getup

How to manage a Personal Budget and deal with unplanned expenses

Whether your objective is to become debt-free, gain financial freedom, or achieve good financial health; a personal budget will help you manage your money more wisely and get you closer to your financial goals. Budgeting is the process of making a commitment to yourself on how you will spend and manage your money by creating spending or budget planner. Creating this spending plan empowers you with insight into your financial health and helps you made financial decisions based on your financial situation and financial goals.

Why is a personal budget so important?

Effective budgeting helps you to create a spending plan for your money and ensures that you consistently have enough money for the things you need and the things that are important to you. Following a personal spending plan will also assist you in working towards getting out of debt faster, with the intention of ultimately improving your financial health and reaching a stage of building up your personal financial wealth.

Tips to consider when creating a personal budget

How you budget, and what you budget for will differ from person to person. For instance, the budgetary needs and financial goals of a student will be different from that of a family or a retiree. Be that as it may, there are five basic steps in creating a personal financial budget that applies to everyone and they are significant in that they build on each other, ultimately helping you organise your personal finances more sensibly and achieving financial fitness far quicker.

Tip 1: Set financial goals

There are two types of financial goals: immediate and long term, both are equally important and complement each other when planning for financial health:

Immediate financial goals centre around using your money today; such as your bond, car repayment, utility bills, child care, food, cell phone, and household supplies.
Long-term financial goals refer to savings and spending which spans over decades; such as retirement fixed savings and investments.

It is also important to further categorise these goals into those that are necessities versus those that could be considered luxuries, or nice-to-haves; in other words, what are needs and what are wants?

Tip 2: Calculate your income and expenses

After you know what your financial goals are, you need to put together a financial plan to help you reach them. To do this, you have to assess your salary and your expenses. Most people spend month-to-month in light of the fact that most bills are monthly.

Start by making a list of your month-to-month income sources. This includes your nett salary (after tax and PAYE deductions); any bonuses that you receive on a regular basis; child support or maintenance payments that you may receive, or any other regular sources of income that you receive from any other means. Add all of these up to get to the total monthly income amount.
The next step is to list and categorise all of your expenses, which fall into three classes:
- Fixed committed financial expenses: These are fixed monthly amounts, such as your bond or rent.
- Variable committed financial expenses: These vary from one month to month based on needs, such as groceries and petrol.
- Discretionary financial expenses: These are optional expenses and include recreation and entertainment, such as a gym membership.
- Classify these expenses as needs versus wants; as well as whether the expense is part of a short-term or long-term objective.

Tip 3: Analyse your spending patterns

One of the primary reasons we budget is to ensure that your expenses don’t exceed your income. In the event that they do, and more money is going out than what is coming in, at that point you may have to make some serious adjustments. This doesn’t really mean you have to begin penny-pinching; it just means that the time has come to revisit the discretionary cost category and see where you are willing and able to cut the fat.

Tip 4: Revisit your personal budget frequently

Once you have tracked and monitored your income and expenses for a month or two using your budget planner; you should be more aware of the areas where you may need to start making adjustments. Perhaps your initial monthly income estimates were off or there was a change in your income, or maybe you didn’t account for unexpected sudden expenses like car repairs or veterinary bills that required emergency cash.

For instance, should you be so lucky as to get a promotion or salary increase, then perhaps you can start increasing discretionary spending or invest more in your retirement plan or savings goals. Then again, a cutback or fewer work hours could mean reducing spending until you re-establish your salary. Stay sensible, assess it frequently, and don’t be reluctant to change. Make these adjustments, including provision for unexpected emergency expenses in the future, and remember to consistently balance the inflows with the outflows of your money. Budgeting is all about balance.

Remember that your personal budget is not a once-off exercise, and will need to be reviewed regularly and adjusted as you make progress, or where your personal circumstances may have changed.

Tip 5: Plan for unexpected expenses

Unexpected expenses can show up whenever. Regardless of whether your roof starts leaking or your vehicle won’t start, we’re regularly confronted with annoying expenses that we didn’t anticipate. If your budget to set aside an emergency cash fund will to assist you with dealing with unforeseen expenses.

A general rule is to try and ensure that you have the equivalent of three months’ expenditure in your emergency cash fund. That should be sufficient to cover most regular emergencies – however should you not have sufficient cash in your emergency pot, then you may need to dip into your savings account or investment funds to tide you over

Dipping into your savings versus taking out a personal loan or credit

If you have an existing savings account that allows you to withdraw funds immediately without any penalties, perhaps it might be a better idea to dip into this savings account for emergencies, rather than borrowing emergency cash. If you do, remember to budget to top this up again as soon as you possibly can with any surplus cash you have by perhaps sacrificing one of your ‘wants’ for a little longer. Keep in mind, it is smarter to dip into cash savings, than investments. This is because investments are for the most part implied for medium-to-long-term saving.

