Women and the financial crisis

There is a financial crisis on, and with all crises there are effects and fallouts. SAPA reported that the Gauteng MEC for health and social development, Qedani Mahlangu, recently stated that women were feeling the worst of the crisis, with a higher unemployment rate than men. A recent MasterCard report on Socionomic inequality also found that women were in a worse off position than previously. So what are the facts?

• Fewer women are employed than men
• Women hold fewer management positions
• Yet 52.3% of women make the major financial decisions

Now if women's equality is declining, yet a majority of women are responsible for the major financial decisions in the household then there is something seriously out of kilter. The fact is we live in a highly patriarchal society where women are still considered second class citizens although in reality more women take care of the finances than men. There are things, however, that women (and men) can do in order to be able to better handle their finances in tough economic times like these.

Planning a budget is the first and most important thing to do, after that you can know what you need to spend in order to survive and then you will know how much money you need to set aside to protect yourself and your family from any unforeseen upsets. A rule of thumb suggests that putting aside at least three months worth of expenses will help you weather any sudden shocks to your financial situation, like losing your job. Planning now for the future will help ensure a better tomorrow. Setting aside savings today is essential to growing in the future.

Cheapskates and proud of it!

Every year there are dozens of newspaper, magazine and blog articles dispensing free advice on how to save money in tough times. These are not necessarily the best pieces of advice, but are always highly entertaining - if only to see how far some people will go to save a buck or two. Justmoney put a few of these together for you - use them, don't use them... either way they'll provide food for thought.

Water & Electricity

With municipal rates climbing at an alarming rate, trying to find ways to save money on them makes complete sense. Sensible suggestions on this topic are usually to do with saving your water usage - taking a shower instead of a bath, turning off the tap while brushing your teeth or maybe even watering the garden at night to avoid excessive evaporation. Pushing it is when you take the suggestion to "flush every now and then" or to "wash your body and your clothes in the shower at the same time".

When it comes to saving electricity, fitting more efficient light bulbs can save you on the power usage. Heaters are big users of electricity or gas, so instead of firing up the heater at the slightest hint of cold, consider wrapping in a few extra layers instead and see if that works for fighting off the cold. The most cheapskate advice we've read about saving money on electricity? "Visit friends and family as often as possible during winter. Then you don't have to cook for yourself and can keep the lights off the entire time you are out of the house..." Yes, it might save you some money, but good luck in saving your friendships when you pop round for dinner three days a week...

Cleaning Products

We all know that cleaning products are expensive items, so saving a few bucks on them might just put you right. Depending on how dirty your house is, this homemade cleaning concoction might just do wonders for your budget as well as your dirty countertops.

Combine white wine vinegar, bicarbonate of soda and lemon juice. Then just repeat "Martha Stewart" in your head as your wonder around the house cleaning everything in site...

Shampoo and shaving cream are both expensive bathroom items. Get that little bit more out of them by immersing them in hot water when they seem to be empty - you'd be surprised at how much more you can get out when you really try.

"Wash, rinse, repeat?" You must be joking- these are tough times people - one round of hair cleaning is good enough -you'll double the lifespan of your shampoo and conditioner!

Pushing it a little...

Charging your cell phone at work is probably something you can get away with, charging the rest of your household appliances may be pushing it a bit too far. Yes items? A cell phone, possibly your digital camera battery. No items? Electric toothbrushes, razors, children's toys and anything else that might require an additional bag to sneak them into work.

Our favourite money shaving tip!

Trawl the Internet long enough and you'll find so many money saving tips that the line between bright and bizarre will begin to blur. But one sneaky little money saving tip you just have to love has to do with toilet paper of all things - hardly a massive expense to most of us, but something that seems to run out faster than you can imagine.

The theory? Squash your toilet rolls before you place them on the roller at the wall. This way, your kids won't be able to roll out meters of the stuff at a time and you'll suddenly find yourself making the loo roll last a little longer. Granted -it's not the world most enormous saving, but you have to love the ingenuity of the idea.

Got any really original money shaving tips for us? Send them to us at editor@justmoney.co.za and you could see them in one of our next newsletters.

Five Fundamentals

We are in the midst of a global recession - the world economy has had the mother of all sugar crashes and after years of living a good life scoffing down credit it is time to take stock and get back on track. The only thing that can save us now? Getting financially fit again...

Step 1 - shift the mindset

Deciding to get physically fit takes a change in mindset, a watershed moment when you have had enough of being unhealthy and choose to change your lifestyle. Similarly, getting your finances in order requires a dedication on your part to make it work. If you really want to save yourself money, make a commitment to yourself and to the cause and follow your plan religiously. There already? Half the battle is won.

Step 2 - make a list

Just as it is important to make a list of all the foods you eat so you can work out what to cut out, knowing exactly how you spend your money is crucial if you plan to shave some expenses off your lifestyle. Make a list of all your expenses during a given time frame - and double up by going through your bank statements to ensure that nothing slips through the cracks. Don't forget those late afternoon chocolates and the coins you used to pay the car guard. Include everything; then move on.

