The Consumer Protection Act

consumer-protectionThe Consumer Protection Act was passed in 2008, and has been in effect since 2009. The act was inspired by the fact that consumers in South Africa are often not given value for their money and are unfortunately not always treated with fairness and honesty by service providers and retailers. Whether you provide a service in your business or consume services like we all do, you should know the basics of the Act, how it protects consumers, and what service providers need to do in order to comply with it. Continue reading

Passive Income – The Benefits

passive-incomePassive income – or money that you earn without working – is one of the pillars of wealth creation. Before you shake your head in disbelief, it’s worth remembering that money can be made without working if you’ve invested your monthly surplus wisely over a number of years. Although you’ve worked to create the capital, the returns on your investment create your passive income. Here are some of the benefits of having a passive income.

Not having to work forever

Passive income, be it rental properties that bring in a monthly income or dividends on shares you’ve accumulated over time, means that you have a source of income that is separate from your job or business.

Even if your pension fund under-performs and you end up with a smaller pension pay-out than you expected, your passive income will easily fill the gap and allow you to retire comfortably – perhaps even a few years earlier than you’d planned to.

More freedom in your career choices

In today’s volatile economy and labour market a lot of people cling to their jobs for dear life, not knowing whether they’ll find something better if they lose or quit their current job. While this approach is understandable, it can also result in people stalling their career progress because they are afraid to take a risk and find something better – or start their own business.

Passive income means that you have a monthly income that is separate from your salary. This will allow you to change jobs or start your own business in the knowledge that you have a financial backup plan – a regular source of income that can pay your monthly expenses, or at least cover part of them, while you realise your dreams.

A better quality of life for you and your family

With extra income flowing into your household each month you’ll be able to afford a quality of life that may not be possible at your current income level. Although you’ll have to budget carefully and make a few sacrifices early on as you accumulate your capital, once your passive income becomes regular you’ll be able to afford that holiday you always wanted to take, or put money away for your children’s education.

Compound Interest

If you allow your passive income to be reinvested, you’ll be gaining twice – earning compound interest on money you didn’t have to work for. Passive income can be invested and seriously boost your net worth over just a few years or a decade, making this the ideal investment tool.

With all the benefits of passive income, how do we go about creating it? Our next blog will give you a full strategy to generate passive income for yourself and your family.

Broker’s Fees vs Commission

broker fees vs commissionIf you’ve taken out an insurance or investment policy you’ll probably remember that your broker received a payment for advising you on the right package and guiding you through the process of signing the forms. What you may not realise is that quite often the broker receives a commission from the insurer or financial services company on every policy that is signed. What is the difference between a broker’s fee and a commission, and what have you been paying in the past? Continue reading

Bringing about change in a business

managing-change-staff-resistanceMaking changes to the way a business operates from time to time is essential for every entrepreneur. As the economy changes and competitors change their strategies, your business will need to change in order to stay competitive and continue its growth and profitability.

Bringing about change in your business may be easy on paper – it’s not difficult to sit down and think of ways to make any company more efficient – but implementing those changes may not be as simple as you think. There are several reasons for this difficulty, including the need to invest in new equipment, skills shortages in your company, or a staff that resists change. Continue reading

Should I book my trip online or use a travel agent?

travel-bookingsOnline travel websites have become extremely popular over the past few years, with more and more people booking their holidays and business trips directly – but is this always a safe option?

Along with the benefits of booking your own trip, there is a very real threat of fraud when making purchases online, and travel websites are no exception. Dealing with a travel agent you know and trust won’t just save you time, but you may end up getting an even better deal than you would online – here are some reasons why you should still be using a travel agent. Continue reading