If you find that you are regularly having to dip into your savings to get through the month so that you can pay off your month-to-month expenses and bills, this is a sign that your expenses are clearly outweighing your income. If this continues for a long period of time, you may start to experience financial stress. Perhaps then it is worth considering which existing debts or loans could be consolidated into a single debt consolidation loan, which could result in you paying lower interest rates and ultimately, lower monthly repayments overall.

In the event that you simply don’t have any means to access cash in an emergency situation for a sudden unexpected expense, then you may need to start looking at applying for a short-term personal loan which allows you to borrow smaller amounts of cash at a fixed interest rate over an agreed repayment period. For instance, a Bayport personal loan allows you to borrow an amount of up to R250,000 with flexible repayment terms from 6 to 84 months at a low-interest rate.

Step 6: Commit to your Personal Budget

Once you have ironed out all the wrinkles in your personal budget, you need to commit to sticking to it. Making a budget is a great first step towards improving your overall financial wellness; however, sticking to it makes all the difference in whether you achieve your financial goals or not.

Remember that saving money today influences what you spend your cash on now, but also gives you a long-term view of what your financial health will look like further down the road.

Contact us should you wish to speak to a Bayport Financial Services consultant about a personal loan, or for advice on credit life insurance on your personal loan.

When Dying Isn’t The Only Price To Pay

As seen on EBnet, for National Wills Week 12 – 16 September 2022.

While Riky Rick’s sudden death stunned the country earlier this year, it was the aftermath of his passing that only added to the tragedy. The much-loved 34-year-old rapper and producer – who, with his big brand endorsements was regarded as being the embodiment of the South African dream – had passed on without a will, leaving his long-time partner and mother of his child to battle it out in court.

The entertainer’s passing highlighted the high price attached to passing away without making the provisions. While death is never a nice thing to think about, if we don’t put the necessary plans in place, it’s our loved ones who will likely pay the price after we’re gone.

What does this price entail? Liezel Gordon our Client Engagement Team Lead, tallies things up.

“While some might have insurance to cover debts, education and other costs when they die, there are also ‘hidden’ costs that must be taken into account. Even when these costs are considered, they’re often severely underestimated and can run into hundreds of thousands of rands.

“These fees might include capital gains tax, transfer fees for properties, rates and taxes, estate duty, executor fees, advertising costs, as well as funeral costs.”

Without a solid will in place and these costs taken into account, Gordon warns that family members might end up having to sell assets or even take out a loan to cover costs. She offers some practical advice to ensure that your loved ones are looked after when you’re gone.

Where there’s a will, there’s a way…of doing it online.

It sounds simple, but so many people do not prioritise drawing up a will, or postpone it to some more convenient date in the future; often finding that this time never arrives. And then it’s too late.

But this doesn’t need to be a lengthy, complicated or expensive process, says Gordon. Metropolitan GetUp, for example, offers a free will-writing service through their partnership with Cliqtech, which can be done online. “This lets you make your wishes clear, giving you peace of mind through knowing that your loved ones will benefit the way you intended them to in the event of your passing.”

Cover your ground.

Life and funeral cover should be non-negotiables, and ensure that the largest costs associated with dying are covered once you’re gone, leaving your loved ones able to grieve you without added financial burden. These can include debts and student loans, as well as funeral costs. A simple funeral can cost anything from R3000, while you could pay up to R50 000 and more for elaborate affairs – a funeral planner shows you just how quickly these costs accumulate.

Gordon also provides a helpful tip: Life cover can be used to cover any estate duty payable after you die, without needing to sell any assets intended for your beneficiaries. “To ensure your life insurance policy is earmarked for these purposes, make your estate a beneficiary on one of your policies, which will cover your estate expenses,” advises Gordon.

Understand the death-islation.

Your retirement annuity allows you to save for retirement using pre-tax money (money that hasn’t been taxed). If you pass away, the funds accumulated in your retirement annuity are not considered part of your estate so are not factored in when calculating your estate duty liability or executor’s fees. “These funds will be allocated to your beneficiaries or financial dependants by the fund’s trustees. They have the option of receiving the benefit in cash, which – if more than R500 000 – will have tax implications. They can also purchase a life or living annuity which will be tax-free, but the beneficiary will be taxed on the annuity income.” says Gordon.

Also bear in mind that all assets left to your spouse in your will (or in accordance with the law), are deductible from the gross value of your estate and are also exempt from estate duties and executor’s fees. “Therefore, ensure that you clearly list your spouse as your beneficiary, so that these assets are made available to them without any hassle.”

Finally, for larger estates or complex instructions it is advisable to speak to an Estate Planner to help structure your estate to ensure you don’t pay unnecessary fees, advises Gordon.

