Shortage of jobs worsens humiliation of black people through cheap labour
My foreign staff with legal working visas are afraid of EFF visit - KREAM owner
Attacks on witnesses, whistleblowers should worry everyone - Themba Maseko
'Firms implicated in state capture shouldn't be allowed to do business in SA'
Bain drops membership of Business Leadership SA amid state capture fallout
Home of ex-Sars exec broken into days after another whistleblower targeted
All this lovely rain – it’s too much, and might mean higher food prices
'Rights offer deal will see Tongaat Hulett owned by notorious Zimbabwe family'
[BOOK REVIEW] Make tiny changes – get remarkable results, over time
You shouldn't make your bed first thing in the morning, warns cleaning expert
Some people wrongly avoid a number of things thinking they have allergy - Expert
WATCH: 'Askies, I'm sorry' Actor Patrick Shai apologies to Cassper Nyovest
Australia cancels Novak Djokovic's visa again, deportation looms
Sascoc: Allowing spectators at sporting venues could motivate others to get jabs
Vincent Aboubakar penalties give Cameroon 2-1 victory against Burkina Faso
I never want to write music that will make someone feel worse - Ross Harding
A chance to tick a bucketlist music concert off your list in 2022
WATCH: Lady searching for 'dream man' on TiKTok shocked when wife reaches out
How different is it to drive an electric car?
Pig's heart transplanted into human 'is genetically modified'
Elon Musk's SpaceX to launch CPUT's 3rd satellite mission into space on Thursday
'I'm not leaving politics,' says Maimane after joining SiSebenza as a partner
Was Kenya blackout result of independent power producers fighting price cuts?
'We just don't have a government in Zimbabwe', says caller
'Eskom must not be allowed to punish consumers for its failures'
'I closed my account, how did fraudster get card in my name and spend 1000s?'
'We all must find solutions to implement Constitution, after Sisulu dissed it'
Enjoy life and save for the future by splitting income using the '50/15/5 rule'
This interview took place on 23 May 2019.
The Money Show’s Bruce Whitfield asked Warren Ingram, a financial advisor at Galileo Capital, how to divvy up his monthly income so that he can enjoy life, save for the future and not worry about money every month.
Ingram suggests following the “50/15/5 rule”, developed by Fidelity in the USA.
It’s great for those who don’t like to budget every month.
15: Save 15% of your pre-tax salary for retirement
Invest the 15% in a company pension plan or your own retirement annuity (RA).
If you are not saving this amount now; then arrange an annual increase in your savings.
For example, apply to increase your RA contribution by 10% next year.
5: Save 5% of take-home pay for short term savings
You should have an emergency fund that can cover three to six months’ expenses.
Ingram warns that this fund should only be for when disaster strikes, not unplanned expenses that are necessary but not an emergency (e.g. replacing a car tyre, fixing your smartphone screen, extra medical costs, maintenance of your car, etc.)
50: Spend 50% of take-home pay on essential expenses
-
Housing — mortgage, rent, property tax, utilities (electricity, etc.), homeowners’ insurance, and rates
-
Food — groceries only; not restaurant meals
-
Health care — medical aid and out-of-pocket expenses (e.g. prescriptions, co-payments, etc.)
-
Transportation — commuter fares or car payments, petrol, car insurance, parking, tolls, maintenance
-
Childcare — day care, education
-
Debt payments and other obligations — credit card payments, student loan payments, child support and life insurance
The rest
The rest of your total income can go towards entertainment, clothes, luxuries, holidays, etc.
Want to retire before you’re 65?
Saving and investing 15% of your pre-tax salary for 40 years should allow you to retire when you’re 65 years old.
If that’s too old for you; you’ll need to cut from “the rest” to increase your retirement savings.
For more detail, listen to the interview in the audio below.
Copyright : Free for commercial use. No attribution required.Source : https://images.pexels.com/photos/1602726/pexels-photo-1602726.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=750&w=1260
More from MyMoney Online
Squid Game crypto scammers make off with R32 million
The Money Show’s Bruce Whitfield interviews Farzam Ehsani, cofounder and CEO at VALR.com.
Read More
Women earn less than men – and therefore have worse pension outcomes
The Money Show’s Bruce Whitfield interviewed Vickie Lange of Alexander Forbes.
Read More
Get rich by investing globally – a guide for beginners on how to invest overseas
Get a good income from your investments – despite low interest rates
The Money Show’s Bruce Whitfield interviews personal finance advisor Warren Ingram.
Read More
Pay less for car insurance - if you're a good driver and/or you don't drive much
Arabile Gumede interviews Christiaan Steyn, Head of at MiWay Blink.
Read More
How investing a third of everything I earned changed my life, forever
The Money Show’s Bruce Whitfield interviews "supersaver" Julia, as he does once every year in July.
Read More
Highlights