How can I look after
my money better?
LET’S LOOK AT THE SECRETS OF THE
BIG FIVE.
THE SECRETS OF THE BIG FIVE
In Africa, we are very close to the laws of the jungle - learning through watching and
observing our magnificent wildlife.
At Old Mutual, we looked at how the lion, leopard, elephant, rhino and buffalo
behave to protect themselves. We have applied these laws of the jungle to the streets
of Africa to help you manage your money better.
Discover the Secrets of the BIG FIVE and how they can be used to improve your
finances.
HOLD ONTO YOUR SEATS, LET THE MONEY SAFARI BEGIN.
CONTENTS
1. THE SECRET OF THE LION page 2
2. THE SECRET OF THE LEOPARD page 3
3. THE SECRET OF THE ELEPHANT page 4
4. THE SECRET OF THE RHINO page 6
5. THE SECRET OF THE BUFFALO
page 7
6. HOW CAN I PROTECT WHAT IS IMPORTANT TO ME?
page 8
1
How can I save when I have
little money to begin with?
LET’S TALK THE SECRET OF THE LION
Why do you think the male lion eats before the rest of the pride? No, it’s not because he is
greedy and bossy… it’s so he can be sure of having the strength he needs to protect
his family from any danger in the future.
It’s a good lesson.
Before you do anything else, put aside a set amount when you get paid and save it. In other
words, pay yourself first - and make sure you look after your future.
Put some money away, even if you think the amount is too small, you’ll be surprised how
quickly it mounts up.
SOME TIPS ON CREATING A HABIT OF SAVING FOR YOUR FUTURE
• Take a portion of what you earn and set up a monthly debit order for a savings plan.
• Decide on a specific amount and invest it every month in a savings plan.
• Plan a monthly budget and don’t exceed it.
• You can even ask your bank to put a limit on how much you can withdraw.
You could choose what type of savings plan you want to invest in. This could be a simple
savings account or you could invest in unit trusts, but the best way is to talk to
a financial adviser. They’ll give you the advice on how to save and, most
importantly, grow your money.
• P
AY YOURSELF FIRST LIKE THE LION
• CREATE THE HABIT OF SAVING
• START WITH A SMALL AMOUNT
EACH MONTH
2
How can I create a plan for
my future?
LET’S TALK THE SECRET OF THE LEOPARD
Have you ever watched a leopard hunt? They like to climb high on a tree or hill from where
they can plan their day.
The leopard decides what it wants to eat and then
never lets its prey out of its sight, patiently planning
and moving towards the goal.
ou can learn from the leopard to create a financial
Y
plan so that you always keep an eye on your goals.
SO WHERE DO YOU WANT TO GO?
Like the leopard, you need to hunt for what you want the most out of life. Begin by writing down one goal under each LONG TERM GOALS
of these headings:
SHORT TERM GOALS
These are goals you want
to achieve within the next
two years.
Examples: Buying a new
lounge suite; buying a new
computer.
First 2 years
MEDIUM TERM GOALS
These are goals you want to
achieve within three to five
years.
Examples: Get a part-time
education or start your own
business in a few years.
3 to 5 years
NOW, HOW WILL YOU ACHIEVE THESE GOALS?
Begin by developing a plan that can help you achieve
your goals. Many people save a little bit for each of
their three goals, which make sense... as you feel that
you are working towards rewards now and in the
future.
These are big goals that
could take more than
five years to achieve.
Examples: Buying a
house; making sure you
have enough money
when you retire and stop
working.
After 5 years
• PLAN LIKE THE LEOPARD
• CREATE A VISION
• WRITE DOWN YOUR GOALS
3
How can I keep track of what
I am spending?
LET’S TALK THE SECRET OF THE ELEPHANT
Elephants are known for having a great memory and are careful to make visual notes of food
sources along their migration paths. It’s a good lesson. We can manage our money much
better if we write it down in order to keep track of it.
And, of course, knowing exactly what your expenses are can take out the worry and stress
of spending.
Save, spend, record, and remember. Gain control of your finances:
STEP 1
LEARN WHAT YOU EARN
Look at how much you earn every month and ask yourself:
• How much money can I be sure of getting each month?
• What gets deducted monthly, such as tax or pension?
STEP 2
KNOW WHAT YOU OWE
Gather all your bills together and write them down.
• What do you spend your money on?
• How much money do you owe?
• Are there other things you have to pay for in the next 6 months?
STEP 3
THINK ABOUT YOUR EXPENSES
How much do you have left after you’ve paid for everything?
• Are you spending more than you need to?
• What can you sacrifice or change?
• Are you saving enough?
4
• REMEMBER LIKE THE ELEPHANT
• LEARN WHAT YOU EARN
• KNOW WHAT YOU OWE AND SPEND
STEP 4
DRAW UP YOUR BUDGET
Design a workable budget for your household:
• How much money do you have left, after bills and essentials?
• Write down your future costs that you expect to pay. These could be fixed monthly amounts
(e.g. rent) or amounts that can change every month (e.g. food). Don’t forget about irregular
costs, like entertainment and clothing.
• What can you change to live within your means?
STEP 5
REVIEW YOUR BUDGET
At the end of the month, compare what you budgeted to what you actually
spent.
• Are you sticking to your budget?
• Is your budget realistic?
• What changes do you need to make to your budget?
TO LEARN HOW TO BUDGET, ALL YOU NEED IS A PEN
AND PAPER TO WRITE IT DOWN.
5
How do I take charge of loans
and the money I owe?
