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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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From 1 September 2024, there will be new rules governing how you can use the money you’re busy saving for retirement. (You are saving for retirement, right?). The new rules apply whether you have a retirement annuity (RA), a provident fund, pension fund, preservation fund or a combination of more than one of these products. It’s called the two-pot retirement system and this is what you need to know:

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‍How does it work?

The new system aims to give South Africans more control over their savings in times of financial hardship, while still allowing them to preserve money for retirement. Basically, your retirement contributions will now be allocated to two pots (think of them as separate piggy banks) called ‘savings’ and ‘retirement’. 

One third of your contributions will be allocated to the savings pot and you’ll be able to access this money in an emergency. (Previously, there were substantial tax penalties for drawing early from a retirement fund.) The remaining two-thirds will be allocated to the retirement pot and will be preserved until your retirement date. 

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What will happen on 1 September?

10% of your existing retirement savings will be transferred to your “Savings” pot as an opening value, however this will be capped at R30 000 and the transfer will only happen once. From then, the one-third/two-third split will be applied to future retirement fund contributions.

You can withdraw from your savings pot once per tax year (1 March – 28/29 February) with a minimum withdrawal value of R2,000. The maximum amount you can withdraw will be the balance available in the pot. 

Withdrawals are taxed at your marginal income tax rate and each withdrawal will also be subject to a transaction fee. 

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Awesome, so I have extra money every year?

No! You should only use the money in your savings pot in an emergency. It’s not for upgrading your car or for buying new curtains for the lounge. The savings pot is not meant to be a transactional account; money you withdraw will only be replaced proportionately when you contribute again to your retirement fund(s). 

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What happens when I resign or lose my job?

The new system forces you to preserve two-thirds of your retirement until the day you retire. If you’re dismissed or retrenched before then, you can only access what’s in your savings pot. (Previously, even though it was a terrible idea, you were allowed to withdraw your entire retirement fund.) 

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What happens to my savings pot when I retire?

You can take a portion or the full amount as a lump sum pay-out (subject to tax) or you can use the full amounts in both pots to buy an income annuity to provide an income during your retirement.  

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TL;DR – give me the short version

In an emergency or during a period of financial hardship (a worldwide pandemic comes to mind), the new two-pot retirement system enables you to access a third of your retirement savings before you reach retirement age. The other two thirds remain invested until you legally retire. Of course, if you don’t need the money, you can leave your savings pot alone until you retire.  

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While saving for old-age should be high on the list of priorities, the new system allows more flexibility for South Africans to manage their funds. If you’re unsure about what you should be doing with your money, it’s always best to get in touch with a qualified financial advisor. Knowledge is power, after all!

Yup, fear of missing out isn’t just about parties and Instagram holidays; it can also rear its head in the world of money. But fear not: we’ve got the lowdown on how to conquer financial FOMO and make smart money moves in 2024.

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What is financial FOMO?

It’s that nagging feeling that everyone else is making big bucks, scoring deals and living their best lives while you're somehow lagging behind. It's that itch to keep up with the Joneses, even if it means blowing your budget or making impulsive decisions.

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It’s sneaky because it plays on our primal instincts. We’re wired to seek social connection and validation, and nothing triggers those instincts like seeing others flaunt their financial wins. Plus, in our hyper-connected world, it's easier than ever to compare ourselves to others and feel like we're falling short. We’re also constantly bombarded by online advertisements urging us to buy stuff at discounted rates for a limited time only.

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What happens if I give in?

Sheesh. It’s not good. Think overspending and unnecessary debt, not to mention a whole tonne of regret when you realise you can’t actually afford that shiny new TV. It's not a recipe for financial success.

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But don’t worry, you can beat financial FOMO. Here’s how:

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• Know your money goals. Whether it’s saving for a down payment, paying off debt or building an emergency fund, knowing what you're working towards can help you stay focused. Having clear goals also helps you weigh up every spending temptation that comes your way. 

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• Stick to your budget. This is your secret weapon against financial FOMO. Use 22seven to create a budget that reflects your income, expenses and financial goals, and stick to it like glue. Your budget is the roadmap that will lead to success and any deviations will cost you precious time. That impulse buy might seem right in the moment, but plug it into your budget first to see if it will compromise your long-term financial success.

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• Practice gratitude. When Financial FOMO strikes, it's easy to focus on what you don’t have instead of what you do have. Pause for a moment and think about the good things in your life – whether it’s a roof over your head, food on the table or the support of friends and family. 

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• Stop scrolling. Social media is a breeding ground for financial FOMO. Unfollow accounts that trigger feelings of inadequacy and rather fill your feed with content that uplifts, educates and inspires you.

