The Grudge Purchase

Let’s face it… no one WANTS to buy insurance. If the phone rings and you hear it’s about insurance you usually think of the fastest way to get rid of them. It’s a schlep, you don’t feel like dealing with it and worst of all – it costs money!

We innately don’t want to spend money on things we think we don’t need, or will perhaps never see a return on and that’s what makes it so difficult to invest in.

Make no mistake, it IS an investment. You are investing in yourself to make sure that you will be financially stable no matter what and that your family will not be burdened by your liabilities.

At the end of the day… it’s all in the MIND. You are the one who has to realize that it’s not an endless money pit but that you are buying assurance instead of insurance. Assuring that you have peace of mind when life comes knocking on your door with bad news – and it does happen!

And don’t wait on it either, all insurance companies has a pre-existing condition exclusion. In other words, once you’ve had a condition, you will NEVER be insured for that particular issue again, which is usually when you need it most. So don’t be foolish, follow through on your “grudge purchase”.

You have been warned!

How To Pay Off Debt

Debt is like a snowball effect… You think you have control over it and at first you do, until you don’t. Your debt starts to earn interest and then even your interest has interest and before you know it you can’t seem to get rid of it.

So how do you beat the vicious cycle??

Always start with your smallest debt! It’s the easiest one to get rid of and will give you a sense of accomplishment once you’ve settled it.

Let’s say you’re putting away R350 a month toward a clothing account every month. Instead of just paying the minimum, add another R150 and pay off R500 per month. Keep doing this until you’ve paid off the account and don’t use that account again.

Now you would have an additional R500 per month and 1 paid off account. Instead of saying “I have more money each month” and spending it all, use that R500 and contribute the entire amount to another account you’re trying to pay off. You’re used to not having that R500 anyway, so use it to better your financial situation.

Now instead of paying, say, R1000 a month toward a credit card, pay R1500 per month until that’s also paid up.

This way, your system of getting rid of debt will snowball and free up a lot more cash toward the end of your goal – you’ll also get rid of those pesky interest rates a lot quicker, saving you even more money.

And that’s the basic principle! Start applying it to your life TODAY, you won’t regret it. For more info and a more detailed explanation, please contact us via the blog to speak to an accredited financial adviser.