Category Archives: Blog

Valentine’s Gift Ideas

The best gifts are the one’s that show deep consideration for the recipient. That means that Valentine’s Day is not just about flowers, chocolate, biltong and a cute travel mug… it’s about knowing your partner and buying them something that they would truly love!

So here are some pointers for this Valentine’s day for expressing your appreciation!

EXPERIENCE OVER EXPENSE

The best gifts are memories, not expensive trinkets. If you plan it right, your entire Valentine’s treat could revolve around a unique, personal and breath-taking experience! You could plan to have the element of spontaneity, showing attention and forethought whilst keeping it romantic and exciting.

If you go this route – maybe you’d like to arrange an instant film camera where you can take polaroid-type photos that capture and print the moment without needing your phone or digital camera to distract you. Instax offers a great, novel option for this – you could buy one as part of the experience, or borrow one from a friend and simply purchase a 10-pack of film for the date.

LESS OVER MORE
Try not to go over the top – remember this is Valentine’s day, not a 50th birthday party. Whilst you might want to simply shower your partner with lavish gifts, when you buy too much, the gifts overshadow the sentiment… and Valentine’s Day is all about the sentiment!

PERSONAL OVER PRICEY
When a gift has personal meaning, it becomes a gift without a price tag. When your partner opens the gift – gets the reference and looks at you with that priceless look of ‘You remembered!’… don’t tell them how much it cost or what a good deal you got!

However you are planning to celebrate this Valentine’s day, have fun!

The Cost of Living in South Africa

Every year we see an internal migration of individuals and families between the major cities of South Africa – mostly for work reasons. These decisions are sometimes thrust upon us due to simple economics, but other times we are able to explore the opportunities and the pros-and-cons of living in a new city.

But how exactly can you make informed decisions without relying mostly on hearsay or the perceptions of friends and colleagues.

Which cities are on the higher scales of cost of living (relative to income) and which are lower down?

It may be safe to speculate that many people would rate Cape Town or Johannesburg as the most expensive place to live in South Africa, and they wouldn’t be far wrong – but according to the latest surveys by Expatistan.com, Benoni has the highest cost of living, with Cape Town ranking 4th! (at the time of publishing this post)

Check this link out for the full details:
https://www.expatistan.com/cost-of-living/country/south-africa

Once you’ve clicked through to the each city, you can view a comprehensive presentation of living expenses ranging from a lunchtime meal in the business district, through to data costs and the hourly rate for cleaning services. Being able to consider the rental of small housing units, utilities and transportation costs are extremely helpful – even the cost of a TV and microwave are there!

You can also find comparative costings for basic goods like milk, eggs and chicken as well as clothing options and personal care products.

Remember, these expenses need to be weighed against your earning potential whilst living there – so every presentation should be in context of your unique situation. If you need advice or guidance, then send me a text or email and let’s make a plan to go through your options, together!

Medical Aid vs Dread Disease Cover

If you are paying for both Medical Cover and Dread Disease Cover… you may ask yourself why?

The cost of living keeps rising and in the year ahead we can expect more increases that will put pressure on our hard-earned and diligently saved resources. This doesn’t have to be bad news – it can encourage us to improve and tailor our financial planning to meet the changes and test our flexibility! That means going back to your costs and determining what is necessary and what is not.

When it comes to your financial planning portfolio – you might see that you have Medical Aid and you have Dread Disease cover (also known as critical illness insurance) and feel like having the two is an over-spend.

The reality is: it’s not. Because they are not the same type of product.

In short – you can loosely view it like this: medical plans cover the direct medical costs of your illness (hospital, doctors and
treatments) whilst dread disease/severe illness cover assists with everything outside of the traditional medical sphere (extra
medications that aren’t covered, extra specialist visits, alternate dietary needs, medical equipment, car modifications to cars, time off work etc).

In short – they are complementary products.

Another quick point to consider is that the younger you are when you take on cover like this, the lower your premiums are. Age of commencement and time covered play a role when your premiums are calculated. General practice advises to start with a small amount of cover and build it up with time, this way it allows you to work towards the levels of cover you would prefer. But everyone is unique, so it’s best for us to chat about it first!

Lessons Learnt from Investing in 2016

Having recently read a report from the CEO of PSG Asset Management, Anet Ahern, here are a few key pointers that our top minds in the investment sector will be carrying with them as we start 2017.

