday and then ‘discount’ it, to the original price. So do you research before you commit to buying anything.

We know you have been working hard this year to #GetWageWise, don’t let Black Friday derail your plans and prevent you from achieving your saving goals.

Black Friday is suddenly a thing in South Africa. Black Friday originated in America, and it normally signals the start of the holiday season with massive savings and discounts from big retailers and brands.

It’s easy to get caught up and spend more than you planned, so we have some ideas to help you stick to your savings plan.

1. Set a budget: review your finances to work out how much money you can afford to spend on Black Friday. We recommend only buying items you need, this way you are making a saving as your purchasing something that you already planned to purchase. Read about how to do a budget
2. Only use cash: a clever way to make sure you stick to your allocated budget is it use cash. Withdraw the exact amount that you have budgeted for Black Friday specials and only spend that.
3. Remember your savings goals: if you are easily tempted by sales, it’s a good idea to review your savings plan and remind yourself of your savings goals. Maybe you’re saving for a family holiday, you don’t want to derail your plans but overspending on #BlackFriday. Read more about savings
4. Don’t use your savings: If you’ve been focused on your savings goal and working hard all year by sticking to your budget, only spending on your needs and setting aside savings every month, don’t undo all that hard work by dipping into your savings on Black Friday. If you can’t afford an item don’t buy it.
5. Use your credit card carefully: credit cards are useful but spending on your credit card can be more expensive as the bank charges you interest. You might find that you lose all the savings or discounts from Black Friday in interest charges. So, if you do use your credit card on Black Friday be sure to pay it off as soon as possible. Read about how banks and financial service providers calculate interest

In September we focused on leaving a financial legacy and this month we’re talking about wills. Over 70% of South Africans don’t have a will and this can leave their loved ones and dependents in a vulnerable position when they die.

Many people don’t make a will as they don’t want to think about their own death but having a will is really important.

A will is a legal document that allows you to distribute your assets after your death and appoint guardians for minor children. This means the money, property and belongings like furniture and jewellery that you are leaving behind for your family.

What are the benefits to making a will?

1. You get to decide what happens to your things, rather than someone else, like a state appointed executor, getting to decide what happens to your things
2. You can appoint an executor who will manage the process of distributing your assets.
3. You can specify your funeral wishes and, in general, can reduce some of the stress placed on your loved ones.
4. Choose a guardian for your minor children.

Who can help you draft your will?

 You can do it yourself but it is better to use a professional as it is a legal document and you don’t want there to be any issues. You can use: a commercial bank, an attorney, an accountant or a will and testament specialist. Remember that whichever option you choose you must be aware that there may be a cost involved, ask upfront what you will be charged.

Things to remember:

• Keep your will up-to-date so that when you pass away, the right people get your belongings. This is especially important when your life circumstances change, such as if you get married or child is born.
• Store your will somewhere safe so close friends, family or your executor can access it if they need to.

What are the benefits of using a financial planner?

Do you want to grow your money? Do you want to retire comfortably? These are goal’s most people have but many people struggle to work out how to achieve them on their own. This is where a financial planner can help. Here we answer some of the common questions people have about financial planners.

What is a financial planner?

A financial planner is a professional trained in providing advice, guidance and expertise on financial matters. They are knowledgeable and use their expertise to help you decide on the best financial products for your needs. Typically they look at your financial goals and help you find the best product to achieve these goals. Read more about the qualifications they should have and the different kinds of financial planners here. You can read about what they charge here.

What are the benefits to using a financial adviser?

1. They take a holistic view of your finances: a financial adviser will get to know you, your financial situation (including what you earn, what your expenses are, what you own and what debts you have), understand what your goals are and provide you with advice specific to you. They develop personalised financial plans that will grow with you and help you achieve your life goals.

2. They develop a strategy: you’d wouldn’t set off on a journey in a foreign country without a map. The same applies to your finances. A financial adviser helps to develop a financial strategy to steer you in the direction you want to go in life.

3. They help you avoid scams: there are lots of scammers out there but a registered financial adviser will only offer you products from registered institutions. They do all the leg work to find investments that are safe and offered by regulated institutions.

4. They don’t panic: many people panic during a recession or due to global events that disrupt financial markets like the war in Ukraine or the Covid-19 pandemic. But financial planners know that investing and growing your wealth is a long-term strategy. They will ensure you stick to your strategy so that your money grows in the long-term despite short-term fluctuations.

