Finance Man

New Post has been published on https://financeman.co.za/blog/the-new-driving-demerit-system-is-now-law-and-here-is-what-you-earn-points-for/

The New Driving Demerit System is now Law and Here is What You Earn Points For

The Administrative Adjudication of Road Traffic Offences (Aarto) Bill is now the law and through the implementation of the demerit system, the legislation aims to change driving behaviour. 

Every driver starts with 0 points and the maximum they are able to accumulate is 12 points. This accumulative points are assigned depending on the traffic infringement, with each infringement carrying a different number of points along with a fine. 

If a driver gets 12 or more points, then it will result in their license being suspended for a period of three months. Every three months, one point is reduced if no other violations occur during the three-month period. However, if a driver exceeds three suspensions then they could lose their license permanently. 

So, what do you earn points for?

Here are some of the traffic offences that will increase your points:

Four demerit points for driving without a licence

Six demerit points for driving under the influence of an intoxicating substance

One demerit point for using and holding a cell phone whilst driving

Two to six points for speeding

One demerit point for light vehicles and two points for busses and trucks that skip stop signs. 

New Post has been published on https://financeman.co.za/blog/major-banking-strike-heading-our-way/

Major Banking Strike Heading Our Way

At the end of September, a major strike is being planned by the largest financial union in South Africa. Sasbo, who currently has more than 73 000 members, are talking about downing tools at the end of the month in protest of the planned retrenchments in the banking sector. 

Sasbo general secretary, Joe Kokela said that the union wants banks to look at other options instead of retrenchment and begin a program to re-skill employees who are at risk. Kokela went on to say that if the banks turn them down then they will ensure that the system is shut down until they come to their senses. In addition, Kokela said that they can make sure that ATMs are replenished at a minimum so that the country runs short on cash. 

According to eNCA, Cosatu is in support of the strike, which has warned that the strike is ‘just a warm up’. Deputy general-secretary, Solly Phetoe said that all Cosatu-affiliated unions will mobiles to ensure that the Sasbo banking sector strike, planned for the 27thSeptember is a success. Also, Phetoe said that this strike is just a build-up to the full national strike on the 7thOctober. 

Why Are They Striking

Recently several local banks have closed numerous branches throughout the country due to digitalisation, which promotes self-service as clients can use their cell phones and computers instead of going to a branch. 

Lenders are cutting jobs as they try and find ways to lower costs and contend with the slow economic growth. Also, there is new competition which is branchless, such as the digital entrants Discovery and TymeBank. 

In recent months, Absa, Nedbank Group and Standard Bank have consulted with staff about cuts. Standard Bank is closing 91 branches, Absa is restructuring operations and Nedbank is in talks with about 1500 employees over job cuts or redeployments according to a report by Bloomberg in July. 

Job cuts is a sensitive issue in South Africa, especially as the unemployment rate has risen to 29%, which is the highest it has been in more than a decade. 

New Post has been published on https://financeman.co.za/blog/fincheck-invests-in-fundinghub-making-it-the-largest-financial-comparison-site-in-sa/

Fincheck Invests in FundingHub, Making it the Largest Financial Comparison Site in SA

Fincheck is a financial comparison site and has recently taken over the full management and equity in FundingHub, which now makes it the biggest financial comparison site in South Africa as well as the largest lead aggregator having signed 71 banks, insurers and lenders. 

FundingHub aims to meet the needs of small and medium enterprises (SMEs) in South Africa, who are looking for finance to grow their business by offering 30 alternative lenders and banks.

Over the two years that the business has been in operation, it has attracted loan sizes on average of R300 000. The largest loan R72 million. In order for SMEs to apply for funding on the online hub, they must have been in business for at least 12 months and operate with an annual turnover of R1 million. 

Fincheck CEO, Michael Bowren said that with FundingHub, SMEs can apply for business finance in under six minutes and can compare multiple accredited finance providers, so that they can make the best choice for their business. 

Various forms of finance are available to SMEs, which can then make it difficult for them to choose the lender that is best suited to their business needs. A business may not know if they need unsecured or secured loans, equipment finance, lines of credit, overdrafts and so on. With FundingHub this has been made simple as they filter options and offer quotes from lenders that are the most appropriate for the business. 

This means that the SME can apply to more than one lender via FundingHub and can choose the most suitable offer. Also, money can be put into a business account within 24 hours, making the process simpler, quicker and easier. 

New Post has been published on https://financeman.co.za/blog/it-will-become-harder-to-get-a-loan-with-new-debt-relief-laws/

It Will Become Harder to Get a Loan with New Debt Relief Laws

The new debt relief laws could potentially harm South Africa’s international standing and could even result in a further credit downgrade according to Dawie Roodt, chief economist at Efficient Group. He also said that the new legislation will add to the ever growing national debt. 

He went on to say that South Africa is already on the verge of seeing expropriation of land without compensation and now the ANC is tinkering with the financial system. It could mean that debt to the tune of between R13 and R20 billion could be written off, which belongs to banks and other financial institutions. These loans are in effect property and therefore should be protected by article 25 of the constitution. The question is then what message is being sent to the rating agencies. 

Last week saw president Cyril Ramaphosa officially approving the National Credit Amendment Bill. The aim of such is to provide breathing room for some of the country’s hard pressed consumers, where applicants who meet the criteria can have their debt deferred in part or in full for up to 24 months. Not only this, the debt can even be expunged completely if the applicant’s financial circumstances do not improve.

