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5 Low – Cost ideas for Valentines Day

Sure, you can’t put a price on love, but Valentine’s Day gifts don’t have to break the bank, either. No matter who you’re shopping for this year, there are plenty of cheap Valentine’s Day gifts out there that will make your loved one feel extra special and have you sticking to your budget.

Many of these romantic ideas encourage you to spend quality time together, offer something that’s personalized just for them or are small tokens that can be paired with their favorite flowers or candy. So here are 5 Low – cost ideas you can use for your up and coming valentines day!

1. Create a homemade card

Use a heart-shaped paper, construction paper, or cardstock to make a unique and special card for your valentine. Personalize it with your own artwork and heartfelt words.

2. Prepare a romantic dinner

Prepare a romantic dinner with your partner’s favorite dishes. Even if you don’t have a lot of money to spare, a homemade dinner is always a heartfelt gesture.

3. Create a photo album

Gather your favorite photos of you and your partner together and create a special photo album. Add captions to each photo to make it even more meaningful.

4. Visit a museum

Visit a nearby museum or gallery. Enjoy the art and each other’s company without spending a lot of money.

5. Take a romantic walk

Take a romantic walk in a park or along the beach. Enjoy the scenery and each other’s company.

5 Ways to Pay Less Interest on a Car Loan

You can pay less interest on a car loan by shopping around for offers, making a large down payment, opting for a shorter loan term, making additional payments and declining extra coverage options.

1. Check Out Different Lenders

When you’re buying a car, their finance department can shop and compare vehicle loans for you on your behalf. The drawback, however, is that dealers aren’t obligated to offer you the lowest rates you’re eligible for.

It may be advantageous to compare multiple loan offers before you visit the dealership. You can even apply for car loans on lenders’ websites. Some lenders may even prequalify you with a soft credit check, which won’t negatively affect your credit score. While applying with multiple lenders may involve some time and effort, the result could be a much lower interest rate that saves you money over the life of the loan.

Even if your best efforts don’t lead to a substantially lower interest rate, all is not lost. If your credit improves or market rates drop, you may be able to refinance your vehicle later to get better terms.

2. Make a Large Down Payment

The more you borrow on your car loan, the more the lender is at risk if you default on your payment. When you make a sizable down payment or trade in your vehicle, you lower your borrowing amount and may even qualify for a lower interest rate.

For example, if you put R6,000 down on an R18,000 car, you would have to borrow R12,000 and pay interest on that amount.

3. Get a Shorter Term Loan

Generally, lenders offer lower interest rates with shorter repayment terms because there’s less likelihood you’ll default on a 48-month loan than on a 96-month loan. Scoring a lower interest rate can help you save on interest charges over the length of the loan.

Keep in mind, however, that shorter repayment terms come with higher monthly payments. Make sure you can afford the monthly payments on a shorter loan before signing.

4. Make Additional Payments

When you pay more on your car payment, you’re paying off your loan faster and reducing your overall interest charges. Here are a few strategies to make additional payments on your car loan.

Take advantage of extra income. Direct windfalls like a tax refund, work bonus or even a retroactive pay increase towards your car loan.

5. Decline Options You Don’t Need

When you finance a car, the sales team will typically offer several dealer options, upgrades and extras that can make your loan much larger. Some of these options include:

Extended warranties
Guaranteed asset protection (gap) insurance
Service contracts
Rustproofing
VIN etching
Fabric and paint protection
Tire and wheel warranties

Make sure you completely understand what you’re getting before agreeing to these options, as the added costs can drive up your total loan amount and overall interest charges.

If you require guidance or assistance with managing your loans contact us on info@thumaminadebt.co.za.

3 Steps you can take to avoid debt in 2023!

Being in debt can be stressful no matter what. But it may end up being an exceptionally stressful thing in 2023.

That’s why it’s best to avoid debt in the new year. And making these three moves in the coming weeks could help you steer clear.

1. Boost your emergency fund

People commonly end up in debt not because they’ve spent money frivolously, but because they get hit with an unplanned expense and don’t have the money in savings to cover it. If you want to avoid debt in 2023, one of the best ways to make that happen is to build a solid emergency fund if it could use a lift.

As a general rule, your emergency fund should have enough cash to cover at least three full months of essential living expenses — things like rent, food, car payments, and utility bills. While having some cash in the bank is certainly better than having none, that should prompt you to work on boosting your cash reserves as much as you can.

2. Get on a budget

Following a budget could help you make savvier spending choices — and avoid a scenario where you end up in debt. One of the easiest ways to make a budget is to go through recent bank and credit card statements, see what your various bills entail and what they cost, and then list them all on a spreadsheet.

