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Everyone knows that saving money is difficult, but you know what’s harder? Trying to pay off huge amounts of debt! Of course, it’s not always possible to live without any loans, especially something like a home loan that might take 20 years or more to pay off, but you really don’t need to rack up unnecessary credit card or store card debt. 

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Avoiding this kind of debt is easier than you think. Here are a four healthy habits that can lighten the load and take you one step closer to financial freedom. 

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1 Reduce or eliminate

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If you’re deep in the debt trenches already, let’s get you out ASAP. The first step is to formulate a clear strategy to make sure you can pay the minimum monthly instalments as well as some additional payments. Two strategies that work are the snowball method and the avalanche method. Another option is to speak to your bank and consolidate multiple loans into one single loan, which might get you a lower interest rate. This can simplify payments and potentially reduce your monthly expenses. 

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2 Create healthy habits

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Interest is a double-edged sword: it can grow your savings (good!) but it can also make your debt far more expensive (bad). To maximise the good side of interest, set clear savings goals and put money into a savings account via a monthly debit order so you’re not tempted to spend it. Use 22seven to make a budget and you’ll quickly see where you can cut back on monthly spending. Clothes, takeaways, coffee… These are good places to start. Use the money you’re not spending on frivolous things to beef up your savings or pay down your debt. And don’t forget about an emergency fund… This kind of savings account will prevent you from needing to go further into debt if you need cash fast. 

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3 Avoid common pitfalls

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If you’re prone to falling for online deals and promotions, quit scrolling and delete those apps. A credit card should be your very last resort when buying something at the shops. Only use a credit card if you can pay off the balance in full each month. 

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Lifestyle creep is another common pitfall for taking on more debt. As your income grows, resist the temptation to move to a bigger house or buy a fancy car. Instead, save or invest the extra income. Stick to your budget and your financial plan, even if it seems hard at the time. Consistency is key! 

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4 Increase your income

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Battling to make ends meet? Embrace the side hustle. From freelance work to selling handmade goods, any extra income you can bring in will help pay down your debt faster. If you have limited time outside of your job, consider enhancing your skills through courses and certifications to increase your earning potential down the line.

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Remember, getting rid of debt is a long game. It might be hard right now, but chip away and you’ll soon see the rewards of your efforts.

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Everyone’s always going on about how you should aim to achieve ‘financial health’. But what does that mean? It’s pretty simple: Just as physical health relates to the state of your body, financial health relates to the state of your financial affairs. When your finances are healthy, you can pay your bills on time, save for future goals and handle unexpected expenses without breaking a sweat. Here are six steps to get you started.

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‍Step 1: Create a budget – and stick to it!Budgeting is a crucial step to achieving financial health. Start by tracking your income and expenses. 22seven makes this super easy. Just link all your accounts and you’ll quickly get a birds-eye view of your spending. With a budget, you can cut unnecessary costs and allocate funds more effectively. Be realistic and honest with yourself. And remember: a budget is a life tool, it’s not set in stone. You can review it any time as your lifestyle and your goals change.

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‍Step 2: Build an emergency fundLife has a way of throwing curveballs, from car repairs to medical emergencies. Having an emergency fund can be a lifesaver. Aim to save at least three to six months' worth of living expenses. This sounds daunting, but start small. Saving a little bit each month will quickly add up over time.

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‍Step 3: Manage your debtDebt can be a major drain on your financial health. Here are three ways to take control.First, prioritise high-interest debt: Focus on paying off ‘expensive’ debt like your credit card and any small loans. The faster you pay these off, the less interest you’ll accrue.Second, consolidate if necessary: If you have multiple debts, speak to your bank about consolidating them into one loan with a lower interest rate. This can simplify your payments and save you money in the long run.And lastly, avoid taking on more debt: It’s so tempting to live on credit, we know! But it’s not worth it. Stay away from any new debt until you’ve paid off all your existing loans.

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‍Step 4: Save for the futureIf you start now, you can achieve long-term goals like buying a home, educating your kids and saving for retirement. On the latter point, make sure you’re contributing to a retirement fund. Yes, from today! If your employer offers a pension plan, take full advantage of it. If not, speak to a financial advisor about setting up a retirement annuity (RA). A certified advisor can also help you make other smart investment choices to grow your money over time.

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‍Step 5: Get insuranceIt’s such a grudge purchase, but insurance is a crucial part of financial health. Whether it’s health insurance (medical aid), car insurance or home insurance, having the right coverage can protect you from significant financial setbacks.

