Warning: Creating default object from empty value in /usr/www/users/randskuwge/wp-content/themes/blade/includes/framework/inc/class.redux_filesystem.php on line 29 Uncategorized – Randsure

Uncategorized

Reviewing Your Financial Health 624 407 frewm

Reviewing Your Financial Health

It has never been more important to set goals to secure your financial health than for the upcoming year. If we can take supplements and exercise to safeguard our physical health, and work with others to improve our mental health, how can we look out for our financial health?

The best way to do that is by actively reviewing your current financial status. If your goal is to achieve healthy finances there are a few key ideas that we recommend as a starting point. This post will explore the ins and outs of financial health and share some important tips on how to improve yours!

What Is Financial Health?

Business woman writing on white wall

Before we can begin to review your financial health we must first understand what financial health means. Some describe it as individuals having sufficient cash flow for what they need and want, now and in the future.

This means knowing your current financial status, and whether or not it’s been meeting your wants and needs. So, take the time to examine your cash flow and ask yourself: does this satisfy my wants and needs?

Why Is Financial Health Important?

Plant sprouting from ground

This leads onto our second key idea, understanding why financial health is important. Much like the importance of planning your retirement, it gives an individual the opportunity to structure their finances to cater to their current and future circumstances.

This is especially important in today’s environment where every day can present a host of unknown variables. It’s essential to educate yourself about your finances, and to revisit this annually to adjust it to match your changing attitudes and goals.

Contact us if you’d like some help with your financial planning. We have a proven track record in helping our clients turn around their financial health.

Our client *Imraan had unstructured finances before he began his journey towards financial health. Since he has begun working with us at Randsure Financial Services, he says he is reaping the benefits of “better investment decisions, improved yields, a positive lifestyle adjustment, and financial happiness”. The right financial advisor will help you achieve these benefits and shape your wealth so that it works for you.

How Can We Achieve Financial Health?

Person using phone and laptop with hands

Now, you might be wondering where to start. Luckily, we have provided four steps to help you effect successful and productive financial changes.

1. Determine your net worth.

This is as simple as minusing your total liabilities from your total assets. To begin, you will need to calculate your total assets. This is anything you currently own, such as your house, your car, or other investments. Liabilities are any debt that you owe to a third party such as loans, shopping accounts, or credit card debt.

Here is a useful application to help you to calculate your net worth, For those that like working example, here’s one for you:

Let’s say you own a car worth R160 000 and a house worth R1 200 000, this would bring your total assets to R1 360 000. For calculating liabilities, let’s say you owe around R500 000 on your house, and you have an outstanding debt worth R25 000, this puts your total liabilities at R525 000.

A formula would look like this: total assets – total liabilities = net worth. Your net worth could be negative or positive. Either way, this means you have an idea of where your finances sit and can start to evaluate your financial health.

Pen and lid with calculator on a document

2. Calculate your debt to income ratio.

Now, let’s look more closely at your monthly financial status, which is your debt-to-income ratio. In basic terms, this means how much you owe each month versus how much you earn each month.

For example, if you pay R10 000 on your house bond and R2 000 on your shopping account, and earn R24 000 then your ratio for each month would be 1:2. This makes it around 50 percent. You want your ratio to be much lower, i.e. you want your ratio to be at around 20 percent, which means your debt takes much less than half of your income.

Feedback sheet

3. Work with Financial Goals.

Once you understand more about your financial status, you can start to set some goals about where you want it to be. This means being realistic about your monthly budgets, and ensuring that you’re not spending more than you earn. The goal here is to be able to have a steady cash flow so you can afford all your needs and wants, meaning you gain good financial health.

Effective budgeting ensures your financial resources are sufficiently distributed to cover your wants and needs. At this point, it is also very useful to seek out the assistance of your financial adviser. We can help you to work on an investment plan. Both of these in tandem will help to keep track of your spending while growing your wealth.

Saving is not as simple as just putting money away for a rainy day. It’s crucial you choose your investment accounts thoughtfully. Consider having multiple investment accounts that cater to various needs, for example, a collective investment scheme isn’t intended for emergency funds, but is useful for long-term investment.

