Featured Tools and Resources:
- Step-by-step guidance for everyday life decisions.
- Interactive and up-to-date calculators to help you plan and budget on our Dream Builder Tools page.
- Meaningful gifting without breaking the bank, especially Silly Season Spending.
- A one-stop shop for all your financial needs, from budgeting to retirement planning, insurance, tax.
- Understand your Financial Personality! Visit our What is your Money Personality Page and utilize this knowledge for better spending and saving habits.
- Guidance on teaching your little ones about money on the Money Savvy Kids page.
- Our Year Planner: This comprehensive planner is your one-stop-shop for mastering every aspect of your financial life in 12 months (or less, if you’re feeling financially frisky).
Get ready to take control of your financial destiny! This comprehensive planner is your one-stop-shop for mastering every aspect of your financial life. Whether you're just starting your career, cruising towards retirement, or navigating daily expenses, this planner has got you covered.
The Year Planner is designed to guide you through life's financial milestones with confidence. From setting foundations for success in your early career to optimizing investments and savings during your growth stage, and finally securing your golden years through retirement planning, this planner covers it all. Plus, it helps you manage daily expenses, budget, and cash flow. Visit the Year Planner Page
Dream Builder Tools
Kick-Off your Financial Journey with some of our Quick Wins below:
The LIFE method
The LIFE method takes in more considerations than simply multiplying your income. LIFE is an abbreviation for:
Loans: Determine the amount owed on debts, including credit cards, personal loans, as well as your home loan and car finance.
Income: Determine how much money your loved ones will require annually and multiply by the number of years they will require that assistance.
Final expenses: All your final expenses such as funeral costs and executor fees.
Education expenses: Consider your children’s future educational needs, including university.
Add up all your expenses and you should have a good idea of how much life insurance you need.
Keep in mind that the LIFE method excludes your savings. So you can tailor by lowering the calculated amount by:
- Any savings and investments you have including retirement savings and
- Any existing life insurance you may have e.g. work life policies, credit life, and funeral policies.
Use our Dream Builder Tools calculator and guides to experience the difference your money can make, whether you want to invest or crush your debt.
When building wealth for your children, time is the ultimate advantage. You don't need a substantial amount of money to harness the power of compounding over the long term. However, you do need to be proactive and informed about the various investment options available. By understanding the different products and strategies, you can make informed decisions that will help your children's wealth grow over time.
Consider options to set your child up for financial success:
Investing long before birth - Don't wait until you have children to start planning for their financial security.
Investing for your grandchildren whilst your own children are still young - this will also aid your children financially when they are ready to start a family
Investing when your child is born to ensure a life changing pay-out when they are 18 or older
Invest in your child's retirement:
As an example, by saving R3,000 monthly in a Tax-Free Investment (TFI) from birth, you'll reach the annual contribution limit of R36,000. Continuing this monthly investment, you'll hit the R500,000 lifetime limit before your child turns 14, at which point contributions will cease. By age 18, the investment will have grown substantially.
If left untouched until age 65, the fund will have ballooned to approximately R26 million, providing a substantial retirement nest egg. It's essential to educate your child about the long-term benefits of this investment strategy, as they'll have utilized their lifetime limit by adulthood.
- We have an entire page dedicated to the various Investment types, their uses, pros and cons and what they are best for. Check it out HERE
- Our Dream Builder Tools page has a calculator and a detailed downloadable guide on how you can invest to build an incredible financial foundation and future for your child (or grandchild).
A Tax-Free Savings Account (TFSA) and a Unit Trust are two distinct investment vehicles in South Africa. A TFSA allows individuals to save up to R36,000 per year, with returns and withdrawals tax-free. In contrast, a Unit Trust is a type of investment fund that pools money from multiple investors to invest in a diversified portfolio of assets.