So, what happens to loans and credit given the debt relief bill? Well, it could become a lot harder for people to get the loan they need. 

Banks will Tighten Up

Financial institutions that could lose billions if loans are written off will look at tightening their lending criteria to the point where the majority of these individuals will not be able to get a loan in the future, according to the CEO of Debt Rescue, Neil Roets.

The debt forgiveness programme is aimed at low wage earners and retrenched workers according to the Department of Trade and Industry and they are the very ones that potentially may not be able to secure credit when the policy is implemented. 

Director of the Banking Association of South Africa, Cas Coovadia agrees with this sentiment saying that the lending criteria of banks will be tightened as a response to the new act. The association has conducted an economic impact assessment, which engaged the Department of Trade and Industry and found that banks will have to price higher to cover risks or will avoid lending to low income customers altogether.

He said that this could then lead to serious economic implications, but other options can only be considered once more details and implementation details are released. 

New Post has been published on https://financeman.co.za/blog/moody-says-that-extra-bailout-wont-bring-an-end-to-eskom-challenges/

Moody Says that Extra Bailout Won’t Bring an End to Eskom Challenges

South Africa is providing extra financial support to Eskom to the tune of R59 billion, which is credit positive for the company, however, according to Moody’s Investors Service, the debt outlook for Eskom will depend on whether it’s able to curb cost growth. 

Moody analysts have said that they expect Eskom’s debt to largely stabilise due to government capital transfers in financial years 2020-21. The future debt trajectory of the company, however, will depend on if it’s able to contain operating costs that are likely to remain under upward pressure and capital spending. 

Eskom is currently seen as the biggest threat to the nations’ economy, but will receive R26 billion of the money this financial year and will receive R33 billion in 2020-21. This comes just five months after Tito Mboweni, finance minister, announced a three-year cash injection of R69 billion. 

Currently, Eskom has over R440 billion of debt and this month it’s expected that another annual loss is to be reported due to cost overruns on new plants as well as unreliable generation from old coal facilities that caused power outages in the first quarter. 

Eskom provides 95% of the nation’s power and the government has vowed to help as the disastrous finances of the company have become clear. 

The sustainability and longer-term evolution of Eskom’s capital structure will be dependent on a plan being in place for its turnaround, but this is yet still to be created said, Moody. At the moment, Moody is the only credit rating company that is still seeing South Africa’s debt as investment grade. However, the extra bailout doesn’t have an accompanying plan that will make Eskom more sustainable, which is then credit-negative for the nation. 

The assessment by Fitch Ratings cut its position of South Africa’s debt to negative, which means that there is a risk the nation will drop further into sub-investment. The reason for this was cited as the additional support for Eskom. 

New Post has been published on https://financeman.co.za/blog/discovery-bank-unveils-more-about-their-bank/

Discovery Bank Unveils More About their Bank

Discovery Bank has gained some buzz as a new bank in South Africa and with that in mind, they aim to make themselves competitive in terms of its fees, interest rates and rewards. 

Adrian Gore who is the Discovery Chief Executive said that they conducted research on banking fees. The research was based on 12 000 clients, 611 000 transactions and R800 million in transaction value.

From the research, it was determined that consumers pay on average a monthly fee of R206 per month. The survey showed that this average would differ according to income with low-income earners paying about R132 per month, middle-income earners paying R214 per month on average and high-income earners pay on average R309 per month. 

Discovery Bank will be offering basic transactional accounts as well as structured accounts that would incorporate transactional and savings accounts and credit cards. 

Discovery 1, Discovery 1 Plus and a Vitality Savings account make up the offering from Discovery Bank. 

The first of these, Discovery 1 will be a basic transactional account that would offer a savings account and a credit card. 

Discovery 1 Plus will be on a bundled basis, which means that consumers will be charged on a pay as you transact basis. This would include savings and transactional accounts, a credit card and dynamic interest rates. 

The Vitality Savings account will have zero fees, Vitality cashbacks and rebates that would be paid into the account and a dynamic savings rate.

By June this year, Discovery Bank aim to launch its healthy banking and their family banking. With the healthy banking product, healthcare benefits would be offered to Discovery Bank clients and family members can take advantage of the family banking benefits.

The survey also showed that customers with a positive balance in their accounts received zero or very little interest with the exception of one or two banks. Discovery plan on offering a reasonable interest rate on positive balances. This could be a 5% rate, but can be possibly 1.5% higher depending on a client’s vitality status. 

As it stands Discovery Bank has already started rolling out their product offering to certain members. So far, 50 000 people have come forward to open bank accounts, which include Discovery staff, Discovery cardholders and members of the public that applied for early access. Gore is hoping that by June, tens of thousands of people will have joined and then they will be ready to open for new business. 

Discovery Bank is set to open fully to the public by July. 

Also, there will be a Vitality Money loyalty program that would range over 5 levels. The bank would also be offering dynamic saving rates and borrowing rates depending on the clients’ Vitality money status. 

New Post has been published on https://financeman.co.za/blog/silly-things-to-do-with-your-money/

Silly Things to Do with Your Money

There are some financial transactions that can be considered silly as these financial mistakes can lead us to lose some of our money or even end up in fines or penalties. Here are some of these silly things that people do with their money and that you will need to avoid. 