Tablet and documents on table

4. Take a moment and enjoy your financial health

It’s easy to get bogged down with trying to save money, and allocate your wealth responsibly. But, remember that it’s just as vital to enjoy your wealth by budgeting for those getaways and personal spoils. It’s possible to enjoy your finances once you have a realistic idea of your net worth, your income-to-debt ratio, and long-term goals.

This doesn’t mean allocating half of your monthly earnings to lifestyle expenses, after all, lifestyle inflation can become costly in the long run. But, rather allow yourself calculated luxuries that will still help you maintain your financial health status.

Man springing into sea

Final Thoughts on Financial Health

Financial health is an important aspect of living that you can learn to make work for you. By reviewing your financial health, you can get more realistic about where you are and as a result, start to plan for where you want to be. Now and in the future. We are here to help you tackle ‘the how’ of financial health and make your money work for you.

Please do not hesitate to get in touch to find out how to make your money work for you:

+27 21 933 4170

info@randsure.com

bonus scrabble letters
5 Ways to Spend Your Bonus Wisely 624 407 frewm

5 Ways to Spend Your Bonus Wisely

It’s been a long hard year, but the end is in sight. You’ve stayed healthy and mentally strong throughout the year 2020 and what’s more, you have also been rewarded for your valuable contributions throughout the year… Your bonus is in the post!

I’m sure the temptation to splurge a little is strong, especially as the silly season draws near. Let’s be honest – there is no better motivation to keep on reaching new heights than by reaping the rewards of your labours. However, there are a few mental checkpoints you should go through first to ensure that you are being financially astute when rewarding yourself:

1. Clear Your Debt

Man canoeing

One solution when facing financial challenges is to get cash flow by taking out a loan. In order to do this, you would need a good credit history, which is made up over the years by you showing a track record of… you guessed it, paying off your debt!

If you did take out a loan during lockdown, you’re not alone in that boat. It can serve as a life jacket to keep your head above water. But, as soon as you receive a cash injection in the form of a bonus, the wise choice is to pay off that debt and get rid of the interest overhead. This is especially true if you have charged to a credit card, where interest is notoriously high.

We asked Randsure Financial Services what their clients have done with bonuses in the past. This is what was shared.

2. Take Advantage of Your Tax Deductibles

Pawn with crown

As you can see on page 6 of the Treasuries Tax Guide, there exist certain contributions as per Regulation 28 that are tax-deductible. Examples of these are pension fund contributions, medical aid contributions, and donations to name a few. What this means for you is that up to 27.5% of your gross annual salary can be deducted prior to your tax calculation taking effect.

So, if you were to crunch the numbers and allocate some of your bonus towards ensuring your pension fund contributions maximise that 27.5%, you could easily find yourself dropping down a tax bracket.

Needless to say, the savings involved in such an exercise can be quite eye-catching indeed. As well as serving the purpose of safeguarding your retirement. Exactly the kind of thinking that leads us to our next point…

3. Invest in Your Future

Man with binoculars

The uncertainty of the current global landscape serves as a timely reminder that life can have its ups and downs. An essential part of your financial planning should be to cater for those periods of decline by ensuring you invest in your future.

Two great examples of doing so are setting up a Tax-free savings account and making sure your emergency fund is well-stocked.

4. Invest in Your Present

Chalk drawings on black board

With the current theme of working from home coupled with a less intensive social calendar for the foreseeable future, there is no time like the present to start upskilling. This could be something as simple as updating your budget or as exciting as starting that course to help you climb the corporate ladder.

Whether it be embarking on a new entrepreneurial endeavour or finally starting the MBA you’ve been dreaming of for years, it will most likely involve a capital injection. Luckily for you, a timely windfall has just arrived to give you the opportunity to be the best you that you can be. Speaking of which…

5. Spoil Yourself

Travel mug against leafy background

All work and no play makes Jack a dull boy. Life is about experiences and we each have that something special that is close to our hearts.