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‍Step 6: Talk about it!In many cultures, talking about money remains taboo. It shouldn’t be! Discussing financial matters openly with your partner, your family or your friends is a healthy part of the journey. Share tips, seek advice and support each other.

At the end of the day, becoming a money maestro is a marathon, not a sprint. It takes time, patience and discipline, but the rewards are well worth it. It’s never too late, so back yourself and start the journey towards financial health.

The 2024 tax filing season officially kicks off on 15 July, and the first auto-assessments have already started rolling out as of Monday, 1 July. If the thought of SARS and all their complex systems has you feeling a bit overwhelmed, don't sweat it. As an individual taxpayer, the main thing you need to focus on is your auto-assessment.

Life’s too short to worry about IRP’s at ITA’s right? Not quite! It’s important to know the basics of your assessment. This way, you can make sure your tax affairs are in order and SARS doesn’t owe you any money (or vice versa)!

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Here’s what you need to know.

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What is an auto-assessment?

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To save time and cut down on back-and-forth paperwork, SARS automatically assesses certain taxpayers using data from employers, financial institutions, medical schemes, retirement annuity fund administrators, and other third-party data providers. The assessment therefore needs no input from you. 

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How will I know if I have been auto-assessed?

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Assessments are conducted - you guessed it - automatically, and you should receive an SMS or email from SARS informing you that you have been selected for an auto-assessment. These notifications can land in your inbox anywhere from today until 14 July. 

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I have been auto-assessed — what now?

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If you’re happy with your assessment, great! You don’t need to do anything else or file an additional tax return. But, if you’re not satisfied with it, you can still file a tax return the normal way between 15 July and 21 October. 

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Filing an additional tax return means you can include all of your possible deductions or extra income. After you submit this return, SARS will issue you an assessment (called an ITA34) showing your new tax refund or the amount you need to pay. If there’s a difference between your auto-assessment and your ITA34, SARS will pay you an additional refund. However, if you report extra income,you'll need to make a tax payment to SARS. 

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Quick tip: It’s super important to disclose any additional income you receive because SARS has some pretty clever and effective ways of picking up on this!

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How can 22seven help?

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Use 22seven’s transaction categorisations to keep track of any additional payments you made towards medical expenses, tax-deductible donations, or expenses related to earning extra income. You can also use the date range filter in the advanced search feature on the Transactions page to set the dates for the tax year in question. Easy peasy!

Tax season doesn’t have to be scary if you know what to expect from your auto-assessment, and have your ducks (and paperwork) in a row. If you have any questions about your tax situation, it’s always a good idea to speak to a certified tax professional or your financial advisor.

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What causes the rand to strengthen or weaken? It's a complex cocktail of factors including political stability, economic performance, interest rates, global market sentiment and the performance of powerful currencies like the dollar. It’s all largely out of our control, but when the currency does flex its muscles or take a nosedive, it can affect everything from grocery shopping to holiday plans. 

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Imported goods and services

All those cool gadgets, fancy clothes and luxury cars that come from abroad… When the rand is stronger, importing these items is cheaper and those savings (sometimes) get passed on to you. But when the rand takes a dip, those same items become a lot more expensive. Getting your hands on that new smartphone or pair of designer jeans will put a strain on your wallet and make it harder to stick to your budget.

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Fuel price

Fuel is another area where currency fluctuations can hit hard. Since South Africa imports a significant amount of fuel, and the global price of oil is in dollars, when the rand slides against the US currency it costs more to buy the same amount of fuel. That extra cost gets passed on to you at the pump.

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Higher fuel prices don’t just affect your monthly petrol bill – they also drive up the cost of transportation and shipping, which can lead to higher prices across the board. Yup, a weak rand can make everything more expensive.

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Travel and tourism

Dreaming of a holiday abroad? Hmmm. The strength of the rand can make or break your travel budget. If you’re thinking of going to Europe or the US, especially, a weaker rand might make that trip impossible. You might have to cut back on your plans or reconsider your destination.

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Savings and investments

The relative strength of the rand also plays a role in your savings and investments, especially if you have assets in foreign currencies. A stronger rand can mean lower returns on your foreign investments when converted back to rands, but it can also be a great time to buy foreign assets at a ‘discount’.

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If you have local investments, the impact can be mixed. A weaker rand can be great for South African companies that export goods, as they earn more in foreign currency, which can boost their profits and stock prices. However, it can also lead to higher inflation, eroding the value of your savings over time.

