tag:blogger.com,1999:blog-90490226261646625282023-11-16T09:52:54.727+02:00Safe Investing South AfricaFinancial Indepence Retire Early. FIRE. Financial Freedom with Mbini Kutta.Unknownnoreply@blogger.comBlogger204125tag:blogger.com,1999:blog-9049022626164662528.post-61110100982423912322023-01-29T22:04:00.000+02:002023-01-29T22:04:45.101+02:00BE BRAVEFrom Aka's desk to teenagers and young adults: BE BRAVE.</p><p>While I do not have as much knowledge as my mother about
finances, I feel like I may have something of value that I can offer people
that are around my age. This is one of the reasons that I decided to take the
offer of a staff writer on this blog. My finance posts will be targeted at
teenagers and young adults.</p><p>
I remember having a somewhat deep conversation with my
mother when I was about 10-12 years old. The subtle details may be interesting
but I can only remember this conversation vaguely. It was about a career choice
that I wanted to pursue at around that time. I remember expressing my fear of
failure and how scared I was about working towards something and not succeeding
at the end of it all. The heart wrenching pain of failing to achieve a lifelong
dream that you have been working on for years is however an extremely
irrational fear. It is something that most humans feel on a daily basis and it
is why many have the ability to do something great but will never achieve it.
The only way to become the best at anything is to be the best at believing in
yourself.</p><p>
No one you have looked up to succeeded by mistake and
neither will you. I’ve always hated certain aspects and characteristics of my
past self. I look at him fondly with the understanding that I will never be as
unconfident and scared as that person ever again.</p><p>
Statistically, you will not achieve your dreams. That
statement may seem quite counterproductive to what I want to accomplish with
this entry but it is true. Success is nowhere near guaranteed. Even if you work
your hardest with the strongest amount of belief accompanied with zero fear
whatsoever you will still fall flat. That does not mean you should stop working
or believing. It only makes it way sweeter when you finally reach your desired
destination.</p><p>
Ultimately, we all have different goals and some are harder
than others to achieve. Taking small steps towards your goals such as ensuring
that you have an income source before taking on a big project or signing up for
an internship to learn essential skills is a good way to achieve some success
before reaching big milestones.</p><p>
______________ <br>
<b>Aka Mathye</b> is a teenage writer for Safe Investing SA. Aka offers a point of
view from a perspective that cannot be easily replicated by anyone older than
him. This makes his content digestible by young and creative minds trying to
find their feet in life. If a young person has already found their feet, they
may still be able to find Aka’s blog entries useful or interesting as well as
any member of the previous generation.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-28157674926098441012022-09-22T22:24:00.000+02:002022-09-22T22:24:17.140+02:00WHY I QUIT MY JOBA former colleague asked me if I missed my former workplace. I get similar questions from my former colleagues often. My response has been consistent. “No, I do not miss the workplace”. I miss the people but not the place. I prefer the current version of my life.<br /><br /><div>I loved the work content and had great colleagues. My job exposed me to a whole lot of stuff. I am grateful for the experience. That does not make me wish to go back to it.</div><div><br /></div><div>My family has always seen employment as a temporary arrangement. We needed the jobs to build what would make them optional. The initial plan was to quit at 35. I was fortunate to get an opportunity to take a break at 35 but went back a few years later. That was an opportunity for us to prepare for my resignation. As my partner put it, “we will know for sure if our strategy works when one of us quits and works on building something for the family”. So, I did. Our main goal was to create opportunities for ourselves and our children. Which we did and continue doing.</div><div><br /></div><div><u>Before I quit my job.</u><br />We have always been a couple that is focused on working towards a comfortable and sustainable lifestyle. This was a decision that we made when we got married. As a result, we tried a lot of options to build a family real estate business that we can both retire to. We also intensified on other investments. Most importantly, even when I had a job, my studies were aigned with our family goals. I enrolled for a Masters in Real Estate, just to get a deeper understanding of the business. This changed the way we did things going forward and helped us identify our niche. <br /><br /></div><div>Climbing the corporate ladder was never a priority. We both sought opportunities that would empower us to take better business decisions. Creating opportunities for our children was at the centre of our building. A life partner that is a visionary and support is invaluable.</div><div><br /></div><div><u>Preparing to quit. </u><br />Our siblings have always known how much planning we put into our family's lifestyle goals. We always put our dreams down and work towards achieving them. Our main goal was building wealth to fully own our time. Having time for family and time to do whatever gave us joy. This is what shaped our financial goals. We wanted to own our TIME.</div><div><br /></div><div style="text-align: left;">We have always detailed our dreams, ambitions, needs, wants, our priorities and our strategy. Financial education became a priority. We have learnt about finances and discussed so much that we got completely aligned. In preparing for one of us to quit we did the following: <br /><ul style="text-align: left;"><li>We saved and invested more and more. In the process we kept learning about the higher return assets.</li><li>Our spending was well thought. We prioritised family health, good education and great food. We love our food.</li><li>We stayed out of debt. This was strangely never difficult for us. When we started on our journey, a lot of sacrifices were made.</li><li>We taught ourselves about different kinds of investments. Books helped a lot. We bought a couple of business books every single month.</li><li>We worked on our mindset and attitude towards money. We both do not come from money. We believed that it was possible for us to change this and do better for our children and the next generation.</li><li>We prepared ourselves to take risks. This is probably the most difficult step. But that is what education is for. We had read about successful people and their strategies. If only information was as freely available as it is today.</li><li>We specialized and diversified at the same time. I'll repeat, nothing beats education in this journey.</li><li>We set timelines for achieving our family goals. This is the most important step in my opinion. To this day, we track our progress, set more goals and timelines.</li><li>We are completely transparent and accountable to each one another as a family. Our lifestyle is aligned with our goals.</li></ul><u>After quitting.</u><br />We are probably among the most predictable people. We pretty much stick to our decisions. We took steps to ensure that we survive on one salary and our then small rental income. Our other sources of income were even lower at the time. My primary assignment was to increase the business income. I had the time and space to implement whatever I thought would yield results. I presented the strategies to the family and we worked together to see them through.</div><div style="text-align: left;"><br /></div><div style="text-align: left;">One of the areas in which we grew our income was in making improvements on the assets that we already owned. We changed the use of land, refurbished, invested in stocks, sold stuff here and there, etc.</div><div style="text-align: left;"><br /></div><div style="text-align: left;">Our monthly activities have always included reviewing our finances and deciding on a way forward. Quarterly, I give a financial report to the family. The report is on all our assets and net worth. The value goes up and down. But what matters is really, the income that assets generate. </div><div style="text-align: left;"><p class="MsoNormal">I can easily say that I quit my job to serve my family. </p><p class="MsoNormal">What are you doing to prepare for your retirement? Have you started yet? Ask us any questions. Please share the article.<o:p></o:p></p><p class="MsoNormal">Thank you for visiting Safe Investing SA. For daily motivation please like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>.</p></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-31555063027220733712022-09-21T15:44:00.001+02:002022-09-22T22:25:45.830+02:00QUESTIONS TO ASK TO ACHIEVE FINANCIAL INDEPENDENCEIndividuals who achieve their financial goals embark on continuous financial planning and attaining financial education. Personal finance education is widely available, thanks to the internet. There is no excuse!<p>
With most individuals the initial goal is gaining financial independence so that one owns their time. Sustainable financial freedom buys a dream lifestyle and a legacy to leave behind. The ultimate goal is to live and live truly. The way I work on my goals is through having daily activities that keep me where I am and motivate me to building more. One needs to craft a programme that ensures active building and maintenance. Goals drive us from watching our lives passing by, to taking full control. Every lifestyle choice and decision is informed by the size of ones dream.
</p><p>The financial freedom journey is both psychological and emotional. Never expect it to be about numbers, checks and balances. You are training you mindset to shift. This is why one has to keep recalling why they or their parents and grandparents were in the predicament they were in. The journey forward necessitates a look behind. Change the way you feel about wealth and then:</p><p><u>Take a closer look at what you already have and your current resources.</u><br />What assets do you have? Do you have equity that can buy more assets? Do you have sufficient income to build more equity? Do you need extra income to fast track your journey to financial independence?</p><p><u>Examine the external environment.</u> Can you build protection against risk and uncertainties? Where is the economy moving? Are you well diversified across asset classes to manage risk? Are you diversified geographically to mitigate local risk?</p><p><u>Protection against inflation.</u> The current global inflation situation requires thorough planning. Is the buying power of your equity growing with inflation? Are you invested in the above inflation assets? Do yu have investments that are specifically meant to act as a hedge against increases in prices of goods and services? If not, your money could be losing value and declining with time.</p><p><u>Tax structure.</u> Do you understand the basics on tax laws? Are you not paying more tax than necessary? Are your assets having tax benefits? Do you know how to take advantage of the tax benefits to continuously reduce your tax bill? Do you know how to file your taxes?</p><p><u>Financial freedom.</u> What is your ultimate dream? Have you set timelines to achieve your financial goals? Do you set smaller goals for the year/ quarter/ month/ week? Have you drafted a clear plan? When do you want to retire and live in your own terms?</p><p><u>Money pits.</u> Where does your money go every month? Do you scrutinize your bank statement to find your answers? Are you not paying too much for a home or a car? Have you set a plan to reduce or eliminate your debt? Consumer debt will delay achieving a goal. As a principle, I do not keep any debt, except for the rental property mortgages. Take charge!</p><p><u>Family and money.</u> Does your family talk about money? Are your family conversations around money positive? Does your family know your financial goals? Do you know their financial goals? Do you keep each other accountable? How often do you update each other on your individual progresses?</p><p><u>Current vs future lifestyle.</u> Are you clear on what you earn and how you spend it? Can you maintain your current lifestyle for the rest of your life? If not, scaling down could be your solution.</p><p><u>Personal Roadmap.</u> How often do you check where you are in your financial independence journey?</p><p><br /></p><p class="MsoNormal">How are these questions helping in your wealth creation journey? Have you
started yet? Ask us any questions. Please share the article.<o:p></o:p></p>
<p class="MsoNormal">Thank you for visiting Safe Investing SA. For daily
motivation please like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-39439632051867728902022-05-12T13:08:00.000+02:002022-05-12T13:08:16.245+02:00WEALTH BUILDING: THE WHY<p>This is a “<a href="http://www.safeinvestingsa.com/search/label/portfolio%20management">wealth building secrets</a>” series. In the previous post we looked at <a href="http://www.safeinvestingsa.com/2022/05/building-wealth.html">how to create wealth</a>. Wealth
creators continuously learn from their own financial independence journey, other
people’s financial freedom journeys and from the financial environment around
them. Personal finances are actively managed. This is why:</p><p><br /></p><p style="text-align: left;"></p><ul style="text-align: left;"><li><u>Unfortunate Periods.</u> The recent pandemic taught us that things can and do
change drastically from time to time. Unfortunate and unexpected events such as
these require proper planning. An emergency fund comes to mind. Never be caught
unawares. Most importantly, the constant effort to change our circumstances for the better can never be replaced. In great times we prepare for the not-so-great events. The culture of
saving and investing should be maintained. Even if this time proved to be your worst, learn from it and be assured that there will be better times to grow
again.</li></ul><br /><ul style="text-align: left;"><li><u>Economic Cycles.</u> The economy in its nature fluctuates. There are periods of economic expansion and economic contraction. The
changes are positive during the periods of expansion with higher employment
rates and high consumer spending. During the contraction periods even interest
rates are not favourable. We are not in control of the economic conditions, but we can try and manage the impact.
During the expansion period, we invest as much as we can to take advantage of
the growth that happens in the corporate world. We buy stocks and other
investments and take advantage of the favourable economic environment. The contraction
periods like recession and depression are guaranteed. Those are the times when we tap into
the reserves to get some relief. Always store as much of your harvest as you can
in the reserves. I tell my 19-year-old to invest 50 percent of his income. And
when he gets unexpected monetary gifts, he often invests 80 percent. Because
the culture needs to be cultivated.<br />
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<br />
</li></ul><br /><ul style="text-align: left;"><li><u>Changes in Economic Factors.</u> Economic factors constantly change.
These include interest rates, policies by government, tax, inflation, employment, etc. All
these factors are not in our control but determine how our investments perform.