1. The best investment decisions aren’t always the most comfortable

During the first two weeks of 2016, a few of the top investment vehicles were down between 8% and 10% – the worst start to a year ever. All three indices would eventually add to their losses after a modest rebound, hitting their lows for the year in mid-February. The US market then staged the biggest quarterly reversal since 1933… from these lows!

Here in SA, our All Share index had a similar start, and rose by 16% in just four months to reach its high for the year in June. But that’s only part of the story…

It was during those panic-stricken weeks that shares such as Imperial, Glencore, Anglos and FirstRand were on sale at levels which
subsequently provided returns of between 30% and 300%. What was needed to make the right decision to invest in these shares at that point?

  • A calm, unemotional, measured approach.
  • Deep knowledge of the companies in question.
  • A solid assessment of their long term value.
  • Cash to invest, whether in a separate income portfolio or as part of the asset allocation of a multi asset or flexible fund.

2. Shares in good companies don’t need a good economy to show excellent returns

It would be fair to say that economic conditions have not been ideal for the likes of Imperial. Yet, an investment in this company at the low in January 2016 has produced a return of around 70% to the end of November 2016. This is because the market is often short-term oriented and frequently extrapolates current events and conditions into the future, creating extreme under- or overvaluation.

In other words, investors often fail to take a long-term view, and they overreact to short-term pressures. This creates opportunities, as is evident with Imperial.

3. Our institutions are holding up so far

By the skin of our teeth, some will say. But the fact is that the large South African institutions which served to help us retain credibility in the eyes of the world mostly worked for us in SA when it really counted.

We had a peaceful and fair election and our finance minister managed to hang on to his independence.

The Reserve Bank delivered on their inflation targeting mandate. While there are many instances of poor delivery and corruption, we learnt that our key institutions stood the test of 2016, which was no mean feat.

4. All countries have their issues, and major events will happen

Italy’s referendum led to the resignation of their prime minister. Brits voted in favour of leaving the EU, and Trump amused, horrified and surprised the world. We saw a failed military coup in Turkey. Oil hit a 12-year low, and gold had its best quarter in 30 years. Japanese bonds traded at a negative interest rate for the first time ever while Apple sales fell for the first time in almost 13 years. While investors around the world try to get their mind around these as they happen, we try to focus on seeing the bigger picture and taking a longer-term perspective, while doing most of the work from the bottom-up.

As always, hindsight can serve to make us forget how hard it was at the time to stay calm and make the right decision.

This is only possible if you have a solid framework to start with, be it around the way you research and assess shares, or the way your long-term investment strategy is crafted.

Slow Down. Appreciate.

If you’re anything like me, you may find that after you’ve had a holiday… you feel like you need a holiday! Our pace of life is currently so fast that even when we’re on holiday, or trying to take things a little slower, we don’t actually get to relax or rest as much as we would like.

As a result, we find ourselves making decisions and choosing to speed life up so that we can simply have ‘more time’. But speeding up our lives just seems to make room for more things to soak up our limited time and energy.

Here are two things that I am going to be working on:

SLOW DOWN

Deliberately tell yourself, repeatedly through the day “I am not in a rush”. Sure – you may actually be rushing somewhere… but let your mind relax and regain control, even if you are physically rushing around.

Not feeling rushed will place you in a mental place from where you will be able to consider more choices and ultimately; make better decisions,

APPRECIATE

When you are purposeful about slowing down the pace of your thoughts and your approach, you will find the space to appreciate what surrounds you. From your relationships to your possessions – you may even find yourself moving from a sense of feeling like you don’t have enough to a confidence that you already have all that you need and that anything else new is a bonus!

If you have hit the ground running, and are already feeling like you may lose your balance, try to restore that balance by slowing down and appreciating.

If you want to slow down with a chilled cup of tea or coffee – just drop me an email and let’s catch up!

New Year Spending Tips

If you want to change the way you’re doing something, if you want to improve or adjust or if you simply want to bring about a new direction – changing the way you think about something is the first step!

Many of us begin our
new-year-financials with a hope to saving more money – and as the year progresses, we find that we haven’t achieved this goal as well as we would have liked. Whilst there are many factors that influence our saving – one key area is how we spend our money… because that determines how much we have available to save!