From there, you’ll want to compare your total spending to your take-home pay and make sure the numbers all add up. If you pledge to not go over in any individual spending category, it could help you stay out of debt.

3. Dump expenses that don’t do much for you

Maybe you’re paying for a streaming service you hardly ever use. Or maybe you like going to the gym but are just as happy to work out by going for a jog instead. The more non-essential expenses you unload, the more cash you can free up for your savings — and, the more likely you’ll be to manage added bills that happen to come your way.

Being in debt might be an especially costly endeavor in 2023. If that’s not a scenario you want to deal with, pump more cash into your savings, get yourself on a budget, and make sure you’re not spending money on expenses that don’t really do much to enhance your quality of life.

5 Tips to save money during the holidays

Want to keep your holiday spending in check? These tips can help.

While there’s no place like home for the holidays, one festive pastime worth avoiding at all costs, literally, is any temptation to overspend on your gifts, travels or parties. There is plenty of pressure to live it up and give great gifts, travel to all friends and family and be the life of the holiday party, but no spending is worth the cost of post-holiday debt or financial woes in the aftermath.

1. Treat yourself a little bit less

By now, we’re all too familiar with the “latte habit” savings cliche, but it’s key to ramping up those holiday savings. In essence, the theory goes that if you stop spending on lattes (or lunch out), you will have more change in your pocket. These small lifestyle tweaks are easy ways to save on everyday expenses.

2. Get to know your old friend “cash” again

In a fast-paced, digital society, one of the biggest things to get lost in the shuffle is cold, hard cash. For some, a plastic spending spree could bring on holiday financial stress once the bills come in. One easy suggestion to track your spending, and save money during the holidays, is to use actual cash instead of plastic. It’s often known as the envelope budget. The trick is to withdraw only the amount of cash for which you have budgeted. Once that amount is gone, resist the temptation to spend money you don’t have and call it a day.

3. Make a shopping list (check it twice) and commit to it

Your shopping strategy is key if you’re trying to save money during the holidays. If you’ve ever gone grocery shopping without a list and on an empty stomach, you might have felt the gnawing desire to load up on everything around you. When you’ve thought out who you are shopping for and have a rough idea of what you will buy them, the process will be smoother and your holiday savings potentially a lot higher.

4. Do your homework and start early

The holidays probably aren’t on your radar in the middle of summer, or even two days after they’re finished. But, depending on what gifts you’re hoping to buy and what holiday expenses are in store for your budget, they should be. Start to research and make holiday purchases in September or October. Come up with a budget for what you want to spend and give yourself ample time to pay for it so it’s not all shock.

5. Give something homemade and from the heart

Showing up to a holiday party with a terrific, but costly, bottle of wine might seem like the perfect hostess gift. But, giving something homemade can still show your gratitude and enable you to save money during the holidays. Cookies, cakes and other baked goods can be a fantastic option. If you’re a crafty person and all about DIY, putting in a little elbow grease to make jewelry, pottery or festive ornaments is also a good bet and can contribute to your holiday savings.

If you require some assistance to manage your finances this festive season contact us on info@thumaminadebt.co.za.

5 Simple tips to saving money

1. Be specific

Be specific with how much you want to save. Set an amount that you want to have saved. From there you can set monthly increments to meet as you work closer, and closer, to that final number. Saving on a whim is not very beneficial in the long-term. With no specific amount or goal in mind, there’s not a huge ability to track your progress or figure out how much needs to be saved on a weekly or monthly basis.

2. Identify how you can lower costs
Answer the big question of how you are going to save money. There are many methods that can help you save money. It’s important to determine what makes the most sense for you. A few options to consider:

Cutting out unnecessary expenses. We all have areas in our life where we can cut out those unnecessary buys. This could be ending your daily trip to your favorite coffee shop or cutting back on any online spending.

3. Set goals
Set mini-monthly goals. This will be easier than forging ahead without a plan to get to that ultimate number. With mini-monthly goals and thresholds along the way, you will stay consistent and feel less pressure as you put away your money.

4. Select a secure tool to save
Figure out where to put the new funds. As you build up your extra funds, find a secure and beneficial place to store them (so not under your mattress). You will want the money to build interest as it sits. Here are some options to consider:

Savings Account. Basic but efficient, with a savings account you’ll earn interest on the account, but not at an awe-worthy rate. You will still be able to touch and move around the money if need be.

