The Problem With Money

The biggest problem surrounding money is the lack of knowledge on how to spend and save it!

This is a topic that lies very close to home as it is such valuable knowledge that can literally save you years of heartache, stress and grief.

Schools force learners to take a subject called Life Orientation for their entire school career and insist on teaching pupils skills they’ll never use. Why are we not taking the valuable time we are forcing students to sit down and listen, to teach actual life skills!

Why aren’t we teaching tax in schools? Why aren’t we teaching budgeting, wealth creation and smart financial decision making in schools? We live in a poverty stricken first world country and no one is standing up and helping to grow a new, educated, money savvy generation.

Wealth is a success vehicle that can and should be created as soon as possible. There is no such thing as “later” or “I’m too young”. Parents don’t talk to their children about money and because of that kids grow up to be adults who don’t know what a good salary is, don’t know how to prepare for inflation and don’t have enough to ever retire. The uneducated poverty stricken cycle thus continues.

Let’s make a change! Let’s talk about money, because if you don’t, the next generation won’t either.

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!

Why Freelancers NEED risk cover

There is always a debate on the financial needs of freelancers in South Africa. Do you need insurance cover? Do you need medical aid? The most difficult question though is, “Can I afford it?”

Freelancers are often met with irregular incomes as jobs fluctuate according to the job market at the time. Due to this insecurity of income you tend to cut out any recurring expenses, more often than not those that help secure your health, future and finances.

The more important question would be, “Can I afford not to have insurance?” As a freelancer you don’t have income security so wouldn’t it be wise to protect the income that you do have? On top of this dilemma you face another problem staring straight at you – you are your own and only means of income. What does this mean?

This means that you are your own biggest asset. You are crucial to your own income and if you, for whatever reason, cannot pitch up for work, you have no income. Unlike most conventional jobs, no one else can do your job for you because this would just mean that you have been replaced. This also means that you cannot afford to get sick or take any “off” days.

Let’s say you get in an accident, or become unable to work due to illness or disability, where would your income come from if you are your only means of income and you are unable to work?

That is why it is imperative for freelancers to take out self-insurance as the former is simply too risky. Can you afford to risk it all? To let fate decide the future of your family or home?

Any business would surely take out the highest insurance on their biggest asset to secure their jobs, employees and their families. If you are a walking, talking business in your own right, wouldn’t you do the same?

With a disability and income protector policy in place you can protect your income in times where you cannot predict your health. Don’t look at life insurance as a sales scheme, but rather as a solution to an ever increasing list of financial demands weighing on your shoulders.

What is Life Insurance?

So there’s this term that keeps popping up over the radio, on television adverts and you’re not quite sure exactly what it entails – Life Insurance.

Life Insurance is on the buzz at the moment and insurance companies are promoting it left, right and center, but what does it mean? Is it something you should be looking at? Is it useful or valuable?

A couple of years back if you asked me about Life Insurance I would have started laughing, seriously. You insure your home and your car against theft and damage, what’s the point in insuring yourself? When you’re gone, you’re gone right? Wrong.

See I was just as naive as the average Joe Soap out there. What I didn’t realise was that if something were to happen to me I might be gone, but my debt surely wouldn’t disappear into thin air. How do you know that all of your personal debt has been taken care of so that your loved ones don’t have to suffer through your untimely death as well as facing losing everything they’ve ever owned? Now you’re starting to get it.

Life Insurance isn’t simply another product insurers try to rub off on you, but an invaluable tool to ensure that your unfinished business is taken care of the day you die sooner that expected.

Simply put… Most of us have loans, credit cards, bonds and vehicles that pretty much belong to the bank and you surely don’t want to put your spouse or children in a position where they inherit your debt before being able to start their own lives. It’s a safety net. A reassurer that everything will be taken care of – as the provider of a family, this is crucial.

Life Insurance isn’t just for personal affairs either, but can greatly impact matters of a business if the deceased was a key person in the business. Surely neither partner would want to suffer shutting down the business’s doors and suffer financially because of either’s unfortunate death.

Now you know not break out in a cold sweat when you hear the term Life Insurance. You can be rest assured that it is a security blanket that all heads of family need to look into. Make the right decision, plan ahead and plan smart.

 

Welcome

Welcome to the Smart Planner blog! Here we will discuss financial topics in terms that are easily understandable and relatable in order for you to take control of your finances, make smart financial decisions and live a debt free life.

Not everyone wants to make an appointment to see a Financial Advisor immediately. This could be very intimidating and you don’t want to make false promises of taking their advice when actually all you want is, well, advice.

Here you will have the opportunity to educate yourself, talk amongst others and empower yourself to take the next step when the time is right.

Please feel free to ask as many questions and open as many discussions as you want, it’s all about community on Smart Planner.

So be a Smart Planner, and start talking about what no one is talking about 😉