5. They help you adapt: life changes and so do your financial needs. Whether you’ve just had a baby or retired, a financial planner will revise your financial plans to match your life situation.

Will they sell me products I don’t need?

No! A registered financial planner should never sell you a product you don’t need. They should only offer products that meet your needs and requirements. If you feel that your registered financial adviser has provided you with the incorrect advice or product you have recourse. Find out what you can do here.

To find a financial adviser visit the Financial Sector Conduct Authority (FSCA) website here or the Financial Planning Institute of Southern Africa here.

This month we are talking about wills, estates and financial planning. Here we cover all the most common questions regarding estate planning.

1. What is an estate?

Your estate is the word used to describe all the things you owned, owed and controlled at the date of your death. This can include property, investments, any businesses your owned as well as cash. It also covers any debts you had at the time of your death as well as life assurance payouts. Your estate is also affected by how you were married (in community of property or out of community of property with accrual).

2. What happens to your estate when you die?

How your estate is dealt with after your death is regulated by the Administration of Estates Act and is supervised by the Master of the High Court. Either your appointed executor will mange the administration required to wind up your estate or a state appointed executor will do this. This person will locate and collect all your assets, pay off your debts, draw up a liquidation or distribution account and transfer assets to your heirs in line with your will or the law (if you died without a will).

3. What is included in your estate?

Property, investments (including life assurance policies), life insurance - If you have named beneficiaries, the money can be paid directly to them without being paid into your estate but the benefit is still deemed to be an asset in your estate and may be liable for estate duty.

4. What is excluded from your estate?

Retirement savings, these are not usually included in your estate as the funds’ trustees distribute these to your dependants. Trust assets are normally excluded as long as the trust is set up correctly.

For more information about estates click here.

Celebrate Heritage Month with us this September as we discuss the topic of leaving a legacy. That is, the things we leave behind for our friends, family, and loved ones. Leaving behind a healthy financial legacy is only possible when you start building a strong financial foundation – you can only help others financially if you are financially strong yourself.

Try out these 5 tips from WageWise to better manage your money and leave behind a healthy financial legacy:

1. Plan ahead

If you fail to plan, you plan to fail. There are many ways to spend your money but with planning you can spend your money wisely to make sure you:

• Cover all your basic needs (like rent);
• Save for emergencies (such as an unexpected healthcare expense);
• Save towards your goals (for example a deposit on a home); and
• Save for retirement (so you can be financially independent).

A financial plan is called a budget and should include all your income (the money you receive) as well as your expenses (the things you spend money on). Watch our video on planning with money and budgeting.

2. Get life insurance

The main purpose of life insurance is to give your loved ones some financial protection when you pass away. Life insurance can be a huge help when you pass away as it can help with things such as:

• Paying for “final expenses” which usually means your medical and funeral costs
• Covering family debt
• Maintaining your family’s lifestyle
• Supporting a child’s education

3. Save for retirement

Saving for retirement is one of the most important things to think about when planning your financial future. Retirement savings are long-term savings options that give you an income when you retire and can also serve as an income for loved ones when you pass away. Because retirement is a long-term financial goal, you can save and invest your money and watch it grow over a longer period. As time goes on, you start to earn interest on interest which help you to build your wealth.

Want to see the importance of saving for retirement? Watch our video.

4. Create good financial habits

Leaving behind a financial legacy doesn’t have to only be about physical items and money. Take some time to instil your good money habits on your friends, family, and loved ones. This education can help them understand the value behind money and how to make the most of it themselves. When it comes to children, it’s always a good idea to teach them from a young age as this knowledge will carry with them throughout their lives and help them better manage money. But remember children learn most by observing, so always practise the healthy financial habits. Learning by example is the best approach.

5. Set up a will

A will is a legal document which allows you to distribute your assets afters death, appoint guardians for minor children and specify your funeral wishes. Having a will is really important as it means you, rather than someone else, get to decide what happens to your things when you pass away. A will is also important as it lets you leave things to friends, family, and loved ones that can make their life easier and reduces some of the stress placed on them.

Visit us here or follow us on Facebook to learn more about how to better manage your money so that you can leave behind a healthy financial legacy.

