Most of us would gladly jump at the opportunity to have more money. Very few people are likely to say that they would prefer to have less money…

One reason for this is that we can see how our future life and our current financial status are linked. And this leads to anxiety when thinking about financial futures. 

Although it is not easy, it is beneficial to develop and maintain a positive outlook toward money to exercise greater responsibility for building our future financial stability.

In a recent email, Carl Richards shared some of the following ideas on creating a plan to continue reaching our financial goals by reducing anxiety.

Step 1: Pay attention to your spending

Mastering our finances won’t happen overnight. We need to make a habit of keeping tabs on where our money goes. In short – we need to be more aware of our spending behaviours and habits.

Here are some of the best ideas on how to pay attention to spending:

• Create a budget and follow a spending plan 
• Record all transactions
• Regularly check your card statements and stay present with what you’re buying

Step 2: Find wasted money

Most of us are accustomed to the idea of saving money that remains after all the spending. Hence, we find it challenging to find more money to save. Here the answer is not found in trying to make more money; instead, it’s to try and find money that we’re wasting.

We can find wasted cash by regularly reviewing credit card statements and cutting expenditure on things we don’t need anymore.

For example, if you’re being charged 250 bucks for a subscription fee on something you’re not using anymore (like a mobile data contract), cancel it and save that same amount every month. In a year, you will have saved over two-and-a-half grand!

Step 3: Automate savings

Setting up an investment vehicle and automating your savings can help establish the habit of saving. 

Most of our banks will help you link a savings pocket to your transactional account into which you can drop a couple of bucks each month. (aside: your bills can also be automated so that you deal with less paperwork in your life and further reduce money anxiety!)

When building wealth, we need to retain a positive attitude.

Working with a professional financial adviser will enable you to make informed decisions and discern what other areas of your financial plan can be activated and engaged with in order to reduce financial anxiety and replace it with financial peace-of-mind!

…and medicine be thy food. Hippocrates adopted this philosophy around 2400 years ago!

Before fad diets and modern medicine, he recognised that food has the ability to keep us strong and healthy – both physically and mentally. A nutritious diet is fundamental to maintaining good health and well-being. 

Just remember that eating healthy isn’t just about cutting out meat and “going green” but about getting a well-balanced diet of different foods (in the right amounts) to give your body what it needs. 

While it may feel a bit expensive to maintain healthy eating habits, all it requires is a little more planning. In our modern world we have become increasingly reliant on convenient foods and have reduced the amount of time that we have for food preparation. This whole approach requires our commitment to putting a little extra time into this activity (unless we have the opportunity to employ someone to do it).

So it’s not just about reducing our current weight but more about being proactive and creating a healthy future for yourself… today.

Here are 5 more top reasons to start eating well:

1. Your self-esteem improves

Most of us don’t realise that what we eat affects how we feel and think. Much of our general health is dependent on a healthy gut microbiome, and if we’re putting heavy foods into our system that undermine the integrity of this central system, we will feel heavy and unbalanced. 

Eating more bananas, raw veggies, cucumbers, strawberries, grapefruits as well as more foods that contain vitamin B and are rich in antioxidants are good for so many reasons. Eating cultured or pickled foods are also really good for the gut! This all helps us boost our general sense of ‘feeling well’ and will improve our self-esteem.

Fresh, raw foods can strengthen hair, clear skin, whiten teeth and improve breath. We will also enjoy the anti-ageing effects of foods with calcium, vitamin A and K.

2. Your memory and overall brain function becomes better

Mariah Carey sang it best, ‘It’s all in your mind.’ Prioritizing your mental health is vital in your journey of self-development. Watching what you eat is key to that.

A nutritious diet with foods that have omega-3 fatty acids or vitamins can improve your brain functionality and memory. This includes wild salmon, blueberries, dark chocolate or avocados. 

Drinking green tea is also known to be good for enhancing your cognitive ability.

3. Improve your heart health

Studies recommend that healthier eating habits should be one of the lifestyle changes that you make. This helps reduce chances of cardiac arrest, diabetes, high cholesterol, strokes and enhances your overall heart health as a result.

Include green vegetables, almonds, peanuts, hazelnuts and sunflower seeds amongst other foods into your diet to boost your heart’s well-being.

4. Overall energy levels improve

According to the Harvard Medical Center, one of the benefits of a healthy, balanced diet is the ability to boost your energy levels. 

Some of the foods that will revitalize you and sustain your energy levels throughout the day are whole grains, vegetables, brown rice, sweet potatoes, oats, apples, unrefined carbohydrates, proteins, healthy oils and fats.

