“Home is not a place; it’s a feeling.” (Cecelia Ahern) Deciding whether to buy or rent your home may be one of the most important financial decisions you’ll ever make. Ultimately, the choice comes down to a combination of financial variables and personal factors, which, as we know, fluctuate unpredictably. Rands and cents Let’s start…
As your wheel of life turns, your financial needs, goals and focuses change. When you start working, you’re absorbed by accumulating assets. Later, as you near retirement, your focus shifts to wealth preservation. And eventually, when you’re settled and comfortable in your golden years, the transfer of wealth becomes your number one priority. It goes…
“There is no pebble so small that it won’t make ripples when tossed into a body of water.” (Charles Peck) In a recent blog post, financial writer Morgan Housel made an interesting observation. He wondered what would happen if people invited public scrutiny of the way they went about trying to find love: “Imagine if,…
“Change is not a gate we pass through; it is the definition of life.” (Millie Florence) The good Supporters of the change believe that introducing an accessible savings pot can provide salvation for those in financial crises, like the one caused by the Covid pandemic. It will help people to avoid debt and prevent people…
“If a man is not faithful to his own individuality, he cannot be loyal to anything.” (Claude McKay) Case study 1: Family matters One financial advisor told us about a 68-year-old client who sold his business and worried his children would be ruined by inheriting too much wealth. The advisor created a Family Constitution outlining…
“Family is not just important; it’s everything.” (Michael J Fox) Many South Africans are not just working to support themselves or even their immediate families. Given the country’s high rate of unemployment, it’s not unusual for people to find themselves under pressure to provide financially for their parents, grandparents and even cousins, aunts and uncles.…
“Speculation leads you the wrong way. It allows you to put your emotions first, whereas investment gets emotions out of the picture.” (John C. Bogle) It’s tempting to believe we can control our emotions regarding money matters. However, being human means we’re susceptible to emotional biases that lurk silently beneath the surface, influencing our choices…
“You can’t buy love, but you can pay heavily for it.” (Henry Youngman) When describing their ideal partner, most people would probably say they are looking for someone who shares their values. The things that are important to them, should also be important to the person with whom they choose to spend most of their…
“An investment in knowledge pays the best interest.” (Benjamin Franklin) A is for Asset Your possessions are known as your assets, while any debts are called liabilities. If your home’s mortgage is fully paid up, your home is an asset, but if you’re still paying off a hefty home loan and incurring maintenance costs, it could be a…
“Returns matter a lot. It’s your capital.” (Abigail Johnson) Let’s start at the beginning – Annualised returns The annualised rate of return on investment represents the average yearly return you would have received over a specified period. It expresses an investment’s performance as if it had grown steadily each year, taking compounding into account, even though…