Author: Kim Potgieter

Remember, when your income changes, the way you manage money must change too. The simplest way to regain control is to be proactive and make your money work for you. Step 1: Take stock of your money List your essential expenses – Housing, food, utilities, insurance, transport, school fees, and medical costs. These are your priorities. Cut back on non-essentials – Subscriptions, takeaways, and luxuries can be paused. Review your retirement savings: You may have scattered retirement accounts – old pensions, investment funds, or annuities you haven’t reviewed in...

Here’s a guide to help you understand key areas like your severance package, retirement funds, and financial planning to make informed decisions during this time. The retrenchment package Retrenchments, whether voluntary or involuntary, typically include a severance package. The basic calculation is one week’s salary for every year of service. Sometimes, in voluntary retrenchments, employers may offer higher amounts. Severance pay is taxable according to the Retirement Lump Sum Tax table, with a R550,000 tax-free threshold available if it hasn’t been used for previous retirement...

But how much do our immediate lifestyle decisions—like buying that dream car—impact our long-term financial health? Let’s take a closer look, using cars as an example, because they’re a highly emotional (and very expensive) purchase. The Dream Car Dilemma Let’s say my dream car is a VW Tiguan. I went online to build my ideal version, and here’s what I found: the base price of a brand new VW Tiguan 2.0 TSI is R861,600. But of course, I wanted some extras—upgraded paint, rims, a better sound system, a sunroof, and safety features. Throw in a sports package, and my dream car now costs a...