- Farming, Red Meat Portfolio
Money is one of the most important aspects in every individual and household's life - that's just the way it is.
Therefore, just like with your health, it's important to undergo routine check-ups to determine your financial well-being.
If you neglect to do this, financial insecurity is surely your future - especially in a time when the economy itself is struggling.
The secret to succeeding is easier than you might think : Spend less than you earn and you've already taken the first step toward prosperity. Spend more than your income and you're well on your way to bankruptcy.
The purpose of a budget is precisely to manage this situation, and you really don't need a financial degree for it. Just keep track of your income and expenses and budget accordingly.
Your budget will quickly show when you're moving in the wrong direction, and then you can set some ground rules for yourself. Just do it in time!
Financial planning certainly doesn't end with a budget.
If you're the breadwinner, make sure your dependents are financially independent in case of your untimely death.
Then ask yourself if you have income protection in place in the event of temporary and/or permanent disability. If you cannot work , you will earn no income.
If something were to happen to you tomorrow, do you know if there is sufficient cash in your estate to complete the administration process sensibly? Payment of debts, estate taxes, and capital gains taxes to name just a few. Liquidity prevents the executor from having to sell assets forcibly.
Young people, especially, should listen attentively. Don't ever think that something bad won’t happen to you.
Then I must ask if your will is up to date? Avoid being caught with your pants down! It's a living document that must be continually adjusted according to your circumstances.
Another important risk aspect is medical expenses, and here I recommend at least a hospital plan if your funds are limited. Further elements include retirement, investment, and business planning (if you own a business).
And, remember, everything I've addressed here today can easily be addressed with existing risk products.
And what if your income exceeds your expenses? Save! The sooner the better. Remember, accumulated interest is your very best friend.
"Moenie jou geldsake verwaarloos nie" - PWM
Geld is een van die belangrikste aspekte in elke individu en huisgesin se lewe – dit is nou maar wors.
Daarom, nét soos met jou gesondheid, is dit belangrik om roetine-ondersoeke te laat doen om jou finansiële welstand te bepaal.
Indien jy nalaat om dit te doen, is die finansiële “waakeenheid” verseker jou voorland – veral in ’n tyd wanneer die ekonomie self met ’n paar skete worstel.
Die formule is eintlik nie ’n moeilike een nie: Spandeer minder as wat jy verdien en jy het reeds die eerste stap na welvaart geneem. Gee meer as jou inkomste uit en jy is sterk op pad bankrotskap toe.
Die doel van ’n begroting is juis om hierdie situasie te kan bestuur en daarvoor het mens werklik nie ’n finansiële graad nodig nie. Hou net rekord van jou inkomstes en uitgawes en begroot dan daarvolgens.
Die begroting sal vinnig wys wanneer jy in die verkeerde rigting begin beweeg en dan kan jy daarvolgens maatreëls instel. Doen dit net betyds!
Finansiële beplanning eindig natuurlik nie by ’n begroting nie. Indien jy die broodwinner is, maak seker jou afhanklikes is finansieel onafhanklik by jou ontydige dood.
Dan vra jouself of jy ’n inkomstebeskermer in plek het in die geval van tydelike en/of permanente ongeskiktheid.
Indien jy môre iets sou oorkom, weet jy of daar voldoende kontant in jou boedel is om die beredderingsproses sinvol af te handel? Betaling van skuld, boedelbelasting en kapitaalwinsbelasting om net ‘n paar te noem. Likiditeit verhoed dat die eksekuteur noodgedwonge bates moet verkoop. Jongmense, veral, moet aandagtig luister. Moenie dink niks kan jou oorkom nie.
Dan moet ek vra of jou testament op datum is? Vermy dat jy met jou broek op jou knieë gevang word! Dit is ’n lewende dokument wat voortdurend volgens jou omstandighede aangepas moet word.
Nog ’n belangrike risiko-aspek is mediese onkostes en hier beveel ek ten minste ’n hospitaalplan aan indien jou fondse beperk is. Verdere elemente sluit aftree-, beleggings- en besigheidsbeplanning (indien jy ’n onderneming besit) in.
En, onthou, als wat ek vandag hier aangespreek het kan gemaklik met bestaande risiko-produkte aangespreek word.
En wat as jou inkomstes jou uitgawes oorskry? Spaar! Hoe vroeër hoe beter. Onthou, saamgestelde rente is jou allerbeste vriend.