Instilling a culture of saving in South Africa

South Africans are used to hearing that they have a poor saving culture. This has become more evident as the country battles the coronavirus pandemic. This pandemic has forced many South Africans to reevaluate their relationship with money.

As scores of people queue up for government relief, this has brought back into public discourse the importance of saving money – whether in the long-term, medium-term, or short-term.

July is a National Savings Month and there can never be a better time to start discussing saving for a rainy day than now as the country is plunged in a crisis by COVID19. The national savings month initiative was started by the South African Savings Institute (SASI) in 2001 to inculcate a savings culture and create awareness of the importance of saving in South Africa.

“This initiative was started to raise awareness of fiscal planning and saving and getting citizens informed when it comes to investments and savings.”

Nicholas Riemer, head of investment education at FNB, argues that the national savings month drives to encourage South Africans to put money away in the long-term for retirement and emergencies.

The 2020 national savings month was officially launched on Wednesday, 08 July by SASI and the institute will host a series of webinars throughout July.

Why South Africans struggle to save

The causes of South Africa’s poor saving culture are deep and complex. As more South Africans find themselves with holes in their pockets, the coronavirus pandemic has raised awareness of the importance of saving money and having emergency funds.

High unemployment and poverty

When it comes to savings and investments, South Africans often complain that it is hard to save in a country where there are such high levels of poverty and unemployment. Jennifer Jansin, a business analyst, said that the reason people struggle to save is due to unemployment, and in a case where people are employed, they are over-indebted. As Jansin argued, this often creates a culture of dependency where an employed person has to take care of siblings and aging parents. This is what the Old Mutual Savings and Investment Monitor (OMSIM) calls the “sandwich generation”.

According to OMSIM, the sandwich generation is termed so because “they are effectively sandwiched between an obligation to care for their aging parents – who may be ill, unable to perform various tasks and in need of financial support – and children, who require financial, physical and emotional support”.

OMSIM reported that in 2019, 34% of South Africans were wedged between the sandwich generation. “Their salary is divided up to take care of various household needs and thus resulting in their inability to save for retirement and emergencies – This often increases the likelihood that, because they cannot save for themselves, this problem might be passed onto the next generation.” As a country with such a complicated past where this culture of dependency spurns generations, Jansin says it will take more than financial education to overcome this phenomenon.

A country of spenders

The South African Savings Institute has labeled South Africa a nation of dis-savers. Most South Africans do not believe in delayed gratification. They want things now, even when they have no money and thus end up getting into debt. As Jansin states, most South Africans like to be perceived like they have money and thus live beyond their means.

According to Prem Govender, chairperson of SASI, South Africa has become a nation of spenders and not savers, even when there is no money to spend.

“We have developed a culture of borrowing money to satisfy our desire for acquiring things that we do not need but desperately want. It has become a culture of instant gratification. It is no wonder that South Africans are drowning in debt and using the bulk of their income to service debt.”

Easy access to credit

In South Africa, it is easy to purchase things on credit. Rather than saving and waiting until they can afford a product, South Africans instead can’t resist the urge for instant gratification.

Speaking at the launch of savings month, award-winning financial journalist Maya Fisher-French stated that unlike in most countries where people save to buy a product, South Africans look at how they can access credit.

“In other countries, they put money away and create a savings pool. In South Africa, however, we don’t save; we have a culture of consuming today and paying later.”

Fisher-French said it is best to save for a product rather than buying on credit and end up paying more in interest.

“Rather than buying on credit, put money away for a certain period to avoid paying off products over long periods and paying huge interests and fees, which you can allocate to your future. You don’t need credit; you can save to achieve your goals.”

Impulsive buying behaviour

Dr. Ian Zimmerman describes impulsive behavior as when the urge to purchase a product outweighs the willpower to resist it.

“Our culture of consumption enables us to succumb to temptation and purchase something without considering the consequences of the buy.”

Financial journalist, Arabile Gumede, has urged South Africans to ensure that the way they spend their money is not reckless.”

“There is a difference between buying something and affording it. Have a look at specials and promotions and if you can’t afford something, wait until you have enough money to buy it.

“Sometimes the way you save is how you spend. Savings is not always about money. It is also about your behavior as a consumer,” added Gumede.

What covid19 has taught us?

As Prem Govender stated at the launch of savings month, our finances were not in shape before the lockdown. But what has COVID19 taught us in terms of saving and having emergency funds available?

Many South Africans were caught without rainy day funds upon the lockdown. This pandemic has presented many with an opportunity to learn about the importance of saving and letting money sit and accumulate interest.

Riemer said the pandemic has demonstrated the imperativeness of having both short-term and long-term savings.

“To have emergency funds available to get you by during a pandemic as opposed to having to dip into your longer-term funds makes a huge difference as taking money out of your long-term investments may result in penalties.”