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Inflation and interest rates

Speaking of inflation… As the general cost of everything rises, this puts a huge strain on household budgets and makes it harder to save for the future.

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To combat rising inflation, the South African Reserve Bank might raise interest rates, which means you’ll have to pay more each month in interest on any loans you might have. Your home loan, for example, can quickly become much more expensive.  

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In short

While you can't control the ups and downs of the currency market, you can be proactive with your financial planning. Use 22seven to create a realistic budget that leaves some buffer for unexpected price increases. And chat to a certified financial advisor about how you can save and invest to protect yourself from the worst of the fluctuations.

Does it feel like everyone around you is managing their money better than you are? Financial FOMO is a real thing, but it doesn’t have to be! Here are five ways to also be ‘good’ at money. 

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1. Spend less than you earn

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It sounds easier than it is… The first step is to have an overview of all the money that comes in every month, and the money that needs to go out (bond payments, rent, utilities, insurance etc.). Whatever is left should also have a clear destination, even if it’s slightly more flexible. 

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Track your expenses using 22seven and distinguish between Recurring and Day-to-day expenses. Recurring expenses (like your bond repayment) are non-negotiable but challenge yourself to spend less on day-to-day expenses, like eating out and groceries. Regularly check to see if you’re on track. 

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The 50/30/20 budgeting method is great if you’re feeling stuck. Basically, 50% of your net income goes towards recurring expenses; 30% to day-to-day expenses and 20% to the future, like paying down debt, retirement savings, emergency savings etc. 

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2. Pay off debt

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There’s ‘good’ debt and ‘bad’ debt. Some examples of good debt include a home loan (if the home will increase in value over time) or a student loan; bad debt comes in various forms like store cards, credit cards and any other short- to medium-term loans. 

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Only borrow what you think you can afford – banks and lenders will often provide you with more credit than you may need. Repay your loan instalments on time each month: missed payments can result in penalties and interest. If you can, pay more each month towards your loan, above the minimum amount. This requires discipline but it will dramatically reduce fees and interest in the long term. 

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3. Save for emergencies

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Life throws curve balls, and those curve balls cost money. Plan for the unexpected so you’ll be prepared. For small emergencies like a stolen phone or car breakdown, consider setting up an emergency savings account (aim for a total that equals three times your monthly expenses). Only touch the money if the very worst happens and you don’t have additional funds to cover the shortfall.

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For bigger emergencies, consider adding additional services to your medical aid or insurance policy. Gap cover is an example of insurance that provides extra coverage in hospitals when your medical aid runs out. 

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4. Invest for retirement

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Planning for an event so far into the future might seem unimportant right now, but by harnessing the power of compound interest you can grow your wealth exponentially over time. Saving for the future can take different forms – the most popular is a retirement annuity or pension fund. Saving now not only allows your money to grow over the long term, it can also help reduce how much tax you pay. 

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5. Protect against the unexpected 

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As you get older, you’ll accumulate many of the same things your parents did: a family and a home… and health issues. Sorry to be a downer, but the more things you have, the greater the responsibility to protect them all. Insurance becomes more expensive as you get older, and so does medical aid. While insurance payments may feel like sending money into the abyss, the peace of mind that comes with being properly covered is priceless. 

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If you need help getting your ducks in a row, it’s always best to speak to a certified financial advisor, who can help you get started on a long-term saving journey. Good luck!

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Let's face it – we live in a digital world. Everything from shopping to socialising happens online. And while technology has made our lives more convenient, it's also opened the door to a whole host of new scams and fraud schemes. Yup, criminals are getting more creative in their quest to separate you from your money. Don’t get caught out! Here’s what you need to know.

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Most common scams

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Phishing. A phishing attack is when a scammer sends you an e-mail or text message posing as a legitimate institution (like your bank) and tries to trick you into revealing personal information. Always remember this rule: Your bank will never ask you to reveal information like your PIN, your online banking password, credit card number or CVV number.

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Identity theft. This is when someone steals your name, address and ID number and uses those details to commit fraud or other crimes in your name.

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Card skimming. Criminals attach devices to ATMs or till point machines to steal your card information when you swipe. If your card has been skimmed, you’ll quickly notice strange transactions on your account.

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Fake websites. Beware of sites posing as official portals for banks, government institutions and the like. These sites are designed to lure you in and steal your information, or plant malware on your computer. Always double-check the URL of the site and look for the little padlock icon in the address bar to ensure you're secure.

