Do Investing Yourself

Have you ever worked with a finance coach? 👨🏽‍💻

Here’s what Emma gained from working with me:

👩🏽‍🦱 A personalised approach to budgeting and managing finances

🪜 Knowledge of the steps needed to start and build good habits around money

🧘🏽‍♀️ Judgement-free advise, patience and understanding

💰 A sustainable budget which focuses on saving and investing, and allows her to enjoy her hard-earned cash

Want to be more like Emma? DM me a “💰” if you want help with budgeting or a “💸” if you want to get started with investing.

What is an asset? 💰

An asset is something you OWN that has or can create value and that value may change in the future. Your investments are assets.

A liability is something you OWE in the future. Like a loan or debt.

🏠 Real estate can be either an asset or a liability. Your home doesn’t have monetary value unless you decide to sell it, or rent it out, and sail to the Caribbean. It also costs you money to maintain it. If you have a mortgage/bond on your home, that is a liability; however, if you’re renting out your property, it is an asset.

🧾 Deferred taxes are paid at the end of the tax year. This is something you will owe in the future, but is only applicable to contractors and self-employed folks (in South Africa).

🚘 Your care is an asset, but its value will almost always depreciate. Insurance, maintenance and car loans are all liabilities (if you decide to keep the car long-term).

Do you think liabilities are bad, or can they be good? 💁🏽‍♂️

💬 Comment your thoughts.

👍🏽 Like for more content like this.

💝 Invest in your friends and share this.

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Why are NFTs important? 🤷🏽‍♂️

NFTs are transforming the investment space and are giving creators a way to earn more.

NFTs can represent ownership of physical and digital assets. They can also be used to ensure the identity and authenticity of assets.

But what is an NFT?

NFT stands for non-fungible token. That’s a fancy way of saying that it cannot be replicated.

Cryptocurrencies are fungible, on the other hand. For example, 1 bitcoin can be exchanged for another bitcoin and no one will know the difference.

Would you buy an NFT or do you think it’s all hype? 😅

💬 Leave a comment below.

💝 Invest in your friends by sharing.

💾 Save in case you want to sound cool at the bar.

Don’t forget to increase your contributions every year❗️

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Remember compound interest? Well, here’s a way to compound the compounding.

Usually when our salaries increase, so do our lifestyles. That’s okay, live your best life, but don’t forget that your best life also exists in the future.

Another way to kick inflation’s 🍑 is by annually increasing your monthly contributions to your investment.

For example, let’s say you invest R1000 per month this year, R1100 per month next year, and increase this every year by 10%. In 30 years’ time, you’ll have R6 million, which is three times what you would have if you never increased from R1000.

This is something that you can set up automatically with your broker, asset management company, or your financial advisor.

Will you start increasing your monthly investments? 💁🏽‍♂️

💬 Leave a comment below.

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💾 Save to remind yourself later.

In case of emergencies: don’t break the bank 🚨

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Emergency funds are important for everyone, but here are some situations where having one may be extra helpful.

An emergency fund is a self-funded insurance policy. One that doesn’t rely on someone else deciding whether you can claim from it.

Emergency funds can help you avoid debt and stop you from interrupting your goals.

Emergency funds are there to stop you from losing your 💩 when said 💩 hits the fan.

When was a time that your emergency fund saved your a**? 💁🏽‍♂️

Compound interest is your best friend 👩🏿‍🤝‍👨🏽

Saving for your future takes a lot of time, and R1 million isn’t going to be worth as much in 37 years time (in fact it will probably have the same value as R200k has today).

Investing will help you in the long term by saving you time - because your money works for you - and money because it beats inflation.

How else does investing help you? 💁🏽‍♂️

💬 Leave a comment below.

💝 Invest in your friends by sharing.

💾 Save this to save mor time!

Happy New Tax Year 🧮

Each year, the tax year in South Africa starts 1 March and ends 28/29 February of the following year.

“We don’t like tax, why are you telling us this?”, you might say.

Look, same, but by law you have to pay tax and that includes taxes on your investments.

You don’t need to calculate the tax; banks, investment companies, and the tax-man will do that for you, you just need to remember to include these in your tax return.

One way to pay less taxes is by investing with your tax-free savings account and contributing to your provident/pension fund and/or retirement annuity.

Not sure what a tax-free savings account is? Check out my previous post How to Boost Your Retirement with a TFSA!

Have you started investing tax-free yet? 💁🏽‍♂️

💬 If you have a question about investment tax, leave a comment.

💝 Invest in your friends by sharing.

💾 Save because you will need to read this again.

PSA: You might need TFSA 📢

I mean, does anyone enjoy paying tax?

Thanks to this gift from SARS, we can invest tax-free. But only to a limit. Swipe for details.

This is an additional way of investing for retirement, not the only way. You can have an RA, a TFSA, and your regular investing account.

NB!! The tax year is ending on 28 February, so if you still haven’t maxed out your TFSA, go do it! But if you aren’t sure yet how to go about, then next year is also fine - don’t stress yourself out!

How do you invest in your TFSA? 💁🏽‍♂️

💬 Leave a comment below.

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💾 Save this in case you forget!

Simple Money Hack 💸

The Rule of 72 is an approximate calculation to find out how long it will take for your money to double.

All you need to know is your average return on your potential investment.

Let’s say you put R10k into an account that earns you 6% every year. You take 72 divided by 6 - which will give you 12 years. This is how long it will take to get to R20k.

This is just an estimate. Real life doesn’t always play by the rules. It might take a longer or shorter.

If your savings account has an interest of 3%, how long will it take your money to double? 💁🏽‍♂️

💬 Leave your answer in the comments

💾 Save for reference

💝 Share this cute trick with your mates

How do you pay for your emergencies? 🚩

We cannot predict what will happen to us in the future and sometimes insurance just sucks.

If we’re unprepared for when 💩 hits the fan, we need to take out credit card debt.

Not all debt is bad, but if not used properly, credit cards can sent you down the sh*tter faster than you can say “flush”.

So you need an emergency fund. Start one today.

Which emergency did you use your credit card for? 💁🏽‍♂️

💬 Tell us your story in the comments.

💌 Not sure how to start one? DM me.

💝 Don’t let your friends fall into this trap. Share this with them.

💾 Save to remind yourself later.

Does money hold you back? 🤷🏽‍♂️

Or do you hold yourself back from enjoying your money.

A scarcity mindset focuses on what you don’t have and tells us that you can’t have more.

As a result, you might hoard your money in a savings account and never build wealth or spend your hard earned money on things you enjoy.

The opposite of this is an abundance mindset. Believing in what you do have and what you can achieve allows you to enjoy your money and make more.

Follow to learn how to change to an abundance mindset.

How do you view your money? 💁🏽‍♂️

💬 Leave a comment below.

💌 DM me to learn about abundance.

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💾 Save in case you need a reminder!

Healthy investing 🥗

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So you want to start investing, but you don’t know which share to buy? Well, there’s a solution for that. ETFs or exchange-traded funds.

These investment vehicles are a single assets that you can own and effectively invest in multiple companies, or other assets like bonds.

Examples :
🇿🇦 Satrix Top 40 Index ETF (STX40 on JSE) which invests in the top 40 companies in South Africa.
🇺🇸 Vanguard S&P 500 Index ETF (VOO on NYSE) which invests top 500 companies in the USA.

ETFs are diversified, passive investments that follow the markets, and they’re cheaper than regular mutual funds or unit trusts.

Would you rather buy an ETF or Apple stock? 💁🏽‍♂️

💬 Let us know in the comments.

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💌 DM me if you want to learn how to invest.

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