We look at the economic history to predict where these are going. Often, the pattern does not change. But no one
knows without any doubt how the economy is going to behave. Our efforts to build our
wealth to survive the storms should be constant. We save and invest irrespective
of the economic conditions. We do this because of the uncertainty.</li></ul><br /><ul style="text-align: left;"><li><u>Changes in Government Policy.</u> Policies such as monetary and
fiscal policy will keep changing and thus affect the personal finance decisions
of individuals. Interest rates and tax are some of the factors that government
will keep changing to stabilise the economy. A lot of these policy changes can
discourage saving and investing. But there are some that favour the investors
like the <a href="http://www.safeinvestingsa.com/search/label/tax-free">tax-free savings account</a>. This is one tool that should be maxed
every year. Keep informed in order to identify what profits your portfolio and what does
not. A financial plan should be flexible to allow the changes as new laws get
introduced. Strategies change with the change in the environment but building
wealth is constant. We actively manage our personal finances to lower the costs that come with the policy changes and maximise the gains.</li></ul><br /><ul style="text-align: left;"><li><u>Globalisation.</u> Have you noticed how the international events
affect how we do things? We suddenly think in dollars. Our finances are
shrinking due to the decreasing and fluctuating values of our currencies. We
also experience the world in international currencies. Also, more concerning is
that the crisis that happens in other parts of the world manages to hit at the individual's wallet in a different territory. Case in point, the conflicts between foreign countries. There is a case
for a geographically diversified portfolio. Personaly, my family typically invests in local stocks,
Asia, US and other emerging markets. Geographical diversification does help in
minimising risk. Developed markets give more stability whilst the developing markets usually provide higher returns. Do try to keep up to date with the global markets.</li></ul><p></p>
<p class="MsoNormal"><br /></p><p class="MsoNormal">What is the “WHY” of your wealth creation journey? Have you
started yet? Ask us any questions. Please share the article.<o:p></o:p></p>
<p class="MsoNormal">Thank you for visiting Safe Investing SA. For daily
motivation please like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-14055395614711619242022-05-11T18:46:00.003+02:002022-05-11T18:46:41.848+02:00BUILDING WEALTH<p></p><div class="separator" style="clear: both; text-align: justify;"><span style="text-align: left;">For most people building wealth sounds like mission
impossible. This is not because of the complexity of it but the lack of know-how,
commitment and consistency. Wealth creation is an ongoing exercise and a
journey that requires intent. A shift in the mindset is mandatory as one needs
to choose a completely different way of life to what is familiar. The following
are the essential steps to take to gain control of one’s finances:</span></div><p></p><p style="text-align: left;"></p><ul style="text-align: left;"><li><u>Know What you Own. </u>Everyone who actively seeks financial
freedom knows exactly what they own. They take stock of own assets and liabilities.
The starting point is making a list of all the assets, income and all
liabilities. This will assist in drawing the strategy for growing the assets
and reducing the unwanted liabilities using the income earned. This is also
known as determining your portfolio.</li><li><u>Asset Allocation.</u> To gain financial independence, one also
needs to cushion whatever assets they have. We do not want to lose what we
already own. The cushion can be in a form of portfolio diversification. The point
above is about determining one’s actual portfolio. And right now, we are
balancing it to ensure that the assets are spread across various asset classes i.e.,
cash, bonds, real estate, stocks, commodities, etc. This is known as asset
allocation. Asset allocation is always based on one’s age. Younger individuals
can afford a higher risk whilst those closer to retirement take lower risk and
therefore, lower returns.<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGoHaiFjT4xK-7iq9of6YBURD4bx-W37BTY1sqcMrsrB_8K7vAOJh5WBivGTOQfdwDyCNsy6tR_nAnNw6KRDiESPM0dOB1SI8IntalWy_vpLZZ_4cuEYTvvoK0bL1OdmADIyOyTjA7Gmyv6mjrddjOwbhcSNXRR8wECX6EYoAVu-hPT317XWFzSpCV/s552/networth.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="552" data-original-width="500" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGoHaiFjT4xK-7iq9of6YBURD4bx-W37BTY1sqcMrsrB_8K7vAOJh5WBivGTOQfdwDyCNsy6tR_nAnNw6KRDiESPM0dOB1SI8IntalWy_vpLZZ_4cuEYTvvoK0bL1OdmADIyOyTjA7Gmyv6mjrddjOwbhcSNXRR8wECX6EYoAVu-hPT317XWFzSpCV/s16000/networth.jpg" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Image by Mbini Kutta of SafeInvestingSA<br /><br /></td></tr></tbody></table></li><li><u>Tax Avoidance.</u> Taxation is one of the biggest bills we pay
annually. Tax avoidance is a legal way of reducing annual taxes. Good asset
allocation ensures that the tax bill is minimised. The wealth creators always pay
as little tax as required by the law. One has to understand taxation and tax
benefits of various asset classes.</li><li><u>Balancing the Portfolio.</u> Within each asset class there is always
room for improvement. There are constant changes in the world of investing. Individuals
that are seeking financial freedom are constantly shifting their assets around
to maximise the returns. Right now, we have a real estate heavy portfolio at
56% with stocks at only 12%. We are trying to get our stocks to a similar value
as our real estate assets. Our focus is on growing both local and offshore
stocks. We are also set on growing our retail bonds.</li><li><u>Lifestyle at Retirement.</u> Retirement is also to be taken into
consideration, as the lifestyle may need to be maintained. Downscaling should
be for reasons other than insufficient funds. Some people prefer to retire
early and others enjoy the kind of work that they do. The main reason people
embark on seeking financial independence is to be able to do what they want
with their lives without the need to get income from sources outside their
assets. That helps in buying options like early retirement or slowing down by
working part time. Being stuck at a job one does not want can pose a huge
health risk.</li><li><u>Debt Reduction.</u> Most people that I have assisted with
finances struggled with making a choice between debt reduction and asset
accumulation. One needs to understand the reason they find themselves in debt
and why they need to get rid of it. Consumer debt will always pose a risk on
achieving financial freedom. In most cases the returns on investment are lower than
the cost of debt. Eliminating consumer debt is an investment on its own. Always
keep this in mind.</li><li><u>Wealth Transfer.</u> One of the most important aspects of building
wealth is preparing the heirs for wealth transfer. This requires a lot of continuous
knowledge transfer and mentoring. Your children have to understand most of what
you know and do to build your wealth. It is a matter of passing a baton.</li><li><u>Influence and Association.</u> Finally, the company we keep will
always be a factor. To ensure that we stay on course, we have to surround
ourselves with like minded individuals. Fortunately for us, we live in the
world with abundance of knowledge and social media with individuals that share
similar goals. The more of personal finance we consume, the better are our
choices.</li></ul>How far are you in your wealth creation journey? Have you started building welth yet? Ask us any question. And please share the article.<p></p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">Thank you for visiting Safe Investing SA. For daily
motivation please like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>. <o:p></o:p></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-75124266518679384172022-01-11T20:49:00.000+02:002022-01-11T20:49:06.773+02:00Tax Free Savings Account and Investment<p><b>What is a Tax Free Savings Account and Investment (TFSA)?</b></p><p>Since 2015, SA government decided to gift us with an amazing tax-free product. Contributions to a TFSA are not deductible for income tax purposes. Contributions and income (income tax, dividends tax or capital gains tax) earned in the TFSA are tax-free.</p><p>Here's the catch: this is a long-term savings benefit limited to R500,000 contribution in one's lifetime and R36,000 in one year. Withdrawing from this account should be avoided. </p><p><b>Annual Limit</b></p><p>The Annual limits have been steadily increased from R30,000 in 2016, R33,000 in 2018 and R36,000 in 2021. Maxing the contribution to the Tax Free Savings Account and Investment is ideal. That and not withdrawing, I emphasise. Unused annual limits are forfeited. Important to note is that there is a tax penalty for amounts that are above the annual limit. The tax penalty is 40% on the excess contributions above the annual limit. </p><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEicdUolaZ1Sa2yN5zXbxQEhj1ntie4Ut8frw4YlDdmaoBvmcI_eLD-vcPJvkk1dKJ9XVVvetGk-sd0UqS58W1SADw8WoquDp6FfDuUcYpQr4_cmWlzJGnPow8L6mTH_V5tnZkDTJ-SlvP15TjrtCmHuuojfNYs5a1ftHCBeh1-rMhqqAiTcT3UFgH_o=s620" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="592" data-original-width="620" height="613" src="https://blogger.googleusercontent.com/img/a/AVvXsEicdUolaZ1Sa2yN5zXbxQEhj1ntie4Ut8frw4YlDdmaoBvmcI_eLD-vcPJvkk1dKJ9XVVvetGk-sd0UqS58W1SADw8WoquDp6FfDuUcYpQr4_cmWlzJGnPow8L6mTH_V5tnZkDTJ-SlvP15TjrtCmHuuojfNYs5a1ftHCBeh1-rMhqqAiTcT3UFgH_o=w640-h613" width="640" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Tax Free Savings Account and Investment</td></tr></tbody></table><p><b>Who is Eligible for a TFSA?</b></p><p>South Africa allows all South Africans to invest in a Tax-Free Savings Account or investment. This includes children. Parents can invest on behalf of minor children.</p><p>Maxing out the TFSA should be a priority. The examples in the image above are an indication of how a TFSA can be maxed out every year.</p><p style="text-align: left;"></p><ol style="text-align: left;"><li><b>Once-Off Investment.</b> One can invest the full annual limit in one payment. March is the first month of the financial period. However, one can invest at any time during the financial year.</li><li><b>12 Months Instalments.</b> One can also spread their deposits in 12 equal instalments. This can be automated from your main bank account to the investment tool used for this purpose.</li><li><b>Quarterly Deposits. </b>The quarterly deposits work the same way as any instalment deposits. Any form of instalment works. The amounts deposited do not need to be equal.</li></ol><p></p><p>The reason March is used as ideal in the example is that, the investment gets a growth benefit for the entire financial period. In a 11.5% return per annum for instance, R36,000 would have grown to above R40,000 at the end of the financial period.</p><p>The following accounts qualify to be used as Tax Free Savings Account and Investment:</p><p></p><ul style="text-align: left;"><li>Fixed deposits</li><li>Unit trusts</li><li>Retail savings bonds</li><li>Some endowment policies issued by long-term insurers</li><li>Linked investment products</li><li>Exchange traded funds (ETFs).</li></ul><p></p><p>One can transfer between tax free savings accounts or investments as they change the investment vehicles or service providers. Service providers are responsible to provide SARS with all the information required for tax filing.</p>
<p>Are you investing in a TFSA? Please share the article.</p><p>Thank you for visiting Safe Investing SA. For daily motivation like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and/ or <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>.</p><p><span face="Arial, Helvetica, sans-serif" style="background-color: white; color: #555555; font-size: 13px;">--------------------------</span><br style="background-color: white; color: #555555; font-family: Arial, Helvetica, sans-serif; font-size: 13px;" /><span face="Arial, Helvetica, sans-serif" style="background-color: white; color: #555555; font-size: 13px;">Author Mbini Kutta, a businesswoman, personal finance author and investor.</span></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-74169354366618542182022-01-11T10:59:00.000+02:002022-01-11T10:59:27.059+02:00DAILY SAVINGS CHALLENGE<p>This blog is by design meant to inspire people to learn simple ways of building wealth. Over the years, followers email to get simple strategies to start paying debt, saving and investing. Every year we have a savings culture revival. This year we are starting our daily savings challenge in February until November. </p><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEiT4jvvV9bifI4h3BGGJF-jzd0-q7pj0Sv7P0wDbMNCOeG4ekBG-hViqfZO8IGZu5q_kiaY8WSLLH93UYC9jN59d_xBtt4EsoOk1EaEeHNazpRv9vqnwg42qkL9jwe-5nIquOWY-lzNKIoGuYiQyI2ryuHX__x4a0w7EPzUU-tKMyz-Ga-fetZUNrG9=s773" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="773" data-original-width="686" height="640" src="https://blogger.googleusercontent.com/img/a/AVvXsEiT4jvvV9bifI4h3BGGJF-jzd0-q7pj0Sv7P0wDbMNCOeG4ekBG-hViqfZO8IGZu5q_kiaY8WSLLH93UYC9jN59d_xBtt4EsoOk1EaEeHNazpRv9vqnwg42qkL9jwe-5nIquOWY-lzNKIoGuYiQyI2ryuHX__x4a0w7EPzUU-tKMyz-Ga-fetZUNrG9=w568-h640" width="568" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><span style="text-align: left;">daily savings challenge</span></td></tr></tbody></table><p>We are adopting a programme that is similar to a stokvel model. I notice that people are more motivated to save when they are in companies of like-minded individuals or with automated bank transfers. If you are a loner like myself, adapt this daily savings schedule to your needs. These can be used for monthly, weekly or daily savings.</p><p>In the first table we are saving R10 on Mondays, R20 on Tuesdays, etc, and a total of R12,070 in the 10 month’s period from 1 February to 30 November. The last table enables one to save a total of R48,280. These totals are own contribution before growth in interest and returns.</p><p><b>How this Daily Savings Challenge Works:</b></p><p>1. <b>Choose a plan</b> that you are comfortable with from the image above. </p><p>2. <b>Decide on the saving frequency</b>. It could be a low amount daily, a weekly amount or a bigger monthly savings amount.