As people’s movements were limited because of the lockdown and less money was spent on eating out and entertainment, Riemer says the lockdown gave South Africans time to ponder about and understand budgeting processes.

“With us having extra time in lockdown, we must fully understand everything we are saving and investing through. We must know what our goals are and understand exactly what we are looking for.”

Ways to save

Tax-free savings accounts

The South African government introduced Tax-Free Savings Accounts (TFSA) in 2015 to encourage a savings culture. “They are part of non-retirement savings and help to maximize tax relief.”

The total contribution that qualifies for tax exemption is R30 000 and SASI recommends that savers “invest the maximum amount permissible every year for at least 16 years”.

Riemer said South Africans are now taking up educational content to research what can be done with this type of savings and investments.

“TFSA is a very powerful tool that can be used to reduce taxation exposure which will allow money to grow without being taxed.”

Long-term Saving vehicles

According to Riemer, savers who are looking to invest or save their money in the long-term might not get the best yields as interest rates are down due to the pandemic. However, there are risk-free vehicles like government bonds that offer better returns, added Riemer.

The National Treasury describes a bond as “investment with the government which earns fixed or inflation-linked interest for the term of the investment”.

On the equity side, Riemer said there is little risk because of where the market is at the moment. “There are lower risk vehicles like unit trusts where you are just looking to beat inflation than looking to outgrow and return 10 or 15%.

Riemer further stated that if the goal is to beat inflation, there are different saving and investment vehicles to choose from.

“If we are looking to beat inflation by 3% without taking too much risk, there is a range of saving and investment vehicles to suit that. We need to ensure that we have exposure to all those so that our risk is diversified as well as getting our best possible chance of achieving long-term goals.”

The earlier you save, the better

According to Riemer, if you save for retirement from a young age, you are going to be able to maintain your current lifestyle.

“If you have tons of money saved going into retirement, you are going to be able to spend and support yourself. This increases spending capacity over 30 years as opposed to spending bits and pieces as a youngster and getting to withdraw from the economy upon retirement through social welfare.”

What is the role of entrepreneurs in South Africa’s future?

Understanding entrepreneurship

Entrepreneurship has become somewhat of a buzzword. So, people may have various understandings that they are comfortable accepting. Some explanations are more precise and others can be relatively broad and sometimes confusing. Even with a world of knowledge available online, different sources compile various schools of thought that may not always relate to localised context.

So let’s bring this one home a bit so we can better grasp what lies ahead for South African entrepreneurs. Entrepreneurship can be understood as the innovation and development of new products, techniques, services, and business models. Altogether offering something new for the betterment of humans and processes while making a profit. Another definition of entrepreneurship is identifying needs and creating opportunities by offering solutions. This includes identifying a gap in the market or the need for a more effective and efficient product or service that may not be new. This definition is often more encompassing and relevant to emerging markets like South Africa.

The consensus is that entrepreneurship is a process of planning, organising, operating, and assuming risk.

The Role of entrepreneurship in South Africa

The role of entrepreneurs is to find and exploit opportunities. Being resourceful with land, labour, and capital can contribute to national economic growth through goods and services, the distribution of wages, and contributing as taxpayers. In turn, having positive effects on Per Capita Income and the GDP of the country.

It’s especially important during difficult economic times. When small and entrepreneurial companies can spot opportunities they can produce innovations that raise productivity, create economic growth as well as job creation. They are of course not expected to do this alone. According to USB-ED, Investments in public infrastructure and policies by the government to lower obstacles, helps to optimize and enhance the contribution of entrepreneurs, especially amid the 4IR (4th Industrial revolution).

Altogether these collaborative efforts boost the national economy and aid in the development of social capital.

Current impact of COVID-19 on entrepreneurship

As the coronavirus COVID-19 spreads across the country and calls for lockdown measures from the government to protect citizens from contracting the virus in large numbers, it’s having a devastating impact on economic activity. So far SMEs and early-stage entrepreneurs are being hit the hardest. Many of whom are retrenching employees because they cannot afford to pay them or keep up with operational expenses. While others are facing the reality of having to close down because there’s little to no demand for their products and services and potentially no income.

COVID-19 is disorienting the economic landscape and the entire entrepreneurship ecosystem is being tested. Social distancing, quarantine, and other movement restrictions are causing a fall in the demand for goods, labour shortages as well as disruptions in the supply chain. This is hindering innovative solutions to connect entrepreneurs to the support that they need from the government and development organisations that aid these critical drivers.

Current opportunities for entrepreneurs in South Africa

It’s scary but it’s not all doom and gloom. In retrospect, some great and sustainable ideas implemented during recessions created notable successful entrepreneurs and companies. If you’re up for the challenge and headed in this direction take note of the following untapped business opportunities in South Africa and see how you can make your mark in the economy. Below is a list of opportunities worth exploring and resources to consult to help you get started:

Human Capital, Delivery Services, Off-Grid Solar, Healthcare Access. Laundry Services, Hairdressing Services, Freelance, Farming, Senior Citizen Care, Logistics, Digital Solutions. Learn more about these on Business Opportunities in ZA. Two other resources worth visiting are Entrepreneur.com and WeForum.

