Should you be an Optimist or a Pessimist With Your Money?
“Both optimists and pessimists contribute to society. The optimist invents the aeroplane, the pessimist the parachute.” (George Bernard Shaw) Cast your mind back to the middle of March 2020, when fears around Covid-19 sent the JSE into a spiral. The All Share Index dropped more than 25% in just a few days. Pessimism about how […]
Why do Some People Have a Problem Spending Money?
“To acquire money requires valour; to keep money requires prudence; and to spend money well is an art”. (Berthold Auerbach) Most of the financial advice that you read about spending will talk about the problem of people spending too much. Much less attention is paid to those who have a very different challenge – folks […]
Why Your Marital Contract Really Matters
“Farewell! God knows when we shall meet again.” (William Shakespeare) Marital contracts 101 There are various types of marital contracts, including: In community of property. This is the default position in South Africa. The couple share all their assets in a single joint estate in which each spouse has an equal share. There is one exception, […]
A Good Budget Doesn’t Limit Spending, it Prioritises it
“Many folks think they aren’t good at earning money, when what they don’t know is how to use it.” (Frank A. Clark) If you have done any reading on budgeting, you have almost certainly come across the problem of the morning cappuccino. It’s that old piece of advice that points out that if you simply […]
The Ins and Outs of Buying Offshore Property
Many South Africans are tempted by the prospect of investing in property overseas. Earning a rental income in foreign currency is seriously appealing. It may also be reassuring to know you’ve got somewhere else to live if it ever comes to that. But it’s essential to understand that you don’t immediately have residential rights in […]
The Difference Between Being Rich and Being Wealthy
“Wealth consists not in having great possessions, but in having few wants.” (Epictetus) For many people, being “rich” and being “wealthy” sound like the same thing. But more and more these are being seen as different concepts. To be rich implies having a high income. Usually, however, it also means having a high level of […]
Five Reasons why a Financial Windfall Must be Managed Carefully
Receiving something like a substantial inheritance or the proceeds from a sale of a business can be thrilling. However, it is also often problematic, both because of how we deal with it and how it affects those around us. Psychologist Stephen Goldbart even coined the term “Sudden Wealth Syndrome” to describe the extreme stress that […]
How to Take Advantage of the Donations Tax Allowance
“We make a living by what we get, but we make a life by what we give.” (Winston Churchill) Donations tax 101 Put simply; you can donate an amount of up to R100 000 per year to any third party, like a child or a grandchild, without having to pay donations tax. For example, you could give […]
A Must-Have for Couples who Choose not to Tie the Knot
“The course of true love never did run smooth.” (William Shakespeare) The times they are a-changin’ Living together and having children without getting married is becoming increasingly accepted worldwide. When Boris Johnson and his partner lived together as the first unmarried couple in No 10 Downing Street, there was no peep from the harsh British […]
Don’t let Money Ruin Your Relationship
“I don’t care too much for money, for money can’t buy me love.” (The Beatles) For many couples, money is a regular source of tension. And, unfortunately, this can have serious consequences. In a study by researchers from Utah State University and Kansas State University published in 2012, the researchers found that financial arguments in […]