</p><p>3. <b>Open a savings account</b> linked to your main bank account to easily transfer the amount you have decided on as often as you choose. An interest-bearing account would be ideal for an emergency fund. Some use the Exchange Traded Funds for longer term investments. A savings pocket is usually an interest-bearing account that requires no minimum deposit. However, pay attention to the interest structure. A money market account could have higher returns. If the savings are for a specific cause/ timeframe, a notice account could be the best tool. The ETFs generally have higher returns and are best suited to longer term investments.</p><p>Be reminded that the totals in the image above are own capital only without interest or returns. Some of our readers are saving towards their:</p><p>•<span style="white-space: pre;"> </span>Emergency fund.</p><p>•<span style="white-space: pre;"> </span>Children school fees for the following year.</p><p>•<span style="white-space: pre;"> </span>Deposit on a home.</p><p>•<span style="white-space: pre;"> </span>Future renovations.</p><p>•<span style="white-space: pre;"> </span>A wedding.</p><p>•<span style="white-space: pre;"> </span>Deposit on a car.</p><p>•<span style="white-space: pre;"> </span>Investment for retirement.</p><p>•<span style="white-space: pre;"> </span>Investment for passive income like dividends.</p><p>•<span style="white-space: pre;"> </span>Business capital.</p><p>•<span style="white-space: pre;"> </span>Once off event.</p><p>Remember, depending on each one's needs, one can save in a notice account, money market account or invest in exchange traded funds (ETFs) for better returns. For those who prefer a higher amount, we will add a few more options. For now, choose from one of our daily savings challenge plans above.</p><p>Thank you for visiting Safe Investing SA. For daily motivation like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and/ or <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>.</p><p><span face="Arial, Helvetica, sans-serif" style="background-color: white; color: #555555; font-size: 13px;">--------------------------</span><br style="background-color: white; color: #555555; font-family: Arial, Helvetica, sans-serif; font-size: 13px;" /><span face="Arial, Helvetica, sans-serif" style="background-color: white; color: #555555; font-size: 13px;">Author Mbini Kutta, a businesswoman, personal finance author and investor.</span></p>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-9049022626164662528.post-72751686611360842022-01-10T14:59:00.017+02:002022-01-10T17:39:11.243+02:002022 FINANCIAL GOALS<p></p><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: left;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEi5MRASVyTV2gWvE_Em-Y4EJG2O6RuMPi3sUzbamVQpQl_hCa4AlqGqDetnhyPWg7vZxEnXO1_VdnRAZkY_c4jaWiLpGUwZvwXPJWwzRgPW-_qNPaiQ1MXTgm-_6I3ESMzDEqdGKuAvU2AOV2khQfA_1bQyAnTe8ebUO9vAh8eWjn9rKGmKyBlCRnLV=s815" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="815" data-original-width="710" height="320" src="https://blogger.googleusercontent.com/img/a/AVvXsEi5MRASVyTV2gWvE_Em-Y4EJG2O6RuMPi3sUzbamVQpQl_hCa4AlqGqDetnhyPWg7vZxEnXO1_VdnRAZkY_c4jaWiLpGUwZvwXPJWwzRgPW-_qNPaiQ1MXTgm-_6I3ESMzDEqdGKuAvU2AOV2khQfA_1bQyAnTe8ebUO9vAh8eWjn9rKGmKyBlCRnLV=s320" width="279" /></a></div>Have you set your own 2022 financial goals? For me the main goal is the standing 'project 2021 July to 2023 June' to double our net worth and monthly income without acquiring new physical assets. It is very ambitious but after such a challenging two years I reckon we deserve a bit of excitement. The previous post detailed the <a href="http://www.safeinvestingsa.com/2022/01/our-net-worth-and-2021-money-highlights.html">2021 financial goals review</a>. Let's dip into our 2022 financial goals:</div></div><p></p><p><b>1. Net Worth Tracking.</b> Goals that are shared are more likely to be achieved. Like most bloggers, I come from that background where money talks are a taboo. But writing about my financial freedom journey helped me achieve my goals. So, my first goal is to keep myself accountable by tracking my progress here every quarter. The reason I choose quarterly is that, I update my net worth spreadsheets and report to my family about our progress quarterly. I used to do this monthly but realised that there is too much volatility in a short period. 3 months is also a short period but hey, there has to be a cut off time somewhere.</p><p></p><p><b>2. Keeping Focus.</b> In my 2 years of rest I spent a whole lot of time on social media. I realise that I need to schedule my social media times. I can do with limited distraction in my life. Having strict work and family times without social media has become top priority this year. I am catching up on my reading. One huge book done and halfway the second one. I have also set a full day aside weekly to do work for others/freelance work. </p><p><b>3. Earn More.</b> Right now I am working on increasing our real estate income, as per the main goal above. There are three ways in which we are doing this:</p><p></p><ul style="text-align: left;"><li>Most of 2021 was spend renovating existing property. We had renovations on a small 2-bedroom duplex, our own home, and current renovations in the biggest unit in our multifamily property. The latter should increase the rental income of the unit by at least 60%.</li><li>I am working on a short-term rentals strategy using the Airbnb model. I will furnish the units that will be let in this way. The first property will be the unit that is in an upmarket residential estate. </li><li>We are also working with our town planner to rezone a property which is in an erf earmarked for densification by council. This will be our first 'build to rent' property.</li><li>Lastly, I will work on increasing the income of this blog. I want to add a channel/ podcast to it by June. </li></ul><p></p><p><b>4. Debt.</b> We will continue to lower the rental property debt. This is a new strategy because of early retirement. We may as well get rid of this debt. This is our only debt. </p><p><b>5. TFSA.</b> Of course, we are maxing our tax free savings accounts. Mr V spreads his contributions throughout the year. I do a once off payment towards the end of the financial year. I am more likely to forget to do this, so Mr keeps telling me to try and make my lumpsum investment in March. That way I get maximum growth benefit. I need to start listening. We both use ETFs as an investment vehicle for this. It makes sense to use stocks, since a TFSA is more suited to long-term kinds of investment. The Geek (our son) will be having his second year of maxing a TFSA in 2022-23 too. </p><p><b>6. Education. </b>The plan is to invest in tax education for personal growth this year. A short course to help grow my understanding and learn about new tax provisions and laws will suffice. </p><p><b>7. Stocks. </b>This is where we plan to invest more to maintain a well-diversified portfolio. We love property and are over exposed in that investment category. We are currently trying to focus on investing in equities. We have both local and international individual stocks and ETFs. </p><p><b>8. Retirement.</b> We continue contributing to our retirement accounts. We only have this increased by 10% annually. Mr V and I both have 2 retirement accounts each. We have a retirement annuity each, Mr V's employer linked pension and my pension preservation fund. I have been tempted to cash my preservation fund a few times in the past. But I also think I need this kind of a safe option.</p><p><b>9. Family Finance Alignment.</b> Every quarter I track progress on our goals and discuss with family. This way, our plans are aligned. We all pay attention to global economic conditions, to reshuffle our investments as a need arises. I am the one tasked with a responsibility to take some sort of a lead on this this year. So, I start my days with some light markets reads.</p><p><b>10. Will vs trust. </b>Right now I am investing in weighing the pros and cons of a trust. We still do not have a family trust. We have been dragging our feet because of the expenses that will go with the transfer of assets. I'm onto it this year.</p><p><b>11. Getting rid of assets. </b>The other important item on my to-do list is getting rid of all small property units. I no longer want to keep the apartments in our portfolio. We currently prefer the multifamily rental property. We have 3 units to sell in the year. This will depend on the property market conditions. If prices drop, we will just hold a bit longer.</p><p><b>12. Giving. </b>I keep forgetting to mention this. We give over 10% of our income as a principle. As a family we assist our parents financially and have a scholarship. We have foster kids that attend a small private school on this family scholarship. We believe in this kind of giving.</p><p>Please share your own goals with us.</p><p>Thank you for visiting Safe Investing SA. For daily motivation like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and/ or <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>.</p><p><span face="Arial, Helvetica, sans-serif" style="background-color: white; color: #555555; font-size: 13px;">--------------------------</span><br style="background-color: white; color: #555555; font-family: Arial, Helvetica, sans-serif; font-size: 13px;" /><span face="Arial, Helvetica, sans-serif" style="background-color: white; color: #555555; font-size: 13px;">Author Mbini Kutta, a businesswoman, personal finance author and investor.</span></p>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-9049022626164662528.post-85401585903796404572022-01-07T11:07:00.000+02:002022-01-07T11:07:29.794+02:00OUR NET WORTH AND 2021 MONEY HIGHLIGHTS<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEiVauD_GhHqBbavc9OWOrblYgTbxk1bTZXOKve7i0UDdDPQ8sZHkBEKtrHFTlNnWoDn371q0-bHG0vzaJkrg5nIhpclv-8dvK2QCfgwyLtbCNc1eCBj6u8WJ0GYNMH4mTwRstIfogOqOi-MK7RZEXm3pjdOwyKN-kBJjl6aW3pfdT58xTEtZo7jPUpC=s1920" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1920" data-original-width="1920" height="320" src="https://blogger.googleusercontent.com/img/a/AVvXsEiVauD_GhHqBbavc9OWOrblYgTbxk1bTZXOKve7i0UDdDPQ8sZHkBEKtrHFTlNnWoDn371q0-bHG0vzaJkrg5nIhpclv-8dvK2QCfgwyLtbCNc1eCBj6u8WJ0GYNMH4mTwRstIfogOqOi-MK7RZEXm3pjdOwyKN-kBJjl6aW3pfdT58xTEtZo7jPUpC=s320" width="320" /></a></div><br /> When Mr V (husband) and myself planned our lives together in our 20s we took a decision to focus more energies on our family and family businesses and less on top careers. We had decided on shorter career lives. This was before the ‘fire movement’ came to be. For those who do not know, ‘FIRE’ is an acronym for ‘Financial Independence Retire Early. We never imagined that this decision would be the one thing that gives us purpose and a strong joint passion. Financial independence and early retirement were the goal. I have been outside formal employment for almost 5 years now. I also took my semi-retirement break at 35.<p></p><p><br /></p><p>The past few years were super challenging. We lost my mother in December 2020. The pain that I went and am still going through cannot be articulated. My mother was a close friend. The year 2020 was the most difficult year globally. I have not blogged in both 2020 and 2021. However, in 2021 I went back to tracking my finances. This was a needed distraction. </p><p>Back in January 2020, our family’s financial plan was to double our net worth and income in two years without acquiring new physical assets. Then 2020 turned to be the weirdest period of our lives. I rested more that year. The plan to double our net worth was only implemented in mid-2021. My excel spreadsheets and graphs are beautiful to watch every quarter.</p><p>Whilst excel is great, I miss keeping myself accountable through blogging. I will use this platform to keep track of the progress in our ‘project July 2021- June 2023’. It will take a lot of doing to achieve this goal but it is doable. The detailed plan for 2022 will follow in the next blog post.</p><p><b>2021 Highlights:</b></p><p><b>1.Stocks.</b> What we have done from July 2021 is increase our investments in stocks. We did get lucky with the SASOL dip and the great performance of the US dollar stocks in the past year. The year or semester rather, was great. We did not forget our tax free benefit accounts which are also in Exchange Traded Funds (ETFs).</p><p><b>2.<span style="white-space: pre;"> </span>Rental Income.</b> We also had major renovation projects to increase the rental income. One renovation project was in our multifamily let. We renovated the biggest unit. This property has 6 lease contracts in it. We are finalising this remodel project soon. The renovation should increase the income of the unit by 60%. The plan was to further develop this property. The city’s 2018 Regional Spatial Development Framework (RSDF) removed the erf from the area that they earmarked for densification. So, we could not.</p><p><b>3.Retirement and savings.</b> We also contribute to our retirement accounts monthly. We each have two accounts with one being a retirement annuity. The performance is not stunning, but they are a great addition. We also keep some small figure in savings to serve as an emergency fund. We no longer have a big sum in the emergency funds accounts. Interest rates are too low for that. My zero-fee credit card is my emergency account. I never pay interest on a credit card.</p><p><b>4.<span style="white-space: pre;"> </span>Gigs.</b> I achieved more in 2021 than I did in the past few years. My freelance income has been channelled to fast-track Mr V’s retirement. This deserves a separate post.</p><p><b>5.<span style="white-space: pre;"> </span>Content creation.</b> My content creation income was very small. Like I mentioned, I went AWOL. See next blog post for the plans for 2022 on this.</p><p><b>6.<span style="white-space: pre;"> </span>Speaking.</b> I was a visiting lecturer and had a few speaking appearances last year. Noteworthy is my appearance as an expert at an ‘Africa Trade Conference 2021’ and the full week radio show talks.</p><p><b>7.<span style="white-space: pre;"> </span>Wealth transfer.</b> The Geek (our son) turned 18 in 2021 and started on the investment journey of his own. The boy has done very well and invests in the US stocks and ETFs exclusively. He has impressed us by his focus on managing his finances. We have discussed building a good credit rating record and getting his first credit card. We are also helping him max his tax-free savings account. </p><p><b>8.