May COVID-19 be the crisis that that helps you spot opportunities that you are passionate about and set you off on your entrepreneurship path or meaningful career.

The Stretchiest Insurance In South Africa | Cover Stretch Explained

We’ve gotten stretchier and it’s time for you to do the same! Our Cover Stretch benefit is an innovative, market-leading feature of your funeral plan that means you don’t have to worry when times are tough because you get to stay protected.

With our solution, if you miss a premium, you will still retain a percentage of your cover and your plan will not end immediately. The Cover Stretch benefit allows you to keep your plan active for up to one year when times are tough. Your cover level will be adjusted according to missed and paid premiums. Think of it as stretching your cover out to help when times get tough financially.

Want to learn more? Watch this quick 1-minute video below:

Why is saving money important?

Saving is important. We hear this a lot and in most cases, we don’t see this as a possibility in our financial lives. There’s a lot of bills to pay and rarely enough money to cover those expenses, let alone putting money away for a rainy day. Everyone knows millennials earn significantly less than the older generations even with the side hustles to gain extra coins.

As a millennial, you know you want to save but it always seems like everything is stacked against you. Real talk though? Saving is important, as daunting and challenging as it is. It counts as “self-care”. The thing is, we cannot predict the future, so, having some cash on reserve will definitely help you in the case of an emergency.

You don’t have to dive in with big amounts, start small and ultimately, it will all add up to a big amount. Personal saving experts say that the rule of thumb is to start by paying yourself first immediately when you get your salary, no matter the amount and before settling your bills. This means that 10 percent of your salary should go towards paying yourself by saving money on a short-term and long-term investment or savings plan. Living by this rule of thumb will ensure that you can save every single month, without fail.

Saving plays a huge role in how you function in your daily life and it’s vital to understand why it’s important to save. That way, you’re more encouraged to start working on it sooner rather than later. Below, find a list of a few reasons why saving is important.

Major life events

Life itself is an event, within the life event more events happen. This includes things like weddings, pregnancies, birthdays, graduations, traveling, and more events. While some of these can be planned, some typically come as a surprise. Some of these events can be on the expensive side and you might run on costs you were not aware of. So, it’s important to save for such situations.

Having funds for emergencies

Financial emergencies are always unexpected, hence they’re called “emergencies”. These can be anything from unexpected health issues to car issues, salary cuts, and more. Ideally, you should have between three and six months’ worth of living expenses set aside.

If you don’t have an emergency fund, you may end up having to take out a short-term, high-interest loan or carry a balance on a credit card at a high-interest rate, which will in turn have a bad impact on your credit score.

Long-term financial security

Financial security is something we all aspire to and hope to achieve. It’s something that’s attainable to everyone, all it takes is a little bit of discipline.

Saving up as a safety net is a really good idea. Without savings, how will you weather any financial storms? Developing a savings culture early on in your career ensures that your future doesn’t look so scary. Imagine if you start saving 10 percent of your salary, or the tips you make from that waitressing job you do while furthering your studies or from your side hustle. There’s a lot of potential here, use the opportunity to tap into it as soon as you possibly can.

Stress reduction

Looking back at the above point, it’s a clear indication that we worry a lot about our finances, which is why we aspire to achieve financial security. Financial stress will keep you up at night or worse, wake you up in a cold sweat. It is important to look at how your stress manifests as a result of debt or not having enough money to pay the student loans you find yourself buried under. It’s not enough to simply ignore and “keep it moving”, as this can result in adverse health issues, which will exacerbate because again, you come to the realisation that you cannot afford that too.

Financial independence

The most appealing benefit of being an adult is the independence and freedom it affords you to do what you want, how you want, and when you want. But if you have financial constraints, doing this can be incredibly hard. And, the more debt you accumulate, the less independent you become and your life becomes about paying bills, bills, bills, and more bills. So, to achieve independence, you need to start saving. Forget what your friends are saving for and find a reason that resonates with you and you alone. That way, you have a goal best suited to your needs and you’ll be more motivated to keep saving. The more it becomes a habit, the more the shackles of bills loosen up and you’ll reach your financial independence in the end.

In conclusion

Creating a saving culture helps mitigate for instances like a COVID-19 lockdown, being restricted from your normal day to day. For most people, the economic impact of a lockdown has caused more harm than imaginable, and having no savings has played a big role.

So, it’s important to save as it helps with unplanned events that can come in the middle of the month when you have maxed out your monthly salary. When you save, you can sustain your living beyond your monthly earnings. Saving not only prepares you for major life events, but it also gives you financial independence, security, stress relief, and financial freedom.

