BLESS YOURSELF FOR A CHANGE, AND BELIEVE THAT 2020 WILL BRING HEALING, TRANSFORMATION, BLESSINGS AND SUCCESS.

We often focus on things that go wrong, in the economy, political arena and in our external environment. In the process, we grant ourselves no time for self-education or development. This leads to a mad chase after attractive promises and sales gimmicks, because we don’t have the time to do proper homework on the products we’re being offered. Once bitten, twice shy. Precious opportunities pass you by.

This being Ecsponent’s last newsletter for the year, we’ve decided to give you some advice for the New Year – advice that is not only based on the experiences gathered from the University of Life, but also from burnt investors, cash-poor retirees and nifty financial analysis tools.

Should you decide to take us up on any of the suggestions, and share your financial resolutions with us, we will assist you in sticking to them!

OUR TOP 12 FINANCIAL NEW YEAR’S RESOLUTION TIPS

  1. Take responsibility for your financial position and ensure that you KNOW what you spend your hard-earned money on.

2. If you have not started saving yet, now is the time to start.

3. Strive to get paid what you are worth, and spend less than you earn.

4. Do not get caught up in sales promotions, make clever and informed financial decisions, sticking to your budget.

5. Visit your financial advisor and discuss your financial goals; in other words, get a second opinion!

6. Do not waste money on things you do not need.

7. Do not waste your time worrying.

8. Invest in yourself and your financial knowledge.

9. Keep on growing your net worth by paying off your debts.

10. Develop more skills to expand your income.

11. Keep track of all your expenses and income.

12. Investigate how you can benefit from tax deductions.

These tips may seem easy to follow, yet the majority of South Africans cannot afford to retire or never manage to save. 2020 can be your year to transform your outlook towards your health and wealth, through Wealth Creation and Wealth Protection.

The word existential captures a sense of grappling with survival – literally and figuratively – of our planet, our loved ones, our way of life – and that includes our finances. But existential also inspires us to ask big questions about who we are and what our purpose is in the face of our challenges – it reminds us that we can make choices about our lives and how we answer those questions

HERE’S A MONEY MANAGEMENT DIARY TO HELP YOU KEEP ON TOP OF IMPORTANT TASKS:

JANUARY

Know your worth

Determine your real financial position by writing down your assets as well as your liabilities – this must include ALL debt and responsibilities, so that you KNOW what your REAL expenses are each year.

FEBRUARY

Review your tax position

Look at possible tax deductions from which you can benefit (this is related to deductions for retirement annuities, tax credits on medical aid contributions and more).

MARCH

Expand your income

Don’t forget there is always the possibility of turning a hobby or your ability as an entrepreneur, into cash!

APRIL

Spend less and stick to your budget

Avoid lifestyle inflation, especially over long weekends – like Easter – stick to your budget and think of new ways to entertain the children, other than spending money on gifts and vacations. Also, don’t get caught in the ‘trap’ of buying Easter and other festive season sale gifts which result in unnecessary debt and overdrafts. Develop good habits by paying off debt and do not spend on stuff that will become redundant.

MAY

Start saving

Have money automatically directed from your salary, to a savings account that isn’t tied to your cheque account – what you do not see, you cannot spend.

JUNE

Save and invest

The secret is to save and invest and not save and spend. Saving can be done by cutting down on luxuries or spending less, while investing creates wealth and real returns, and is done with a specific goal in mind.

JULY

Receive real returns

It is important to balance asset classes in which you’ve invested to buffer against market fluctuation. Take some time and talk to your advisor to understand the risk in your portfolio, learn about compound interest and setting realistic targets.

AUGUST

Stay on track

Monitor your investments regularly. Remember: even if you have a financial setback, it is how you respond to it which determines your ultimate success. You only fail once you stop trying.

SEPTEMBER

Save and invest

The secret is to save and invest and not save and spend. Saving can be done by cutting down on luxuries or spending less, while investing creates wealth and real returns, and is done with a specific goal in mind.

OCTOBER

Set defined long- and short-term goals

When you know exactly what you’re saving for, it motivates you to stick to your goals and work even harder.

NOVEMBER

Risk insurance will protect you from unforeseen expenses

Death or disability can cause huge financial distress for you and your family, and risk cover is an inexpensive way to ensure your family is cared for, no matter what.

DECEMBER

Money will not define you

A financial guru once said that one should not link money with success, it will come and go. One should focus on saving to create wealth. Keeping up with the Joneses only makes you that – the Joneses.

The Ecsponent Financial Services team would like to wish you a very blessed Christmas and a happy and safe festive season.

May 2020 be your year of abundance – an abundant life is one where you can create, explore and experience your desires consistently.