Limiting your alcohol intake and drinking more water can give you a sustained surge in energy.

5. You start to feel better

The relationship between food and mood has been studied extensively. According to Healthline, your brain responds to what you put into your mouth. 

So it behoves you to be mindful of what you eat if you want to improve your mood. Drinking lots of water and eating foods rich in minerals like magnesium, selenium, zinc, amino acids, fatty acids can help in alleviating depression and mood disorders.

Sources of these healthy minerals include eggs, black beans, soy, pork, chicken, broccoli and leafy greens like spinach, lettuce, swiss chard and collard greens.

We should embrace healthy eating as one of our essential life habits.

The journey of developing your life can be challenging on your mind and overall well-being. Prioritizing mental health can help us build the resilience we need to find fulfillment at work and in our personal relationships. 

Often we focus on physical health and the list of things we want to accomplish. It’s important to remember that our body and mind always work together. We need to take care of both!

What is mental health?

Being mentally healthy is defined by having positive characteristics in terms of how we feel, think and behave in daily life. It also influences our ability to cope with stress and conquer life’s challenges.

This doesn’t mean we no longer feel anxiety, frustration or stress. Rather, we learn to accept that hardships are part of life. Holding a healthy mental space empowers us to find ways of reacting better to whatever pain or challenges we face.

Learning to pay attention to your mental health will teach you to reframe your mindset – from preparing for the worst that could happen, to expecting the best that could happen.

Here are 3 practices to help develop and maintain a healthy mental space:

• Remember to look inside

Introspection is a healthy habit to integrate into your daily routine. Being introspective also teaches you to be mindful of your thoughts and feelings as well as your actions.

Through practising introspection you’ll learn to identify thoughts and the physical or emotional sensations that tend to contribute to your cycles of stress and dis-ease. From there you’ll look to find solutions on how to address those sensations to more positive ones.

Meditation is one of the best ways to look inside. You learn to control your breathing and focus your mind. You discover that your thoughts are controlled by you and not the other way around.

• Become more active

Again, your mind and body always work together. Improving your mental health comes with improving your body.

The wonderful thing about working out is that it can be done at home. The Coronavirus lockdown may have kept you indoors but you could still keep fit. Apps and videos of effective 5- to 10-minute daily workouts are in abundance. 

Keeping fit doesn’t only mean you need to pound weights or run long distances. Dancing, playing activity-based games with friends and family can also help you become more active and improve your physical health. The hormones that are released during these activities boost your mental health considerably.

Simple things like gardening or cleaning your home also contribute to your physical and mental health.

• Have a purpose

Finding purpose and establishing a vision can help you create meaning in your life because you’ll have something that drives you. An inspiration that pulls you towards all that you wish to accomplish.

Purpose can be found in your work. You can choose to focus on work that challenges you to be more productive and improve your service to others. Volunteering in old-age homes, charities and non-profit organisations are other heartfelt ways to establish purpose in your life.

It’s also possible to find meaning in the relationships you build. Focus on building fulfilling and mutually beneficial relationships. Socialise more with people who will be empathetic and supportive and less with those who put you down and are constantly in competition with you.

Manage your expectations. Be patient and compassionate with yourself. Results will come even though it doesn’t seem like it now. We need to pay attention to our mental health because that is what helps us reframe our minds and look towards a happier future instead of focusing on the uncertainty and stress of our current situation.

It is easy to think that the terms Medical Aid, Medical Insurance and GAP Cover refer to the same thing. Although they all serve to help you afford medical care, there are some subtle differences. 

Getting a clear understanding of these words will help you get savvy with your options. If you already have health coverage you’ll be more informed about the benefits and extent of your health plan. However, many of us sign up for this type of cover, but over the years (especially if we don’t claim often) we can easily forget the massive role that these products play in our financial portfolios.

Medical Aid or Medical Insurance, it’s all medical cover, right? 

Yes and yes. But, one of the key differences is that medical insurance products are not governed by medical aid regulations. In 2018, updated Demarcation Regulations stated the following:

• Medical aid schemes fall under the Medical Schemes Act No. 131 of 1998.
• Medical insurance products are governed by the Short-term Insurance Acts No. 53 of 1998.

The guidelines of these laws actually play a crucial role as they differentiate the offering and extent of the cover of these two types of medical cover.

For instance, medical aid schemes are required by law to pay in full for Prescribed Minimum Benefits – a.k.a PMBs. The payment may be limited when you go to a doctor who is not on your medical scheme’s designated service provider network (the one they choose for you).

