CRUCIAL STEPS TO TAKE AFTER A COLLISION - PART 1

It’s something that we all anticipate with apprehension. Would you know what to do if someone pranged into you or if you lost control of your vehicle on a slippery surface? There are certain procedures to be followed that can help you if you have been involved in a traffic accident.

THREE SUSPICIOUS SIGNS OF A SWINDLE

“Get rich quick” schemes aren’t a new phenomenon, and yet people still get lured into these sorts of financial scams. The problem occurs when the temptation of above market return on investment outweighs well-founded suspicions. Wealth is generated through hard work and smart investing, you should be wary of ‘shortcuts’.

HOME BUSINESS INSURANCE, DO I NEED IT?

So you have started a new business from home, it’s still small beginnings and you wonder to yourself: “What risks are involved that I would need business insurance if I am working from home and have no premises to worry about?”.

5 FINANCIAL LESSONS FROM 2014

When it comes to debt management you need to have some contingency plans in place for those unexpected and uncontrollable circumstances that can put a strain on your cash flow.

To best plan for the unforeseeable future, we look to the past and identify trends that may recur in the future:

Fuelling Up

Looking back at 2014, we saw the price of fuel rise to an all-time high. Placing major strain on consumers and businesses alike. After a hefty fuel price reprieve earlier this year we experienced sharp increases, with a dip in price predicted for the month of May. With the rollercoaster-like nature of petrol prices we have learned to plan for unpredictability, especially when covering long distances on a regular basis.

Banking Bull

After a handful of near-disastrous outcomes regarding banking organisations last year many have lost faith in the banking system. The affected credit ratings of all banks has resulted in less favourable lending terms, making it harder to meet payment obligations and less likely access a new loans.

Rising Repos

In 2014, South Africans had to deal with two increases in repo rate throughout the year. This directly affected consumer debt and bond repayments. More people were pushed to apply for loans to absorb the rise in repayments due to the limited disposable income that was being depleted at a faster rate. Having provisioned an extra budget would not go unhurt if this were to repeat in 2015.

Unemployment Issues

2014 also saw an increase in the unemployment rate. This means that more people are unable to meet their financial obligations and will most likely turn to the already strained State for support. This, coupled with the striking in major economic sectors, causes a knock-on effect that negatively impacts the financial well-being of South Africans. Making provisions for a volatile market is crucial to avoid falling into a downward debt spiral.

Development Damper

South Africa's high levels of indebtedness, along with other factors such as consumer affordability and rising interest rates, saw the downgrading of the country's credit rating in 2014 by Moody’s Investors Service and other major ratings agencies. This makes it more difficult to attract foreign investment and will likely lead to further weakening of the Rand. 

Negative developments such as this cause debt to rise as well as an increase in the cost of borrowing.

The only constant in life is change, therefore it’s important that you start saving as soon as possible to build up an adequate cash reserve that can bail you out of tough financial situations without plunging you into debt. In need of financial advice? 

I can help you out, let’s get in touch!

WHAT KIND OF INVESTOR ARE YOU?

Recently I’ve shared several articles on investments, and then I came across this gem from Discovery! It digs a little deeper into understanding your own, personal, risk profile and how that pertains to your investment choices and behaviour. Remember, this is a snapshot typical behaviour types; before making any investment choices, let’s chat first! 

Identifying and understanding your risk profile will help guide us to the types of investment funds that suit your specific financial goals.

What type of investor are you?

When choosing your investment approach, it is important to consider your risk profile, which indicates how much investment risk you are willing to take to achieve the investment returns you are aiming for.

HOW TO BUILD A STRONG INVESTMENT PORTFOLIO (II)

THE LARGER THE GAIN, THE LARGER THE RISK

For those in the southern parts of South Africa, there are rainy days ahead. Easter normally signposts the temperature drop and increased saturation in the air. Rain begins to fall, animals slow down and all too often our waistlines begin to explore the other side of the belt buckle…

Rainy days are ahead. We’ve heard it plenty of times, but are you prepared? Not for the cold, but for the financial rainy days when you need to pull on extra resources to cover costs and make ends meet.  It's easy to avoid thinking about the rain when the sun is shining.  But the rainy days will come.

Last week when we spoke about building investment portfolios, we spoke on investment portfolio knowledge. Today I want to talk about the second key consideration when planning your investment opportunities: risk.

THE COST OF CANCER

Every year countries throughout the world dedicate the month of October to raising awareness around Breast Cancer. Cancer has increased exponentially and is, in many cases, treatable – at a cost; making cancer a life, health and personal finance issue.

There are very few families in South Africa that have not had one or more members diagnosed with some form of cancer.

Recently I read an email from Money Marketing that highlighted some of the statistics and implications of this disease on individuals and families in South Africa.

According to South African cancer stats for the insured population, 100 000 cases are diagnosed in South Africa each year with 60 000 deaths from cancer each year.