Here are a few more interesting resources to help you along your journey to becoming financially savvy.
10 Saving Tips
10 Savings Tips:
Do not buy things you do not need and do not try to keep up with friends and neighbours. Everybody’s needs are different so live according to yours.
SAVING IS A MINDSET:
Save money, water, electricity, etc. Do not waste anything of value. Make delayed gratification a norm.
START SAVING FROM AN EARLY AGE:
Learn about budgeting. Earn your pocket money. Learn that making a financial decision is about weighing up the value of one thing against another and choosing which to forego in favour of the other. Differentiating between a NEED and a WANT is the 1st step to a savings mentality and financial freedom.
LOOK AFTER THE THINGS YOU HAVE.
Take pride in what you have worked hard for. Respect your own efforts and feel good about what you have achieved. Lose the entitlement attitude!
DO NOT MAKE EXCUSES ABOUT WHY YOU DO NOT SAVE. Saying I am too young or I will save next month or only rich people can save will not get you anywhere. Start by saving the little you can afford to save. “Make sense of cents”
START SAVING CONSISTENTLY AND SERIOUSLY FOR YOUR FUTURE YEARS.
Learn the magic of compound interest. Put aside at least 10% of the money you get monthly.
AVOID OWING PEOPLE. It is cheaper and more rewarding to wait until you have saved the funds yourself. It is better to spend money you have earned than to spend money you still have to make.
SETTLE DEBT as soon as you can. Avoid the debt spiral!
SHOP AROUND BEFORE YOU BUY.
Compare prices and benefits. Do the same with bank products – compare the offerings. Do not ever be afraid to ask questions – knowledge is power.
LEARN TO RESIST TEMPTING MEDIA MESSAGES especially about sales. Reward yourself for good money management behaviour!
Financial Dignity is the controlled use of all the money that you accrue to achieve a lifestyle that is of maximum value to you. The typical signs of having attained Financial Dignity are said to be; having manageable mortgage debt, no consumer debt, being able to invest at least 10% of all your income so you have the means to support a fulfilling lifestyle for the rest of your life and spending the rest of your money on a lifestyle that is of value to you.
Financial Dignity is centred on the values of human dignity which encourage one to treat oneself and ones assets, especially money and those of others with dignity, in order to lead a happy fulfilling life.
5 Financial Dignity Principles
Every human being has a right to lead a financially dignified life
A financially dignified life allows one an opportunity to fulfil one’s potential, which is based on having a human level of health care, education, income and security.
Financial Dignity means having the freedom to make sound financial decisions on one’s life and to be met with respect for this right.
Financial Dignity should be the basic guiding principle for all our financial actions
Ultimately, our own financial dignity is interdependent with the financial dignity of others in the wealth cycle.
The Wealth Cycle is a concept inspired by saving some of our earned money as the safest way to enjoy a financially healthy and balanced lifestyle because with saved earnings, one is able to spend, donate, invest and live a financially relaxed and dignified life as depicted.
StarSaver™ Wealth Cycle is “LESSI”:
What is the Johannesburg Stock Exchange (JSE)?
JSE Limited is a proudly South African institution that provides a market place where shares of listed companies can be traded by means of innovative, world class systems and services. It is the engine room of the South African economy and a platform for companies requiring capital to expand their businesses and to meet investors in search of opportunities to grow their investments. JSE efficiently and securely passes on capital raised in the market to users, protecting investors through regulations governing stock broking firms and listed companies. JSE also provides a platform on which previously issued shares are traded i.e. if a shareholder of a listed company wishes to sell his/her shares and wants another person to purchase these shares. JSE not only channels funds into the economy, but it also provides investors with returns on investments in the form of dividends. The exchange successfully fulfills its main function—the raising of primary capital—by rechanneling cash resources into productive economic activity, thus building the economy while enhancing job opportunities and wealth creation.
Did you know?The JSE is the largest stock exchange in Africa and ranks in top 20 largest stock exchanges worldwide.
Basic Investment Concepts
A share is a fraction of business that makes you a shareholder in that entity.
Share investing is buying a fraction of a listed company through an intermediary of an organised exchange.
Exchange Traded Fund is an index that is listed and traded on the stock market.
A stock exchange is a place where shares are bought and sold.
A dividend is the sum of money paid by a company to its shareholders out of its profits (Is the distribution from the net profits of a company to its shareholders). The dividends are taxed at 15% since 1 April 2012.
Volatility is the movement of the share price in the stock market. High volatility is associated with risk, both fundamental and technical.
Market capitalisation is the total value of the company. It is the total number of shares multiplied by the price of a share.
Bid price is the highest price that any buyer is willing to pay for a share/security at any given time.
Offer/asking price is the lowest price at which the seller is willing to accept for a share. The opposite would be a bid.