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The wise Theodore Roosevelt once said, ‘Comparison is the thief of joy.’ Remember that everyone’s financial journey is unique, and what works for your bestie might not work for you. Focus on your progress and celebrate your wins – no matter how small they may seem. 

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Stay true to your goals, stick to your budget and don’t let financial FOMO derail your progress. With a little mindfulness and a lot of determination, you’ll be well on your way to financial success – no FOMO required!

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Let’s face it, saving can be daunting and it’s also a bit of a buzz-kill. Make saving fun this year by trying one of these four challenges. Use 22seven to stay on track, break those bad spending habits and give your savings account the boost it needs.

‍The 52-week challenge

‍With this challenge, you progressively increase your savings each week and watch your money grow exponentially. For example, in Week 1 you put away R10, in Week 2 you put away R20, and you continue to add an extra R10 for each week of the year. If you keep at it, you’ll put away R520 in the last week of 2024, and you’ll have more than R13,000 in the bank earning interest! (If R10 increments are too steep, choose a smaller amount.)

‍TL;DR: This challenge could be a great way to start an emergency fund, or a way to cover next year's holiday shopping.

‍The no-spend challenge

‍It’s time to make dinner at home and delete those food delivery apps! This challenge pushes you to set restrictions and only spend on the necessities like rent, utilities, medical aid etc.

Most people approach this challenge by cooking at home, finding free activities and cutting back on entertainment costs. We suggest that you set a timeframe (one week to one month) and keep yourself accountable by using 22seven to decrease your limits in the relevant categories of your budget.

‍TL;DR: This challenge helps you reassess your spending habits and save a significant amount in a short period of time.

‍The round-up challenge

‍Every time you make a purchase, round up the total to the nearest R10 and put the extra in your savings account. For example, if you pay R753 for a tank of petrol, round it up to R760 and transfer the extra R7 into your savings account.

Some banks have a round-up feature that allows you to do this automatically, otherwise you can use 22seven to check your purchases and work out the total amount to transfer to your savings account.

‍TL;DR: This is a clever way to save without altering your spending habits too drastically.

‍The 100 envelopes challenge

‍Get a stack of envelopes and number them from one to 100. The challenge is to select an envelope daily and deposit the amount that’s written on the front. By the end, you’ll have more than R5,000 saved!

BTW, to make the most of this challenge and earn interest, rather deposit the money into a savings account instead of using another envelope…

‍TL;DR: This is a fun challenge. You can start at one and work your way up to 100, or you can inject some fun and randomise the sequence.

Hey there, money maestros! Welcome to the first Slice of 2024.

We’re diving straight in with a discussion about being ‘wealthy’ versus being ‘rich’. Is there a difference? Both sound like you're rolling in Rands, but there's a nuance that’s worth exploring.

‍The cash splash of being rich

‍Let’s start off with being rich: the high-flying lifestyle, the flashy cars, designer threads… Being rich is like giving your bank account a megaphone and letting it scream: ‘I’ve got the bling!’

Yup, being rich is often about the glitz and glamour. It’s about earning an income so you can buy whatever catches your eye, whenever it catches your eye. But being rich can sometimes be a rollercoaster ride. One day you're living the luxe life, the next you’re questioning where all the money went…

The bottom line is that being rich doesn't always equate to financial security. You might have all the toys in the world but if your money management game isn’t strong, those toys will quickly disappear.

‍The long game of wealth

‍So, what does it mean to be wealthy? First of all, it’s a long game. Less quick thrill, more slow burn. It’s about assets, not accessories. We're talking investments, real estate, maybe even a few well-placed stocks. Your money is growing while you sip your coffee.

Unlike the rollercoaster ride of being rich, being wealthy brings a sense of security. It's not just about what you have now, it's about what you'll have in the future: your savings, investments, retirement funds… Becoming wealthy requires patience. It's not about instant gratification; it's about delayed pleasure. It’s about saying no to that impulse buy today so that you can say yes to a more comfortable tomorrow.

‍The freedom factor

‍What’s the biggest reward of building wealth? Freedom. When you're wealthy, you have the freedom to make choices based on what you want, not just what you can afford right now. You’re not chained to a paycheque. Rather, you can live your life on your own terms.

Being wealthy is far more than just having a big number in your bank account. It's about having a strategy and building a foundation of financial security that allows you to enjoy the fruits of your hard work without constantly wishing payday would arrive sooner.

‍Strike a balance

‍If your financial plan is to build wealth, it doesn’t mean you’re not allowed to enjoy the money you’ve worked hard for. It’s all about striking the right balance: Use 22seven to create a budget that includes saving and investments, but also a small portion for fun. Yes, you can have the latest Apple Watch and solid investments at the same time!

If you’re battling to balance the books and you need some help coming up with a long-term money plan, it might be worth chatting to a qualified financial advisor. Take the first step this January and set yourself up for life. Good luck!