Saving Money in a Low-Interest Account

We all know that we should be trying to save money and many of us will have some cash in a savings account, however, a good proportion of us will allow this money to sit in a low -interest account.

You could actually be earning more on your savings. With a low-interest account, you will won’t really see your money grow above inflation. Do some research and find higher interest paying accounts that offer safety for your money and it will soon start to grow. 

Allowing Ourselves to be Squeezed by Tax

There is a number of increases that are already in effect or will be soon. These include the increase in fuel, increases in alcohol and tobacco and increases on luxury goods like electronic equipment, motor vehicles, cosmetics, smartphones and perfumes. The levy on plastic bags and incandescent light bulbs has also increased plus the tax on motor vehicle emissions. Not only this the sugar tax has also been implemented in the form of a health promotion levy which taxes sugary drinks. 

However, there is a little relief as the top four income tax brackets experienced no adjustments and the bottom three experienced a below inflation adjustment. 

With all these increases, you can see that it be time to pull in your belt and cut back on fizzy drinks and luxury items and look for smart investments like a tax free savings account. It is a good idea to get financial advice so you know what is best to do with your money. 

Spending Too Much When We Get Paid

There is nothing better than that feeling when we get our pay cheque, which is usually followed by the urge to go out and spend. We also have the tendency to do the same when we get a large sum of money come in like a bonus or a tax return. 

Whilst we are allowed to spoil ourselves, we should only indulge once in a while and keep a chunk of our money in savings or to save for something practical. 

A good rule to follow is that 20% of your income should go towards savings, 50% should be allocated towards necessities and 30% should be used on the things you want. By following this you should be able to create a good chunk of savings. 

Using Debt to Pay Debt 

About half of South Africa’s credit-active consumers are over-indebted and many will get into a debt spiral because they are using one loan or credit card to pay off another and so on. 

Debt may feel like a losing battle, but it can be overcome. The first thing that you will need to do is stop using all forms of credit. 

Next, tackle one debt at a time and try and pay more on this debt than the minimum and only pay the minimum on other debt you may have.  Once you have cleared that first debt, move on to the next one and so on. If you are struggling with debt, then you can seek the help of a debt counsellor. 

Not Saving for Retirement

Many of us fall into the trap of thinking that we have plenty of time to save for retirement and some of us will cash out our retirement fund early for various reasons. However, you should never cash out your retirement fund no matter what happens. You should start saving for your retirement as soon as you start receiving your first income. 

New Post has been published on https://financeman.co.za/uncategorized/2-ways-you-can-pay-off-your-credit-card-debt/

2 Ways You Can Pay Off Your Credit Card Debt

It is easy to get into credit card debt, but it is difficult to get out of it. However, with some discipline, a plan and dedication it can be done and you can live a credit card debt free life. 

If you are committed to paying off your credit card debt, you will first need to determine how much you can afford to repay each month. The best way to see how much you are able to afford is to use your monthly budget, but if you don’t have a budget in place then now is a good time to start one. 

Budgets Are Easy

A budget is easy to set-up. You first need to add up your net monthly income from all your sources. Then add up all your monthly expenses, which includes your minimum payments on your credit cards and loans. Then you simply subtract the expenses from your income. The number that is left, is what you will have left after all expenses. This is what you are then able to afford to send to your creditors each month. A good idea though is to look for other ways you can generate more money that you can put towards your debt as this will help to speed up the repaying process. 

Once you know how much you can afford to put towards your credit cards each month, you will need to determine the order that you want to pay your credit cards off in. 

2 Ways You Can Pay Off Your Credit Card Debt

Highest Interest First

In the long run, you are able to save money by taking on the credit card with the highest interest first, especially if it also carries the highest balance. However, it will also take the longest to pay off if the card has the highest balance, which means you may lose motivation.

Lowest Balance First

There are immediate benefits when you pay the lowest balance first. The first ones, you tackle will be easier and quicker to pay off. Once you have paid off a bill, you will gain a feeling of accomplishment, which will then motivate you to keep going. 

If you are wanting to save money in the long run then you need to tackle the highest interest rate balance first, but if you want to get some accounts paid quickly then go for the lowest balance method. 

You should write down your debts in the order that you have chosen to pay them either from high to low or vice versa. Make a note of the balance, interest rate and minimum payment. 

The extra money you have will go towards the credit card at the top and the other cards will get the minimum payment. 

Once the first credit card is paid off, cross it off the list and move onto the next one and so on.

New Post has been published on https://financeman.co.za/uncategorized/new-year-time-to-rein-in-those-finances/

New Year, Time to Rein in those Finances

The holidays are done a dusted, the gifts have been opened, the Christmas feast has been eaten and the decorations have been put away, but all the joy of the holiday season can quickly vanish when our first bill arrives and we snap back to reality. 

There are many of us that struggle financially in January and this is due to our overspending on gifts, meals and holidays and the consequences of this overspending come in January when we start getting our bills, but the debt that you racked up over the holidays can be managed. 

Check out these tips that can help you get your finances back on track for the New Year.

What Are You Dealing with?

The first that you need to do is evaluate what you are up against, so get all your bills together and determine what you are dealing with. You need to take some time and go over all your credit card bills and bank statements and then look at your regular bills like your mortgage, utilities, subscription services and so on. You will need to have the full picture in front of you so that you are able to come up with a plan that will work with your current situation. 