They’re not required to offer funeral cover, personal accident disability or cover for any loss of limbs.

Moreover, payments of in-hospital benefits are made based on the National Recommended Price List and healthcare professionals use this price list to determine the base price of their services. 

In addition, there may also be yearly limits for procedures.

How does medical insurance differ?

The purpose of medical insurance is to protect your financial assets as well as promote a lifestyle of health and wellness. It is considered more affordable because it mostly focuses on out-of-hospital expenses including prescribed medication and meetings with your GP, optometrist or dentist. Often the amount you would be able to claim is based on a set procedure cost, not what the hospital or doctors actually charge you – which means that some procedures could leave you well covered (with money in the bank) whilst others could leave you heavily under-insured.

Other benefits include cover for funerals, accidental injuries and/or disability caused by an injury.

Pre-existing conditions may not be covered by your medical insurance. Just like your home insurance can only pay for damage that happens to your house after you’ve joined and not for damage that happens before that.

These are just a few differences – these products are highly complex so it’s always best to chat through your personal situation before making and decisions to shift or change products.

What about Gap Cover?

Gap cover is also an insurance product. It does not cover the full amount for hospital procedures as it works in conjunction with your medical aid – covering where your medical scheme falls short. 

For instance, in cases where your chosen doctor charges more than your medical aid’s rate, the difference will be taken care of by Gap cover. It literally covers the gap. (this gap can be as much as 400%)

Depending on your medical aid options, Gap cover can be provided for:

• Oncology shortfalls
• Sub-limits
• Medical aid co-payments

These differences do not mean you should take up everything at once. Whilst GAP cover is generally considered a must-have, helping you choose medical aid or insurance options that are most suited to your lifestyle and your family setup is what we will do together in your financial planning sessions.

If you haven’t reviewed your medical cover, it’s best to do so towards the end of the year as most medical schemes don’t allow for changes or upgrades during the year. 

There is a strange behavioural effect where investors tend to sell winners early and hold onto losers for longer. You would think that investors would offload their losers as soon as possible and hold onto their winners so that they keep winning, but the opposite is often found to be true. This is known as the disposition effect.

This effect is thought to occur because people value gains and losses differently. Specifically, people dislike losses more than they like gains. This explains why it is easier to sell a winner and hold onto a loser. If you are holding on to an unrealized loss, then selling that position would prove that you made a bad decision picking that stock. On the other hand, selling a winner immediately affirms your investment guile.

The curious nature of the disposition effect lies in the fact that even seasoned investors make emotional financial decisions. It’s not to say that selling realised gains and waiting for underperforming parts of your portfolio to mature is necessarily bad. We could argue that you NEED some losers in your portfolio.

If your entire portfolio is doing well at the same time, then it probably means that your investments are relying on the same social and economic factors. This, in turn, means that if those factors trend downward then your entire portfolio will react in the same way.

Eliminating any underperforming parts of your portfolio eliminates the potential for them to do well in the future, when the current lead performers take a back seat.

The name of the game has always been diversification. In fact, you should be EXPECTING some elements to underperform at times. There is a difference between a bad investment and one which is not currently shooting for the moon. By placing your eggs in multiple baskets you are spreading your risk and protecting your wealth.

This is also why it’s crucial to have options that are both local and offshore. Local may feel like a loser when offshore is appearing stable, but the balance of volatility and stability helps create more predictable returns in the long run.

Your portfolio is like an orchard, harvest the fruit but be weary to raise an axe to the trees. Some trees require a longer time to bear fruit and the long-term strategy is often the best one.

Whilst October is Breast Cancer awareness month, cancer has become a disease that was touted in 2018 as the second leading cause of death. It’s a tragedy that has most likely affected your family, and the families of your friends, colleagues and neighbours.

The World Health Organization claims that between 30-50% of cancers can currently be prevented by avoiding risk factors and implementing evidence-based prevention strategies. 

Firstly, we should consider the categories of external agents that cause cancer in order to be able to reduce our risk. There are physical carcinogens, such as ultraviolet radiation, chemical carcinogens such as tobacco smoke, and biological carcinogens, such as infections from certain viruses and bacteria.

Checking in on your healthcare cover is important, but you can also reduce your risk by taking care of your own health too. Here are some ideas…

Avoiding ultraviolet

The sun’s UV rays are damaging. Dermatologists agree that we should be using sunblock on exposed areas of our skin, every day. You can apply a broad-spectrum sunscreen of SPF 15+ and re-apply every two hours or after swimming or exercising outdoors. 