<span style="white-space: pre;"> </span>Budgeting.</b> I still work with a budget that is in my head. Budgeting never works for me. I make my targets, save, invest and then spend. Paying myself first helps with my impulsive habits. </p><p><b>9.<span style="white-space: pre;"> </span>Debt.</b> On debt, we still only have investment property debt. We also have reduced this remarkably in 2021. We are generally not bothered by rental property mortgages. Our priority is having no debt in our primary home and no debt anywhere else. This has always been the case.</p><p><b>10.<span style="white-space: pre;"> </span>Travel.</b> I had plans to travel in 2021. Ireland and Egypt were on the list. Due to the pandemic I only managed to travel between Angola and South Africa. I am looking forward to open borders. The family’s feet itch.</p><p><b>11.<span style="white-space: pre;"> </span>Comfort.</b> Our primary home was the most costly project for the year. We are a family that believes in comfortable living, and always prioritise comfort and healthy food. OH, we sure love our food. We did get approached by interested prospective corporate tenants to lease this property. I was welcoming the idea of great income, but Mr V and the Geek refused to let go.</p><p>12.<span style="white-space: pre;"> </span>Finally, 2021 had its challenges. We had a few months of vacancies and unpaid rentals due to the pandemic. This is not common as we invest mainly in the heart of national government and diplomat presence. Our 2022 goals will highlight how this discomfort pushed us to grow. Our investment city is also growing and is now with a population of over 2.5 Million.</p><p>Thank you for visiting Safe Investing SA. For daily motivation like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and/ or <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>.</p><p><span style="background-color: white; color: #555555; font-family: Arial, Helvetica, sans-serif; font-size: 13px;">--------------------------</span><br style="background-color: white; color: #555555; font-family: Arial, Helvetica, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #555555; font-family: Arial, Helvetica, sans-serif; font-size: 13px;">Author Mbini Kutta, a businesswoman, personal finance author and investor.</span></p>Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-9049022626164662528.post-27615858278180346782020-02-26T20:24:00.000+02:002020-02-26T20:24:45.509+02:00WHY WOMEN NEED TO START BUILDING WEALTH EARLIER IN LIFEPersonal finance is one of the areas that have always been considered gender neutral. But, is it? The gender gap in economic opportunity is not closing quick enough. This means that women must work more than twice as hard as men to acquire similar amounts of wealth. According to the United Nations, 90 percent of women income is invested back into their families, compared with 35 percent for men. <br />
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We are working with 10% of our income to improve on our lives and secure better future for ourselves and the next generation. This is despite the fact that money issues impact more on women than they do on men. For starters, women on average live longer than men. The average life expectancy at birth stands at 67 years for males and 71.1 years for females. It makes sense for women to take financial planning and management much more seriously than men do. <br />
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Secondly, women have a shorter work life and are likely to take breaks throughout their work life. Maternity leave for one easily costs up to six months’ worth of income per child. Raising a child could mean extending the work break by another three years or permanently. What this means is that, women need to start building wealth very early in their lives by saving a higher portion of their income to provide for the time off work. Negotiation skills are also needed to get more flexibility at the current workplace to earn income during these breaks. It is important for women to constantly contribute to their retirement plans.<br />
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Married women tend to rely on their spouses for financial support. In cases of a separation or divorce, they are forced to start taking full control of their lives and in most cases their children too. It is a hard way to learn. Financial planning is a practical skill that needs to be sharpened throughout one's life. <br />
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Most single parents are mothers. Primary caregivers of children in single parent households are most likely to be women. Often, single mothers must manage with no financial support from the fathers of their children. When the law forces men to provide for their children, it is often inadequate financial support for the needs of the children. Women’s personal finance empowerment is never overrated.<br />
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Women earn lower income compared to men. Earning low income means lower contributions to pension and retirement funds. This is extremely limiting, especially when it comes to wealth building. One needs to make money in order to save money. As women, we need to start saving way early in our lives and save a larger portion of our income. <br />
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Not only are we earning less and spending more on our households, but we're also investing less than men do. The gender investment gap is a reality. <br />
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Finally, women need to up their game when it comes to claiming what they deserve. Negotiation skills are key to bridge the existing gap in salaries. They also need to pay themselves first through savings and investments. There is a need for intentionality in building wealth. <br />
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Author Mbini Kutta, a businesswoman and real estate investor. The article first appeared in an offline publication The Apple of His Eye.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-69616782224893784072019-07-08T12:51:00.000+02:002019-07-08T12:51:58.688+02:00PROPERTY INVESTING FOR BEGINNERSAnother interesting weekend chat with a blog reader and <a href="https://www.facebook.com/safeinvestingsa/" target="_blank">Facebook</a> follower, Ms B about property investing for beginners. This reader has an impressive kind of discipline. I like having chats with young investors.<br /><blockquote class="tr_bq">
Hi Mbini,<br /> I have been following your blog and Facebook posts about real estate on your timeline and on Facebook groups. I was hoping you could advise. I just sold one of my properties expecting a return of R80,000. The property was financed by the bank.<br />I do have another property, which I bought for cash for R650,000. I also have some cash loan and credit card debt which amounts to R90,000.<br />I drive an old small car with 260,000 km mileage. The car needs to be replaced but I'm not sure of the route I should take when buying a car. I know I will have to settle my debt first.<br />Is there a way that my paid up property can assist in acquiring more real estate investments?<br />Thank you.<br />Ms B</blockquote>
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I get a lot of questions related to property investing for beginners. I hope that unpacking the reader's situation will empower more readers. I posed a few questions to Ms B to get more clarity on her current financial situation.<br />
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Mbini: Do you plan to acquire more investment property or different kinds of investments?<br />Ms B: Yes, I want to invest in more property. I will be settling R60,000 of the debt by the end of next month. You may also advise otherwise.</blockquote>
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I'm very worried about Ms B's R90,000 personal loan and credit card debt. This is very expensive debt. I would prefer the property debt to credit card debt. The interest rate one is charged by banks on the credit card debt and personal loan is quite high. It is advisable to pay up the debt as Ms B already plans to.</div>
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Coming to the paid up property. If this paid up property worth R650,000 is a rental unit, I would have preferred to owe on it instead. Property debt is a much cheaper debt. Interest rates on property are much more competitive than on the credit card. </div>
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The other important factor to consider is the debt's tax efficiency. Interest on the homeloan attracts the tax deduction. This is one of the biggest benefits of investment property. The main aim is to minimize tax liability. To keep the overall taxation low, an investment property with some debt on it is more desirable.</div>
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Finally, if I were in Ms B's shoes, I would work on accessing money from my existing property and settle my personal loan and credit card debt, if at all possible. <a href="http://www.safeinvestingsa.com/2013/07/paying-debt-using-homeloan.html" target="_blank">Accessing cash from a property</a> can be done by refinancing the paid up property. The cash would then be used settle the debt and towards investing in the second investment property. It is very important to make sure that the interest rate one is charged on the new homeloan is competitive. Even better, one must make sure that the new mortgage is an access bond facility, to ensure that cash is easily accessible in future. </div>
<blockquote class="tr_bq">
Ms B: Let me think about it, do more research and get back to you with more questions. I like your thinking, thank you. My challenge is always trying to play it safe.<br />Mbini: I can see that. Playing safe in investing does not always work. All the best.</blockquote>
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We will be posting more on property <a href="http://www.safeinvestingsa.com/2012/07/beginners-guide-to-investing.html" target="_blank">investing for beginners</a> in future, especially given the current poor economic climate. </div>
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Feel free to email your questions through our <a href="http://www.safeinvestingsa.com/p/contact-me.html">contact page</a>. I trust that you have started with the savings challenge. We have four steps and groups. 1. Debt pay-up, 2. Emergency Fund, 3. Other Savings Accounts, and 4. Investments. Please do keep moving. Start slow but do not stop. For daily motivation like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and/ or <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>.</div>
</div>
Unknownnoreply@blogger.com4tag:blogger.com,1999:blog-9049022626164662528.post-21055103688062155382019-06-30T22:10:00.000+02:002019-06-30T22:10:47.312+02:00PERSONAL FINANCE GOAL REVIEW JUNE 2019My first month of goal setting did not go very well. A month is too long for one to remember their goals apparently. I was supposed to check my list every Sunday. I did not. Oh well. The personal finance goal review for June goes...<br />
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<tr><td class="tr-caption" style="text-align: center;">Personal Finance Goal Review</td></tr>
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<b>JUNE PERSONAL FINANCE GOAL REVIEW</b></div>
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<b>NET WORTH:</b> I will have to check the values of all my investments and real estate debt, add determine the net worth. <u><span style="background-color: white;"><b>ROUGHLY DONE</b></span></u><br />
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<b>EMERGENCY FUND</b>: <u><b>DONE</b></u></div>
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<b>OTHER SAVINGS</b>: 32 days notice account. I was supposed to top this up. <span style="color: red;"><u>NOT DONE</u></span><br />
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<b>GIVING:</b> Over 10% <u><b>DONE</b></u><br />
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<b>REAL ESTATE: </b>I am only doing repairs to and cleaning up the property that will have new occupants mid-June. <u><b>DONE</b></u><br />
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<b>STOCKS AND DIVIDENDS:</b> Exchange Traded Funds (ETFs), invest. <u style="color: red;">NOT DONE</u><br />
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<b>INCOME:</b> Improve on online income. <u style="color: red;">NOT DONE</u></div>
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<b>JUNE NON-FINANCE GOALS:</b><br />
<b>Family:</b> Travel sometime in June for a short family holiday. <u><b>DONE</b></u><br />
<b>Personal Improvement:</b> I need to study more. I commit to competing 2 chapters this month. <u style="color: red;">NOT DONE</u><br />
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I will also walk more this month to get close to my 10,000 steps per day. <u style="color: red;">NOT DONE</u><br />
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I will also get back to a strict Keto diet with some intermittent fasting thrown in for good measure. <u style="color: red;">NOT DONE</u><br />
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<b>Social:</b> I will meet a friend or associate for coffee every two weeks. <u><span style="background-color: white;"><b>PARTLY DONE</b></span></u><br />
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Please help rate the performance on my June personal finance goals. All my energy, time and money was consumed by the property cleanup. I never knew that a boundary wall costs that much. I spent a lot of money on unplanned expenses. <br />
Did you have your own goals dotted down? Let us know if you are up for the challenge in July.<br />
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Feel free to email your questions through our <a href="http://www.safeinvestingsa.com/p/contact-me.html">contact page</a>. I trust that you have started with the savings challenge. We have four steps and groups. 1. Debt pay-up, 2. Emergency Fund, 3. Other Savings Accounts, and 4. Investments. Please do keep moving. Start slow but do not stop. For daily motivation like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and/ or <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>.</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-72824365731986378082019-06-28T18:09:00.001+02:002019-06-29T23:07:29.943+02:00SAVING AND INVESTING STRATEGYI had an interesting question and answer session with one of my readers. Her questions were on developing a saving and investing strategy to raise funds in a short period of time.<br />
