Financial tips for the silly season.
Yvonne • December 2, 2024
The "silly season" is a time of year when people tend to spend more money and it can be a good time to review your finances and make plans to save. Here are some tips for managing your finances during the silly season:
- Budget: Create a realistic budget for holiday spending that includes gifts, travel, food, and decorations.
- Review subscriptions: Check your recurring subscriptions and cancel any you no longer use.
- Review insurance: Compare insurance renewals quotes to ensure you get the best deal.
- Review medical aid: Check your medical aid plan to ensure it still meets your needs.
- Review investments: Consult your financial advisor to make sure your investments align with your goals and risk tolerance.
- Use your bonus wisely: If you receive a year-end bonus, consider paying off debt or adding to your emergency fund.
- Plan for January: Start preparing for school expenses.
- Plan for tax season: Gather documents like medical expense receipts and proof of retirement contributions.
- Check your budget after the holidays: Assess whether you stuck to your budget and make plans to pay back any overspending.
- Consider free or inexpensive outings: Instead of an expensive venue, consider a picnic at the park or beach, or a hike.
- Buy gifts for fewer people: Instead of buying a gift for every person, choose one person to buy a gift for.
Confession time: When I had decided on the topic for this month, I took to AI and within less than 30 seconds, the above content popped out! I reviewed the content and this was very well put, so all credit to AI!
I wish you all a Blessed Christmas, full of joy, love, and peace, and remember the reason for the season. My tip (not AI): Don’t get caught of in the busyness and silliness of the season, rather take time out to become quiet and reflect on what is important in your life. May you have a prosperous 2025.
Should you withdraw your Pension and pay off your home? It's perfectly normal to ask whether you should use your pension to pay off your home when leaving an employer. This decision involves weighing the tax on the withdrawal, the interest saved on your bond, the future growth of your pension fund, and the contributions needed to catch up. Example: Anne is 40 years old with a pension fund worth R3,500,000. She bought a home 10 years ago for R3,000,000 and bonded it over 20 years at an 11% interest rate, with monthly repayments of R30,965. After 10 years, her outstanding bond is R2,258,225. If she withdraws her pension, she’ll receive R2,408,300 after tax—enough to settle the bond and have some cash left over. By paying off the bond early: She saves R1,467,919 in interest. She frees up R30,965 in monthly cash flow. However, if she keeps the money invested, her pension could grow to R37,921,470 by age 65 (assuming 10% annual growth). To match this value after using her pension to pay off the bond, she’d need to invest R28,580 per month for the next 25 years. That’s R2,385 less than her current bond repayment, so she does save monthly—but only for the next 10 years. After that, she’s committed to investing R28,580/month for 25 years to break even. Not everyone’s calculation is the same and there are endless amounts of permutations to this calculation, but it’s important to note that you need to consider all of these factors when making these crucial decisions.
Ons ontleed watter gewoontes meewerk om ’n gelukkige aftrede te verseker. Hierdie maand bespreek ons hoe om gesond te lewe tydens aftrede. Mediese kostes verhoog hoe ouer ons word. Die koste van ’n mediese fonds verhoog jaarliks met meer as die inflasiekoers en mediese uitgawes sal in die toekoms ’n al groter persentasie van ons persoonlike uitgawes vereis. Dit is daarom belangrik om so gesond as moontlik te leef. Hier is verskillende stappe wat gevolg kan word om gesond oud te word: Eet gesond. Moenie oorgewig wees nie. Word sterker deur oefeninge te doen wat jou spiermassa behou. Doen jaarliks mediese ondersoeke om te bepaal hoe gesond jy is. Beskerm jou gewrigte en beenstruktuur deur krag- en rek-oefeninge te doen. Verminder rook en alkohol-inname om jou kanse van kanker en ander siektes te beperk. Indien jy ’n familie-geskiedenis het van siektes soos kanker en hart-toestande. moet jy vir gereelde mediese toetse gaan om vroegtydig te bepaal of jy nie die siektes onder lede het nie. Verbeter jou liggaamsbalans deur oefeninge te doen soos om op een been te staan terwyl jy jou tande borsel. Hierdeur verseker jy dat jy nie gereeld jou liggaamsbalans verloor en val nie. Studies het bewys dat dit help om jou fisieke en geestelike gesondheid te behou deur sewe tot agt ure per nag te slaap. Hou jou brein-funksie of kognitiewe vermoë in ’n goeie toestand deur brein-oefeninge te doen, soos om nuwe stokperdjies te beoefen of memoriseringsoefeninge te doen. Volg ’n aktiewe sosiale lewe. Studies het getoon dat mense met ’n aktiewe sosiale lewe minder geheue-probleme ontwikkel. Hulle het ’n verminderde kans om eensaam te voel en depressief te word (Health Connection, Cooper, University Health Care, 9 September 2024).