Step 3 - draw up a budget

While eating and exercise plans are your blueprints for successes in health, drawing up a budget is crucial if you plan to make significant inroads into your personal finances. Knowing what you spend each month allows you to plan ahead and, even more importantly, it will highlight where and when you save money by having each month side by side. It is the best way to see how you are progressing and without one you may not realise how your new approach has affected your savings. Draw one up. TODAY.

Step 4 - Embrace Technology

You use heart rate monitors as you run and check your BMI to track your progress when you exercise - isn't it time you embraced technology in your personal finances as well? Banking online is the fastest way for you to shed a few Rands off your monthly expenses.
Apart from being able to do it from the comfort of your home (meaning you'll be less inclined to find an excuse to manage your money) you will save money on everything from money transfers to checking your balance. Banks have begun increasing the costs of banking within a branch to save on their own admin costs, so by banking online you'll negate this increase.
Need an example? You could spend just under R20 every time you make an account payment from a branch with many transactional accounts. The same thing online? Free with an electronic account.

Step 5 - Little things add up

The little things add up - make no mistake about it. Sticking to your diet is crucial if you want to see the best results - cutting down costs is no different.
Drawing money from another bank's ATM has got to be one of the most needless wastes of money in this country. You'll pay around R7 extra for every transaction you make from another bank's ATM. Do that a couple of times a month and you've chucked away a Friday lunch.
Sites like www.justmoney.co.za allow you to compare bank costs in real time. Plug in the way you bank, compare the various costs within the marketplace and make a call on where you should be banking. And please - don't just bank with the same bank your parents did - times have changed - its time you made the change too.

The fastest way to waste money on bank charges? Become apathetic about the little things.

Is it time to get saving?

Phillip Matlakala who is the CEO of Metropolitan Retail has recently commented on creating a culture of savings in South Africa. We have a comparatively low rate of savings compared to the rest of the world and we don't care much for saving here. There is also a perception that the banks are overpriced. However many folk get confused between saving and investing. Now to put your cash in a savings account that pays less interest than inflation takes value away is not an investment decision, but it is a way of storing up money that will hold value longer than cash under the bed.

• Plan a budget
• Get a savings account
• Save now for the future

The comments referred to above have sparked a discussion about the relevance of savings. A Fin24 article noted that in developing countries those countries with the highest rates of savings tend to do well. Remember savings is not investment. An investment is designed to grow capital or to hedge it against the steadily eroding values in a growth model economy. Savings are sums that are put aside for later, it is that proportion of your income that is not spent, and if you keep it in cash under your bed you will lose value quicker to inflation than if you put it in a bank savings account, even if that account only pays low rates of interest.

Savings accounts act as a buffer against uncertainty. Just for general living a buffer of three months income should be able to see you through any unexpected shocks, the bigger your buffer gets that longer you can hold out if things go wrong. Fast developing countries, like India and China, know this. They use the government to encourage savings and we should be doing the same thing here in South Africa if we are serious about a development economy being developed here. So get a savings account today and start planning that budget to buffer you against the future and smooth your ride while you go there.

Embrace the Recession!

Embrace the Recession!

Its official, the recession is here.

Throw in a case of winter blues and a splash of negative media sentiment and you could be in for a long four months. But fear not dear readers, this month we try something a little different - we give you actual savings... that you can use right now!

Some of these ideas won't be new to you, some of them will, but because you know this advice could actually make a difference to your daily expenses, why not actually put some of this into practise? Even if it's just for a month. Then write to us and tell us about it. Better yet, offer some suggestions of your own.

Socialising

Just because the recession is official it doesn't mean that you need to cut down on your social ties completely, it's just time to become a little more savvy on where you go and when you do it. Looking for a drink? Why not socialise during happy hours when you can literally save 50% on everything you buy!

You know when your local has its happy hour, but it is usually a few hours earlier than you would normally go and have a drink, so why not start festivities a little earlier this weekend a take advantage of some lower prices.

Movies

Keep your movie nights to those specially chosen as "half price" nights and try not to splurge on a dinner beforehand or cough up exorbitant prices for popcorn and a drink - rather have something to eat at home beforehand.

Example:

We've used Ster Kinekor in this example, but Nu Metro Movies are half price every Wednesday too...

Saturday Night Movie:

2 x Movie tickets: R90.00

Regular popcorn, regular coke, dairy milk chocolate: R40.50

Total R130.50

Movie special night: 2 x tickets to any show R44.00

Total Saving R86.50

Grocery Shopping

When purchasing basic household goods try to stick to no name brands which offer standardised packaging and no brand name all of which you would usually be paying for.

Example: We compared branded goods to the no name brands offered from Pick n pay....