<blockquote class="tr_bq">
<span style="background-color: #f3f3f3;">Hi Mbini<br />I'm always inspired by your posts. I have learnt that it is possible to pay property within the record time. I currently have two properties that are paid up. I paid up my last property in just 12 months. The price was not so bad.<br />I am now strained from that transaction and paying up the property. As a result I am currently a tenant, renting with an intention to buy. After twelve months of saving I am hoping to have raised enough capital as part payment. I am in a position to save between R200,000 and R300,000 monthly for the next twelve months. Do you have advice on saving options?<br />I hope this makes sense and thanks for your time.<br />Ms S</span></blockquote>
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<tr><td class="tr-caption" style="text-align: center;"><span style="font-size: small; text-align: start;">saving and investing strategy</span></td></tr>
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Before we look at the saving and investing strategy for Ms S, I have to state how impressed I am with her discipline. She has done very well.</div>
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Twelve months is a short time for long term type investments like stocks or shares. Stocks are high return over a long term. One might even lose some of the money in the short term. I would personally work on preserving my capital by saving the in fixed deposit accounts monthly. Every month I would just start a new fixed deposit account. I would also look at the highest interest money market accounts including the notice accounts. The interest is not going to be as good as the returns in other investment vehicles, but given the time factor, this seems to be the best that one can do.<br />
<blockquote class="tr_bq">
<span style="background-color: #f3f3f3;">Where do I start with the search. I can even split this between savings and long term investments.</span></blockquote>
If you are keeping some by investing in a long term product, I would consider the <a href="http://www.safeinvestingsa.com/2014/11/exchange-traded-fund.html" target="_blank">Exchange Traded Funds</a> (ETFs). I am assuming that you are not very familiar with the stock investments. You might need to have a managed kind of investment process. I think you will find a nice ETF product with high returns.<br />
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For the short term like 12 months, check your bank's highest return on investment products. That will be on the bank's website. I wish you the very best. Please let me know how it goes.<br />
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Please feel free to email your questions through our <a href="http://www.safeinvestingsa.com/p/contact-me.html" target="_blank">contact page</a>. I trust that you have started with the savings challenge. We have four steps and groups. 1. Debt pay-up, 2. Emergency Fund, 3. Other Savings Accounts, and 4. Investments. Please do keep moving. Start slow but do not stop. For daily motivation like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and/ or <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-76417964964749200202019-06-25T21:56:00.000+02:002019-06-25T21:56:13.162+02:00INTEREST BEARING EMERGENCY FUND ACCOUNTWe are looking at one more good interest bearing emergency fund account. You may refer to Capitec's <a href="http://www.safeinvestingsa.com/2019/06/interest-bearing-emergency-fund-account.html" target="_blank">Global One account</a> in the previous post. Again, I confirm that we are not paid by below mentioned service providers to provide this information.<br />
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Our Twitter handle <a href="https://twitter.com/safeinvestingsa">@SafeInvestingSA</a> asked a question:<br />
<blockquote class="tr_bq">
"Do all banks have an interest bearing 24-hour or 1 day notice account that requires an initial investment amount of below R1000. Our <a href="https://twitter.com/hashtag/SavingCommunitySA?src=hash">#SavingCommunitySA</a> needs that or similar for individuals."</blockquote>
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<tr><td class="tr-caption" style="text-align: center;"><span style="font-size: small; text-align: start;">interest bearing emergency fund account</span></td></tr>
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Nedbank was one other bank that responded as follows:</div>
<blockquote class="tr_bq">
"We have various Investment accounts with different offerings and minimum Investment amounts. Click on the link for more info on our account: xxx :)".</blockquote>
We have looked at the Nedbank money market accounts and came up with the one that is most suited to the Emergency Fund. JustInvest account is our <a href="http://www.safeinvestingsa.com/2019/06/emergency-fund-accounts.html" target="_blank">interest bearing emergency fund account</a> of choice. One may start very slow as the minimum investment amount is only R500. This makes it ideal for the new savers.<br />
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This is the only one day or 24 hour notice account that we know of. I find the notice account with only one day notice fascinating. One day notice is long enough to ensure one sleeps on the decision to withdraw funds, whilst it is short enough to take care of an emergency.<br />
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One can use their debit account for monthly stop orders into this money market account. A great idea to ensure that one <a href="http://www.safeinvestingsa.com/2012/06/pay-yourself-first.html" target="_blank">pays themselves first</a>. This account earns interest from 4% at the time of publication of this article. The higher the balance the higher the interest earned. JustInvest also attracts no monthly fees. The interest on the balance at the tie of publication is:<br />
Below R2,500 interest is at 4%; R2,500 – R24,999 at 5,25%; R25,000 – R49,999 at 5,75%; R50,000 – R99,999 at 6,2%; R100,000 – R249,999 at 6,3%; R250,000 – R499,999 at 6,35%; R500,000 – R999,999 at 6,4% and R1 million and above at 6,5%<br />
For our emergency savings of R5,000 to R10,000 our interest bearing emergency fund account earns about 5%. This is not a bad interest on only one day notice.<br />
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I trust that you have started with the savings challenge. We have four steps and groups. 1. Debt pay-up, 2. Emergency Fund, 3. Other Savings Accounts, and 4. Investments. Please do keep moving. Start slow but do not stop. For daily motivation like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and/ or <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-70976669888655552382019-06-25T13:20:00.000+02:002019-06-25T22:01:29.866+02:00INTEREST BEARING EMERGENCY FUND ACCOUNTOur quest for good interest bearing emergency fund account lead us to the social media platforms. We are also analysing the Nedbank <a href="http://www.safeinvestingsa.com/2019/06/interest-bearing-emergency-fund-account_25.html" target="_blank">JustInvest account</a> in the next post. Let me confirm that we are not paid by below mentioned service providers to provide the information below.<br />
<br />
Our Twitter handle <a href="https://twitter.com/safeinvestingsa">@SafeInvestingSA</a> asked a question:<br />
<blockquote class="tr_bq">
"Do all banks have an interest bearing 24-hour or 1 day notice account that requires an initial investment amount of below R1000. Our <a href="https://twitter.com/hashtag/SavingCommunitySA?src=hash">#SavingCommunitySA</a> needs that or similar for individuals."</blockquote>
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Only two of the four banks responded. Capitec responded<br />
<blockquote class="tr_bq">
"We have a savings plan as an addition to our Global One savings account however there is no 1 day notice. You can get the funds immediately in emergencies".</blockquote>
Having checked the Global One account we agree that it is indeed a good interest bearing <a href="http://www.safeinvestingsa.com/2019/06/emergency-fund-accounts.html" target="_blank">emergency fund account</a>. At the point of writing this article Global One would get one a transaction account and four free savings plans. This works much better if you are the Capitec client as this is linked to the debit or credit card. <br />
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Most importantly for us is that this account earns from 5% interest per year on the balances. This is again at the time the article was first published. This is obviously adjusted with changes in the South African interest rates. The account earns 5% for R0 – R24,999 balance, 5.4% for R25 000 – R99 999 and 5.65 for R100 000 and above. Remember that we mostly save R5,000 to R10,000 in our interest bearing emergency fund account. 5% is not a bad interest on an account that has money readily available.<br />
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Lets get to the catch. One needs R25 minimum balance and a monthly administration fee of R5. But this is for the main account which you use for your daily banking activities. Hence the savings plan account itself is marketed as free. One may then link the four free savings plans to their main debit account.<br />
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I trust that you have started with the <a href="http://www.safeinvestingsa.com/2019/06/weekly-and-monthly-saving-challenge.html" target="_blank">savings challenge</a>. We have four steps and groups. 1. Debt pay-up, 2. Emergency Fund, 3. Other Savings Accounts, and 4. Investments. Please do keep moving. Start slow but do not stop. For daily motivation like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and/ or <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>.</div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-64647277451445356892019-06-11T20:33:00.000+02:002019-06-11T20:51:30.360+02:00INTERVIEW WITH ENTREPRENEUR ZAMA MBANE<b>Driven by the love for good food, hospitality industry and art, Zama Mbane (Zama May) gives hope to women from disadvantaged backgrounds. Be sure to follow Mfazana_the_chef on Instagram. You will never regret it.</b><br />
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<tr><td class="tr-caption" style="text-align: center;">interview with entrepreneur Zama Mbane</td></tr>
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<b>Who is Zama May? What drives Zama?</b><br />
My name is Zama Mbane (nee' May) I was born in Port Elizabeth in the Eastern Cape. I am the eldest of two girls. My younger sister passed on in 2015. I am married with two boys aged 20 and 16. My husband was born in the villages of Hogsback eTyume. We currently stay between Tyume and Umhlanga Rocks in KwaZulu Natal.<br />
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<b>We heard the interesting story behind the name, Mfazana.</b><br />
The name Mfazana_the_chef comes from a Xhosa phrase given to women who are married to Xhosa men by mostly older women in the community and the man’s extended family. I was also called “mfazana”, which never sat well with me. I decided to put a spin on it by using it so often that it was no longer offensive to me and everyone used it as my name. The same community women who gave me the name are not pleased because I embraced it, they are back to calling me Nwabisa which is the name they gave me when I got married.<br />
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<b>Please give a brief summary of your business.</b><br />
I love the hospitality industry; I love traveling and I love good food even more. I started off by offering my cooking services to family and friends at no fee. I would even use my money to do grocery shopping for their events for them to taste my dishes and at times, for them to try different dishes for events. I am driven by the love of cooking, the love of the hospitality industry and the love of being a food artist. I decided to develop my cooking skills by enrolling at Capsicum Culinary Studio for a diploma in professional cookery program.<br />
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<tr><td class="tr-caption" style="text-align: center;">interview with entrepreneur Zama May</td></tr>
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My business concept includes cooking as a private chef for functions, offering cooking classes to groups of people, offering one on one cooking lessons and opening pop up restaurants.<br />
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<b>What inspired your niche of choice?</b><br />
As alluded in the introduction, I love cooking and good food. That is where my inspiration comes from. Cooking is not a job or a chore for me, it is a passion.<br />
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<b>Is this your first business venture?</b><br />
Yes it is.<br />
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<b>Has your previous work or education prepared you adequately for your kind of business?</b><br />
Not at all. This is my very first venture into the hospitality industry.<br />
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<b>What are you most proud of when it comes to your business? </b><br />
Hospitality industry is very diverse with most people lacking understanding and exposure to it in the Eastern Cape. I am proud to be making my mark in my province of birth. Locals know where to get a chef that prepares gourmet meals in Alice and Hogsback.<br />
Mfazana also prepares traditional meals with the same love and passion. I am also proud to be influential to the youth in the Eastern Cape. I receive emails and text messages from young people who enquire about my line of business and I give advice where I can. This gives so much hope to people in the rural settings. I am happy to be the one who brings the quality that the locals had accepted to be reserved for the cities. My plan is to inspire women from disadvantaged backgrounds. Kuyenzeka xa uzimisele “passion makes everything possible”.<br />
<br />
<b>What is your strategy to survive business trying times?</b><br />