Recharge your spirit by tapping into your passion. Spoil your family. Plan for your next holiday (air ticket prices should be good if you can get them in advance). Whatever it is, know that you can afford it because you’ve followed steps 1 to 4 and have been a savvy investor in your own life.

Attention: Momentum Health Members

Momentum Medical Scheme aims to give you good value for money by combining flexibility with comprehensive cover. This means that Momentum Health can match your family’s healthcare needs. Use the following guide to find the option that best matches your needs.

Also, should you be experiencing a shortfall in your medical aid contributions, please note the below tables for an indication of the options for gap cover made available through Stratum Benefits.

Stratum Benefits

To access the Stratum Benefits brochure, follow this link.

Please do not hesitate to get in touch for further information or to make arrangements on

+27 21 933 4170

info@randsure.com

Life After Covid-19: Planning Your Retirement 791 490 frewm

Life After Covid-19: Planning Your Retirement

The coronavirus has reshaped the way we look at finances and retirement planning. We can’t deny that the pandemic has caused hefty economic damage and that people are feeling the pinch. But, luckily, this doesn’t mean our retirement planning has to take a backseat. 

We don’t have to give up on our dreams of spending our time how we choose. With a bit of forward thinking, we can set actionable retirement goals, even during this uncertain period. This post will take a look at some of the ways we can safeguard your future.

1) Feelings Are Not Facts

How we think and feel affects the way we behave when making investment decisions. These cognitive and emotional influences are known as behavioural biases. In uncertain times, such as these, where we are surrounded by negative news, Covid-19 updates and fearful chatter, it’s important to understand that feelings are not facts

Don’t panic. Do some research into where your funds are invested. Pension fund investments are strictly regulated. And, investment managers have to diversify your investments, meaning that you won’t have all your eggs in one basket. The important thing is to keep calm and not make impulsive decisions. 

2) Work From Home

One of the biggest benefits of the lockdown (financially anyway) has been the reduction in transport expenses. The nationwide quarantine forced all South Africans to stay at home. Although this was a difficult period, many workers enjoyed unforeseen savings of up to R3 000 from petrol costs.

People who have jobs that are compatible with a virtual workplace should approach their employers and ask for dispensation to work from home. By doing this, you can continue to save on transport expenses and put these to better use – towards your financial future. 

3) Remember The Long Game

Trust in the process. Many people, in the run up to retirement, may have already set out a route and ‘bigger picture’ with their financial advisor. It’s vital that we don’t throw away this plan on a whim. 

A thought-out and diversified portfolio is an effective shield when facing turbulent times. Investors will benefit from a wide range of local and global assets in their portfolios. We can’t predict the direction of equities, but having a broad asset class diversification protects investors; pre- and post-retirement.

4) Extend The Timeline

Hourglass and Randsure Branding

Not all of us want to extend our work careers. But there are major advantages for doing so. Every year that you continue working is more time to build your savings.

The digital age has encouraged an environment of learning and instant communication. This means you have a huge variety of resources at your fingertips. Register for online courses and strive to stay relevant in your industry. Learning is also an important contributor to mental health

—–

Effective retirement planning is essential for your future. We can assist you in achieving financial freedom by accumulating the funds necessary to secure your future. 

Contact us today to discover more about our retirement planning. 

+27 21 933 4170

info@randsure.com

 

Mental Health and Wellness 1024 683 admin@5@r35s@g09@3

Mental Health and Wellness

The national lockdown and ongoing restrictions on movement, socialising and work have shaped our lives and health for the past few weeks. Keeping psychologically strong can be a key factor in how we are able to build resilience to endure the uncertainty of this time.

While there are many strategies to help you find balance in this time,here are some key things and resources that can support your mental wellbeing.