While Unit Trusts offer diversification and professional management, they are subject to taxes on returns. TFSAs are ideal for short-term savings goals, emergency funds, or tax-free income in retirement. Unit Trusts, on the other hand, are better suited for long-term investments, such as retirement savings or wealth accumulation, where the benefits of diversification and professional management outweigh the tax implications.
- Understanding the unique features and advantages of TFSAs and UTs can help you make informed decisions about your financial future. Visit the comprehensive Investment Products & Asset Classes page.
- To start your financial growth journey you need to know how to keep your funds safe, should anything happen to you. Learn how to do this with our Estate Planning page.
- Our Dream Builder Tools page will provide you with numerous investment calculations. Our calculator and downloadable guides will provide you with a tailored report suited to your needs, detailing how much you will need to invest and for how long, along with tips and considerations.
Your credit score and credit report are two interconnected yet distinct components of your financial profile. While your credit report provides a detailed history of your credit activities, including accounts, payments, and inquiries, your credit score is a three-digit number that summarizes your creditworthiness.
A good credit score, typically ranging from 600 to 850, can significantly impact your financial life, influencing the interest rates you qualify for, loan approvals, and even employment opportunities. In contrast, a credit report serves as a factual record, allowing you to monitor and correct errors, while a credit score provides a snapshot of your credit health, empowering you to make informed financial decisions and improve your overall credit standing.
Monitor your credit report regularly to ensure accuracy, and consider paying off debts with higher interest rates first. By following these simple steps, you can improve your credit score and enjoy better financial opportunities.
- Visit our Credit Score vs Credit Report page which details how each of these work, how they are influenced and WHY it is so important.
- Visit the Improving Credit Health Status page to boost your score.
- Access tips on whether you should start saving or paying off your debt first. What do you look for and how do you distinguish between which debt to pay off and where saving would be more valuable. The Dream Builder Tools page has a downloadable guide with all the info you could possibly need to determine what to pay off first and why. The debt calculator will show you how effortlessly you can crush your debt as and the massive impact small additional amounts make to your debt repayments.
Purchasing a car holds significant psychological importance for many individuals, representing a sense of freedom and independence, as well as a status symbol and social prestige. It can evoke feelings of emotional satisfaction, pride, and accomplishment, marking a significant milestone or new chapter in life. A car can also be an extension of one's personality, reflecting their values, interests, or lifestyle, and provide a sense of security and practicality. Overall, the experience of purchasing a car can be a complex mix of emotional, social, and practical factors that vary greatly from person to person.
- When purchasing a vehicle, we tend to only consider the actual market value of a vehicle and how to finance it. Hidden costs pop out after the fact and we are often caught off-guard and in a financial pinch. Our vehicle purchase calculator can provide you with tailored estimates on all these hidden costs so that you van make informed decisions and budget accordingly. We have a fully detailed vehicle purchase guide that details all the common purchase pitfalls, detailed explanations of various plans and so much more. Access all the info on our Dream Builder Tools page.
- Instead of applying for finance, why not invest for a future purchase? This way you can avoid wasting money on interest paid to an institution. Use our investment calculator on the Dream Builder Tools page.
- Understand your car insurance better! Visit our Insurance page.
- Should you pass away before your car is paid off, what will happen? You can cover all outstanding costs with a Life Cover. Understand the importance of a Life Cover HERE.
Purchasing property is a milestone decision that holds significant emotional and financial importance. Emotionally, owning a home provides a sense of stability, security, and belonging, allowing individuals to put down roots and create lasting memories. Financially, property ownership can be a savvy investment, providing a potential source of long-term wealth creation through appreciation in property value and rental income.
Additionally, owning a property can also provide a sense of pride and accomplishment, as well as a sense of control over one's living environment. Furthermore, property ownership can also provide a sense of legacy, allowing individuals to leave a lasting inheritance for future generations.