Are you concerned with how your money is invested? For some people, it’s not enough to simply watch their money grow, they want to know that the investments they’re buying into are doing good for the environment and society.

It’s called sustainable investing and it’s closely tied to the principles of ESG, which stands for ‘Environmental, Social and Governance’. Let’s take a closer look at what the three letters mean:

• Environment: Investors look for companies that might be involved with sustainable energy production, for example, or sustainable food production, or reducing waste. An example of a company that considers its environmental impact would be one that uses renewable energy sources that emit fewer greenhouse gasses, or one that adopts a no-deforestation policy.

• Social: This criterion is all about people. How will your investment choice improve the lives of others? An example is a food and beverage company that gets its supply by working with small farmers, thereby improving the livelihoods of those farming communities.

• Governance: Governance refers to how well a company is run. Does management only look out for themselves, or are they concerned will all their stakeholders? Do they have efficient policies to care for staff? A company with good governance discloses all its policies, has transparent accounting methods, and has clear guidelines for eradicating bribery and corruption.

Why invest sustainably?

It comes down to what you stand for. Of course, you want to make a profit with your investments, but are you happy to make a profit at the expense of society and the environment?

As the world moves towards a more environmentally-friendly state of mind, studies have shown that there's actually a strong link between doing good and making money. Companies that are solving some of the world's biggest problems are naturally most likely to grow.

How do I do it?

There are several ways. When you’re investing, or when you’re chatting to your financial advisor about your investment strategy, you can outright avoid any funds that hold ‘sin’ stocks like tobacco, casinos, alcohol and firearms.

Or you can apply the ESG principles, which gives you some more flexibility. You can still invest in a fund that holds mining stocks, for example, if the mining companies in question are rehabilitating the environment and doing good in the communities they operate in. The ESG scores for most companies can be found online, so you can check them out before making your sustainable investment decisions. Similarly, there are specific unit trust and mutual funds that focus on ESG. Chat to your financial advisor if you need some guidance.

Keep in mind that your money is not limited to what you see on your banking app – it’s part of a much bigger picture. By investing sustainably, you can make sure your money choices are aligned with your values.

You’re probably familiar with income tax, import tax and property tax, but there are plenty of other ways the government takes a little bit of your money. Understanding these less-familiar forms of tax will help you get a better grip on your finances. If you own a small business, it can help you navigate your various financial obligations. Let’s dive in!

1. Capital gains tax (CGT)

This is tax imposed on profits earned from the sale of certain assets, like stocks, bonds, property and valuable collectibles. Tax is levied on the difference between the purchase price and the selling price of the asset, and the rate varies depending on your income and how long you’ve owned the asset. Make sure you’re aware of CGT if you suddenly decide to sell the house that has been in your family for generations!

2. Value-Added tax (VAT)

This is tax applied to the purchase of goods and services. In South Africa, the standard VAT rate is 15%. Some things are exempt from VAT, like certain basic foods and residential rental, for example. It’s a ‘transparent tax’, which means it’s stated on receipts and invoices – you can see exactly how much tax you’re paying on each transaction.

3. Estate tax

Also known as estate duty’, this is levied on the value of a deceased person's estate (what they own) before the rest is distributed to their heirs. Tax is usually calculated on the net worth of the estate, including assets like property, investments and other valuable possessions less liabilities that at the time of death. There are various deductions and rebates when it comes to estate tax – it’s advisable to consult with an estate planning professional to help minimise the impact for your beneficiaries.

4. Donation tax

Also known as ‘gift tax’, this is imposed on the transfer of assets or property as a gift from one person to another - the giver pays the tax in this case. It prevents people from avoiding estate tax by giving away their assets before their death, and it applies to cash and non-cash gifts above a certain threshold. That said, there are usually exemptions and exclusions for small gifts, certain charitable donations and gifts between spouses. In South Africa, taxpayers can donate up to R100,000 with no tax implications.

5. Expat and exit tax

South Africans working abroad but still paying tax in South Africa are required to pay tax on any foreign income and any locally-sourced income. There are tax treaties between certain countries and also a foreign-income exemption, however, which allows expats to exempt a portion of their income from South African tax. (As always, there are certain criteria that have to be met.)

Exit tax is imposed on individuals who give up their South African citizenship or residency; or who move their assets outside South Africa. The technical term is to ‘emigrate financially’ and if you decided to go that route, you’ll be charged capital gains tax on your worldwide assets. (You’ll also have to start paying tax in the country you’ve emigrated to.)

6. ‘Sin’ tax

This is a slang term for excise tax imposed on goods or activities that are considered harmful to public health or society, like tobacco products, alcohol, sugary beverages and gambling. The purpose of sin tax is twofold: to discourage the consumption of unhealthy or addictive substances; and to generate revenue for public welfare programs or healthcare initiatives.

