I received a message she wanted to consult with me and I was pleased. As soon as we started talking [it was a tele-consultation], Olga says to me “Do you remember what you told me in 2016?”. I smiled and said,”NO, I don’t – do you want to remind me what I said to you?”
I suspected I must have called her to order as I often do with those who waste their money. Indeed I was right, she told me I told her to cut up her cards and stop buying unnecessary staff on credit. She then tells me the good news. She closed off her credit cards and paid off her personal loans. She is now free of all small debts and the only debt she has is her home loan. She and her husband then decided to buy a home nearer to her place of work in Pretoria. They moved to their new home in January and the kids are now in a new school. The good news is that because the only debt they had was their home loan, they qualified for a 2nd bond so they decided NOT to sell their house in Cosmo City but to rent it out.
She is now a proud owner of 2 homes.
I hope you too will realise that all these small loans that most people have i.e. credit cards, personal loans, clothing store accounts, furniture accounts, etc…. are just a waste of your money. If you had NO small, expensive debts, you would also find that you are able to do more with your money. Olga would NOT have qualified for a 2nd bond if she had small little loans all over the place.
IT IS THE TAX SEASON
As we come to the end of the tax year, remember that if you have extra money – the best place to put it away would be a retirement annuity because;
- No tax is payable on investment returns
- You save on tax because voluntary contributions are tax deductible up to R350 000 p.a.
- Any excess contributions are carried over to the following tax year.
- An RA is also protected from insolvency so it is especially good for those who are in business
You can also contribute to a tax-free investment account. So if you do NOT have a tax-free investment account yet or you have not contributed R33 000 to it, this is your time to make the most of your tax-free credits.
If you are ready to make the most of your money and you want a financial advisor, drop us a line at firstname.lastname@example.org
NB: Before you buy an investment property, make sure that you also understand the risks involved in being a property owner e.g. what happens if your tenant does NOT pay yourent? Visit our Blog on www.thuthuka-sa.co.za and search for the article entitled Should you buy property to rent it out?