  • Goals. You need to keep on moving. Creating goals and plans for the future can keep you engaged and lessen the “learned helplessness” of depression. Practical ways to set goals could be by creating a vision board or a personal plan that you can follow. Make a list of things you want to achieve, such as learning a new skill or finishing a project.
  • Control. Even in a hurricane that you can’t control, you can still find things within your space that you can control. Setting a routine for yourself is a key way of taking control, which you can do by writing
    one up or using alarms during your day to remind you.
  • Self-care. Lockdown is likely to change your routine so it is important to still take care of yourself psychologically and physically, even if that is an adjustment. Practice relaxation techniques, or learn how to
    meditate. Find ways to keep active at home.
  • Information regulation. Carefully choose the amount, frequency and time of the information you consume, whether this is from the news, social media, or your personal circles. This means that while you
    should still be informed, you should do so in ways that are constructive and manageable.
  • Support networks. While the lockdown and the coronavirus pandemic are likely to bring up emotional and psychological challenges, many of these are being faced similarly by a lot of people. Reaching out to existing or new tools and resources can improve your experience significantly.
Help Children to Navigate Finances 1024 683 admin@5@r35s@g09@3

Help Children to Navigate Finances

Parents, grandparents, relatives and friends can help prepare children for their financial futures by investing
and even small amounts can ultimately make a big difference.

Here are five key takeaways that can enable you to help children successfully navigate the financial challenges of
adult life.

  1. Recognise the challenges. Some of the greatest costs of adulthood have risen rapidly in recent years, not least the costs of further education and of buying a home. As a result, preparing for these costs has become all the more urgent.
  2. Teach good habits. Children pick up core money habits between the ages of three and seven, irrespective of
    whether those habits are well-taught. Enabling a child to learn good habits should equip them for their future.
  3. Get the family involved. There is no need for good lessons and habits to be learnt in isolation, but reports
    state that parents and families are relatively poor at talking about money. Yet talking regularly and making plans together should enable better decisions.
  4. Recognise the long-term opportunity. Given the financial challenges of raising kids, many of us assume we
    could never make a meaningful investment for our children’s futures. However, if you start early, the power of compound interest can transform even small sums.
  5. Navigate the complexities. There are other incentives too, but they are not always easy to decipher, unless you have the experience. Understanding the risks and opportunities presented by your local tax regime could make those long-term goals easier to realise. In short, the challenges are significant but, with time on
    your side and a careful approach to planning, the opportunity to build now for your child’s financial future is
    well worth grasping
Collective Investment Schemes? 1024 683 admin@5@r35s@g09@3

Collective Investment Schemes?

Collective Investment Schemes pool the money of many investors to professionally manage large portfolios of
securities. These securities may include shares, debt securities, money market securities or a combination of any
of these. Each investor holds a share (units) of the portfolio and they are entitled to the dividends and gains (or losses) that accrue to the securities in that portfolio. The Investor benefits from the following:

  • Professional Investment Management. Collective Investment Schemes hire full-time investment professionals to manage the investment portfolios. These managers have real-time access to crucial market information and they are able to execute trades in a very quick and cost-effective manner.
  • Diversification. Collective Investment Schemes invest in a broad range of securities. This limits investment risk by reducing the investor’s exposure to a possible decline in the value of any one security.
  • Low Cost. Collective Investment Schemes allow investors to participate in diversified portfolios at a relatively low cost.
  • Convenience and Flexibility. An investor would invest in a single fund and yet they enjoy the benefits of a diversified portfolio with a wide range of services. Fund managers are also charged with the responsibility of deciding what securities to trade and they ensure that dividend payments are received and investor rights are exercised.
  • Liquidity. Collective Investment Schemes allow you to get your money back in a prompt manner at the relevant market related prices.
  • Transparency. You get regular information on the value of your investment and you may be able to obtain information on the specific investments that are made by the Collective Investment Scheme.
Disability Cover 1024 683 admin@5@r35s@g09@3

Disability Cover

Life happens, and while it often goes perfectly according to plan, we can’t always be sure what’s around the next corner, but we can try our best to plan for what could happen.

Life cover helps us prepare for the unknown, it helps us to protect our families, but what about the other aspects of life, what will help us to protect ourselves in times when we need it most.

Imagine you’re in an accident, or something unpredictable affects your health, and this leaves you in a position where you’re unable to work. Permanently.

What will you do?

That’s where disability cover comes in. This kind of cover offers you financial compensation when you are unable to work when you have been disabled because of an accident or an illness. In the event that you become permanently disabled, you will either be paid out a fixed amount of your choice which is based on the amount you are insured against, or you will get a percentage of your monthly salary until you retire.