I am keeping my business as simple as possible. I am not going for high overheads in order for my business to grow and become sustainable. I am building reserves that will help in keeping the business afloat during tough times. The plan is to leave a legacy and generational wealth for my children and their children.<br />
<br />
<b>What are some of the mistakes you now wish you could have avoided? And what did you learn from such mistakes?</b><br />
My first mistake was mixing my business with friendship and offering my services for free. People never value what they get for free. I have since taken the professional approach whereby everyone is expected to make bookings for my services through the channels that everyone uses.<br />
<br />
<b>If you were not running Mfazana, what would you be doing?</b><br />
If I wasn't doing this, I would be traveling, as alluded above, I love this whole industry including the travel or touring part of it.<br />
<br />
<b>Any advice to someone just starting out?</b><br />
A business feasibility study and good business plan are important. Believe in yourself, face your fears, have a vision and act.<br />
<br />
<b>What is next for Zama? </b><br />
I am in the process of opening a restaurant in the Eastern Cape.<br />
<br />
<b>Inspirational quote</b><br />
“Tackle life one dish at a time; ndiwagawula ndiwarhuqa” Zama Mbane<br />
<br />
<b>Final thoughts</b><br />
Opportunities don’t just happen you create them yourself.<br />
<br />
Zama Mbane shares her dishes on her Instagram page <a href="https://www.instagram.com/mfazana_the_chef/" target="_blank">Mfazana_the_chef</a>.<br />
You may also contact her for bookings at 064 538 4316<br />
<br />
Let us learn from your Entrepreneurship or Career journey in order to grow and be better versions of ourselves. Let us support your hustle. Get featured on Safe Investing SA today.<br />
Email Mbini at:<br />
editor@safeinvestingsa.com<br />
<div>
<br /></div>
Unknownnoreply@blogger.com8tag:blogger.com,1999:blog-9049022626164662528.post-1566558462106971392019-06-11T14:32:00.004+02:002019-06-11T14:32:57.995+02:00WEEKLY AND MONTHLY SAVING CHALLENGEThe four groups of our daily, weekly and monthly saving challenge that readers have joined as part of our Saving Community SA drive. I will quickly go through each of the four groups for readers to choose the suitable account for their savings and investment needs.<br />
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<tr><td class="tr-caption" style="text-align: center;">weekly and monthly saving challenge</td></tr>
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<b>Group One: Paying up Debt</b><br />
If you are in this group, please go check our previous posts on paying debt up. <a href="http://www.safeinvestingsa.com/2013/07/dealing-with-debt.html" target="_blank">Dealing with debt</a> is nice and short whilst the more practical one with examples is at <a href="http://www.safeinvestingsa.com/2014/11/if-i-had-debt.html" target="_blank">If I had debt</a>. These posts will help you structure your own journey out of debt. They are worth your time, OK I'm blowing my own horn. Our next challenge will be on paying mortgage/ homeloan in 10 years or less. It is not that hard. I have done it and so have some of my friends.<br />
<br />
<b>Group Two: Building an </b><b>Emergency Fund</b><br />
A lot of people dislike the term Emergency Fund. Please call it whatever you fancy. Just build the fund. For the emergency fund accounts again please check out the recent post on <a href="http://www.safeinvestingsa.com/2019/06/emergency-fund-accounts.html" target="_blank">choosing the emergency fund account</a>. If not sure of the best option, please enquire with your bank. As stated previously, I use a 24 hour notice account for this purpose. There is always an account suitable for this. Just avoid saving in an account that earns no interest. I have shown the interest that I earn in that particular post. Please check it out. A number of people keep R10,000 in that particular account. Some people keep more and some keep less. I need at least this amount because of my various financial commitments.<br />
Remember that you may start building on this whilst you are paying your debt up. You might need to take part of the amount you are committing to fast tracking your debt payment and save it as your emergency fund.<br />
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<b>Group Three: Other Savings</b><br />
A job is such an enabling tool. I am reminded by this post that, when I had a job, I had a "car savings" account. This is where I saved to buy my next car. I also used my homeloan access bond to save for various projects. I would typically save for a down payment/ deposit on a property, a new car, children's school fees, vacations, renovations, etc. Now that we are all getting debt-free, we need this category of savings for us to get in the habit of saving before we spend.<br />
<br />
This is a more medium term type of savings. It makes sense to use a higher interest earning account compared to the emergency fund account. For this particular group, you might need to consider the longer term notice accounts like 32 days notice or the highest interest money market account that your bank offers. I use the 32 days notice account. I keep about twice (or more) the emergency fund amount in this account. I prefer to keep most of my savings in the homeloan access bonds. The reason for this is that, my homeloans typically have a higher interest than the interest I earn from the savings accounts. It helps reduce the interest that I pay on my mortgage, but is also accessible if I happen to need funds. It is also not an easy decision for me to withdraw from an access bond. I have touched on this a little in the post: <a href="http://www.safeinvestingsa.com/2017/02/best-savings-account.html" target="_blank">Best Savings Accounts</a>.<br />
Please choose wisely and ask questions where you need assistance. Use <a href="https://www.facebook.com/safeinvestingsa/" target="_blank">Facebook</a> or the <a href="http://www.safeinvestingsa.com/p/contact-me.html" target="_blank">contact us</a> page.<br />
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<b>Group Four: Stocks, Shares or Exchange Traded Funds</b><br />
I get a whole lot of emails on Exchange Traded Funds (ETFs). I am very passionate which attracts your amazing questions. I have a post that can assist readers understand this better. Please check out this post: <a href="http://www.safeinvestingsa.com/2014/11/exchange-traded-fund.html" target="_blank">Exchange Traded Funds</a>. Take my word for it, they are the best money growing tool for new investors. My teenage son uses them and so does my husband. You might never use any other tool to invest in stocks or shares. I will write a post on how you register and where you can register. <br />
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All the best with the challenge. Please do not give up. Start slow and keep moving. For motivation please like us on <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a>, <a href="https://twitter.com/SafeInvestingSA">Twitter</a> and/ or <a href="https://www.instagram.com/safeinvestingsa/">Instagram</a>.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-80941049364544262532019-06-07T14:52:00.000+02:002019-06-11T20:32:11.385+02:00INTERVIEW WITH ENTREPRENEUR DUDU MOFOKENG<div class="separator" style="clear: both; text-align: left;">
<span style="text-align: start;"><b>This month we have an interview with entrepreneur Dudu Mofokeng. A business consultant, former CEO of Legaci Dry Cleaners and Laundry Services, speaker, strategist and facilitator who was crowned 2014 Sanlam Entrepreneur of the year.</b></span></div>
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<tr><td class="tr-caption" style="text-align: center;">interview with entrepreneur Dudu Mofokeng</td></tr>
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<b>Who is Dudu Mofokeng?</b><br />
<div>
Dudu Mofokeng is a daughter of a domestic worker, a mother of 4, grandmother of 3 and above all a daughter of the most high. Dudu is driven by her pursuit of purpose and touching lives.</div>
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<b><br /></b></div>
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<b>What is your strategy to survive business trying times?</b></div>
<div>
Trying times in business are inevitable, but what you do before they hit becomes imperative. I have learned to live a mindful simple life especially when it comes to preserving my cents. That has been my strategy over the years.<br />
<br />
<b>Please share some of the mistakes you now wish you could have avoided. What did you learn from such mistakes?</b><br />
Structuring business and family as one unit was my biggest mistake. I have since learnt:<br />
- Never to hire a family member solely on the basis of them being a family member. Rather hire people based on the skills and expertise that the business needs.<br />
- Most small business owners are not legally structured to be separable from their failed business ventures. When business fails it fails with the entrepreneur at a personal level, whilst this is not the case for big companies/ corporates.<br />
<br />
<b>How was the bankruptcy experience for you and how did you survive it?</b><br />
It was an eye opening experience which I embraced and learned a great deal from. I think true entrepreneurship is about surviving such and not the glamour that is sold in the glossy magazines. My relationship with money and things was my source of strength in surviving it. Above all, the work I put before the hard times hit came in very handy.<br />
<br />
<b>Can you share your experience on handling savings and retirement planning with our community?</b><br />
On savings I will use a simple example:<br />
I used to have a phone contract that cost R2,000 per month. When hard times hit I simply downgraded my lifestyle. I no longer have a cellphone contract but structured my costs as follows: R50 per week, power hour every day which sums to R200 per month on talk time. R49 a month is for data which covers WhatsApp and other data needs.<br />
I also take advantage of the free WiFi offered by most establishments. It is a no brainer.<br />
On other lifestyle costs I went from paying bills of R24,000 per month to about R3,000 through lowering of expenses.<br />
I do not really believe in the retirement products that are sold by financial companies because of my negative experience with them. My retirement plan is simply leading an inexpensive lifestyle now and forever!<br />
I invest in assets that are easily convertible to cash and increase in value, like real estate and stocks; I keep an emergency fund; I look after my health for my retirement and have a health fund; I have fun and get engaged in activities involving others.<br />
<br />
<b>What’s next for Dudu?</b><br />
Watch the space. I am building a Legaci! (legacy)<br />
<br />
<b>If you had one piece of advice for someone just starting out, what would it be?</b><br />
Work on your relationship with money and material things. Entrepreneurship is not as glamorized as published in glossy magazines. If your pain threshold is very low, step aside before things get worse. Learn to be kind to and love yourself in the entrepreneurship journey. Always remember that entrepreneurship is a continuous self improvement project.<br />
<br />
<b>Any final thoughts to share with Safe Investing SA community.</b><br />
"We all have something to give to this world, don't be a bystander. You can only find the true you by giving yourself to others"<br />
<br />
Dudu Mofokeng imparts great deal of knowledge through her blog: <a href="https://dudumofokeng.blogspot.com/" target="_blank">Dudu Mofokeng blog</a>.<br />
<br />
Let us learn from your Entrepreneurship or Career journey in order to grow and be better versions of ourselves. Let us support your hustle. Get featured on Safe Investing SA today. Email Mbini at:<br />
editor@safeinvestingsa.com</div>
Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-9049022626164662528.post-41869702712676375812019-06-03T22:29:00.001+02:002019-06-03T22:29:51.081+02:00EMERGENCY FUND ACCOUNTSThis post is mainly for our <a href="http://www.safeinvestingsa.com/2019/05/daily-savings-challenge.html" target="_blank">daily savings challenge</a> members and readers who joined the <a href="http://www.safeinvestingsa.com/2019/05/monthly-savings-challenge.html" target="_blank">monthly saving challenge</a>. I thought I would easily compare various bank accounts that are better suited to emergency fund accounts. It seems it would take me forever to complete that kind of a task. I will just explain the account that I use for my own emergency funds. If your bank has a similar account, you might consider using it. If they have a better account, that is even better.<br /><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyAp32Omqj08ZrrhmQN-767k4uRm6VRacd3ZCFEW9Mm_1IRdlYGeMd5YdfZT3ek6WBI9DGs_3kJXtPit0Ep7X9E8hq4ACbY5ra99sjUDnF90Aq29PokfQRxVpTraEjI4tyYYH5SBFPZTg/s1600/WhatsApp+Image+2019-06-03+at+10.05.40+PM.jpeg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="684" data-original-width="1024" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyAp32Omqj08ZrrhmQN-767k4uRm6VRacd3ZCFEW9Mm_1IRdlYGeMd5YdfZT3ek6WBI9DGs_3kJXtPit0Ep7X9E8hq4ACbY5ra99sjUDnF90Aq29PokfQRxVpTraEjI4tyYYH5SBFPZTg/s320/WhatsApp+Image+2019-06-03+at+10.05.40+PM.jpeg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">emergency fund accounts</td></tr>
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Emergency fund accounts are meant for emergencies. No surprise there. There has to be a high level of liquidity in the account you choose with cash being available almost immediately. The account used has to earn interest. My bank has an account with both features. I use a 24 hour or one day notice account as my emergency fund account. You make a 24-hour notice to withdraw. It is very convenient for quick access to cash. <br /><br /><b>More on this money market account: </b><br /><ul>
<li>To open this particular account, one needs a minimum amount of R500. Hence, I thought most of our daily saving challenge members can use similar after keeping their two weeks savings of R560.</li>
<li>5.25 percent interest (at the time of publishing) is not bad at all for the typical funds of between R2,500 and R25,000. I realise that most banks do not have good interest rates on savings and money market accounts. I have seen below 3 percent for accounts similar to the one that I use. </li>