If you’re unsure about whether you’re liable for any of these taxes, set up a meeting with a tax professional who will be able to guide you through it. You might not be able to avoid tax, but you should make sure you’re only paying as much as you have to!

Offshore investing (or ‘overseas’ investing) is when you invest in assets that are outside South Africa. The investment is usually made in a currency other than Rands, in a country exposed to different geopolitical risks, and with different regulatory and tax laws.

But different is good! And it’s exactly what you need when you want to spread your eggs between different baskets; when you want to ‘diversify your assets’, in investment speak.

But first, it’s important to understand the pros and cons of investing offshore…

The good

The main benefit of investing offshore is diversification. You reduce your exposure to South African-related risks: a long list that includes political and economic instability; corruption; power constraints; labour strikes; unrest and social inequality. By investing in a currency other than Rands, you can also hedge against the volatility of our currency.

Another plus is that overseas markets give you exposure to companies and brands that can’t be accessed easily in South Africa – a wider range of industries and asset classes, all of which increase your investable universe and your opportunities for returns.

The bad

Yup, there are downsides. While being exposed to different currencies can act as a hedge against the Rand, if those currencies weaken against the Rand, the value of your overseas investment will be reduced when you convert back to Rands… This could lead to losses if there are large currency fluctuations.

A classic example is when South Africans invest offshore at a time of panic and extreme Rand weakness (say US$1:R20). A few months later, the Rand recovers to US$1:R16. This is a -20% currency movement and the value of your Dollar investment will have dropped by 20% in Rand terms.

Offshore investing can also come at a higher cost, depending on how you do it. There are sometimes additional expenses like currency conversion fees, foreign brokerage fees and custodian charges.

And don’t forget about tax. Depending on how your offshore investment is structured, it might be subject to complex tax laws and reporting requirements. It’s a good idea to get professional tax advice to avoid unintended consequences.

So, what’s the answer?

The best way forward is to seek advice from a professional financial advisor with offshore experience – they’ll be able to suggest the best and most cost-effective ways for you to diversify your investments. You might invest in a Rand-based fund with offshore exposure, or you might convert Rands to foreign currency and invest in an entirely offshore fund. Other options might include investing in an exchange traded fund or an offshore index.

To avoid getting caught investing when the exchange rate is bad, the best thing to do is invest little bits monthly so that you average out the exchange rate you buy into.

Good luck!

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According to a recent PWC Employee Financial Wellness report, 57% of employees said that finances are the top cause of stress in their lives.

Are you one of those people?

Maybe you grew up in a house where your family never talked about money, or maybe money was always a negative topic. Here are five ways to talk about money with your partner in a way that makes it a positive conversation!

1. How do you want to split expenses?

Think of your household expenses as coming from various ‘pots’ – here are three options:

• One pot: This is when you merge your respective bank accounts and share one account. It doesn’t matter who pays what because you’re seeing your income and expenses as one. (If you don’t want to change bank accounts, set up a joint 22seven profile, which will combine all your transactions in one place.)

• Two pots: Each person is responsible for certain things. The list is reviewed every year to adjust to circumstances. You pay what you need to pay towards the household and the rest is your own.

• Three pots: Each person keeps their own account, but you also open a joint account for household expenses. Each partner contributes a certain amount to the joint account each month. Some couples pay 50/50; some pay a different split depending on how your incomes differ.

2. How should we deal with debt?

Do you have a loan that you’re paying off, like a student loan, car loan, home loan or a few store cards? It’s nothing to be embarrassed about! Be honest with each other so that you can decide the best way to tackle your debt together.

3. How do you want to save, and how much?

One person might want to save 80% of their salary, others might want to save none… It’s good to talk about it. Lead the conversation by outlining your ideal life: When and how do you want to retire? How do you want to pay for emergencies? Do you want to save for your kids’ university education?

The answers to these questions will determine how much you need to save as a couple. From there, you can choose a savings product; or chat to a financial planner to help you come up with a strategy that will work for your lifestyle and income.

4. Do you need to support anyone?

Many people support parents or other family members. If you’re one of those people, make sure your partner is aware of your obligations! Talk about it: you might be able to find a creative solution together, which benefits all parties.

5. What about fun money?

This is the cash you set aside to enjoy life. Obviously, the more you set aside for fun, the less you’ll have for other things like paying off debt and saving… It’s important to find a balance. For you, fun money might be going to a restaurant once a month; for your partner, it might mean an annual holiday. Either way, use 22seven to factor fun into your budget to make sure you set enough money aside.

We’re not saying you should lay out your entire financial life plan on a first date, but if you’re married or in a long-term relationship, you have to get used to talking about money. It is possible to live within your means and be happy about it, but only if both parties are open and honest with each other.