What’s More Important

Once you have everything that you owe in one place, you will need to determine when all your payments are due so that you can get them in order by priority. If you are carrying around credit card debt after the holiday season, then take a look at the terms and work on paying the credit cards that have the highest interest first and make sure you stop using those credit cards. If you use your credit cards whilst you are trying to get out of debt, you will just be caught in a vicious cycle.

Wait…Keep reading for more tips about your New Year finances…

That All Important Budget

We all know this, you have to have a budget and the value of a budget should never be underestimated, especially when you are trying to get out of debt and change your spending habits. If you have already gone over all your debt and bills, then your budget is half done. You can get a good assessment of your financial needs by writing out all your expenses. You can then determine what you will have left after all your bills, what you can realistically put towards your debts and find places where you are able to make cutbacks.

Get Your Family on Side

When you have a support team in place, it can be easier to stick to a budget and eliminate debt. It is better for your family when you are financially healthy so speak to your family about spending habits and that they may need to change, but in the long run, they will thank you for it. Also, showing your children healthy spending and debt habits will help them to see the value of money and develop healthy habits when they are older. 

Get Creative with Saving

There are a number of ways that you can save so that you can reach your debt pay off goals. You can use coupons, shop for deals, learn new recipes to avoid takeaway and eating out, return gifts that you won’t use, sell items that you no longer need and so on. You will be able to find some great ways to save money and make cutbacks but without feeling like you are constrained, so give it a think and see what you are able to do.

New Post has been published on https://financeman.co.za/blog/need-a-personal-loan-for-christmas-here-is-what-you-need-to-know/

Need A Personal Loan for Christmas? Here is What You Need to Know

If you need some extra money to get you through the festive season, then a personal loan could just be the answer for you. If you want to spread your Christmas expenses over an extended period of time or if you are looking to consolidate some debt that is left after the New Year, then a personal loan is perfect for you.

The money that you receive from your personal loan can be used on all your Christmas related expenses, so make sure that you only borrow what you need and what you can afford. You need to create a realistic budget before you apply so you know what you need to borrow.

So, What Should You Look for in a Christmas Loan

It is important that you compare loans for the festive season and ensure that you know what the rates and fees are as well as the repayment information.

The majority of lenders will make sure that your repayments are lined up with when you get paid and there are some that will also allow you to make extra payments without paying a penalty. You need to check this information before you apply and see if the lender offers this type of flexibility.

Another important aspect is when you will receive the loan because you will need it in time for Christmas, of course. Many lenders now verify your personal and financial information via technology, which means that you can receive a reply to your application within 24 hours in most cases and the funds follow soon after this.

You also need to compare interest rates and ensure that you are getting the lowest rate with the best terms for your desired loan amount.

Wait…there are still more things you need to know about a Christmas loan.

You Might Want to Consider These Before You Sign

With a personal loan, you are able to get access to money when you need it the most. If you are short on money in order to pay for all your Christmas expenses, but you know that you will be coming into some money soon then a personal loan is a great way to fill the gap.

The fees that are charged for your loan are fixed, which means you will know exactly what you will be repaying and the amount will be debited from your account on the due date.

If you do not have a plan in place to repay the money that you have borrowed, then you could get into debt. Before you decide to take a loan, you need to know what your plan is to repay the money and make sure that you are able to.

Also, if you are borrowing money so that you are able to get through Christmas, then you need to make sure that you don’t fall behind on other repayments during the holidays.

Keep Your Christmas Costs Down

If you find that every Christmas is more expensive then the last, then you need to look at managing your holiday budget and keeping your costs down.

You need to first look at paying down debts before the holidays start. When debt starts to pile up it just creates extra stress, so you should try and get on top of existing debt before the holidays.

You can consider a 0% credit card, which allows you to spend interest free for a certain period time, which can help you to keep your costs down as long as you can pay the balance in full before the promotion ends.

If you are part of a rewards program or scheme, then this is the time to cash in on these and spend your points on things for Christmas. Many credit cards have reward programs in place where you earn points for the money you spend.

Have a budget and a plan in place for Christmas. You can limit your chances of overspending when you know what you are going to get beforehand. You will also be able to shop around for these items and find the lowest price.

You are able to save time and money when you shop online as many online stores offer coupon and discount codes that you can use.

If you do find that you have overspent, then you need to know how you are going to pay it back and have a plan in place so that you can pay off your debt as soon as you can.

Getting Your Loan for Christmas

If you have decided that you will be getting a personal loan for Christmas, then applying can be quick and easy.

The first thing that you need to do is to find a few lenders and compare offers. You are able to find personal loan finding sites that will find you the best deals on your behalf, making it even easier to compare offers.

Once you have chosen a lender, go to their site and confirm the details of the loan and ensure that you are eligible.

You can then apply for your loan directly through the lenders site.

Once you receive approval, you will receive the funds you need directly into your bank account.

New Post has been published on https://financeman.co.za/uncategorized/top-8-personal-loans-in-south-africa-right-now/

Top 8 Personal Loans in South Africa Right Now

Are you looking for a personal loan? Do you have an expense like a wedding, a holiday or home renovations to pay for? Do you need a personal loan so that you can consolidate your debt?

Whatever you need a personal loan for, we have you covered and have found you the top 8 personal loan offers right now in South Africa.