<li>Whenever I need funds, I make a notice a day before my withdrawal. It could be an evening before the day I need the funds. In this way it is not strictly applying the 24 hours waiting period.</li>
<li>I have not created a stop order for my funds to be transferred into this account, but this is possible and a good thing to do. This way one can automatically pay themselves first.</li>
<li>My emergency fund is capped at about R10,000. So, I will never get the 6.2 percent interest rate earned on a R50,000 balance. I am pleased with the 5.25 percent that I earn. </li>
<li>It is important to choose an account with no monthly fees or commissions. Most of them do not. </li>
</ul>
Please look at the features above and get an account from your bank that works in a similar fashion. Funds have to be available immediately or almost instantly. The account has to earn interest. Time value of money is a thing. <br /><div>
Please like us on <a href="https://www.facebook.com/safeinvestingsa/" target="_blank">Facebook</a> and on <a href="https://www.instagram.com/safeinvestingsa/" target="_blank">Instagram</a>.</div>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-9049022626164662528.post-31375085778324440062019-06-02T21:51:00.000+02:002019-06-02T21:58:03.887+02:00JUNE PERSONAL FINANCE GOALSI am so grateful to be doing this again. These are my first personal finance monthly goals in 4 years. I am back to this and more. I need to keep myself motivated again. It will be great getting into 2020 following a smooth planning rhythm.<br />
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<tr><td class="tr-caption" style="text-align: center;">June personal finance goals</td></tr>
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<div>
<div>
Did I mention that I have not had a job in over a year? My last job was supposed to be a part time gig, except, it was too hectic. Let us look at the June personal finance goals.<br />
<br />
<b>JUNE PERSONAL FINANCE GOALS</b></div>
<div>
<br />
<b>NET WORTH:</b> I have not measured my net worth in 4 years too. I will have to check the values of all my investments and real estate debt, add determine the net worth. It is an exhausting exercise. I need to locate the spreadsheet I had drawn for this exercise in the past. <br />
<br />
<b> EMERGENCY FUND</b>: I am so happy to report that my emergency fund is intact. I am keeping the EF at the very minimum levels. It is saved in the 24-hour (one day) notice bank account.</div>
<div>
<br /></div>
<div>
<b>OTHER SAVINGS</b>: I have a 32 days notice account. I just like how generous the interest rates are on this account. I keep a small amount in it and whenever I have funds to keep, I store them here.<br />
<br />
<b> GIVING:</b> Giving is one of the most important activities in my family. We give more than 10% of the income. We are intentional about it. It is a permanent feature in our plan and budget. You will see it monthly. I will also post about it at some point.<br />
<br />
<b> REAL ESTATE: </b>There is not much that we are doing here. No new acquisitions. I am only doing repairs to and cleaning up the property that will have new occupants mid-June.<br />
<br />
<b> STOCKS AND DIVIDENDS:</b> My Exchange Traded Funds (ETFs) are at their lowest level ever. I withdrew quite a bit last year. I started a new work from home business. Setting up cost a small fortune.<br />
<br />
<b>INCOME:</b> I constantly look for gigs for my business.</div>
<div>
Online income has not improved since 2015. I maintained the same earning rates. I only started working on this last week. For four years I have not done anything. I am giving it a year to get to a constant flow.<br />
<br />
<b>JUNE NON-FINANCE GOALS:</b> <br />
<b>Family:</b> I spend a good amount of time with my family lately. I make the time but I also work from home, which gives me ample time to do so. I will travel sometime in June for a short family holiday.<br />
<b> Personal Improvement:</b> I need to study more. I am a student this year. I commit to competing 2 chapters this month. SIGH. I will also walk more this month to get close to my 10,000 steps per day. Winter is the worst time to keep fit for me. I will also get back to a strict Keto diet with some intermittent fasting thrown in for good measure. I enjoy following a food plan. I wish every area of my life was this orderly.<br />
<b>Social:</b> I will meet a friend or associate for coffee every two weeks.<br />
<br />
End of June we will be back to check if I managed to achieve any of my June personal finance goals. But every Sunday, I review my progress. Hope you have your own goals dotted down. Let us know if you are up for the challenge, even without details.</div>
<div>
Like our <a href="https://www.facebook.com/safeinvestingsa/" target="_blank">Facebook page</a> and <a href="https://www.instagram.com/safeinvestingsa/" target="_blank">Instagram page</a> to keep track of my progress. </div>
</div>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-9049022626164662528.post-14226041736853566452019-05-30T22:27:00.000+02:002019-05-30T22:27:02.786+02:00MONTHLY SAVINGS CHALLENGE<div class="separator" style="clear: both; text-align: left;">
<span style="text-align: start;">Since I posted the <a href="http://www.safeinvestingsa.com/2019/05/daily-savings-challenge.html" target="_blank">daily savings challenge</a> plans two posts ago, a few readers requested that we embark on a monthly savings challenge as well. It makes perfect sense as most of my readers get paid once a month.</span></div>
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<tr><td class="tr-caption" style="text-align: center;">monthly savings challenge</td></tr>
</tbody></table>
<div>
Anyway I also want to thank all of you for joining the savings drive. Those who follow us on Facebook have sent amazing messages. Remember to like our <a href="https://www.facebook.com/safeinvestingsa/">Facebook</a> and <a href="https://www.instagram.com/safeinvestingsa/">our Instagram page</a>. It is easier to inspire and encourage each other in social media platforms. And our hashtag is off course <a href="https://www.facebook.com/hashtag/savingcommunitysa?source=feed_text&epa=HASHTAG&__xts__%5B0%5D=68.ARDp7EyZUMM7OmxTYhDt1YSelfpD0swSMIFBboZRJ1xQA6dfx9xvXufSnlcKT0J25OA1l_i72sRQd3NDgHopX4SMnvdXT4qNAMwJkeBFXYDQZrD-w_HB-xlwVyCvwoJJIyXEl6ls8boqh-BlYIcW2jb6TxFW0h8N8PaXz8TVip11aaLUCSkxBuyZTBLM4BNKIFZibJUGtGlnSYzRPIuBbBuoMjPyoie_UVHh3lsNhmFnbyKTElgVbGeWDs1A1cZWQC9S4POaApiJNi9HVnInzHy6UhejWwYlZXt2noP3dOVMiVmOMz_UO_iUPkwx-PTTcultBL1WW_p5RvSmFVwVyHaopg&__tn__=%2ANK-R">#SavingCommunitySA</a> because we are building a community of savers.</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKBUzjW3iJlMt-Gfdsuw51om2qHZpBzz1leYSfD4So8pqs03UdH0BJvHPLT5SNZGKVy2BOgjpoYQcqUtyNvw3AZzPVUVSiEZBXjTzzMc9hPrB376tpazDBaP4CAqfUIEEXIoGRNuPkrW4/s1600/6Months_Savings_Challenge3.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKBUzjW3iJlMt-Gfdsuw51om2qHZpBzz1leYSfD4So8pqs03UdH0BJvHPLT5SNZGKVy2BOgjpoYQcqUtyNvw3AZzPVUVSiEZBXjTzzMc9hPrB376tpazDBaP4CAqfUIEEXIoGRNuPkrW4/s1600/6Months_Savings_Challenge3.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="624" data-original-width="525" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKBUzjW3iJlMt-Gfdsuw51om2qHZpBzz1leYSfD4So8pqs03UdH0BJvHPLT5SNZGKVy2BOgjpoYQcqUtyNvw3AZzPVUVSiEZBXjTzzMc9hPrB376tpazDBaP4CAqfUIEEXIoGRNuPkrW4/s320/6Months_Savings_Challenge3.jpg" width="269" /></a></div>
<div class="separator" style="clear: both; text-align: left;">
We will once again choose the plan we are comfortable with from the four in this article. By the end of the month or whenever we get paid, we will open our emergency (or any) fund accounts. We will post the suitable accounts here for each reader to choose. The 24 hour (one day) notice account requires about R500 initial investment. The <a href="http://www.safeinvestingsa.com/search/label/etf" target="_blank">ETFs</a> require about R300 per month. Please remember that each plan has our investment or own contribution and no interest added. We will save everything in interest bearing accounts or stocks.</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4Yz7ohjVBUSdInIcYUtmeHduPw6-B-KpPvUGuWB7BJqU7Xz4ieK6owiySliJK92Yu_VClIcZa35IdSMTc1yfJG_O3GRuoY0ZyzzWtt82_ZIequehyG7B1h9Z7ESp0XzOAu4wEG8coCg4/s1600/6Months_Savings_Challenge2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="624" data-original-width="525" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4Yz7ohjVBUSdInIcYUtmeHduPw6-B-KpPvUGuWB7BJqU7Xz4ieK6owiySliJK92Yu_VClIcZa35IdSMTc1yfJG_O3GRuoY0ZyzzWtt82_ZIequehyG7B1h9Z7ESp0XzOAu4wEG8coCg4/s320/6Months_Savings_Challenge2.jpg" width="269" /></a></div>
Know your WHY. Are you saving towards building:<br />
<br />
<ul>
<li>Emergency fund.</li>
<li>Children school fees fund.</li>
<li>Deposit on their home.</li>
<li>Deposit on their car.</li>
<li>Investment for retirement.</li>
<li>Investment for passive income.</li>
<li>Business capital.</li>
<li>ETC.</li>
</ul>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKkGAr5qSIcEQTHEMpa42RiCbreAOVNnV5PZRVw1bM1-O4RGS219kNCD4yHGuU_vCPfck8I6EIycc0ZRXma7341zSsXkYAR814ztlClEX_5TAikxOyh0inFfK2_DM_QeN-fdTyO8P4lVk/s1600/6Months_Savings_Challenge4.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="624" data-original-width="525" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKkGAr5qSIcEQTHEMpa42RiCbreAOVNnV5PZRVw1bM1-O4RGS219kNCD4yHGuU_vCPfck8I6EIycc0ZRXma7341zSsXkYAR814ztlClEX_5TAikxOyh0inFfK2_DM_QeN-fdTyO8P4lVk/s320/6Months_Savings_Challenge4.jpg" width="269" /></a></div>
I wish us all the very best in this monthly savings challenge. Keep pushing.<br />
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-50285022414432057462019-05-28T14:10:00.000+02:002019-05-28T14:10:14.780+02:00GET FEATURED ON SAFE INVESTING SA<br />
We would like to have you get featured on Safe investing SA.<br />Safe Investing SA has, since 2011 been inspiring readers to do better, live better, attain financial freedom, spread their wings, get that extra income, diversify their portfolio, excel at their jobs, raise level-headed children and just be better citizens. For eight years we have built a community of doers and influencers. Some of our readers are successful investors, entrepreneurs and have built various streams of income.<div>
<img alt="Image may contain: text" height="400" src="https://scontent-jnb1-1.xx.fbcdn.net/v/t1.0-9/61497496_2443816435629600_1195889560026873856_n.jpg?_nc_cat=107&_nc_eui2=AeFjFgBlNxhnSq5NjJyAzAQFXDedTD6lOc3mEAT_YWURTPO7UslGx_OU0mJgnXgUMdGCrVxaRPdJ14_4HGg3A60yIl0MpTgfQyjDHT3gMwSQ_g&_nc_ht=scontent-jnb1-1.xx&oh=a49a744c6a8767d302436fb4fed92f1c&oe=5D5AD2FF" width="336" /><br />In the aim to continue promoting a debt-free lifestyle, financial freedom, and a great lifestyle community we would love to publish your story. Have you changed careers, started from the bottom up, started a business, paid up debt, saved and invested for retirement or any cause at all? Please share your story and inspire our financial freedom community. <br /><br />Calling all: <br /><ul>
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<li>Debt Free Enthusiasts </li>
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<li>Wealth builders </li>
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Let us learn from your journey in order to grow and be better. Let us also support your hustle. Get featured on Safe Investing SA today. <br /><br />Email: <a href="mailto:editor@safeinvestingsa.com">editor@safeinvestingsa.com</a> <br /><br />Facebook: <a href="https://www.facebook.com/safeinvestingsa/" target="_blank">@safeinvestingsa</a> <br /><br />Instagram: <a href="https://www.instagram.com/safeinvestingsa/" target="_blank">@safeinvestingsa</a> <br /></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-39730450202326708452019-05-27T14:23:00.000+02:002019-05-27T14:23:06.339+02:00DAILY SAVINGS CHALLENGEThis daily savings challenge is my idea of fun. I know, I'm even more boring in real life. Get over it people. Here goes the fun. We have six daily savings plans for you to choose if you are joining. I so hope you are. We are saving up to R150,000 (about $12,500) per year each. This is an accountability stokvel and savings club of sorts.<br /><br />How it Works:<br />We will each choose the plan we are comfortable with from the six listed below. We will then save our daily amount mentally and leave it wherever it is. We will then open our emergency (or any) fund accounts in 2 weeks time. The 24 hour (one day) <a href="http://www.safeinvestingsa.com/2017/02/best-savings-account.html" target="_blank">notice account</a> requires R500 initial investment. The ETFs require about R300 per month. Please remember that each plan has our investment and no interest added. We will save everything in interest bearing accounts or stocks.<br /><br />Some of our readers are saving towards building their:<br /><ol>
<li>Emergency fund.</li>
<li>Children school fees fund.</li>
<li>Deposit on their home.</li>
<li>Deposit on their car.</li>
<li>Investment for retirement.</li>
<li>Investment for passive income.</li>
<li>Business capital.</li>
<li>ETC.</li>
</ol>
<div>
Remember, depending on each one's needs, one can save in a notice account, <a href="http://www.safeinvestingsa.com/2012/06/money-market-investing.html" target="_blank">money market account</a> or invest in <a href="http://www.safeinvestingsa.com/2014/11/exchange-traded-fund.html" target="_blank">exchange traded funds</a> (ETFs) for better returns. For those who prefer a monthly plan, we'll work on a few options for the beginning of next month. For now, choose from one of our daily savings challenge plans below.<br /><br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheij2pUJYlhjxzeuXxp1-jVQVcLD_yfxss7ELNC9YWjTxYwRibAeHB6eB-1iGCHS-dptc_O86ABB3701ULVcNmMKpttEgkcI-vVIvpfHGQsOqWOJ03NUFJ9YNY5yNKIvjpMAgwIVNSvnY/s1600/Daily_Savings_Challenge1.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="624" data-original-width="525" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheij2pUJYlhjxzeuXxp1-jVQVcLD_yfxss7ELNC9YWjTxYwRibAeHB6eB-1iGCHS-dptc_O86ABB3701ULVcNmMKpttEgkcI-vVIvpfHGQsOqWOJ03NUFJ9YNY5yNKIvjpMAgwIVNSvnY/s320/Daily_Savings_Challenge1.jpg" width="269" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">daily savings challenge</td></tr>
</tbody></table>
This is our basic daily savings plan. You may just save R280 per week. If you convert it into a monthly savings plan, you will save less because there are a few extra weeks in a year. A year is not made of exactly 4 weeks per month. Keep records of this and follow us on Facebook to keep track of where we are.<br />