Are you a whizz at making every rand stretch? Do you know exactly how much you have to spend on groceries this month? And how much more you need to save for that new frying pan you need?

Many women are excellent at managing the day-to-day finances of their households but they often neglect to plan for the future.

This is despite the fact that women need to stretch their money even further as they tend to earn less, especially if they take time out to have kids or care for their parents, and they live longer. 

Research shows that although women have come a long way and now earn more than ever, their attitudes towards money haven’t kept pace with their growing income and many women leave the financial planning to their significant others.

Why is that? Many women are risk averse, they are nervous to invest and lose; while others find that financial advisers are typically men who don’t understand their specific needs and concerns. But surprisingly when women do invest they get better returns than men as they are more prudent.

Planning and saving for your medium and long-terms goals is as important as planning for how you are going to feed your family this week. In fact taking an active role in big financial decisions is key to having a more comfortable retirement.  

So how can you start getting involved?

• Start talking: have short, regular family discussions about money matters
• Get involved: start taking an active role in budgeting so you understand your income, expenses so you can start saving and investing for the future
• Start planning: set down your medium and long-term savings goals
• Don’t be afraid to ask for help: talking money can be intimidating so don’t be afraid to ask for professional advice from a financial adviser.

Many women may feel that they aren’t cut out for investing but if you apply the same careful planning and thought to your long-term financial plans as to your weekly grocery budget you can have a comfortable retirement.

Read more about financial planning here.

As a child it’s likely you weren’t involved in your family’s finances and many women aren’t involved in decisions around saving, investing and planning for their future.

But now experts agree that everyone should be involved in a family’s finances, it helps to demystify many of the basic financial concepts if everyone in the family can talk about money and it breaks the taboo around money. That’s not to say that children should be deciding your investment strategy but rather than every family member should contribute to the process of financial planning. On the upside for kids, gradual exposure to basic financial literacy ensures they are more confident and competent at managing their finances as adults.

• Get talking

A good way to start is by getting together as a family to discuss the budget, the process of budgeting and what things cost. All the family members have ideas on how they’d like to spend the money and this is a good opportunity to talk about how much things cost and how you as a family decide where to spend your money.

• Set saving goals together

Another great way to get everyone involved is by setting saving goals together, perhaps the family wants a new TV or a trip to the zoo. By talking about savings goals you can start to learn the concepts of needs and wants. This is a natural way to establish that you have to focus on what the family needs first and to save for the things people want.

• Make it visible

All people learn best using visual tools, so take a look at our budget templates. This will help everyone in the family to see and understand what money comes in and how it gets spent and what you save.

The next step is for all family members to have a chance to make their own money decisions. For kids it can be as simple as taking them along grocery shopping and giving them an amount they can use to make a meal for the family. They will need to make decisions based on what they want and if they can afford it.

By involving all family members in money matters you are building confidence and important skills that everyone needs in life.

July is National Savings Month in South Africa, so it’s the perfect time to think about saving. You probably hear a lot about saving and why its important. Saving is important, because its how you make your dreams a reality!

Do you want to buy a car? You’ll need to save for that! Want to send your children to university? You’ll need to save for that too! Do you want to live comfortably in your retirement? Yes you guessed it; you’ll need to save for that too.

But where to start? Getting started is sometimes the most difficult part, especially if you think that you need a lot of money to start saving. But in fact you can start saving today, even if all you have is R10!

To start saving you need to decide on your goals. There are four types of savings goals:

1. Emergencies savings for unexpected costs like a broken geyser
2. Short-term goals like saving for a new pair of sneakers
3. Medium-term goals like saving to add another room onto your home
4. Long-term goals like preparing for a comfortable retirement

These are different goals that you want to achieve in different periods of time. The next step is to plan for how you achieve these goals.

• Step 1: work out what each goal will cost
• Step 2: then calculate how much you can save each month.
• Step 3: then calculate how long it will take you to save to make it happen.

You can use this handy tool to help you work out how much you can save and by when.

Now you have the tools you need to start saving. Saving is about making small financial sacrifices to help you achieve your dreams.

Once you have a plan remember you should always:

• Pay yourself first: that means putting money into savings as soon as you receive your salary
• Save in a separate account: set up a separate savings account so you aren’t tempted to spend your savings
• Save every month: save what you can, every rand counts!

Start saving today to make your dreams a reality this #SavingsMonth!  