Loans Unlimited

Loans Unlimited is the best personal loan finding service in South Africa where you are able to borrow up to R150 000.

Loans Unlimited offers a free loan finding service and they only use reputable loan facilitators with competitive rates.

There is also a Platinum Club that you can join, which offers users further benefits like resources on budget setting and debt management, unlimited credit score report, insurance cover and more.

If you want to read more about Loans Unlimited or apply, you can by visiting their website: http://bit.ly/LoansUnlimited

FinanceMan

No matter who you are or your financial situation, FinanceMan will try and help you to find a personal loan. With FinanceMan you will benefit from fast approval times and competitive interest rates.

You will just need to fill out the online form and you will receive your loan offers in no time at all, which means you will be able to get the personal loan you need quickly.

You are able to borrow anywhere between R1500 and R150 000 with FinanceMan.

If you want to read more about FinanceMan or apply, you can by visiting their website: http://financeman.co.za/loan-application

Boodle

Not all of us are looking for large loans and some of us will only want to borrow a small amount for a short period of time. If this is the case, then Boodle could be the provider for you.

When you visit Boodle, you will find an online calculator, where you can choose the amount you wish to borrow and for how long. You will then be shown the exact amount which includes the loan amount, interest and any fees that you will need to repay.

Also, the majority of Boodle loans are paid out within just 10 minutes.

If you want to read more about Boodle or apply, you can by visiting their website: http://bit.ly/BoodleZA

Wonga

Wonga offers flexible, short-term loans, which give you control. As a new customer you will be able to borrow up to R4000 and returning customers will be able to borrow up to R8000.

Their loan process is simple and quick, you are able to choose your amount and how many days you want to repay the loan. You can even save on interest by repaying your loan early.

If you want to read more about Wonga or apply, you can by visiting their website: http://bit.ly/WongaZA

GetBucks

GetBucks is more than a loan provider as they also help you to manage your credit profile and your budget. The credit that they offer to you will be based on your personal credit and positive behaviour, which means you will get better repayment terms.

The application on GetBucks is world class with a quick turnaround on your application and your bucks are available within minutes.

If you want to read more about GetBucks or apply, you can by visiting their website: http://bit.ly/GetbucksZA

Dunami

With Dunami, you are able to apply for a small loan of R1000 to R5000 with a fixed six months’ repayment term.

Loans from Dunami are small, but they are hassle-free and you will benefit from instant approval, so you know you will get the loan you need quickly.

The application process is completely online and you can even apply via your smartphone, which means that users are able to apply at any time and from anywhere.

If you want to read more about Dunami or apply, you can by visiting their website: http://bit.ly/Dunami

FinCheck

You can make the best financial decision for your future with FinCheck, where you are able to apply for a personal loan of up to R175 000. You also benefit from being able to compare loan offers for free, so that you can save money.

Once you have filled out the online application form, FinCheck will match you with personalized offers that are based on your credit score and financial profile.

If you want to read more about FinCheck or apply, you can by visiting their website: https://fincheck.co.za/ad/aff1-loans

Cash Loan

Cash Loan offers personal loans of up to R150 000 and you can receive the cash in your bank account within 48 hours of approval. They also have flexible repayment terms of 12 to 60 months.

Application is super easy and fast and you can be sure that you are in safe hands as Cash Loan only works with responsible and trusted lenders.

If you want to read more about Cash Loan or apply, you can by visiting their website: http://bit.ly/CashLoanSA

New Post has been published on https://financeman.co.za/blog/finding-the-loan-you-need-has-never-been-easier/

Finding the Loan You Need Has Never Been Easier

Are you on the hunt for a personal loan, but you don’t know where to start? Well, then LoanFinder can help.

With LoanFinder, you are able to apply for a personal loan of up to R150 000 and the application process is easy and hassle free.

So what does LoanFinder do? LoanFinder offers a free loan finding service, so with one application, they are able to get you the best personal loan offers based on your information. You then have the freedom to compare and choose the best loan for you. LoanFinder only works with reputable and credible lenders, so you will be getting the best.

Not only can LoanFinder find the loan you need they also offer additional services. They have a 4 in 1 plan, which consists of the free loan finding service, legal and ID assist, full credit report and financial wellness plans and advice. This will cost you a once of fee of R395 and R88 per month. This is optional though and the loan finding service is offered by LoanFinder upfront and for free.

New Post has been published on https://financeman.co.za/blog/saving-money-and-reaching-your-financial-goals/

Saving Money and Reaching Your Financial Goals

If you have decided it’s time to reach those financial goals, then you need to know how you can save money. The quicker you are able to save, the faster you will reach your goals. It doesn’t have to be difficult in order for you to save, you just need to look at your everyday expenses and see where you can make cut backs. Take a look at these easy money saving hacks.

Switch to Cash

Swiping cards to pay for items is easy, but the problem with this is that we are not aware of how much we are really spending, because it’s not physical cash. It is a good idea to make the switch to cash because you become more aware of what you are spending and you can avoid overspending and impulse buys because you are only able to spend what you have.

This strategy will only work if you avoid using your bank cards, so it might be an idea to leave your cards at home when you go shopping.

Avoid Convenience Shops

So, convenience shops are convenient, but you pay a premium for this. Everyday items are more expensive in these types of shops compared to your general supermarket. You should try and avoid these stores as you will be able to save money on everyday items.