<div class="separator" style="clear: both; text-align: center;">
</div>
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4Xi4NmRZ4uUiQNtlDj8bWnYga-_61rs_o-h1_x7iqF_eCiIdTJoHDaC1QcwWx4pMxsUuRwPVTi3f3EexbhDI7MaOjkEbZjnGD3ANDUFeS_y12kXUdKuPV7DdyDKjV44JE34L3xVE2Mgw/s1600/Daily_Savings_Challenge3.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="624" data-original-width="525" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4Xi4NmRZ4uUiQNtlDj8bWnYga-_61rs_o-h1_x7iqF_eCiIdTJoHDaC1QcwWx4pMxsUuRwPVTi3f3EexbhDI7MaOjkEbZjnGD3ANDUFeS_y12kXUdKuPV7DdyDKjV44JE34L3xVE2Mgw/s320/Daily_Savings_Challenge3.jpg" width="269" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">daily savings plan</td></tr>
</tbody></table>
Above is the double of the basic plan. A number of the readers can spare more than the R500 per week. Remember again that if you convert it into a monthly savings plan, you will make less because there are a few extra weeks in a year. Keep moving with us.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwqvTu1oc2Lp8niyFHhaqI8Kb3UI1djOQImtl76ZuOp_oDaVRyNi4iJolC2PV8ai5BQfCcrMDUYk9IBY0aRBKfY9WDnkPNsVYaiUgvxIovwDl8tY-j0MmKs_AJrqdakNYbykkyyA7AeLg/s1600/Daily_Savings_Challenge4.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="624" data-original-width="525" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwqvTu1oc2Lp8niyFHhaqI8Kb3UI1djOQImtl76ZuOp_oDaVRyNi4iJolC2PV8ai5BQfCcrMDUYk9IBY0aRBKfY9WDnkPNsVYaiUgvxIovwDl8tY-j0MmKs_AJrqdakNYbykkyyA7AeLg/s320/Daily_Savings_Challenge4.jpg" width="269" /></a></div>
And now we look at half of the basic plan. Students and young professionals who are starting out might go for this plan. The most important part of building wealth is consistency. We are developing a culture of saving here more than anything.<br />
<br />
Below are R50K to R150K daily savings plans.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuVDM3u_xXeMpNt1F9TgWZAuQJQRzLDwv6f3a5Fr1s8SvqDRraKArhMXVyZN_r5lyWgqvKvA0vUW2VkVye3w7ddjTIhdYQmNQQaWJS4XkZMUKiCspftg1l8Fiz97luiWXa3ZCRf1ch6rA/s1600/Daily_Savings_Challenge5.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="624" data-original-width="525" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuVDM3u_xXeMpNt1F9TgWZAuQJQRzLDwv6f3a5Fr1s8SvqDRraKArhMXVyZN_r5lyWgqvKvA0vUW2VkVye3w7ddjTIhdYQmNQQaWJS4XkZMUKiCspftg1l8Fiz97luiWXa3ZCRf1ch6rA/s320/Daily_Savings_Challenge5.jpg" width="269" /></a></div>
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmITMPHndmOh5c3EkgBgvFWREaxzdShZngr0SYkdbWe2Ij40fexBYmzrSPx_59sUXHknuoQiRTkxhhS9VH323Gc-feppaZWwQzLyDWxGAJ861aTB8Sfy3vmd3vF1V1VYksVfbJnlN_pB0/s1600/Daily_Savings_Challenge6.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="624" data-original-width="525" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmITMPHndmOh5c3EkgBgvFWREaxzdShZngr0SYkdbWe2Ij40fexBYmzrSPx_59sUXHknuoQiRTkxhhS9VH323Gc-feppaZWwQzLyDWxGAJ861aTB8Sfy3vmd3vF1V1VYksVfbJnlN_pB0/s320/Daily_Savings_Challenge6.jpg" width="269" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPBLbWxClDo6pmCFyIjzPygod6p_OppxfxI4uaake2pYC0M8-FSCgL8U6p2KEM-YMXMO8Ko8p3TuhiXmQzMiSG5uwFST-ePjz_VkGGj2WSXW7TTAIDgf_DyBIy4Qtxi0GWfo6fZL2Dkfo/s1600/Daily_Savings_Challenge2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="624" data-original-width="525" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPBLbWxClDo6pmCFyIjzPygod6p_OppxfxI4uaake2pYC0M8-FSCgL8U6p2KEM-YMXMO8Ko8p3TuhiXmQzMiSG5uwFST-ePjz_VkGGj2WSXW7TTAIDgf_DyBIy4Qtxi0GWfo6fZL2Dkfo/s320/Daily_Savings_Challenge2.jpg" width="269" /></a></div>
<div class="separator" style="clear: both; text-align: left;">
All the best to you. I will keep reminding all of us on <a href="https://www.facebook.com/safeinvestingsa/" target="_blank">our Facebook page</a>. Stay tuned.</div>
</div>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-9049022626164662528.post-52041780518598906302019-05-23T22:19:00.000+02:002019-05-23T22:19:13.908+02:00BASIC FINANCIAL PLAN<div style="text-align: left;">
</div>
The logical step, following the previous post on <a href="http://www.safeinvestingsa.com/2019/05/financial-independence.html" target="_blank">financial independence</a> is drawing a basic financial plan. Wouldn't you agree? We are unpacking ways to reach financial freedom. It is as much a journey for me as it is for my readers. I am also investigating the best ways to improve on how I handle my finances, how I save, how I invest, how I diversify and balance my portfolio, how I build various streams of income and how I plan to eventually retire comfortably.<br />
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEinBwkiOl8QrTpJ4uw6HYYyX7gJnUXBnCpYrdD5RyAflkXOVkeG1YXdJjvycrSsbV-b5g8rrUVV2dqNmIKD8PGaagfQ-s6rufPIbFDt778ngvp7pLLuCbNgUgmfzL-QS9YEycHa6nv-mvI/s1600/Net+Worth.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="416" data-original-width="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEinBwkiOl8QrTpJ4uw6HYYyX7gJnUXBnCpYrdD5RyAflkXOVkeG1YXdJjvycrSsbV-b5g8rrUVV2dqNmIKD8PGaagfQ-s6rufPIbFDt778ngvp7pLLuCbNgUgmfzL-QS9YEycHa6nv-mvI/s1600/Net+Worth.jpg" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">basic financial plan</td></tr>
</tbody></table>
Let us look at the very
basics of financial planning and set some milestones together. Like both our <a href="https://www.facebook.com/safeinvestingsa/" target="_blank">Facebook</a>
and <a href="https://www.instagram.com/safeinvestingsa/" target="_blank">Instagram</a> pages to follow my progress whilst you work on your own plan. I am right now growing my medium term savings.<br />
Oh well, let us
dive right into our exercise by firstly taking stock of where we are.<br />
<br />
<div class="MsoNormal">
<b>1. My Assets (What I own):</b><o:p></o:p></div>
The beginning is how our finances look at the point of
this review. We start with what we own. There
are broadly 4 asset classes that we will use for this exercise. We are not going to break the assets down to sub categories. Check the examples in the third column below to get an idea.<br />
<br />
<table border="2" style="width: 90%;">
<tbody>
<tr>
<td><b>Asset Class</b></td>
<td><b>Asset Description</b></td>
<td><b>Examples</b></td>
</tr>
<tr>
<td>Cash</td>
<td>Cash
is generally short-term and low-risk in nature. My shortest term account is the one day notice account.</td>
<td>Money
market, notice accounts, savings, etc</td>
</tr>
<tr>
<td>Bonds</td>
<td>Savings
bonds is money one lends to government or an institution that
needs to raise funds. This is also low risk.</td>
<td>Government
or company issued bonds.</td>
</tr>
<tr>
<td>Real
Estate</td>
<td>Property
investment for holding, leasing and/ or flipping. This is obviously my weakness.</td>
<td>Residential,
commercial and real estate investment trusts (REITs).</td>
</tr>
<tr>
<td>Shares,
Stocks or Equities</td>
<td>Company
shares in the stock exchange or even offshore. This is easier than most people imagine.</td>
<td>Individual
stocks and/ or exchange traded funds (ETFs).</td>
</tr>
</tbody>
</table>
<br /><!-- DivTable.com --><br />
<div>
<div class="MsoNormal">
<b>2. Debt (What I owe):</b><o:p></o:p></div>
<div class="MsoNormal">
The next step in drawing a basic financial plan is listing liabilities or what we owe. This has to be the most scary step. No stress though, a problem identified is as good as conquered. </div>
<div class="MsoNormal">
</div>
<ul>
<li>Homeloans or Mortgages are more longer term debts that we have. Get the exact amounts owed to banks and add them up;</li>
<li>Short to long term loans;</li>
<li>Car loans;</li>
<li>Credit cards and other revolving debt like retail store accounts;</li>
<li>Any other debt.</li>
</ul>
<br />
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>3. Net Worth (What I am worth): </b><o:p></o:p></div>
<div class="MsoNormal">
This is where we add up all our assets and subtract our liabilities (debt) to get an idea of how much we are worth. Not to be fazed though, a negative net worth can still be rectified. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>4. Setting Financial Goals</b><o:p></o:p></div>
<div class="MsoNormal">
Now that we have an idea of how much we are worth, let's go ahead and set our finance goals. How far do we want to grow our net worth? Are we looking at developing
passive income, diversifying our portfolio for more streams of income, invest for a comfortable retirement? What to we want to achieve? What is our <a href="http://www.safeinvestingsa.com/2015/09/building-wealth.html" target="_blank">basic financial plan</a>?<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>5. The Plan and Strategy</b><o:p></o:p></div>
<div class="MsoNormal">
</div>
<ul>
<li>My main focus has always been on <a href="http://www.safeinvestingsa.com/2012/06/pay-yourself-first.html" target="_blank">paying myself first</a>. This involves saving before spending, growing funds for
various purposes like emergencies, saving for larger purchases like cars, etc.</li>
<li>Drawing and sticking to a monthly spending plan or budget. It's not that hard really.</li>
<li>Paying consumer debt off, including credit cards, retail
cards, cars, mortgages, etc.</li>
<li>Reviewing the essential policies like life insurance. This is a need when one has dependents.</li>
<li>Reviewing funds for retirement, including the retirement
annuity. Learn how to maximize the RA.</li>
<li>Growing savings for children's education.</li>
<li>Growing the investments for a <a href="http://www.safeinvestingsa.com/2015/01/diversifying-portfolio.html" target="_blank">balanced portfolio</a>. Are you
happy with your stocks, bonds, savings, real estate investments, etc.</li>
</ul>
<div>
Please share your own personal finance strategies in the comment below, on Facebook or Instagram.</div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9049022626164662528.post-1360586779738067982019-05-22T20:21:00.002+02:002019-05-28T14:10:52.873+02:00FINANCIAL INDEPENDENCEI thought a refresher post on financial independence makes sense, in light of new developments in my life. I finally quit my part time job over a year ago. I am not retired yet but I only work on what I enjoy working on at any given time. I realize that I have almost reached the goal I had set from the very beginning. That of living my life in my terms.<br />
<div>
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<tr><td class="tr-caption" style="text-align: center;">financial independence</td></tr>
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A lot of people have ruled early retirement out as a dream that is impossible to achieve. They are so wrong. Anyone can achieve the state where they have enough wealth that they do not need a job or any form of paying work. How lovely it must be to know that you own your time and thus your life. But even better, how exciting it is to believe in that possibility and claiming it for your life. Make that happen for yourself. You are so deserving.</div>
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I am very proud of myself for being so close to my idea of reaching financial independence. I am so close, I can almost touch it. I will break down how I am ensuring that I will reach the ultimate goal and retire or do whatever I want to do with my life. Travel would be very nice. Every single strategy listed here is within our control. We are not building castles in the air.</div>
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<b>1. Lowering Expenses.</b></div>
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Most of my readers are fortunate enough to have formal employment and therefore an opportunity to <a href="http://www.safeinvestingsa.com/2014/10/building-wealth-from-your-first-job.html" rel="nofollow" target="_blank">save and invest</a>. We all know by now that we should pay ourselves first and only spend after. We also need to know what our priorities are and cut costs on any expenses outside those. I love going to a beauty spar and not so much eating out. However, with my current setup of working from home, I have decided to go out for coffee every week and rather cut on doing my nails. I have not visited my nail technician in six months. I will probably stretch it to a year or longer. I paint my own nails. That is already saving me some R400 per month. I will survive my healthy natural nails. I know I am trying hard to convince myself.</div>
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<b>2. Building Multiple Streams of Income.</b></div>
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I am currently using all the skills in my possession to earn some income. I am a personal finance speaker, as I'm sure you can imagine. I also do some technical economic work to keep my brain active and of course earn some income. My speaking assignments used to be for free. I have started charging a fee as I need to take valuable time to prepare. And of course the property income which is the main source of my income. Writing is still a hobby but definitely not for long.</div>
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<b> 3. Investing in High Return Vehicles.</b></div>
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Apart from real estate, the stocks are an amazing way to grow one's equity. I am still a huge fan of <a href="http://www.safeinvestingsa.com/search/label/etf" target="_blank">exchange traded funds</a> (ETFs). I am diversifying with a number of off-shore options. ETFs is one of the most exciting investment tools. It is relatively easy as management is fully outsourced.</div>
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<b>4. Building Passive Income.</b></div>
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Over the years I have realized that real estate is not a source of passive income. I do not even manage my properties, but I somehow find myself doing a lot from marketing to working on the physical structures. However, dividends from stocks are one hundred percent passive. I love that a lot. </div>
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<b>5. Start Early.</b></div>
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I think I started early enough. But starting at any point is great. Just start where you are. Working on reaching <a href="http://www.safeinvestingsa.com/2012/10/what-financial-independence-means.html" target="_blank">financial independence</a> is very much worth it. We owe it to ourselves.</div>
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