And remember, it’s okay to start small. Many people feel they can’t save unless they save a lot at once, which can be a lot harder in reality. Particularly, if you’re living paycheck to paycheck but if you keep the “go big or go home” attitude when it comes to savings, you may never start saving at all. So, start small.

How to properly prepare for marriage

In life, there are certain events that can create a huge gap in your finances, when not properly planned for. These events include getting married. When you know that you plan to get married, start planning for that special day so that you can afford everything related to the ceremony without your finances taking a strain. The fact is, life is expensive. But it can be manageable if you plan ahead.

To help you get started, we have put together some important tips to consider in your planning.

Determine how to pay for your wedding

Many couples take out loans to finance their big day. Taking out a loan means that you will go into marriage with wedding debt, and you don’t want that. Properly budget for your wedding and honeymoon ahead. Draw up a wedding list and estimate how much each item will cost, this will help you figure out how much you will have to pay towards your wedding. Once you know how much it will cost, you can then start looking at how you plan to pay for it. You can take out a savings plan, open a savings account, or start lay-buying the items on your list ahead of time.

In your planning, make sure that you consider your guests. If you have a small budget, trim your guest list to fit into your needs.

Establish your financial goals

As much as you’re a couple, you’re also separate individuals with different backgrounds, right? So, your needs and wants might differ. In such a case, it will be in both your best interest to have a tough conversation about finances. Find out what responsibilities you each have towards your families. Talk through your expectations and ensure that your goals align, if not, meet each other halfway in terms of planning. Your partners’ goals may include buying a home, starting a family, paying off debt, saving for retirement, or traveling. Discussing these goals as a couple and choosing which ones to focus on will help you work together. Building a future takes planning, sacrifice, and commitment, so you should both be on the same page.

If you and your partner have different goals, you’ll need to prioritise what’s important. Consider hiring a financial planner to analyse your finances and help you put together a plan. One of the important priorities for any couple should be an emergency savings plan.

Do a financial inventory

Always be transparent where finances are concerned. Even if you decide to keep your money separate. Each partner should do a complete inventory of their income, debt, retirement accounts, bank accounts, and assets that they are bringing into the marriage. This can help you both understand what you’re getting into when you say I do.

Knowing each other’s finances can help you create a budget, tackle debt, and pursue your financial goals. It is also important to factor in the issue of Black Tax, especially if you are your family’s breadwinner. Your responsibilities towards your family don’t suddenly go away once you get married, so include this in your inventory and make sure that your partner is fully aware of it.

Decide how to split financial responsibilities

If you are both working, it’s always good to split financial responsibilities like bills, savings, and everyday purchases. If one spouse is the sole breadwinner, they will likely be responsible for the expenses. If you and your spouse earn roughly the same salary, you may split your expenses down the middle. Alternatively, you could contribute a proportional amount of money to the household based on your incomes.

“My husband takes care of the bond, maintenance, and school fees while I ensure that my family is fed. Doing this, allows us to save for emergencies. Back when I used to be a stay home wife, when we had an emergency we would take a loan but now that I work and help out, we can save for emergencies,” says Thandi Ntshangase who has been married for 25 years now.

It’s different strokes for different folks, right. So, tailor this according to you and your partner’s comfort level.

Should you open joint accounts?

Sharing bank accounts and credit cards is easier in many ways. You are both able to access money whenever you need to without the admin of having to move the money around. This also makes it easier to track spending and see if you can minimise it, should there be a need to.

However, joint accounts do have a downside, especially if one of you is drowning in debt. According to Policy Genius, it’s recommended to consolidate finances and assets as it helps spouses move forward as a team. It also helps avoid surprise assets, debts, and incomes when a spouse hasn’t been completely truthful.

Should you maintain separate accounts?

Having separate accounts allows a couple to individually maintain their financial independence and manage their own money. This can be a viable option if your partner has a different financial literacy to yours and if you both wish to keep a level of financial autonomy.

The downside to having a separate account is the admin of moving finances around. This is where the importance of splitting bills comes in

Create a budget

A budget is important for many reasons, one of which includes knowing what and who you are committing to. A well-defined budget is critical for success. If you and your partner live together, you may already have one. If you’re moving in together after you get married, you will need to establish one. Either way, work on creating and constantly revisiting as the years progresses.

In your budget, ensure include all of the necessary expenses such as bills, rent (or bond), savings, children’s education, etc. Always maintain open communication and transparency where finances are concerned, this will ensure that you budget knowing exactly how much you both have and also filtering other responsibilities in.

Plan to discuss your finances regularly. While talking about money isn’t always easy, it’s the best way to ensure that you continue to work together for common goals and the financial health of the marriage.

