Last Will and Testament, Life Insurance, Medical Aid, Momentum Multiply, Savings, Short Term Insurance

Janu-worry 2021

With Janu-worry almost behind us, we can start focusing on the year ahead. Hopefully the schools are about to start, and some form of normalcy are to return! Count yourself lucky if you are still working from home – especially in this weather we are currently experiencing in Gauteng!

October 2021 will see the 4th post-apartheid cencus take place in South Africa, and we have municipal elections coming up – and possibly a vaccine…Tax are being relooked, and according to the Big Mac Index, the South African rand is undervalued by 61.9%, which is the fourth most undervalued currency measured by the index in July.

Using the raw data, a Big Mac costs R33.50 in South Africa and $5.66 in the United States. The implied exchange rate is R5.92 to the dollar.

Japan is still dead-set on hosting the Olympics from 23 July – 8 August 2021, and many others are holding out hope for an overseas holiday this year!

These are all out of our immediate control, but what we can control is our finances. Shop around for better short term insurance quotes and benefits, make sure your last will and testament is up to date and your savings pocket is growing, get rewarded for being active and looking after ourselves, and in turn, spending those rewards on what matter most!

Momentum-Multiply-Rewards
Momentum Multiply – rewarding you for looking after yourself.

Momentum Irene would love to be of service to you on your financial wellness journey. Feel free to connect with us on any of our platforms, and we will come to you – masked and all! If you would prefer a Zoom or Teams introduction, that can also be arranged.

We wish you a magnificent, healthy, prosperous 2021, and look forward to meet up for a coffee (even if it is virtual).

Momentum-Irene-Financial-Wellness-Consultation
Financial Wellness consultations can be in person or online.
Savings

Sleep-easy

You are in lockdown; It was supposed to be 3 weeks…but it is day 100 whatever. Sitting with your head in your hands, asking yourself how are you going to get through yet another month? I mean…how has this happened in our time with such modern technology and medicine? Yet… It has!

During this time of isolation and social distancing, many people have realised they do not have enough (or anything!) in their “emergency fund”.

People who go through lockdown without worrying too much about how they are going to pay rent, car instalments, insurance and day-to-day living expenses are those with an emergency savings fund that is big enough to cover 3 to 6 months of expenses.

I can hear you say: “I want that! How do I start?”

Here are my Top 5 rules to start your Emergency Fund:

RULE 1:

Do not live a life you cannot afford, simply because you want to try and keep up with the Joneses.

RULE 2:

Live a frugal life: prioritise your expenses. Before you buy that new car (that will lose value the second you take ownership), ask yourself the question: Is this more important than saving for my child’s education? Is this more important than investing in a property or in my retirement?

Review your insurance. Shop around for better premiums, better excess values and inclusive packages.  

RULE 3:

Do not reduce the wrong expenses in order to build your “sleep-easy fund”. If you choose to pay less towards your retirement, this might have detrimental results down the line. Be sure to speak to a Financial Advisor, and have a proper Financial Needs Analysis done to ensure you are contributing enough to your Retirement Fund. Keep in mind, there are various tax advantages when contributing to retirement policies.

RULE 4

Your emergency savings fund is not an investment fund. Put your savings into an easily accessible account, available within 7 days. . You need to ensure that inflation does not erode your savings. Speak to your Financial Advisor regarding the various available options, other than a bank account.

RULE 5

Make your contribution towards your emergency savings a fixed monthly expense. You don’t need to build a 3-to-6 month emergency savings fund in a month. Simply start off with an affordable amount, and slowly build up enough to carry you through one month and try and do this in the shortest amount as possible.

Once you have achieved this, you should be used to saving that amount each month, and you can continue building this fund. (at least you have an emergency savings fund that can cover one month’s of expense, yay!). Certain financial institutions allow for a debit order to make it easier.

Once you implement all these guidelines, you should be able to have enough funds for the next global pandemic while being in quarantine, or for any unforeseen circumstance life might throw your way!

Written by Heinrich Reheder – Heinrich joined Momentum Irene in February 2020, and is as passionate about looking after your family as he is about his own.