National Treasury introduced tax free savings accounts (TFSA). From 1 March this year, we can all invest in tax free investments. This means that any interest, dividends and capital gains will not be taxed if you use the (TFSA). You can invest up to a maximum of R30 000 in TFSA in a tax year. If your contribution towards tax free investment is more than R30 000 in a tax year, you will be taxed at 40% – so make sure that you stay within your limit. So far, we all have a maximum of R500 000 in a lifetime to invest using tax free investments. You can withdraw your money at any time and the withdrawals will also be tax free. You cannot replace withdrawn amounts. Like any other investment, you are likely to see growth in your money if you invest for the long term. It is therefore a good idea to use the tax free investments for long-term investments e.g.

• To save for the university fees of your children, if  your kids are still young or  you don’t have them as yet
• To save for a deposit of your first home, if you have just started working and will only be buying your first home in at least 5 years’ time or even longer
• If you are working at the moment but you plan to start your own business later on in your career, you can save the money now to help you when you start your own business
• You can also open a tax-free account for your children and grandchildren

If you have at least R500 per month and you can put this away for a few years to come, then you can contact me to invest it for you using one of the tax-free investment vehicles. Satrix ETFs also offer tax-free investments. For more on Satrix, read the last chapter in my book From Debt to Riches: Steps to Financial Success

Phumelele is now a Financial Advisor. If you need a financial advisor, you can contact her office at info@thuthuka-sa.co.za or call 011 781 3351 or 063 034 2532

What are you teaching your children about money? Some of your responses

Great advice indeed. As a young lady of  24 years of age I decided to have a financial advisor at the age of 23 firstly because I have been inspired by your book and the work you do and secondly because my mother was in debt and I wanted to learn from her mistake. I am still a student and I currently work part-time but I wanted to start saving money. I have learned that the money I’m saving now could help me deposit my first house or help me as a mother for my kids’ education in the future.

Sincerely 

Theresa 

I am 22 and I got the debt to riches book from CNA. I made so many life changing decisions after reading most chapters.  For the 1^st time in my life I finished a book in 3 days. All I can say is we need more books like these. I am glad I got it in my prime age and I am thankful for this insightful book.

Bonolo

I don’t know how to teach my kids about money I need help because I am also struggling but I hope your book will help me.

Thank you for your help, time and love.

God bless you

Ayanda

Thank you for this email, as a young person who just started earning an income,  on a fixed contract job, I’m saving as much as I can as I’m also studying (degree electrical Eng.). Your advice‎ on money management has been helpful. You and your team are doing great work keep it up

Regards Ivan

The book is available at CNA, Exclusives, Adams and other bookshops for only R134 a copy. Over 12 000 copies have been sold to date.

Regards

Phumelele Ndumo

Financial Advisor

BCom, H.Dip Computer Auditing, MBL

Office: 011 781 3351

063 034 2532

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