So let’s begin this year, not with ideas on how to SAVE money, but focussing on wiser ways of SPENDING our money!

Understand your monthly instalments

Don’t assume that your debit orders will remain the same. Most policies increase in January – especially Medical Plans. Make sure you have enough money in your account before the debits run so that you can avoid paying penalties on late fees, and protect yourself from overspending.

If you need to, changing the day that the debit orders run might help you manage money at the end or beginning of the month.

Debit not credit

Make a habit of using your debit card instead of your credit card for everyday purchases. That way you can make sure you don’t overextend your credit this festive season. The simple rule should be: if you don’t have the cash available, you can’t have the item.

Keep an eye on sales

The first few weeks of the year are often the absolute best time to get huge savings! This way you can spend considerably less and still fill your trolley.

Most stores offer sales from groceries to clothing to gift ideas. If you see gift options that will work for birthday presents – grab them now when they’re on special and save yourself spending double later in the year.

Remember, miserly spending makes for wiser saving.

Rest. Relax. It’s all in the mind.

Experts say that you need at least 14 days of leave from work in order to begin to properly relax. But often that is a luxury few of us get to enjoy. I’m not referring to leave where we still have access to our emails and check them once a day or have a phone call or two from the office here and there.

I mean a complete break, with zero work contact.

This means that many of us need to find ways to relax ‘faster’, and hope that we can rest in the time that we have off. You don’t have to pay for a holiday at the coast, or go to luxury spas.

You can focus on getting your mind into a restful, relaxed space so that you can recharge.

READ A NEW BOOK Our digital environments lead us to experiencing most of our reading on a backlit screen. This is not restful, and is not relaxing. If you want to read for leisure, a paper book, that has the smell and feel of your old school library, is a sure way to start resetting your emotional, cognitive and spiritual center.

PAINT/GARDEN/BUILD Creating something out of the ordinary is a superb way to bring yourself back to your own self-energising state by making something that never existed before. It could be a painting of a landscape from your memory, or maybe you create something new in your garden by planting some new shrubs and flowers and decorating with some natural wood or rusted iron sculptures.

Maybe you can start a project with your kids where you build a dolls house, or a model plane or a cardboard fort that fills the whole garden.

LISTEN TO MUSIC WITH YOUR EYES CLOSED
When last were you able to listen to some music without any
interruptions? I don’t mean when you are driving in the car, or working at your computer, or have it on in the background whilst cooking.

I mean; lying on your back, your eyes closed, and the music playing.

Whether it’s old music that brings memories flooding back, or brand new music that creates new memories, if you are able to stick those headphones in, take 30 minutes to yourself where you lie absolutely still and listen, you will find your brain will start to disconnect from work and explore new thoughts that will leave you inspired and feeling rested!

Gobble. Gobble.

The festive season is so festive because we do too much, spend too much… and eat too much! We try to fit in as many social events as possible, because we have so many people that we want to see; and we spend so much money because we want people to spoil our family, friends and ourselves!

But we also often land up eating lots of foods that are richer and a little more special than our normal daily diet. One such food is Turkey. Whilst you may enjoy the odd shaved Turkey sandwich, cooking and eating an entire Turkey is mostly reserved for that meal where the extended family is seated around the table and are all digging into the celebratory meal.

If you are considering Turkey this year – here are some facts that few people know about this game hen.

The pros

  • Turkey is a rich source of protein.
  • Skinless turkey is low in fat. White meat is lower in kilojoules and has less fat than the dark meat. A typical turkey consists of 70% white meat and 30% dark meat.
  • Turkey meat is a source of iron, zinc, potassium and phosphorus.
  • It is also a source of vitamin B6 and niacin, which are both essential for the body’s energy production.

The cons

  • Turkey can be high in sodium.
  • Turkey skin is high in fat.

Turkey tips

  • If you can, buy organic. Turkeys raised organically will have been treated humanely and are less likely to contain pesticides and herbicides.
  • A turkey roast is cooked properly when it is piping hot all the way through.
  • Turkey dries out quickly, so don’t overcook it.
  • If marinating turkey meat, put it in the fridge straight after you’ve finished, as it is highly sensitive to heat.
  • Store turkey separate from any gravy, stuffing or raw food.
  • Refrigerated turkey will keep for about one or two days. If it is already cooked, it will keep for about four days.