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How to spot a scam

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It’s too good to be true. The old saying is as true as ever: If something seems too good to be true, it probably is. Whether it's a suspiciously high-yield investment opportunity or an e-mail claiming you've won the lottery, always approach with caution.

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Urgency. Scammers love to create a sense of urgency to pressure you into making a hasty decision. Whether it's threatening legal action or promising a limited-time offer, rather step back, take a deep breath and do your due diligence first.

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Poor grammar and spelling. Believe it or not, scammers aren't known for their attention to detail! Keep an eye out for poor grammar, spelling mistakes and awkward phrasing – it’s usually a red flag that something's not right.

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How to stay safe

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Stay informed. Knowledge is power! Don’t ignore that internal company mail warning you about the latest scam doing the rounds. Read it and be ready. If something smells fishy, don’t be scared to contact your bank directly to confirm its legitimacy. A healthy dose of scepticism is a good thing! 

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Use strong passwords. Sorry, it’s time to ditch 1234<name of pet> and secure your online portals with strong passwords. Modern web browsers and operating systems make this relatively easy by generating passwords that are almost impossible to hack, which you can call up using the biometric features on your laptop or phone. 

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Be vigilant. Keep an eye on your bank statements and watch out for messages pinging with strange transactions. 22seven gives you an overall view of all your accounts in one place, so it’s easy to keep an eye on banking activity. The sooner you spot a problem, the sooner you can take action to resolve it.

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There you have it. When it comes to your money, it pays to be vigilant, sceptical and just a little bit paranoid. Stay safe, stay smart and don't let those scammers get the best of you!

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Let’s be honest: who doesn’t enjoy earning more money? We’re always told that ‘hard work pays off’, so when you get an increase or a performance bonus, it’s only fair to celebrate and treat yourself, right? 

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Well, yes and no. Lifestyle creep is what happens when you start earning more and start spending more as a result. Your lifestyle ‘creeps up’ on your income. Scary! All those nice little extras that you were perfectly fine without, like streaming subscriptions and expensive groceries, now seem essential. Lifestyle creep is swiping your card without clocking the total, ordering off a menu without scanning for the cheapest item, or rewarding yourself with a fancy car that costs a fortune each month. 

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The problem with lifestyle creep is that once the increase in lifestyle outpaces the increase in income, you no longer have money to spare for long-term saving goals.

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Here’s how to avoid it!

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1. Lock in your savings 

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Before you start splurging on lifestyle upgrades, make sure your emergency fund is cosy, your retirement savings are on track, and you’re not loading up on new loans. Nothing beats the peace of mind of knowing you’re protected against the unexpected – and that you’ll be able to comfortably retire one day. 

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When you get a salary increase, or when you finally finish paying off a large debt, make sure that you assign at least some of the extra money to a savings account. Automate it: set up a debit order so you don’t give yourself any chance of spending the extra. Out of pocket, out of mind!

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2. Stay loyal to your budget

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If you find yourself regularly spending more than your budget allows, you might be in the danger zone. Use 22seven to make sure this never happens. Use the spending alert function so that you know when you’re getting close to your limits. 

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Another good hack is to use the 50/30/20 budgeting method. This enables you to stick to the same percentage split no matter how much you earn. Need a refresher course? Read this. 

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3. Evaluate your lifestyle

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It’s normal to be a bit envious of others, or to feel fomo when you see your friends living it up on Instagram. But it’s also important to keep a level head. Look at how you’re living and decide what’s working and what might be due a little upgrade. Chances are that you’re just fine as you are – you don’t need to spend more on groceries, your cellphone or your gym membership. If you’re already happy living frugally, then direct any additional income towards your savings and long-term investments. 

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Final word

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We’re not saying should deny yourself the occasional indulgence – that’s totally fine! But when you earn more, try to avoid lifestyle creep so that there’s less strain on your budget and more opportunity to save and invest. Because guess what? Financial freedom is the ultimate luxury.

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Inflation is the rate at which the price of goods and services rises over time. When inflation is high, your hard-earned rands don't stretch as far, and you end up paying more for the same stuff. 

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Here’s how inflation might affect your financial plans – and how you can adapt accordingly.

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Interest rates. When inflation starts to climb, the Reserve Bank often responds by hiking interest rates to keep prices in check. What does this mean? If you have a good amount of money in your savings account, a higher interest rate means you’ll get better returns. (Yay!) But if you have a bond or another big loan, the higher interest rate means your debt just got a whole lot more expensive. With that in mind, if you’re shopping for a new car or thinking about buying a house, rising interest rates might put the brakes on your plans. 