Money Market Account. Money Market accounts have beneficial interest rates attached to them; however, can carry restrictions regarding how much needs to be initially put in the account and how frequently/how much the holder can withdraw. If you are confident you can keep it there without strongly needing the funds, this could be the right option for you.

5. Track your progress
Stay strong and track your progress. Sticking to your savings goal can be hard, especially in the beginning. Using online financial tools such as Central Bank’s Money Manager can make it easier to visualize how far you come and how much you have left. It pulls all of your accounts together, so you can look at your finances as a whole and figure out if you are meeting those monthly requirements.

As you create your savings strategy, keep these five tips in mind to meet and exceed your super saver goals!
Do you require assistance to save?

How to get out of debt quickly

Are you wondering how to get out of debt fast? Then tackle one debt at a time! If you had to eat a big meal, you’d eat it in bite-sized chunks, right? The same goes for debt. Seeing all your debt as one big imposing sum can make your goal of “debt free living” seem impossible. However, if you break down your debt into smaller, more manageable pieces, you’ll find it easier to achieve your goal.

The following 5 tips will put you on track to a debt free future.

1. Acknowledge and assess

The process starts by first acknowledging that you are in debt and that you want to be debt-free. Then assess how much debt you have; this includes home loans, car payments, credit cards, student loans etc. Record how long you have to pay off each debt, the interest rate you’re paying on each of them and what your monthly payments are.

2. Create a plan

At this point, you have all of the information you need to create your debt repayment plan. Your plan doesn’t have to be complicated. Here are three important questions you must answer when creating a debt repayment plan:

Beyond your minimum monthly payments, how much extra money can you put towards your debt each month?
Which debt will you put that money towards first?
How will you prioritize those other payments once that first debt is gone?

3. Track and control

This means tracking your spending and controlling your expenses. Paying off your debt will require a change in your regular spending patterns, especially if you want to pay it off quickly. The first step towards changing those patterns is knowing what you’re spending your money on in the first place. This will show you where you’re spending more than you should, and where you can cut off costs to free up some money towards paying off your debts.

4. Pay cash
Swiping a card for every purchase is easy, but it also makes it easier to spend more than you have. In your monthly budget, allow yourself only specific amounts for items like groceries, fuel and recreational purchases. Withdraw money to use so that you have a fixed amount to spend. The money left over in your account should be used to pay off large debts.

5. Build wealth
Once you start to track your spending, you’ll begin to see some extra money you can use towards paying off your debts or even to start saving. It may be tempting to treat yourself to something nice to wear, but don’t fall back into the bad habits that landed you in debt in the first place. Make your money work for you so that you can have no more debt.
An emergency savings fund is a great idea. This is your safety net for when life’s unforeseen circumstances hit hard. Could you survive a job loss? What about costly medical procedures? This is when it helps to have money readily available to soften the blow.
Each of these steps, taken alone, probably won’t seem like much. However, by putting these plans in place, not only will your debt decrease, but you will also have more money to spend on the things that really matter.

How to save money in your Thirties!

You’re busy climbing the corporate ladder, exploring ways to expand your own startup business, getting married, starting a family or thinking whether you need to go back to school and pursue another career path.

Saving money might seem difficult, but it’s not impossible. If you take the right steps, you can knock out debt, grow your wealth and look forward to a bright future.

Here are a few steps in how to start saving money in your 30s.

1. Fix your budget

If you haven’t adjusted your budget since college, it probably needs a makeover. Chances are a lot has changed in your life since then. You have more responsibilities and bigger expenses, like a monthly bond payment and child – care expenses.

For most people, it probably means less eating out, fewer concert tickets and more on things like housing and insurance. It will be different for everyone, but you have to define your top priorities and remove expenditures that just aren’t as important as they used to be.

2. Move past basic budgeting and set big goals

If you’re a newlywed, you have joint financial decisions and goals to set. If you’re a parent, you have to set goals with your children in mind.

Set savings goals that reflect your long-term plans and priorities. Figure out what needs to be done to save for a bigger home or a big move to a city with a better quality of life.

Write down what you intend to do specifically to turn your dreams into a reality, whether that’s creating a stricter budget or finally paying off your student loans so you can save more than 5 or 10 percent of every paycheck.

3. Grow your emergency fund

Months after buying a new home, you could find a hole in your roof. And a year after you tie the knot, your spouse could come down with a serious illness.

Being financially prepared is key. Aim to have an adequate savings cushion that will allow you to cover your daily livings expenses for at least six months. In the best-case scenario, this is something you establish before you take on a mortgage or purchase a new car.

4. Shop smart

If you have kids, buying what you need for your household in bulk can be helpful. Consider comparison shopping in advance so that you’re visiting the store with the best deals. Time the purchase of certain items so that you’re purchasing them when they’re most likely to go on sale.