- When purchasing property, many buyers overlook significant costs, including transfer duty, conveyancer's fees, and registration costs, which can add up to tens of thousands of rands. Additionally, ongoing expenses such as property rates, taxes, and insurance premiums are often underestimated, leading to unexpected financial strain. We have a downloadable guide that details everything you need to consider, access it on our Dream Builder Tools page.
- The Dream Builder Tools page hosts a calculator that focuses on property purchase and additional costs involved in the process. Ideally, you could invest for your purchase or deposit and we have a calculator for that too! You can explore investment tools and options by visiting the Investment Products & Asset Classes page,
Effective financial crisis management is crucial to mitigate the impact of unforeseen events, such as job loss or medical emergencies, on one's financial stability.
To calculate your financial crisis management needs, consider the 3-6 month rule: save 3-6 months' worth of living expenses in an easily accessible savings account. Additionally, review your income, expenses, debts, and insurance coverage to identify potential vulnerabilities and create a contingency plan to address them. Do you know what your monthly expenses are? What is critical and what is not?
Relying on credit or a loan as a means of managing financial crises is a misguided approach that can ultimately exacerbate financial difficulties. While credit may provide temporary relief, it does not address the underlying financial issues and can lead to a cycle of debt that is difficult to escape. Furthermore, loans often come with interest rates and fees that can increase the overall cost of borrowing, making it even more challenging to recover from financial setbacks. A comprehensive crisis management plan should instead focus on building emergency savings, reducing expenses, and increasing income, providing a more sustainable and effective solution for navigating financial challenges.
- Like most of us, you probably have an estimate amount in your head of what you would need to survive 3 to 6 months without an income. This is simply not good enough. Our Crisis Management page is a comprehensive approach to every detail you could have missed. Credit and loans are not a financial fallback plan, you and your loved ones deserve better.
- Instead of saving money for a potential crisis, why not invest it and have it grow? Use the investment calculator on our Dream Builder Tools page to determine your investment strategy.
- Ideally, once you have established what the amount is that you would require to effortlessly sail through any crisis period, you would invest to attain this amount (and extra!) Discover Investment tools available to you on the Investment Products & Asset Classes page.
A Living Annuity and a Life Annuity are two types of annuities available, catering to different retirement income needs. A Life Annuity provides a guaranteed income for life, typically in exchange for a lump sum payment, offering predictability and security. In contrast, a Living Annuity allows the retiree to invest their retirement savings and draw an income from the investment, providing flexibility and potential for growth, but also exposing the retiree to investment risk and potential fluctuations in income. Which option would suit you best? How do you know how much you need for retirement?
Calculating for retirement is a crucial step in securing a comfortable post-work life.
To ensure a smooth transition, individuals should start by estimating their desired retirement age and the number of years they expect to be in retirement. Next, they should calculate their projected retirement expenses, taking into account essential costs such as housing, food, and medical aid, as well as discretionary expenses like travel and hobbies. A general rule of thumb is to aim to replace 70-80% of pre-retirement income in order to maintain a similar standard of living.
Additionally, individuals should consider factors like inflation, investment returns, and potential sources of retirement income, such as a pension or provident fund, retirement annuity, or personal savings. They should also take into account the impact of taxes, such as income tax and capital gains tax, on their retirement savings. By carefully considering these factors and creating a comprehensive retirement plan, individuals can ensure a secure and enjoyable retirement.
- There is so much to consider when choosing your retirement vehicle. Determine whether Living Annuity of Life Annuity would be better suited for you and understand the pros and cons of each in detail. Read More.
- The best thing about retirement financing is that you are able to predetermine your needs and with a tailored approach and timing, you can achieve your goals. Visit our comprehensive Retirement Planning page.
- Investing for retirement is one of the most important financial gifts you can give yourself. Use our investment calculator on the Dream Builder Tools page to effortlessly determine your future.
Funeral cover and life cover serve distinct purposes, yet both are essential for financial planning. Funeral cover provides a lump sum payment to cover funeral expenses, typically ranging from R5,000 to R50,000, ensuring that loved ones are not burdened with unexpected costs.
