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Financial New Year’s Resolutions: Shape Your 2021 624 407 frewm

Financial New Year’s Resolutions: Shape Your 2021

We’re sure you’re all aware of the classic New Year’s Resolution tradition: you start out full steam ahead with planning your goals for the year and two months later, you’ve lost all motivation. What happens? Naturally, you slip back into your old spending habits and procrastination becomes enemy number one.

It’s easy to fall back into comfortable patterns, especially when it comes to your finances. But, it’s detrimental to achieving your financial goals. Avoiding financial planning often results in far more stress than it would take to set aside some time to plan your finances for the New Year.

Remember, you don’t have to do it alone. We are here to help you by shedding some light on a few key financial resolution tips and how you can stay the course.

1. Evaluate Your Finances

Hand and pen on paper

Knowing your financial status is a good place to start when it comes to planning your resolutions. After all, you can’t create resolutions until you know where you’ve been going wrong. Aim to form a realistic baseline idea of your current financial health status, even if it’s not exactly where you want it to be.

This means evaluating your spending habits, calculating your net worth, and reviewing your goals. These actions will tell you more about what your money is doing.

Once you have an idea of what your financial health looks like, it becomes easier to create realistic resolutions and to achieve them.

2. Plan Your Money

Computer with graph on screen

Following your evaluation, you can move on to setting financial resolutions that work for your money. This will put you on the road to becoming financially savvy.

But, what exactly does this mean and how do you do it?

Successful resolutions incorporate clear goal-setting and focused timelines. Outline exactly what goals you want to achieve and set an executable timeline. You are less likely to procrastinate and fail at your financial resolutions when they are clear, simple, and doable.

This does not have to be done in a vacuum. It’s advisable to reach out to all your available resources.

A financial adviser can assist you in drawing up a financial plan that establishes clear goals with executable timelines. This goes a long way to creating resolutions that give you more confidence and less stress.

Contact Randsure Financial Services for help to achieve your financial resolutions.

3. Pay Your Debts

Wallet with credit cards

You are now well on the path to financial savviness. Armed with knowledge and determination, you can focus on the nitty-gritty of your goals. It’s time to prioritise debt relief and not get sidetracked by debt creation.

In your financial resolutions, outline an effective budgeting strategy that aims  “to ensure that you’re spending with a purpose”. This means paying off your credit card and other outstanding debts before you plan that next big holiday.

Procrastination is the thief of time. The beginning of a new year presents you with the perfect opportunity to get into financial shape and make more down payments to secure future debt relief.

4. Plan Your Investment

Mini house with key

Paying off debt is not the only significant aspect to consider, another easily-overlooked area is long-term investment. You may be tempted to set goals exclusively for the now, but “big picture” goals should always be in the foreground of your financial New Year’s resolutions.

Each year that goes by gets you a step closer to retirement. So, make sure you know where you want to be in the future. Resolutions don’t need to be limited to the 12 months ahead. You can make them with the next 12 years in mind.

Investment and finances are a very personal affair. There are so many options to choose from, whether it’s putting money into an investment portfolio or paying off your bond. Make the right decision for you. Discuss your options with your financial adviser to make an informed choice.

5. Review and Relearn

Lady reading book on sofa

Finally, the best way to stay on top of your goals is to regularly review your budget and always leave space for learning. The more knowledgeable you are about your finances and the financial world in general, the easier it becomes to tackle any unexpected issues that may arise throughout the year.

Another goal you can include in your resolutions is to expand your knowledge by reading more blog posts, newsletters and finance books. If you are armed with the facts, you are prepared for battle.

Another great idea is to have a checklist that you can revisit throughout the year to ensure that you’re staying on track with your goals.

Financial New Year’s resolutions don’t have to become an exercise in procrastination, instead, they can be realistic, simple, and informed.

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

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

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