Cape Talk Money Matters host and financial planner Sylvia Walker provides readers with a wealth of information and easy to follow tips on how to gain financial independence and create wealth. We’ve summarised some key points that anyone can follow to start planning for financial independence and a debt-free lifestyle for the year ahead.
What’s your money personality?
“We first make our habits, then our habits make us.” – John Dryden
Examining your money personality is part of a journey of self-awareness that allows you a more objective view of yourself. Knowing your money personality will not solve all your money qualms, but it will give you a better idea of how you manage your finances, and in which areas you can grow. Here’s a link to getting to know your money personality.
Once you’ve completed the test, make a list of the positive and negative traits described in your ‘personality type’, along with notes on which changes you can implement to improve your overall ‘score’.
Dealing with debt
“Too many people spend money they haven’t earned, to buy things they don’t need, to impress people they don’t like.” – Will Smith
Sadly, many South Africans are drowning in debt. It’s so easy to slip into, and so difficult to get out of – and it robs you of the ability to save. According to the World Bank, South Africans are among the biggest spenders in the world! You are not alone if you feel overwhelmed by your debt. One can only run so fast on the debt treadmill until it becomes overwhelming. So, you need to make sure that you get off it before it’s too late. If your situation is dire and you can no longer service your debts, it’s time to come clean and face your situation head-on. You can do this by linking up with an accredited Debt Review service such as Debtline, who will negotiate a restructured payment plan with your creditors and obtain a court order confirming the new repayment plan.
Protecting your wealth when life throws you off course
“A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.” – Suze Orman
Life can be a bit like a game of Russian roulette. You earn an income that buys you a lifestyle. You use this money to live, build wealth and perhaps leave a legacy for the future. This is all great when you are on a winning streak, but you never know what is around the corner. There are many potential threats to your wealth. Being smart means being prepared. Taking out cover is a bit of a gamble, but so is not taking out cover. And while taking out cover is a bit of a grudge purchase, it will make you eternally grateful when something does go wrong, as it provides valuable cash in a time of crisis. Here are some types of cover worth considering investing in:
- Retrenchment or early retirement cover
- Severe illness cover / medical aid
- Disability cover
- Car insurance / home insurance
It’s important to analyse which types of cover are best suited to you, and to reassess this at least once a year. Being covered for the right things will help protect your wealth while you are busy building it.
While the world of money is not simple, it’s not that difficult either, if you arm yourself with the knowledge to manage it. For more financial tips and advice on living life debt-free and financially stable, check us out on social media, where we regularly post thought-provoking content on everything finance, debt and money matters.
Even better, reach out to us today for your own personalised advice and debt counsellor.