In addition, you can chop up your own fruits and veggies instead of buying the pricier pre-cut varieties, check out thrift stores and consignment shops instead of hitting the mall, opt for the cheaper, off-brand items at the grocery store or limiting how much money you have at your disposal when you go shopping.

5. Open an investment account

There’s more than one way to invest. A good way to easily get started is to invest in your future by enrolling in a retirement plan.

If you’re interested in investing in other kinds of vehicles, keep in mind that there’s no one-size-fits-all approach. Your investment options should depend on the kind of risk you would be most comfortable taking on.

5 Steps to Get Out of Debt

Many people find it hard to pay off debt. They put off opening the mail, answering the phone or making a plan so long that they don’t know where to start once they do sit down and take stock of where they’re at. As tempting as it might be to hope that the garage sorts itself, one of the best strategies for tackling a big project is to break it down into smaller achievable steps. This is also true when you want to get out of debt. We have put together 5 ways you can get out of debt.

1. Small Payments Add Up to Pay Off Credit Card Debts

One of the best ways to deal with debt is to break large balances down into manageable payments based on a realistic budget. Charging R3,000 on a credit card takes mere moments. But to pay R3,000 off is no small task. However, setting a goal to pay off R150 a month is a much more realistic starting point. Small changes really add up over time and pay off a big credit card bill.

2. Accelerate Your Payments to Pay Off Debt Faster

Making smaller payments more often is a strategy that pays off big time when paying off a bond. If you only make monthly payments, you end up paying more interest over the life of your mortgage and you miss taking advantage of time. Time will pass regardless of how you make your bond payments, so one of the easiest and most painless strategies to paying your bond off faster is to accelerate your payments. Switch your monthly payments to semi-monthly, bi-weekly or even weekly payments, based on how often you get paid. This simple change will save you time and money.

3. Keep your Money Safe from Yourself and Avoid Impulse Spending

If finding that little bit extra is what’s holding you back, try tracking your expenses for a few weeks to see where you’re actually spending your money. What you find out about your spending habits might surprise you! Most people don’t realize how quickly all those little expenses and impulse buying add up – buying a daily coffee, grabbing a newspaper, picking up take out instead of making dinner.

4. Track Your Expenses

Make tracking your expenses fun for the whole family by setting up a challenge. See who can be the most accurate, stick with it the longest, or find the most unusual expense they didn’t know they had. Use a free app to make it fun or get your kids to design a special cover for your tracking notebook. Talk about your successes at dinner and find ways to help each other stick to it for at least a month.

Tracking is the difference between a budget that works and one that doesn’t. If you’re not sure where to start, get a free tracking notebook or Excel spreadsheet.

5. Create a Spending Plan

If the word budget scares you, think of it as a plan – a plan that you create based on choices you make and priorities that you identify. You get to choose if you’re going to spend an extra R20 each day buying lunch at work, or if you’re going to put that R50 a week towards your goal of going on a special vacation. Setting a goal to save R10 a day sounds so much easier than saving R200 a month or R2,400 a year!

If you are still are challenged in reducing your debt contact Thumaminadebt on info@thumaminadebt.co.za for assistance and help.

Festive Season Safety Tips

As the Festive Season becomes busy and consumers start to spend more we as the Thumamina Team encourages you to keep safe this festive periodand to become more vigilant when it comes to shopping and spending.

Below are a few tips to help you stay alert during your holiday period.

Keep your passwords safe:

Lock your phone with a password, enable biometrics if your phone supports that functionality to use fingerprint or facial recognition, and keep your passwords secret. Use a strong password and a different password for your bank card PIN and device opening code.

Keep a lookout for fraudsters:

Beware of fraudsters trying to redirect your payments / advising you of a change of banking details. Check with your service providers on their registered landline numbers to validate any suspicious activity.

Don’t click on suspicious links:

Malware is malicious software designed to infiltrate your device. If you click on a suspicious link in an email or SMS, you could be opening a malware program. Load trusted antivirus software on your device to protect yourself and be vigilant about anything you open.

Use strong passwords:

Avoid using your name, birthdate or obvious numbers, such as ‘1234’ or ‘0000’. Regularly change your passwords and don’t save your banking passwords on your computer.

Help us, to help you – keep your money safe this festive season.
For any queries or to report any suspicious activity contact us on:
021 224 0243 / info@thumaminadebt.co.za

021 224 0243

060 365 7443

@Thumaminadebt

1 St James Street, Oakdale, Belville