Before you indulge in a rich meal this festive season, do yourself a favour and have a glass of water about 10 minutes before you eat. It will help you eat less and reduce your chances of over-indulging on richer foods that may have you wishing your eye hadn’t been bigger than your stomach!

Employee Appreciation Tips

At the end of the year, there is often a heightened expectation to show appreciation to one’s staff. Whether they help you out around the house or run your company, most of us have people who work for us and feel a desire to show them
appreciation!

Whilst paying out bonuses is a common way to do this, not all employers can afford to pay out bonuses and may feel stumped as to how to motivate their team and show them the love they so very much want to.

Here are some tried and tested ways to appreciate your staff without needing to necessarily up your overdraft.

SURPRISE BREAKFAST Without warning, when they arrive at work – take your team out for the morning to have a lavish breakfast on your dime. Depending on your budget, you could choose anything from the local Woolies cafe through to a wine estate or fine dining establishment nearby.

Breakfasts are a great way to treat your staff but they are also a space where you can have some quality personal conversations and find out how their families are doing – and talk about non-work topics that you never really get to do in the rush of the day.

EXTRA TIME OFF As you near the last days of work, you can let your staff leave at lunch time. This way, you are still able to keep your doors open until the most opportune moment, but your staff are able to start entering the holiday spirit, maybe run some errands before their leave, so that they can rest and relax during their time off and return to work energised and creatively ready to tackle the new year!

Giving them half-days will most likely have very little impact on your bottom line, but it will have a big impact on your team in terms of feeling appreciated!

ONLINE APPRECIATION Take a look through some online flower/gift delivery websites, and have some surprise gifts delivered to the office. The novelty of having something delivered at work, that is for you, from your boss – has huge appreciation value!

Whatever you do, let your team know that they matter… and that you care!

Road Trip Bliss

For most South Africans, December will include a road-trip of sorts. Whether it’s an hour or two up the coast, or 15 hours across the middle… we live in a country that is too beautiful not to explore in our time off.

So how can you use your hours on the road to your advantage?

Watch your posture Did you know that sitting in a car naturally makes you moody? Joint research from Harvard and Columbia found that low-power poses, like sitting down with your arms crossed, lowers levels of testosterone, reduces your feeling of power, and increases your levels of the stress hormone cortisol compared to high-power poses like standing.

This is why it’s also good to roll your shoulders, sit up straight, and switch drivers (or stretch your legs) every couple of hours. You will be less cranky and way more conversational!

Hold hands (if driving with your partner…)
Even though you’re confined to your own seat, holding hands with your partner, or holding their leg whilst they drive, helps strengthen your bond, and releases neurochemicals that create a relaxed atmosphere. Touch can help break any barrier of tension or confusion, especially when you have to deal with stop-goes or changes enroute.

Be willing to take detours Beyond talking, sharing new experiences can bring you closer together. Luckily, road trips are ripe for novelty: Take the scenic route or stop at cheesy roadside attractions that you would normally include in your holiday. Not only will this keep the trip fun and exciting, but it’ll give you new things to talk about.

Disconnect for the ride We’ve become conditioned to turn to our phone when we’re bored, but one of the biggest blocks in conversation is electronics. Researchers speculate the gadget reminds us of the wider network we could be connecting with, keeping us from focusing on the people right next to us. Unless your kids are watching movies or playing games on devices in the back, try to keep everyone engaged with the journey and other travellers in the car. It also helps to keep the driver alert when people are engaging them in conversation.

Listen to new music New music stimulates the creative impulses in the brain, excites us and keeps us awake as our brain assimilates all of the new
information. It’s also a great opportunity to listen to the full album that you’ve been wanting to listen to, but can’t find the time to appreciate in full!

Have savoury and sweet snacks, and plenty of water
Make sure you have a variety of snacks as your body will move from needing sugars to needing salts and all the while needing to stay hydrated. These don’t only keep your appetite sated, but they help you stay awake and alert!

Also – if you get stuck in a traffic jam, your next food pitstop may turn from 1 hour away to several hours away. Have extra refreshments on hand – hungry, dehydrated travellers are cranky and difficult!

Lastly – never be in a rush. Even if you are running late, remind yourself to take it slow and carefully. You will get there eventually, and then a few hours won’t matter any more.