Stop Paying Interest

Interest adds up over time and if you can, you need to see how you can pay less interest or none at all. If your aim is to get out of debt, then you can try to reduce the amount that you pay in interest by calling your creditors to see if they can offer you a lower rate.

Another idea would be to transfer the balance to an interest free credit card, which will help you to save whilst you are paying off debt.

You will see on your statement how much of your monthly payment is going towards interest, so if you are only paying the minimum then it could take you years to pay off your debt.

Meals in Advance

Many of us resort to takeaway because we just can’t be bothered to cook at the end of the day. However, this can add up to quite a hefty sum, so to beat it, you can look at preparing your meals for a week in a day. You can cook and freeze your meals, so you just need to heat them up when you get home.

This is also true for your lunches. You can prepare them on a Sunday, which will then save you time and money.

More simple ways for you to save below…

Time to Learn DIY

Another way that you are able to save money is to take care of any repairs and maintenance yourself. We live in an information age, which means you can easily find videos and instructions on the internet that will take you through the processes of basic jobs that you may need doing, like painting, changing oil in your car or fixing your dryer.

You may find that these jobs are easier than you thought and the savings can quickly add up.

What About Used Items

You have the option of buying used instead of new. This doesn’t apply to everything, but you can buy a used item to keep you going until you have managed to save up to buy the new model you want.

There are a number of websites that make it easy for you to find used items and you can also look at second-hand stores and garage sales.

If you look out for deals, you might be pleasantly surprised at how much you can save.

Wait for Price Drops

If you are one of those people that have to buy something the day, it comes out then you will pay full price. You need to wait, because the price generally does drop. This applies to electronics but also to clothing.

If you love tech toys or love to stay up-to-date with fashion then this can be difficult, but you will spend less.

Let Someone Shop for You

If you are terrible at sticking to a list or constantly have impulse purchases, then you might want to consider having someone do grocery shopping for you.

There are some stores that will shop for you and deliver your goods and others will allow you to pick up your groceries.

This helps to control your spending, because you are more likely to stick to your list as you will not be tempted by all the items on the shelves.

We still have a few more ways for you to save…

Shop the Sales

Groceries can take a good chunk of your budget, but you will find that grocery stores often have products on special. You can save money by shopping these items even if they are a different brand to your usual.

Clothes are another item that you can buy on sale. Retail has stiff competition, which means that many stores compete with one another by having various sales throughout the year, so you can pick up a bargain if you are looking for something. However, you need to make sure that you don’t end up spending more and buying more just because the stuff is on sale. If you only need a coat for instance, then only buy a coat.

Online stores also have plenty of sales and discount codes that you are able to take advantage of.

Save on Insurance

Insurance is a necessity, but it can be expensive. You should regularly shop around for a better car or home insurance rate as you might be able to save money on your premiums by switching providers.

If you are not able to find a better rate, then perhaps speak to your provider and find out if there are any discounts available like a good driver discount.

Cheap Entertainment

There is no need to spend a lot of money in order to have fun. For instance, renting a movie is cheaper than going to the cinema, taking books from the library is cheaper than buying books, having a picnic is cheaper than going out to eat and so on. Make it a challenge to have fun for less and see what you find.

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What Life Insurers Must Tell You

If you are planning to take out a life insurance policy, then you will need to give your insurer personal details about yourself, which will include your medical history. There are also things that your life insurer will need to tell you before and after you take your life insurance policy out.

To ensure that you don’t miss a thing in regards to your life insurance policy, here is what your life insurer should be telling you about.

What Should Life Insurers Be Telling You

They Should Give You Your Policy Document

Your policy document is important as this is the agreed contract between you and the insurer and will contain all the specifics and details about your life insurance. The information that is contained within this document includes the type and the amount of cover as well as the terms and conditions of cover.

You should receive a copy of your policy within 30 days from the acceptance of the policy. If they fail to provide you with a copy, then you must contact your insurer and ask for one.

Make sure that you keep your document in a safe place, so that you able to refer to it when you need to.

Tell You What Your Policy Covers

You will obviously need to know what your policy actually covers, the type of cover you have like life cover or critical illness cover and the amount that you are covered for.

This information should be contained within your policy document, so it is important to read it and understand it. This information will also appear on your annual review letters and you can also contact your insurer to find out.

Alongside this, your insurer should also let you know when you can increase your cover, change the cover you have and how to do this. Likewise, if you are not able to increase or change your cover then your insurer should tell you that your policy won’t allow for this.

It is vital that you read your terms and conditions and these should be in a readable and clear text in your policy. Your insurer should go through all of these and explain everything in clear and plain language so that you understand what your policy covers.

Wait…there are still things that your life insurer should tell you about…

How the Premiums Work

Your life insurance provider will tell you what your premiums are and when they are due. It can be easier to set up a debit order so that it comes out of your account automatically each month. This will require authorisation and usually forms part of your application form, but you can also give them your details over the phone.

Also, you should be told when these premiums will increase, which can be on a specific date or on the date that you took out the contract. You should be contacted in advance about any increases, what the new amount will be and when this is due.

The Exclusions

In the terms of the policy, it should be made clear what the exclusions or waiting periods are.

You will find that life insurance policies have general exclusions and waiting periods, like a death claim, will not be paid due to suicide in the first two years. These details will be in your policy document.

