Fulufhelani Mashapha recently published her book Mind Your Cents – A Practical Approach to Financial Freedom.

Fulu had asked me to read her draft copy and to write the book’s foreword, and I took the opportunity to interview her about her experiences as a young professional navigating the world of money.

What I really love about the book is the way Mashapha taps into her own experiences with money – both as a child and now as a young professional. Her book is relatable and real, and I believe it will provide any young professional with the tools and motivations to get their own finances on the right track.

In the book, Mashapha writes: “Money has a personality; but in the hands of different users, it takes on different personalities. For some people money lives the fast life of Joburg: it quickly comes, and it quickly goes. For others money is a distant relative who keeps to himself and never visits, and when he does visit, he doesn’t stay long; he doesn’t say or do much, he is just reserved and they like watching him chilling on their bench. For some people money is jolly and well connected, it makes them friends in high places, it is outgoing and growing at an exponential rate. Money loves spending time in their company, it has clear direction and works hard for them to make more than a hundred-fold. In the hands of some, money is a wild child: ungovernable and bringing nothing but headaches to those it belongs to, it is pain and a trigger for stress. The important thing to note is that we give money the personality it has in our hands.”

This insightful perspective challenges the common misconception that financial success is solely dependent on income. Instead, it’s about how well you manage what you have.

Mashapha shares her journey from university student to becoming a financially savvy actuary. She recounts her experiences with budgeting and the unexpected costs of adult life. She candidly shares the reality of her first salary, where saving half seemed feasible until bills and necessities took precedence.

Her story serves as a relatable guide for graduates who might find themselves overwhelmed by the sudden influx of financial responsibilities.

The episode also covers the critical decision-making process involved in purchasing a car and property.

Mashapha highlights the importance of setting a budget and sticking to it, even if it means foregoing the allure of luxury brands. Her firsthand account of navigating a challenging property investment underscores the potential pitfalls and the need for due diligence.

Investment is another key topic, with Mashapha advocating for a balanced approach. She entrusts her long-term investments to professionals while maintaining a small personal portfolio for learning and experimentation.

This strategy aligns with her belief in the importance of professional guidance for sustainable financial growth.

Finally, the episode touches on the often-overlooked aspect of financial planning: insurance. Mashapha discusses the necessity of income protection and life cover, emphasising the need to reassess these decisions as one’s career progresses.

This discussion is a treasure trove of practical advice and relatable experiences, making it a must-listen for anyone looking to take charge of their financial future.

If you hold crypto assets, you need to understand crypto tax — how the South African Revenue Service (SARS) taxes your investments and trades.

SARS has provided some guidance on how it handles the taxation of crypto assets, but many people still make mistakes that can result in penalties or non-compliance.

Christo de Wit, South African country manager of Luno, a licensed financial services provider, explains: “Luno is not a tax advisory service, but we take proactive steps to help our customers learn more about their obligations as crypto asset holders.”

One common misconception is that blockchain transactions are entirely anonymous and that it is possible to evade your tax obligations.

“Most blockchains are public ledger, meaning all transactions are visible and immutable, meaning they cannot be deleted,” explains Wiehann Olivier, fintech and digital asset lead at Forvis Mazars South Africa.

“SARS may engage with exchanges and request transactional data, as well as use  data-matching techniques to trace transactions back to taxpayers. And they can go back further than five years.

“Crypto asset providers are regulated in South Africa and are therefore obligated to provide information requested by regulatory tax authorities, though this does not mean that SARS has open access to your crypto-related assets and transactions.”

Trading versus investing

Another misunderstanding is around taxable events. Many think that only converting crypto to fiat currency (like South African Rand) triggers tax obligations, but SARS considers any disposal of a crypto asset – including trading one crypto asset for another, or using it to purchase goods and services – as a taxable event. Depending on the nature of the transaction, it could be subject to either capital gains tax (CGT) or income tax.

Dale Russel, Director of TrustReserve Solutions Limited and Moore Blockchain and Digital Assets JHB, says that a significant distinction needs to be made between trading and investing in crypto.

“Traders – those who frequently buy and sell crypto for short-term gains – are taxed on their profits as regular income. In contrast, investors holding crypto for long-term growth, are subject to capital gains tax, which is applied at a lower rate than income tax,” he says.

It’s important to highlight that SARS can consider you both a trader and an investor, depending on the nature of your behaviour with crypto assets, and your transactional frequency.