- The consequences of not having a Will can be dire. Without this vital document, our loved ones are left to navigate a complex and often contentious process, with the risk of family disputes, financial burdens, and even the loss of cherished possessions. The emotional toll of this uncertainty can be overwhelming, adding to the grief and sadness that already accompanies the loss of a loved one. Cherish your legacy - visit the Will & Testament page.
As humans, we like to think of ourselves as rational beings, making informed decisions about our finances. But the truth is, our relationship with money is deeply emotional. Our financial choices are often driven by unconscious beliefs, shaped by our upbringing, experiences, and societal influences.
We will delve into the complex world of financial emotions, exploring how our psyche works around money and the profound impact of our belief systems on our financial well-being.
As an example, we need to consider the emotional impact something like Estate Planning and facing our closest relationships can have on us. Estate planning involves more than just legal and financial decisions; it also encompasses complex emotional and personal considerations. Creating an estate plan forces individuals to confront their own mortality, leading to feelings of vulnerability, anxiety, and even grief. Additionally, decisions regarding asset distribution, beneficiary designations, and executor appointments can stir up family dynamics, past conflicts, and emotional attachments.
- We need to place more emphasis on how emotionally taxing Estate Planning can be. Estate Planning is often overlooked and neglected due to the process being uncomfortable, yet this is the most important financial plan you can ever have - leaving a legacy to those you love. Read More
- As a child, how did your parents or elders feel about money and what message was imprinted on you from early on? We are able to rewrite our mental money narrative when we can confront our inherited belief system. Visit our Financial Emotions - Belief Systems & Anxiety page to discover your current mindset and how you can make a positive change.
When planning a wedding, couples often overlook significant expenses, such as taxes on gifts, wedding attire alterations, and post-wedding expenses like thank-you gifts and honeymoon costs. Additionally, many couples fail to factor in the costs of wedding day emergencies, vendor gratuities, and unexpected expenses.
Alarmingly, research suggests that a significant number of couples divorce before they've even paid off their wedding debt. In South Africa, it's estimated that nearly 1 in 5 couples divorce within the first five years of marriage, with many citing financial stress as a contributing factor. This highlights the importance of careful financial planning and communication before and after the wedding. With proper financial planning and taking into consideration the often overlooked details of planning a wedding, you can invest for your dream wedding and honeymoon without the crushing debt that follows your love story.
- The Dream Builder Tools page will provide you with a comprehensive downloadable wedding guide to ensure you do not exceed your budget. This page also hosts a wedding calculator that will guide you on how you can invest to achieve your dream wedding Don't become a statistic and don't let poor financial planning ruin your happily ever after.
- Partners will benefit from understanding their Money Personalities and spending habits. Understand your financial type by visiting the What is Your Money Personality page.
Understanding your Money Personality can be a valuable tool in understanding your relationship with money and identifying areas for improvement. By assessing your spending habits, financial goals, and emotional responses to money, this page can help you determine your unique money personality type. This insight can empower you to recognize your strengths, such as being a savvy saver or a shrewd investor, as well as areas where you may need to exercise more caution, like overspending or avoiding financial planning.
By understanding your money personality, you can develop a personalized plan to overcome financial challenges, achieve your goals, and cultivate a healthier, more mindful relationship with money.
- Our Money Personality changes as we age and as we are exposed to different people, ideas and financial life stages. The page will help you better understand what your spending and saving characteristics are, as well as where you should be focusing in your current life stage. The What is your Money Personality page will give you a better understanding of where you can improve but also where you can excel.
- Where we are now financially is greatly due to what we were taught (mostly unintentionally) in our childhood. Our financial guilt, celebration, hopes and fears dictate how we approach the financial world. Understand your financial belief system better by visiting our Financial Emotions - Belief Systems and Anxietypage.