Discuss life insurance, funeral policies, and retirement annuity

These things may seem morbid but when you love your partner, you need to ensure that they remain comfortable even after you pass on. Discuss policies, take out life insurance for risk factors, funeral policy to make sure you get a decent funeral on your passing, and also consider retirement annuity. “I recommend a joint policy as it’s cheaper than each spouse having one. One benefit is that you can add a paid-up at death benefit so if you as the owner passed away, the remaining participants will still enjoy cover without having to pay premiums,” says Lyndall Adonis, a Metropolitan GetUp Financial Coach.

Life insurance is a crucial safety net for married couples. It protects spouses and children from financial disaster in the event of a death. Compare life insurance plans to find the policy that fits your needs.

A Guide On What To Do When Someone Dies At Home

The pandemic has put death and our mortality at the front of our minds. Even before COVID-19 hit, convalescing and dying at home was tragically becoming more common. Due to a lack of beds, hospitals tend to send terminally ill patients home to pass away there when there is nothing further they can do to care for them.

If you are caring for someone who is ill at home who then passes away or, sadly, an unexpected event occurs at home causing someone to pass away, this is a difficult and often shocking experience. Most people don’t know what to do or how to handle this situation.

Here’s a short list of important steps take to help you in the event of this traumatic experience:

How to determine if someone is really deceased?

Firstly, phone the emergency hotline, 10177, if the death was sudden or due to an accident. They will advise you on how to assess the individual. If you are caring for a terminal patient at home, you may want to invest in a blood pressure cuff so that you will know if the patient has a pulse just in case you cannot get telephonic assistance.

Who to call first?

You will need to call both a police representative as well as an ambulance to medically certify the person as deceased. Usually you call 10111, this service will dispatch both a police representative as well as an ambulance. Both of these emergency response services will prioritise “living” emergencies so be prepared to wait for a while.

Who to call next?

Once the police service and the ambulance representatives have certified the person deceased, they will provide you with the necessary paperwork to provide to an undertaker. You will now need to call an undertaker to remove the body of the deceased to a funeral parlour of your choice. If you are not sure of who to call, you can choose one of the bigger undertaker groups such as Avbob or Doves – they offer services nationwide and usually have a 24/7 call centre number to direct you to an undertaker near you. It is crucial to choose a reputable undertaker and, if repatriation of the deceased to a family territory is needed, confirm that the undertaker has these services or is linked to a company that will repatriate for them.

What should an undertaker assist you with?

The undertaker should assist you with the following:

Collection, transportation and storage of the deceased’s body
Repatriation, if required
Applying for and getting a death certificate (as well as multiple certified copies of ID documents and the death certificate if you need to claim against insurance policies)
Planning and quotations for a funeral service that meets your needs and cultural requirements
Arrangements and logistics for the funeral

While death is always hard to contemplate, it is essential to ensure that you have funeral cover for all family members that you are responsible for. This will make sure that all the services that you need will be paid for from the payout of the funeral policy. Unfortunately, undertaker and funeral costs can be expensive and these services expect to be paid up front. If you can’t pay the undertaker, they may refuse to collect or assist you with the deceased. However, most reputable undertakers will assist you in good faith if you can show them that you have funeral cover. They will usually even assist you with the claims process.

Ultimately death can arrive unexpectedly and beyond the emotional fallout there is the expensive financial aspect to deal with. By planning and choosing the right funeral cover solutions, you know that you will be able to breathe a little easier and focus on being there for your loved ones during a tough time

Transition Announcement: GetUp Funeral Plans will transition to Metropolitan Funeral Plan

In a strategic move to streamline our services and enhance customer experience, Metropolitan has integrated Metropolitan GetUp into its operations. This integration marks a significant milestone in our commitment to providing comprehensive and seamless financial solutions to our valued customers.

As part of this transition, we are thrilled to announce that all active GetUp Funeral Plan policies will now transition to Metropolitan’s Funeral Plan. Rest assured, the policies, which were previously under Metropolitan GetUp and underwritten by MML, will maintain the same level of reliability and security under Metropolitan.

The transition process is scheduled to start from 1 May 2024, ensuring a smooth shift for all policyholders with no disruption to their coverage. We understand the importance of continuity and are dedicated to upholding our promise of delivering exceptional service to you.

For more detailed information about the Metropolitan Funeral Plan product and its associated benefits, please visit our website.

We understand that transitions may raise questions, and our dedicated team is here to support you every step of the way. Should you have any immediate inquiries or concerns, you can reach us via email at info@metropolitan.co.za or by calling us at 0860 724 724. Our lines are open during business hours from 9 am to 5 pm, Monday to Friday, excluding public holidays.

We sincerely appreciate your continued trust in Metropolitan, and we remain steadfast in our commitment to serving you with excellence.

Warm regards,

The Metropolitan Team

Is your reason for borrowing money a good one?