LET’S TALK THE SECRET OF THE RHINO
Rhinos are fairly peaceful and don’t have many enemies, yet the mother rhino often has to
defend her calves from predators or dangers.
The rhino weighs up her options but when she is threatened, she charges down the predator
to protect herself.
It is the same with your money; if you borrow too much money then this can threaten your
financial security. Loans can be expensive and sometimes, you need to take charge by
reducing your debt.
TIPS TO MANAGE YOUR LOANS
MAKE A PLAN:
• Compare interest rates and find the best loan for you. Do some research and ensure you
don’t go for the first available loan.
• Try your best not to miss payments.
• Seek financial advice if you don’t understand what you are about to sign.
• And if you have many loans, first pay off the loans that charge the highest interest rate
to keep your costs down.
USE WHAT YOU BORROW FOR A GOOD REASON
• Avoid buying stuff that loses value, like a fancy expensive watch.
• Only borrow money when it creates an opportunity. For example, taking out a loan to
start a business can be a good investment in your future.
• Can you afford it? Remember you have to pay back more than what you borrowed
because interest will be added.
• Cash is king! If you can wait for something, save money and then pay cash. You may
even get a cash discount!
• CHARGE DOWN DEBT LIKE THE RHINO
• BORROW MONEY RESPONSIBLY
• REPAY HIGH INTEREST LOANS BEFORE
OTHER LOANS
6
How can I grow my money
safely?
LET’S TALK THE SECRET OF THE BUFFALO
It’s a fact that buffalos form really big herds, some of the biggest in nature. And, even though
building a large herd takes a great deal of time and patience, it pays off in the end in terms
of extra security.
Buffalo can inspire you to protect your assets by getting a financial adviser to be your partner.
They will help you invest wisely to grow your wealth.
LEARN TO INVEST YOUR MONEY SAFELY
Investments take time and they will grow steadily. Follow the steps below to invest your money
safely:
STEP 1
STEP 2
STEP 3
STEP 4
STEP 5
S
et financial goals you want to achieve in the next few years and for the
future.
M
ake sure you have a financial adviser you trust, someone who will help
you identify which investments are right for you.
C hoose an investment or insurance company that has a good reputation to
give you peace of mind that they will deliver what they promise.
A
sk lots of questions. For example: What happens if I stop saving? What
happens if I want to withdraw my money?
Every year you must review your financial plan with your adviser. Keep
track of your long-term goals.
• PROTECT YOUR MONEY LIKE THE BUFFALO
• AN ADVISER CAN HELP YOU PLAN YOUR FUTURE
• REPAY HIGH INTEREST LOANS BEFORE OTHER LOANS
7
How can I protect what is
important to me?
LET’S TALK INSURANCE
Insurance is a protection plan that you buy to pay you cash when certain unexpected bad
events happen. When you buy insurance, you pay a small amount every month for this
protection – this amount is called an insurance premium. This gives you and your family
peace of mind that you are protected.
LIFE INSURANCE PROTECTS YOUR
FAMILY IF YOU PASS AWAY
HOME AND CAR INSURANCE
PROTECTS YOUR ASSETS
What happens when you are no longer
around? Buying life insurance is one way
of making sure that your family receives
a cash payment in the event that you
pass away.
You can buy insurance to pay you if
something bad happens to your
home or your car or other assets that
are important to you or your business.
Life insurance can be used to pay
for any expenses, such as using
the cash to pay for groceries and daily
expenses. It can also be used for things
like funeral services, unsettled hospital
and medical bills, mortgage payments,
business commitments or education costs
for your children.
An example of life insurance is a funeral
plan. This plan usually pays out a
specific amount of money to your family
within a few days of a death.
Another example of life insurance is
disability insurance. This pays you
out if you become disabled and are no
longer able to work and earn an income.
This type of insurance is also called
income protection.
8
For example, you can buy car insurance
to pay you out if your car gets stolen
or damaged by another person or
gets damaged in a fire. This means
that when the event happens, you do not
have to come up with a large amount of
money to cover the cost of repairs or a
new car.
Who can help me manage
my money?
LET’S TALK FINANCIAL ADVICE
An Old Mutual Financial Adviser can help you answer these types of questions:
A
•
•
•
•
•
•
•
•
FINANCIAL ADVISER CAN HELP YOU PLAN FOR YOUR FUTURE
How much money should I be saving each month?
How do I create a financial plan to protect my family?
When is borrowing money a good thing and when can it be bad?
Which loans should I pay off first?
How do I know if I am borrowing too much money?
How much insurance do I need to buy to protect my family?
How much will insurance cost me every month?
How do I know which company I can trust to make sure we get paid when bad things
happen?
But I don’t earn
enough to save!
Where do I put
my savings?
But why must
I save?
How much
must I save?
But I’m always
short of money!
What do you mean
by automatic savings?
WHO CAN I CONTACT FOR MORE INFORMATION?
Come talk to us at Old Mutual. At our branches our financial advisers can help you with savings,
investments and insurance services. We also provide financial advice. For more information, visit
your nearest Old Mutual branch or go to www.oldmutual.com.
We look forward to helping you with your money matters.
The information provided on this document is general advice only. It has been prepared without taking into account your individual
objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having
regard to your own objectives, financial situation and needs. Speak to your adviser or visit your nearest Old Mutual Branch for advice
that will suit your needs.
OMMS 12.2014 L7535
This brochure is proudly brought to you by Old Mutual’s
ON THE MONEY PROGRAMME.
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