There are two types of disability insurance, occupation-based disablement, and event-based disability.

Occupation-based disablement pays out a lump sum when you are permanently unable to perform the normal tasks of your occupation, and where you won’t be able to do any other work. The amount paid to you is based on your level of education, knowledge, training and experience in your field. This benefit is paid out for illness and/or injury.

Event based disability (also known as accident cover) pays a percentage of the sum insured for a specific disability according to set criteria described in the policy. It includes, but is not limited to, injuries where you lose hearing, sight, an arm or leg, or becoming wheelchair bound.

How do you know if you have the right cover? It’s a good idea to sit down with your adviser and review the policy you have in place. Often, people don’t update or review their cover and because finances have improved, their specific needs for cover might no longer be met based on their current policy.

If you don’t have disability cover in place, this might be the right time to look into it.

Feel free to get in touch with us to either review your current policy, or to look at adding disability cover to your life cover bouquet.

If you would like to discuss this further, feel free to get in touch with us.

☎️ +27 21 933 4170

📧 info@randsure.com

Effective Budgeting 1024 683 admin@5@r35s@g09@3

Effective Budgeting

The current economy has left many of us feeling the proverbial pinched purse strings. Managing your finances is more than making sure you make it through the month, it’s there to help you plan ahead so that when the time comes, you have what you need at your disposal.

What better time to assess where one is in terms of spending habits, wins and losses with decisions centred around money, and being able to sit down and assess the debt we are in, how we got here and how to work towards paying it off.

Budgeting feels like a daunting task, but all it really means is that you’re forecasting a plan for your money to ensure that you’re spending with a purpose – although it might feel like it’s placing financial restrictions on you, it’s actually a process that is freeing up your finances so that you can enjoy that little bit of extra income when necessary, or plan for events like this.

It’s an ongoing process that should become a habit. Creating a tangible and reasonable plan for your money means that not only will you have an effective strategy when it comes to getting the things you want, but it will also keep you out of debt, or help you if you are currently working your way out of debt. It will also be able to help you pinpoint those months in which money may be a little tight and those months where you have a bit more financial freedom allowing you to even out those unpredictable highs and lows in your finances which can cause a whole lot of unnecessary, and unpleasant stress.

So how does one go about creating a budget that you can easily stick to? Here are 4 simple tips to help you get started.

  1. Start with the most important expenses – Make a list of the true necessities,
  2. The basic ones are shelter, food, clothing and transport. Once you have listed the absolute necessities then you can fill in the rest of the categories that suit your lifestyle.
  3. Be realistic about your wants and your needs – There is no point in doing a budget if you’re not going to be realistic in your forecasts. The more realistic you are about each of your numbers, the more likely it will be for you to stick to your budget.
  4. Review and re-calculate – Writing down all your expenses allows you to see where you can cut out on bad spending habits, saving you money. It may seem daunting, but you need to accept that there might be a few items that you just don’t need (and maybe can’t afford) right now.
  5. Remember, your budget cuts don’t have to be permanent. You can always make adjustments later on down the road.
  6. Include an extra category in your budget – Even putting aside a minimal amount every month towards those unforeseen expenses can make a difference. Start small and try increase this contingency amount each month. This money can be used in case of an emergency, such as a car repair or medical expense.

Now that you have an idea on how to get started there are some things to keep in mind. Remember that each month is different and factor in special occasions such as birthdays or holidays – these can affect your budget, so lay them out in your forecast as soon as you begin. Don’t forget your debt. Ideally, you’d want to start with the one with the highest interest rate, paying as much as you can every month. If you have other accounts, pay the minimum balances on those until you’ve paid off the first card, then choose the next card and pay extra for it while you pay minimums on the others.

The most important thing is to remember that life happens –It’s almost impossible to follow a budget 100% of the time, especially if it is your first time. No matter how disciplined you are, you may overspend time and again, so forgive yourself for small errors and get back on track, as soon as possible. Use your budget as a guide to make better financial decisions going forward.