So you’ve made the decision to start saving, you’ve got your savings goal and you know what you need to save each month to get there.

But now you’re looking at savings accounts. Are you confused by all the savings products on the market? We’re here to help you make sense of the many different options available.

By saving your money in a savings account or investment product you can grow you money, as your money will earn interest (that means it grows a little bit every year, to help you build your wealth).

Some investments have higher risks but grow quicker, others are lower risk but grow slowly.

Here we give you the lowdown on the different products available:

Short-term options:

• Savings accounts: mainly for saving, you only need a small amount to open an account, you may earn interest depending on how much you have saved.
• Notice deposit (also called fixed and call accounts): money saved in these accounts earn better interest but if you want to access your money you have to notify your bank. Notice periods vary from 7 – 32 days.
• Money market accounts: these are investments for short periods (less than 12 months) and are typically bank accounts or unit trust accounts.
• Stokvel: a group of people who pool their savings on a regular basis. They can be formal or informal.

Medium-term options:

• Unit Trusts: this is a group of individual investors who pool their money to invest it. It is managed and normally invested in a variety of investment instruments. Investors share both the fund profits, loss, income and expenses.
• Endowment policy: this is an investment where you save regularly and receive a single pay out at a set date.
• Tax-free Savings Account: this is an investment that isn’t taxed. You can only invest R36 000 a year in a Tax-Free Savings Account, and once the amounts you have invested (without taking growth into account) add up to R500 000, you cannot contribute anymore. It does not matter how much growth you earn on your annual contributions, as long as the amounts you put in does not add up to more than the annual or the lifetime limit.
• RSA retail bonds: this is a savings option available to SA citizens or residents with an ID number and a bank account in South Africa. You need a minimum of R500 to open a retail bond.

Long-term investment options

• A pension/provident fund/Retirement Annuity (RA): a pension or provident fund is an investment that provides a pension when you retire and it is usually arranged by your employer. An RA is an investment where an individual saves regularly to give them an income when they retire. Individuals including self-employed people can invest in an RA directly through an investment company. RA’s can also be used to supplement what you are already saving through your work-based provident or pension fund.

With so many options to chose from you may want to consult a financial adviser, read about how a financial planner can help you here.  

Have you just started your first job? It’s such an exciting time and even more exciting when you receive your first salary. You probably want to celebrate and we don’t blame you, it’s a major milestone! But before you head out to your favourite restaurant or buy those new sneakers you’ve been eyeing we want to share some tips that will help you become more financially resilient, right from your first pay cheque.

But first up, what does it mean to be financially resilient? If you are financially resilient you are able to manage stressful events that impact on your income and assets. Financially stressful events include things like losing your job, health problems, disability or divorce or more global events like the COVID-19 pandemic or economic recessions that affect millions of people.

There are a few basic habits that will set you up for greater financial resilience

1. Draw up a monthly budget and stick to it

Budgeting is a little bit like exercising and eating well, something you might not always enjoy doing but you know you must to look after your health. If you’ve never drawn up a budget check out our tips to get started here.

2. Put some money into savings every month

The first thing that you need to budget for every month, is savings. Saving is a way of paying yourself and the earlier you start saving the more wealth you will have built up by the time you need to retire. Read more about the importance of saving here.

3. Set savings goals

Think about your short-term goals (maybe those sneakers?), a medium-term goal (investing in a car or saving for your child’s education) and your long-term goal (saving for your retirement). Plus you should put a little away each month for emergencies. Find out which banking products are best suited to your savings goals and get started as soon as possible. You can learn more about saving here.

4. Keep track of your finances

Keep on top of what comes into and goes out of your account by reviewing your bank statements and payslip each month. This way you can understand exactly what you get in, and what you spend your money on. You can also track any fraudulent activity and you can try to minimise your bank charges. Learn more here.

5. Get a financial adviser

Working out the best way to save and invest can be confusing, so you should consult a financial adviser. These are professionals who can help you understand the different saving options and can help you plan for your retirement. They provide advice on the best way to invest your money to help it grow quicker. Read more about the process here.

6. Minimise your debt

There is good and bad credit. Good credit is when you take a loan for an item that will increase in value over time, like a house. Bad credit is when you take a loan for items like groceries or clothes as you pay more for the item and it doesn’t grow in value. Use credit wisely so you reduce the amount of interest you pay. Learn more here.