Other strategies that can be adopted to minimize UV risk is to avoid direct sunlight during the peak ultraviolet radiation period (2 hours either side of noon accounting for 60% of the day’s ultraviolet radiation), or to wear protective clothing such as hats and sunglasses (Note: a wide-brim hat is preferable and the sunglasses should have a UVA/UVB protection certification on the label).

Minimizing unhealthy habits

The products we consume are inevitably interacting with our biology. Tobacco use is the single biggest risk factor for cancer and is responsible for approximately 22% of cancer-related deaths worldwide. While tobacco may be the big factor that most people seem to know about there are other habits that can lead to increased risk of cancer such as being overweight or obese, excessive alcohol, lack of physical activity and unhealthy diet choices with low fruit and vegetable intake and too much meat.

It isn’t only about what you should avoid, but what you should be pursuing. Leading a physically healthy lifestyle with a balanced and nutritious diet is beneficial on so many levels.

Early detection 

Cancer is more likely to respond to effective treatment when identified early, reducing the chances of cancer mortality. Early detection depends on three measures: awareness, clinical evaluation and access to treatment. 

The diagnosis and treatment is up to the medical professionals and the financial cover that we are provided, but we do have influence over our own, and others, awareness. Cancer can be an uncomfortable subject to broach, but if simple conversations lead to an increase in early detection then a little discomfort is worth it.

Time is our greatest investment opportunity – we should invest the time that we have in a diverse portfolio of activities that will provide us with positive returns.

Having a solid routine helps us to squeeze utility out of our time. However, if we get stuck in the same routine for too long it can start to feel monotonous and laborious. Especially so if we are spending our down time on low value activities such as watching TV or browsing social media.

Sometimes we need a break, but that doesn’t mean we shouldn’t be doing or achieving something with our time. A hobby can provide us with a sense of purpose, an outlet for stress, a creative challenge or all of the above!

Career coaches have confirmed that having a hobby can help you be better at your job. Not only does it show your employers that you have passions and a drive to do something with your time, it also helps to prevent burnout. When we are bored at home our workload can prey on our idle minds, a hobby provides us with a welcome distraction – engaging our brain on an enjoyable and unrelated pursuit.

With the massive success of websites like Etsy (an e-commerce platform focussed on handmade goods) it is clear that hobbies can do more than merely fill our time. Many hobbies are practiced in solitude and as such we often don’t realise how much our skills have progressed. Whether you are selling succulents, making bespoke leatherworks or teaching a craft, there is always an opportunity to turn a hobby into a side-hustle.

Hobbies can also help us adapt to retirement. Many people are left wondering what they will do with all of the extra time they have on their hands once they retire. But you will never hear that from a golfer, woodworker, painter or fisherman!

Perhaps the most important facet of a hobby is the (often indirect) social aspect. It provides us with interesting stories to tell. It lets us explore and play and be young at heart, shirking the stresses of life, one game of Bridge at a time. It connects us with people on a level that is fun.

Debt statistics are growing – this is very likely in part to the fact that a vast majority of us today prefer credit cards over cash. The benefits of credit cards are obvious. They are more convenient and offer more security.

Cold, hard cash, however, can be the best way to organize your spending.

Here are three reasons why you should opt for using cash instead of credit cards for managing your daily budget.

1. Less likely to overspend

Healthier spending habits develop when you use cash. You become more mindful of how much each item costs that you’re putting into your basket, and you won’t want to spend all that you have. More self-control is gained, as you make less impulsive purchases of unnecessary things than you would have if you were using a credit, debit or store card.

Also, cash payments carry no interest rates that you will have to pay back later. You pay the amount on the price ticket, nothing more.

2. Become more engaged with your budget

You will become increasingly engaged with your budget when you work with cash. As compared to the possibility of inconsistent credit card interest rates, with cash you can easily track your expenditure, ATM withdrawal fees and how that favours against your income.

Budgeting and planning your expenditure can be a more enjoyable exercise when you use cash. You can easily reduce your debt too because no interest will be accumulating with every payment you make and you won’t be bleeding money on overspending.

3. Become more creative with your spending

Carrying cash can alter your financial mindset for the better. Since you’ll be limited to what you have in possession and not have the same spending power you get from credit cards, you’ll find that you will become more inventive with your spending.

The longer you challenge yourself to use cash, disciplined spending will become ingrained into your lifestyle as you’ll look for bargains, better deals and more ways to make your money go further.

Studies say that you develop an emotional attachment to items paid for with cash because you feel you made that purchase possible and it was not enabled by your creditor.