We understand what a difficult juggling act it can sometimes be to manage your finances, so if you find the task daunting, why not contact us and we can guide you along the path to financial stability. It’s what we do, we are the experts and we want you to make the most of every hard-earned cent.

If you would like to discuss this further, feel free to get in touch with us.

☎️ +27 21 933 4170

📧 info@randsure.com

How to go digital with your financial planning 1024 683 admin@5@r35s@g09@3

How to go digital with your financial planning

First things first, the world around us has changed, and most importantly, we have to look at how to adapt accordingly in the various areas of our lives.

Many people have found themselves in a position where they are attending online or virtual meetings for the first time! There are so many teething pains in terms of how we use tools like Zoom, Microsoft teams and Skype. Not always knowing the answers or how to use these tools can seem intimidating, but we have to be prepared to change our way of communicating so that we can adapt and thrive during this time.

We’re all seeing a new side of our friends and colleagues, and while these things may not fill in what’s missing – human contact, it helps us to all maintain our humanity, and our personal well-being.

Financial planning in this new digital era might seem daunting, most of us are used to discussing our financial plans face to face with our trusted financial planner. While we might all miss that interaction, we can’t allow financial planning fall to the wayside, especially now.

With this in mind, we’ve put together a few pointers on how to stay connected with your financial advisor during this period, and included links to videos which show how to use the three major virtual conferencing that will help to make your experience so much easier.

When it comes to your investments, updating or changing your policies, whether it be life cover, income protector, dreaded disease cover or anything else, and if you aren’t sure what your policies cover, talk to us.

The most important thing is to keep in contact with us on any area of your financial planning so that we can work together to ensure your future is secured and no hasty decisions are made now that will be regretted later.

Now some of these points may seem pretty obvious, but just in case, here is a short list of how to go digital with your financial planning:

  1. Pick up the phone – if you have any questions you can call our offices, we can try to answer them right away
  2. Send an email with your questions

OR

  1. Set up a Zoom/Skype/Microsoft Teams virtual meeting if you need more information

Next up, some instructional videos on how to use the various virtual platforms:

Zoom

 

Skype Desktop

 

Microsoft Teams

 

If you would like to discuss this further, feel free to get in touch with us.
☎️ +27 21 933 4170
📧 info@randsure.com

Why you need a financial advisor 1024 536 admin@5@r35s@g09@3

Why you need a financial advisor

Needing a financial advisor isn’t just about retirement annuities and savings policies, the right advisor can help you mould and shape your wealth so that it works for you one day.

Your financial advisor is your planning partner for life, so it’s important to work with someone who understands your specific needs and takes the time to get to know what you want to achieve on this game called life.

Your planning partner’s main goal is to help you accomplish your goals and make your plans a reality.

A financial advisor can assist with helping you decide how much money to save, the best options for investment, as well as what kinds of insurance to have in place. This can include life cover, dread disease cover, disability cover and household and car insurance, to name a few.

While we would love to sell you another policy, we also believe in educating our clients with the knowledge they need to develop and secure wealth as they go.

The first step in growing your wealth is understanding where you stand in terms of your financial health. Your financial health is your current financial state of affairs. It will pay off to make time to learn and understand what this means. We love this post from Invetsopedia on Financial Health.

The second step in growing your wealth is understanding how to do it, and how not to do it. This is where a financial advisor becomes essential, not just with investment policies, but other types of investment as well.

They often have the experience, paired with the knowledge of what other people have done before you, so speaking to them and booking time to discuss things outside of what they have sold you can positively impact how you move forward in waters that are completely unfamiliar to you.

It’s times like this that you would pay your financial advisor for their time, because they are equipping you with the knowledge you need to make sound financial decisions. These sessions are more for you to educate yourself so that you can grow your own wealth in other areas, and using a financial advisor to do that, not only gives you access to the wealth of knowledge they hold, it also gives you an idea of how to educate yourself so that you can stay ahead of the game.

If you would like to discuss this further, feel free to get in touch with us.

☎️ +27 21 933 4170

📧 info@randsure.com