According to recent studies, the top reason why people apply for a personal loan is for debt relief; either to get out of debt or for debt restructuring through debt consolidation.

What is debt consolidation?

Debt consolidation means that you combine your debts, such as a study loan, car loans, credit card debt, or other small loans into one single personal debt consolidation loan which typically carries a fixed interest rate and has one much lower monthly repayment over a fixed term.

For some people, the consolidated payment ends up being less than what they were paying while servicing several different loans. Others benefit from the fact that they can stretch their repayments over a longer time and pay a lower monthly instalment. Debt consolidation is usually a good idea; just make sure that your debt doesn’t end up being very expensive because you are paying it off over a longer period. Debt consolidation is of course not the only reason why people take out personal loans.

Reasons why people apply for a small loan that may require emergency cash:

Home improvement loans:
A personal loan is a great option if you don’t have money on your home loan, or if you don’t want to access your home loan as a credit vehicle when you are looking to renovate, refurbish, decorate, furnish, improve or extend your house. You can usually borrow money and pay off the small personal loan more quickly while adding value to your home at the same time.
Relocation or moving house loans:
A major long-distance move can be expensive enough to warrant a personal loan. It makes particularly good sense if you move to take up a new job with a higher salary that will allow you to repay the loan quickly and easily.
Wedding loans:
Getting married can be quite an expensive exercise, whether you are having to layout out cash for the wedding, planning for a honeymoon, or moving into your new home together as a married couple. Many couples are choosing a personal loan to help cover their wedding expenses. This gives them cash in hand with which to negotiate the best deals with venues, suppliers, and honeymoons.
Family emergency loans:
Many survey respondents have said that if they suddenly find themselves in a family emergency situation; such as having to bury a loved one or having cover medical gaps and shortfalls, they would be unable to access funds quickly enough to provide for these emergencies.Funerals can be extremely costly and if the deceased person had not made the necessary provision. This is where a personal loan can provide a family with much-needed emergency relief cash.
Medical gap cover and unforeseen medical expenses:
Most medical aids don’t always cover all hospital or medical expenses and there are times when one might have to fund a shortfall for a cosmetic or medical procedure yourself, which is not usually something that is provided for in a personal budget.Access to a personal loan can alleviate much frustration by helping you to deal with a last-minute or unexpected medical health cash predicament.
Car loans:
Although most people usually choose a secured loan to buy assets, such as a car, it might not be an option for you. For example, when your credit history is not long enough to generate a credit score, you can use a personal loan to buy the wheels you need.Even if you are able to secure a car loan, you might have to come up with a card deposit, which is often where most people get stuck and where a small personal loan could be the solution to helping you secure your new vehicle.Others often find themselves in a situation where there is a shortfall with their car settlement when they are looking to either upgrade, downgrade, trade, or sell their car; and this is where a personal loan could be the ideal solution.
Study and educational loans:
A student loan can be expensive and is often an exorbitant expense for any family. Whether further your education with a short course or needing some cash to fund your studies, a personal loan could assist in improving your skills to boost your career further.
Small business or start-up loans:
Many aspiring entrepreneurs turn to a personal loan to assist them with a small business start-up idea that doesn’t require massive investment funding or capital.In this instance, most people continue to work in their full-time jobs as they need to be earning an income from a permanent position in order to qualify for the loan; and once their business idea takes off and the loan is settled, they then pursue further more aggressive business plans to grow their new small business.
Travel loans:
They say that change is as good as a holiday, however, there truly is no substitute for a real dream vacation. Many people dream of going on their once-in-a-lifetime trip, or even just a short vacation to re-energize their soul, but don’t have quite enough money to travel.Provided that you are not already in any major debt, it could be a good idea to consider borrowing money from a reputable and responsible personal loan provider to fund your ideal holiday. It wouldn’t be smart however to borrow money every time you want to go away for the weekend, but your honeymoon; or your once-in-a-lifetime dream holiday; it’s may just be what the doctor ordered.
Clear your credit card debt:
Taking out a personal loan, or applying for a debt consolidation loan can provide many advantages such as a lower interest rate, which can reduce the total monthly repayment amount for a finite term. This could be a good reason to borrow money, particularly if your expenses are exceeding your income and you find you frequently have more month left at the end of your money. Beware not to go back to using your credit card through while you are still paying off your personal loan; as this would put you into a worse situation than you were before.

As you can see, some reasons for borrowing money are certainly better than others; however, the bottom line is that you should never borrow money or take out a personal loan when it is not absolutely necessary or when you cannot afford it. If you want something rather than need it, the reason is probably not good enough. Always lend responsibly, and be sure to be vigilant in your debt management and personal budget to ensure long-term financial wellness.

Should you wish to discuss the various debt management and personal loan options available to you, who will guide you through the process of applying for a personal loan responsibly.