However, there can be specific exclusions, which are conditions that will only apply to your policy, like claims for any specific pre-existing conditions. You must be informed about these exclusions and other details that only pertain to your policy. The insurer must tell you these before you accept the policy.

Exclusions and waiting periods should not be hidden in any fine print, or placed in small text on your policy that you can’t read it. They must be made clear and understandable.

How Do You Claim

If something should happen, then your insurance will pay out a certain amount. Your insurer will tell you when a claim is valid, how you are able to make a claim and who you will need to contact for a claim and to get the documents, you will need to fill out.

It should also be made clear if you only have a certain amount of time to make any claims.

Getting in Touch

The insurance company that you choose for your life insurance policy, should give you their full details including their company name, their registration number, their physical address and their contact details as well as their Financial Services Provider number.

This is so that you know they are a reputable and licensed company who are registered and adhere to all laws, regulations, acts and rules in place and that they are allowed to practice in South Africa.

New Post has been published on https://financeman.co.za/blog/top-reasons-to-have-funeral-insurance/

Top Reasons to Have Funeral Insurance

Funeral insurance, also known as burial insurance, is a great and affordable way for you to protect your family and help them to pay for your final expenses after your death.

There are a number of reasons as to why you will need funeral insurance, with flowers, caskets, funeral home bills and more costing thousands and on top of that, you may have debts that you leave behind.

Here are the top reasons as to why you should have funeral insurance.

Funerals Are Pricey

If you have ever had to pay for a funeral before then you will already know how expensive they are. Funerals and final expenses can easily cost thousands and many people will not have this type of money and even if your family does have this kind of money, wouldn’t you want them to keep that money?

With funeral insurance, your family will not need to fork out thousands to give you the send-off that you deserve. Funeral insurance will pay out a lump sum that will cover the costs associated with your funeral, which means your family will be protected financially from these.

Life Insurance Doesn’t Cover It All

Many of us don’t buy funeral insurance because we already have a life insurance policy and think that this will cover everything but think again.

Firstly, many of us do not actually understand our life insurance policy and have let it expire or we have let the premium lapse and the policy is no longer active. If you have a term life insurance policy, then the policy will expire when you reach a certain age, whereas a funeral insurance policy will never expire, which means that your family is guaranteed to get the money from the premium.

Also, how much did a funeral cost when you first got your life insurance policy? If you have had your life insurance policy for a while then a funeral probably cost a fraction of what it does now, so does your life insurance policy really cover the cost? Even if your life insurance policy does cover it, you may want your life insurance pay out to go towards helping your family with daily expenses and not towards your funeral.

With a funeral insurance policy, you allow your family to enjoy your life insurance money whilst still being able to give you the funeral you wanted.

Funeral Insurance is Affordable

Funeral insurance is more affordable than other types of life insurance. If you have another policy in place, then it is worthwhile looking to see if you are able to get anything better from a funeral insurance policy. There are a number of options out there that will suit your budget and offer what you need.

It’s a small price to pay for helping and protecting your family.

Funeral Insurance is Easy to Apply For

Funeral insurance applications are usually only a few pages long and all you will need to do is answer health questions and give your vital stats. This information is enough for the insurer to figure out your rate and give you cover.

In no time at all, you can go from having no plan to being covered when you die. You will also find a number of online companies offering online applications, which makes the process even easier to do. You can fill out an online form on some sites and receive multiple funeral insurance offers, which allows you to choose the best one for you and your budget. Once, you have found a plan that you like, you can apply easily and quickly.

Qualifying for Funeral Insurance is Easy

Funeral insurance doesn’t have all the medical requirements like life insurance does. Funeral insurance will only ask you a few minor health questions and you will not need to undergo a medical evaluation. You do not need to have perfect health in order to qualify for funeral insurance.

Make Your Own Arrangements

The great thing about a funeral insurance policy is that you have the chance to make your own arrangements for your funeral. You can work with a funeral director and figure out the cost of your burial or cremation to ensure that your policy covers all these costs.

You can also make decisions that might be painful for your family to make and also your family may have different ideas about your funeral. You can make all the decisions from your urn/casket to the flowers and service beforehand and your family will have one less thing to worry about.

There are many reasons as to why you should get funeral insurance and the most important is that your family will not need to worry about money during this difficult time and you will not leave a financial burden on your loved ones.

New Post has been published on https://financeman.co.za/blog/top-5-reasons-why-people-dont-get-car-insurance-and-the-top-5-reasons-why-you-should/

Top 5 Reasons Why People Don’t Get Car Insurance and the Top 5 Reasons Why You Should

Most countries require you to have car insurance by law, but in South Africa, this is not the case, but it can be a costly mistake. Accidents can happen at any time and even if the accident isn’t your fault, you could still be paying out a lot.

Here are the top 5 reasons why people don’t get car insurance and the top 5 reasons as to why you should.

Top 5 Reasons Why People Don’t Get Car Insurance

It’s Not Affordable

There are many people that think adequate car insurance or even third party insurance is not affordable, so they don’t even look for quotes. If you think that you can’t afford car insurance, keep in mind that it is a competitive industry, so you should compare car insurance quotes, even if it is just for a basic policy. You might be able to find a deal that suits your budget.

You Don’t Drive Often

If you don’t drive often then you may feel that car insurance is a waste, because you only pop to the shop every now and then. But accidents can occur at any time and the majority of accidents happen close to home. It doesn’t matter how often you drive, you need to have car insurance.