Consider the advantages of using cash before swiping your plastic. You can form a better financial identity and live without the drawbacks of credit cards when you go for cash. You can even develop a more mindful approach to your spending because your purchases will depend literally on how much you have in hand.

Effectively managing your debt is one of the best and most proactive ways of ensuring a sustainable financial future. It is deeply gratifying knowing that you’re doing something right when you see your debt shrinking!

The journey of exploring the best ways to manage your debt can improve your attitude and enthusiasm towards settling it. Instead of seeing it as a burden to your financial goals, you’ll recognise that it’s an inspiring investment towards your financial freedom.

Here are three often-cited ways to repay your debt.

• Snowball method

The snowball method is frequently thought of as the best debt-relief option as it means you start off by paying the smallest debt and then move on to bigger loan amounts. This technique can be valuable for boosting morale and improving your sense of achievement as you start to see the results early on. Your debtor statements are reduced and you will be encouraged to continue with this debt repayment plan.

However, this means you end up paying higher interest costs, because it considers the payment of the debt and not the interest rates around it. To get around this, you can find other ways to refinance your high interest debts.

• The Avalanche method

This strategy is the opposite of the snowball method. You start off with the biggest debt and finish with the smallest. If you’re looking to save on interest this is the best strategy to employ. 

This strategy requires patience as it doesn’t offer immediate results but, in the long term, you can be debt-free quicker. You need to have the resolve to settle bigger debts. From there you’ll be more motivated because only the small obstacles will be left. 

• Debt consolidation

Through debt consolidation you can easily keep up with multiple payment deadlines by combining all your debts into one. This involves taking out one large loan, equal to the amount of your entire debt, and paying off what you owe in one place. 

The obvious risk is that you would now be using debt… to get out of debt. However, you will end up owing one creditor instead of many, and could potentially secure a more beneficial interest rate overall. When followed effectively this method can help reduce your debt whilst improving your credit score.

All three of these strategies can be useful for reducing your debt. Discipline is required with all of them because having the best strategy is not enough – you have to follow through with it too. 

If you need help with this – just give us a shout!

Saving is not just about a plan – it’s a behaviour.

Part of this behaviour is rooted in our mental ability to overcome our own fears. We reduce these fears by mentally preparing for life goals and recognising that we have what it takes to achieve them.

Mentally preparing for long term savings is like preparing for a long-distance race or a trip. You start exercising today so you can cope with the physical demands of next year’s marathon. You sort out your travel necessities now so you don’t struggle with them when you have to go on your trip.

The same goes for your long-term savings. Starting to save today helps to accumulate more wealth for the future; anticipating and providing for the expenses that you expect to incur.

Here are four ways to help you prepare for a financially secure future:

1. Set a goal and start saving as soon as you can

Establishing a monthly budget helps you develop healthy spending habits, reduce your expenditure and have more to invest. Having a goal is a big part of this process because it’s really hard to save if you don’t know what you’re saving for.

The value of saving early is that you’re creating an opportunity for your money to work for you longer through the value of compounding interest.

2. Start working on your debt

Being engaged with your budget means being engaged with your debts too. Actively dealing with your debt now, frees up money to direct towards your future. Picking a debt management plan that will work best for you and your unique goals is the first step.

Diminishing your debt should be one of your goals. Seeing your debt decrease will encourage you to save and build more wealth for your future self. There are various strategies you can use to settle your debt in a way that works best for you.

3. Stick to your retirement plan

It’s like sticking to the road map, even if there is construction along the way. Having a retirement plan can help you look into your future more optimistically because you’ll be comfortable knowing steps to ensure it have already been taken. This can be really hard when markets bottom-out or there is a major crisis – but this is when it’s even more important to stick to YOUR plan.

If you’re struggling to stick to your plan, consider doing your research on the various retirement plans and consult your financial adviser for help with balancing your investments or maximizing your tax advantage in order to build a substantial investment portfolio whilst creating more liquidity for your current situation.

4. Adopt a more positive outlook on your finances

Developing a positive outlook towards money begins with you understanding that a life of abundance is created by starting to enjoy what you have instead of focusing on what you think you need. It’s about stopping to smell the roses on your long-distance run, or taking a break to drink in the scenery on your road-trip.

Learn to make saving a part of your lifestyle. Recognise that short term savings can be good but prioritizing long term savings can create a more sustainable future for you. See it as a way of ensuring you have more spending power in the future.

Partnering with a financial adviser can help you put a plan into place – but also change your behaviour and attitude when it comes to money to make sure that your complete financial plan supports the life you want to lead and the legacy you wish to leave.