Branded Goods		No Name Goods
Five Roses Tea-bags	R10.99	No name tagless teabags	R10.95
Parmalat Fresh Cream	R9.99	PnP fresh cream	R7.99
Mccain Country crop frozen veg	R17.99	PnP organic frozen veg	R12.99
Handy Andy all purpose cleaner	R11.95	No-name all purpose cleaner	R8.39
Omo washing powder	R29.99	No name washing powder	R23.99
Bakers choice assorted biscuits	R66.99	PnP assorted biscuits	R44.95
Safari Choice mixed dried fruit	R29.99	No name mixed dried fruit	R15.99
Dettol Soap	R3.95	No name beauty bath soap	R3.29
Elastoplast clear plasters	R12.99	PnP clear plasters	R7.99
Total cost	R194.83	Total Cost	R136.43

Total Saving: R58.40

Shopping for Clothes

This one isn't rocket science, but just in case you need a reminder...

The most obvious piece of advice is to buy quality brands that don't charge a premium for the label, but if you simply MUST have designer brands, then try to buy your seasonal items in advance or at the end of the season you are buying for. Buying in season or just before the season starts means you are most likely paying a premium price for those clothes, so if the finances are in need of some trimming, but you aren't prepared to cut out the chic, time your shopping sprees correctly.

Travelling

With petrol on the increase it is time for South Africans to embrace a custom used all over the rest of the world - car pooling. If you take public transport to work, then there is little you can do to change the cost of your commuting. If you drive a car however, the time to cut down on petrol is now. Find work colleagues who live close to you and arrange a car pool system to cut down on all your travel expenses. One day at a time or one week at a time - any time you aren't driving your car you are saving on petrol costs.

By the way, you are not only saving yourself money, but contributing to decreasing traffic on the roads and pollution in the air.

Dining

Our favourite way to cut down dining costs? Bring your own lunch to work! You know you should, we know you should, and the guy who sells you fast food for lunch everyday know s you should. R35 rand a day on lunch - not when you are trying to cut back on expenses - your mom made you sandwiches for school for more than 10 years - why not return to the past?

R30/day on lunch = R150 a week on lunch = R600 a month on lunch alone. Buy a loaf of bread, some cheese and sandwich toppings and suddenly you can afford the insurance on the car. Makes you think...

If youhave to eat out for dinner, winter is the time to do it. We've all seen how many restaurants ave winter specials, so if you are in need of some spoiling, make sure you take advantage of your local restaurants winter special. Chances are that these will only apply to week night, so do your homework carefully and you could end up eating and drink for two for well under R100. Live in Cape Town? Mail us and we'll send you a list of all the half price specials for this Winter!

General Expenses

It wouldn't be a Justmoney story without us reminding you that youare more than likely paying too much money on a range of financial services you use. Our latest poll revealed that most of our users are spending more than R200 a month on bank Charges - that is unbelievably high in these tough times.

The bank accounts below will charge you less than R100/month and give you virtually everything you need to bank the way you do at present.

Things to remember:

Dont draw money from another bank's ATM - ATM withdrawal charges are avoidable. Draw from your own bank. Always.

Review you insurance

Any idea what your car insurance would cost under a different insurer?
Why not find out immediately here.
Plug in your vehicle details and get real time quotes from a number of South Africa's top insurers.

Heard it all before? Probably. Ever actually put it into practise? Probably not...

For the sake of your sanity why not actually put these ideas into practise? Suddenly you'll find the sun just around the corner and the balance in the bank looking all the more healthy. We'd love to hear your own money saving tips, so why not drop us a mail at info@justmoney.co.za and make some suggestions.

How do I save?

In these turbulent times having a little bit put aside is essential. The thing is how do you go about saving? There are many savings accounts out there but not all of them are going to be what you need. So Justmoney decided to look at savings accounts and work out what you can do. This is what you need to do first in order to get you on the road to saving and protecting your future against lifes ups and downs.

• Plan a budget
• Set aside what you can
• Compare savings accounts

There most important thing you need to do is to draw up a budget. When you have planned a budget then you can work out how much you can save. Even if it is only a small amount, put it aside each time you get paid and save it up for a rainy day. Then find out which is the best savings account for you. There are a few things you should ask yourself. Do you want to use your savings account for transactions? What sort of access do you need? Instant? Fixed period? 32 Day notice? When you have worked out your budget you should save a regular amount each month.

Justmoney ran its calculators and can suggest that if you can keep at least R5000 in your savings account then a Sanlam Liquid account will pay well. If you can keep R100 minimum for 12 months then a Standard Bank Contract Save is a good account. The ABSA Target Save account pays well if you have R100 and can keep it for 6 months with a 32 day notice period. And if you can keep a minimum of R10 000 then the Nedbank Park-it account allows you 24 hours withdrawal notice after you have kept the money in the account for at least 14 days.

The best way to realise your savings dream is to deposit a regular amount and put it in a low or no fee account, then have a long term plan and expect to not touch that money for at least a year if not longer. This way you can take advantage of interest compounding and grow your money.