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Cost of living. One of the most obvious impacts of inflation is its negative effect on your purchasing power. That R1 000 in your underwear drawer? It's not going to buy you the same quantity of groceries or fuel as it did a few months or years ago. Inflation can impact long-term financial goals like your retirement savings and other investments, as their real value may decrease. 

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Take these steps

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1. Build an emergency fund. A robust emergency fund is your first line of defence against unexpected expenses. Aim to save three- to six months' worth of living expenses in a high-yield account to cushion the blow of any financial shocks. Need more info – read this article.

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2. Invest wisely. The old adage rings truer than ever: don’t put all your eggs in one basket. Diversify your investment portfolio to include assets that might provide a buffer against inflation, like equities or property. These assets have historically outpaced inflation over the long term, helping to preserve your purchasing power and grow your wealth.

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3. Budget like a boss. This is where 22seven can save your bacon. Use the app to identify areas in your budget where you can cut back on spending and add more to your savings. Trim the fat and make sure your month-to-month priorities align with your long-term goals.

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4. Pay off debt. Say it again, this time with feeling: PAY OFF DEBT! High-interest debt like credit cards, store cards and personal loans can be a real drag on your finances, especially if inflation pushes up the interest rate. Need help? Read this.

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5. Stay informed. Don’t be an ostrich with your head in the sand. Keep an eye on the news and stay informed about inflation trends. It might also be time to take that big step and chat to a certified financial planner who can help you plan for your retirement and get started with things like an emergency fund and a tax-free savings account. 

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Inflation can be a real headache, but it doesn’t have to derail your financial goals. With a bit of foresight, planning and money management, you can tame the inflation monster and keep your plans on track.

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Crypto, short for cryptocurrency, is virtual currency that uses security technology called blockchain to validate transactions. Think of it as money for the digital age – no paper bills or coins, just lines of code. You’ve probably heard of Bitcoin, the original cryptocurrency, but there are thousands of other ‘altcoins’ out there like Ethereum, Litecoin, Dogecoin and more.

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If you're thinking about dipping a toe into this wild world, there are a few things you need to consider. Let’s break them down.

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Educate yourself

Knowledge is power. Before you start throwing real cash into the crypto market, do your research! Learn about the fundamentals of blockchain technology and familiarise yourself with the pros and cons of different cryptocurrencies. Explore the content of crypto educators that have been around for a while and beware of individuals who are just pushing a trend. Joining online communities will also help you stay informed about the latest developments.

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What’s your risk tolerance?

The crypto market is volatile. Prices fluctuate daily based on everything from market sentiment to regulatory news. You could make a fortune one day and lose it all the next… Before you invest, ask yourself how comfortable you are with the possibility of losing money. Only invest what you can afford to lose and be prepared for a bumpy ride.

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Choose your investment strategy

There are lots of ways to invest in crypto, from buying and holding for the long-term to day trading for short-term gains. Decide what investment strategy aligns best with your financial goals and your risk tolerance. Are you looking for steady, long-term growth, or are you willing to take on more risk for the chance of quick profits? 

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Diversify your portfolio

Just like with traditional investing, don't put all your eggs in one basket. Rather spread your investments across different cryptocurrencies to minimise your exposure to any single asset. Consider investing in a mix of large-cap coins like Bitcoin and Ethereum, and some smaller altcoins with growth potential.

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Beware of scams 

The crypto space is rife with shady operators looking to take advantage of unsuspecting investors. Always do your own research before handing over money. Look out for red flags like very high ‘guaranteed’ returns or overly complex language. Basically, if it sounds too good to be true, it probably is.

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Keep your emotions in check

Emotions can run high in crypto investing, especially when prices are soaring or crashing. Stay calm and stick to your investment strategy. Avoid making impulsive decisions based on fear or bravado and remember that market volatility is par for the course when it comes to crypto.

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Adapt or die

The crypto market is constantly evolving – new technologies, regulations and market trends shape the landscape almost daily. Stay informed about the latest developments, learn from your successes and failures, and adapt your investment strategy accordingly. 

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The moral of the story is to proceed with caution. While the potential to profit is undeniable, it’s crucial to invest with caution and due diligence. Educate yourself, assess your risk tolerance, choose your investment strategy and always do your own research before investing. Good luck!

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