As the saying goes “discipline is the architect of success”. This doesn’t just apply to your diet, career or studies, establishing good habits can also help you to become more financially secure.

In addition to doing a monthly budget, prioritising saving, minimising your debt, managing your risk and planning for your retirement, there are some simple habits you can get into that will help you to manage your finances better every month.

1. Making sense of your payslip

Payslips can be confusing, there are deductions and all sorts of complicated words. By learning to read your payslip you can understand the different kinds of deductions and the difference between nett and gross salary. Click here to learn more about your payslip.

2. Keep track of your finances

Keep on top of what comes into and goes out of your account by reviewing your bank statements each month. By reviewing your bank statement you can understand exactly what money is deposited into your account, and what you spend your money on. Plus you will pick up any fraudulent activity, any errors on debit or stop orders. Plus you might find ways to reduce your bank charges. Learn more here.

3. Get a financial adviser

To help you save and invest money, there are so many different saving accounts and investment options but understanding the pros and cons of each and the costs can be tricky. That is why it pays to get a professional financial adviser. Financial advisers are trained to help you understand the different saving options and retirement and investment options and find the best one for you. They provide advice on the best way to invest your money to help it grow steadily. Read more about the process here.

Start implementing these habits today and you will be on your way to  managing your money better.

Worker’s Month is a great opportunity to think about yourself and put your needs first. The best way you can prioritise yourself is by focusing on your finances in Worker’s Month, so that your money can work harder for you.
Use Worker’s Month as a time to reflect carefully on what you want to achieve with your money. Once you understand your exact financial needs and your key financial priorities you can outline a plan for how to make these a reality.
Remember that saving should always be a top priority but you plan must include how you spend, save and invest your money. To read more about how to assess your needs and wants click here.
By putting together a plan you can think clearly about what you earn including your salary, any stipends or grants you receive as well as other income sources like a side hustle such as selling, rentals or baking. You can also consider all your expenses. You can then draw up a budget so that you have enough money to cover your needs and that you are putting some money away for emergencies and more long-term goals like your child’s university fees.
By taking charge of your finances you can get into the habit of spending your money wisely, saving as much as possible and investing to grow your wealth.
You financial needs can change quickly so remember to revisit your budget regularly. Perhaps now that South Africa is emerging from the COVID-19 pandemic you are required to work in the office or on site at the workplace again, this means your transport costs may increase and your home data costs will decrease.

It is always a good idea to consider paying off your short-term debt, if you can. By reducing your debt you may have more money to protect you should the economic crisis stretch on for a long period.

Remember that you should always prioritise your retirement savings, it is the best way to build your future wealth as regular contributions over a long period help to grow your money.

Emergencies come in all shapes and sizes, from a broken fridge to catastrophic floods. That is why it is more important than ever to closely inspect your budgets on a regular basis and put plans in place to weather any financial storms  that may arise.

Drawing up a budget takes 5 simple steps and is made much easier with our templates which can be found here.

Pay yourself first by spending time planning how you use your money this Worker’s Month!

You work hard and every cent you earn needs to work just as hard for you. That’s why it’s important that you don’t let anyone scam you out of your hard-earned money!

There are all kinds of scams out there. Recently, there have been cases where credit bureaus were hacked and client’s personal information was stolen.

Scammers use this information to get hold of your money by tricking you into giving them more personal information. They use this information to steal your identity and make fraudulent purchases or applications for credit.

To protect yourself from this kind of scam remember:

• NEVER give any personal information like passwords and PINs to anyone over the phone, fax or email. Your bank will never ask you for this information.
• Regularly change your passwords and never share them with anyone else.
• If someone claims to be from your bank or a credit provider and is asking for personal information like you name, address, date of birth or contact details, verify that it is a legitimate request. Only once you are happy it is indeed your financial provider requesting this information then you provide the information.

Protect yourself and your hard-earned cash by following these steps and avoid the risk of identity theft and fraudulent applications.

Remember that you should only bank with a registered financial institution. Accredited Financial institutions are regulated and supervised, by the South African Reserve Bank and the Financial Sector Conduct Authority. There are strict rules and controls that govern investments with these institutions whereas, unregulated and unsupervised persons and groups don’t follow these rules and your money is at great risk with them. By using an accredited financial institution you can be confident that your money is safe.