People Think It Won’t Happen to Them

Many people believe and think that something is less likely to happen to them than others, which includes being involved in an accident. This then results in many people ignoring insurance completely, but even though we make think this, it is not necessarily true. Accidents can occur at any time and it might not even be your fault, but you may incur damage that will need to be paid for.

They Don’t Know How Much Repairs Cost

People are not actually aware of how much car repairs can cost and whilst some cars are more expensive to repair than others, it can still be super expensive if you do not have car insurance.

What is even worse is that your car could be written off and it is actually easy to do this. If the cost of repairs is more than 70% of the value of the car then it is written off. If this is the case and you do not have insurance then you could be left without a car.

They Just Don’t Care

There are cases where people just view a car as a way to get from A to B and that’s it, which means that as long as the car works, a few scratches and bumps are nothing that they should concern themselves with.

These type of car owners feel that paying for car insurance isn’t worth it as they don’t actually plan on repairing the damage. However, these owners don’t take third party cover into account. If you are responsible for an accident and don’t have third party insurance, then it can be a costly mistake.

So that is why people don’t get car insurance and as you can see it is actually a mistake to not have it.

Wait… now let’s take a look at the top 5 reasons as to why you need car insurance.

Top 5 Reasons Why You Should Have Car Insurance

Pays for the Damage

If you are involved in an accident and you are at fault, then you will not only need to pay for the repairs to your car, but also that of the other persons. This can be a lot of money, but when you have car insurance, this financial burden is eased, especially with third party cover. If your car is written off, then depending on the cover you have, you might receive a pay out that can help you to get a new car.

If Your Car is Stolen then it will be Replaced

You could be a victim of theft and find that your car has been stolen and this can occur anywhere. With car insurance, if you have a policy with a theft option then you are able to claim for the theft of your car and receive a pay out so that you can replace your stolen car.

Fire Protection

Life is unpredictable and car insurance is there to protect your car from events like fire or hail that will cause damage. If this happens then your insurance policy will help to pay for the repairs.

Extra Benefits

Car insurance is a highly competitive industry, which means that you will receive a number of extra benefits from the insurance company. One benefit that is offered as a standard by most insurance companies is roadside assistance. So, if you have a flat tyre, have run out of petrol or breakdown, you are able to contact the roadside assistance and get the help you need.

Discounts and Cashback

Another benefit that you could possibly enjoy is cash back on your premiums if you go a certain time without any claims or you could be rewarded for good driving with premium discounts.

It may appear that car insurance is expensive, but the alternative is even more expensive as you will need to pay for damages out of your own pocket. If you are looking for car insurance then it is a good idea to compare quotes from various car insurance companies.

New Post has been published on https://financeman.co.za/blog/how-you-can-save-on-life-insurance/

How You Can Save on Life Insurance

If you have ever applied for life insurance before then you will already be aware that life insurers ask a lot of questions and even very personal questions. These questions though serve a purpose as the life insurer will use these answers to determine the risk they take by insuring you.

Your risk profile is based on your health and lifestyle, which will determine if you can be insured and if so, what premiums you will pay, what special conditions will apply to your policy and if there is a need for extra evaluations.

So, once you have applied and you have been insured, are you able to save on your life insurance?

If you already have a life insurance policy or if you are considering getting one so that your family is protected, then take a look at these tips that could help you to reduce your premiums.

How to Save on Life Insurance

Make Sure You Compare Life Insurance Quotes

As with any type of purchase, you will need to compare quotes and look at both the price and the cover that is offered. It does pay to do your homework, especially for life insurance. You should shop around and get at least three quotes from three different providers. This can easily be done through sites that allow you to fill out one application and gather a number of quotes from reputable life insurance companies on your behalf. You can then compare these and choose the one that suits your budget as well as your needs. Remember to compare both the policy benefits and features as well as the premiums.

Control Chronic Medical Conditions

The premiums that you pay for life insurance are based on risk and chronic conditions generally result in higher premiums. You could qualify for lower premiums though if you work with a healthcare provider to help you manage and monitor any chronic medical condition that you may have.

Time to Get Healthy

The healthy you are the lower your premium will be, as you are seen by the life insurer as a lesser risk. Making adjustments to your lifestyle could lower your life insurance premium. This can include things like stopping smoking, losing weight, exercise more and just to maintain a healthy lifestyle overall.

If you have made any of these lifestyle changes, then you should speak to your life insurer. If your overall health has improved then you may qualify for a lower premium.

Keep reading…for more ways to save…

The Right Amount of Cover for Your Family

Deciding on how much life insurance you need to buy requires some thought. You need to work out what you need and make sure that you are not buying too much.

Your life insurance policy should cover costs associated with your funeral, medical bills associated with your death, any debts that you leave behind and being able to settle your estate.

If you have a family, then you will also need to factor in your family’s yearly living expenses, education, medical aid, an emergency fund and other such things that your family may need when you pass away.

What are Your Employee Benefits?

Many employees will offer a life insurance scheme and if you are part of this as well as have a personal policy, then you might find that you can reduce your personal policy.

It is a good idea to speak to a financial planner to evaluate your requirements before you make any changes to your life insurance policies.

There is No Point in Lying

You should never withhold any information from your life insurance provider as this will not help you in the long run. If you fail to disclose all medical and personal information when you apply for life insurance then you risk having a reduced or rejected claim.