New year, New opportunities, Same principles.

No doubt 2020 was a challenging year for most of us. A year where we had to constantly adapt and change our way of thinking and doing.

However we’ve seen most of our clients being able to navigate through these difficult times by paying attention and adhering to certain financial principles. They’ve adapted their lifestyles to look after themselves and letting their money work for them over the long term.

Below are 6 principles, based on the book ‘Total Money Makeover by Dave Ramsey.   They’re simple to understand, but will require discipline to implement: 

If you rather watch a quick 4 minute video, click HERE.

1)Start an emergency fund : The Lockdown showed us how important it is to have at least 3 month’s running expenses available to assist you through the difficult times.
How- Flexible Investment

2)Become debt-free: Start by listing your various debt accounts. Everything but your home.
How- Start paying them off 1 by 1, by starting with the smallest to keep you motivated.

3)Extend your emergency fund:
Now that debt’s been paid off, extend your savings to have money readily available for an emergency, opportunity, deposit on a home or to travel.
How- Flexible, liquid Investment account.

4)Save for retirement: Not only will you be taking care of your future self, you also take advantage to minimize the TAX you pay.
How- An RA or Pension fund

5)Invest for the longer-term: Whether it is for your child’s school fees, your dream home or starting a future business, having money available will put the power in your hands.
How- Tax-free saving account/endowment

6) Pay off your Home loan.
This will provide a great sense of peace and accomplishment.

Bonus) Build large amounts of Wealth:
Now you can start building a portfolio that can work for you, when you don’t want to anymore. Invest Offshore to diversify and grow your money.
How- Direct/ Indirect offshore

It’s simple, but not easy.

Good luck.

Geo Botha B.Com Honours, CFP ®

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