“Let’s say you hold one of your coins as an asset – your intent is to hold that coin for longer-term growth. When you sell it, it may be subject to capital gains tax,” says Jashwin Baijoo, Associate Director and Head of Crypto Asset Compliance at Tax Consulting South Africa.

“But you also hold another coin that you actively trade to take advantage of market movements. On disposal, any profit received on that coin is more akin to income in the eyes of SARS and will be taxed accordingly.”

For example, if someone holds 5 ETH, with 3 ETH staked and untouched, the original staked amount may be seen as capital and therefore be subject to CGT when eventually sold. The rewards generated from staking, however, are treated as regular income, since the rewards are paid out periodically to the wallet and would be taxed accordingly as income.

On the other hand, if the remaining 2 ETH are used for frequent trading activities, the profits from these trades would be classified as income and taxed as such.

Record-keeping is vital

Proper record-keeping is crucial when dealing with crypto tax. SARS requires detailed records of transactions, including acquisition and disposal dates, amounts, and transaction types, to be kept for at least five years. These records are essential for accurate tax reporting, and failure to maintain them can lead to discrepancies during tax assessments.

Many people also overlook the tax implications of earning crypto through activities like mining, staking, or airdrops. Any crypto earned in these ways is considered income at the time of receipt and is taxed accordingly, based on its fair market value in ZAR. Later disposals may lead to additional tax liabilities if the asset’s value changes.

While capital losses could be offset, you could land in hot water if this is incorrectly applied. You need to be tactical about your approach to tax and should seek specialised advice.

“Luno provides downloadable statements to assist users in tracking their crypto activity for tax purposes,” says de Wit.

“It is encouraging and a step in the right direction that SARS is working on guidance for crypto tax, even though this has not yet been bedded down. We encourage users to consult a tax professional who understands the complexities of crypto assets taxation to ensure accurate reporting.”

He concludes: “With the right knowledge, you can stay on top of your tax obligations, so we encourage our customers to consult with a knowledgeable partner.”

This post was based on a press release issued on behalf of Luno.

Many of us believe that if we simply earned a bit more money, all of our financial issues would disappear. Yet so many South Africans who are considered high-net-worth individuals, are struggling with debt. They earn very good salaries, yet still have serious money problems.

In this episode of the My Money, My Lifestyle podcast, I am joined by certified financial planner Johan Werth to chat about this issue.

With debt levels rising faster among higher-income earners than their lower-income counterparts, we try to unpack whether this is a financial or a behavioural issue and what steps can be taken to address it.

Johan shares his insights into the lifestyle inflation that often accompanies increased earnings, leading many to live beyond their means despite substantial incomes.

We discuss the impact of rising living costs, the temptation of easy credit, and the societal pressures to maintain a certain lifestyle.

Maya and Johan emphasize the importance of financial literacy, tracking expenses, and the critical need for a financial plan to avoid the debt trap.

Listeners are encouraged to reflect on their own financial habits, consider the long-term effects of lifestyle creep, and take proactive steps to build a sustainable financial future.

Johan offers practical advice on budgeting, understanding personal inflation, and the significance of starting to save early, even with small amounts.

This episode offers insights into how individuals, regardless of their income level, can break the debt cycle and achieve financial stability. Tune in to discover how you can take control of your financial destiny and make informed decisions that align with your life goals.

Episode References:

• Debt Busters
• City Press Money Makeover
• Nudge by Richard H. Thaler and Cass R. Sunstein

The student loan application process can be complex, so do your homework and don’t get caught short.

Rising tuition fees have resulted in rising demand for student loans. Standard Bank has noted a surge in student loan applications, including for post-graduate studies.

Tshiamo Molanda, Head of Youth and Mass Market Clients at Standard Bank, encourages students and parents to start the student loan application process early, and to gather all the necessary documents well in advance to avoid last-minute rushes and delays.

“Self-funding is becoming harder due to the tough economic climate and rising living costs. With limited public and private funding, more students are turning to loans,” says Molanda.

Standard Bank has compiled some useful tips to guide students through the student loan application process.

When is the best time to apply for a student loan?

Matriculants should apply as soon as they have their National Senior Certificate (NSC) results and acceptance letter. Returning students can apply at any time, with proof of registration and academic records.

“Standard Bank’s data shows peak application periods from January to March and again from June to August, so don’t delay,” says Molanda.

What student loan options are available?

Standard Bank offers three types of student loans:

• Surety-backed student loan: This loan is designed for full-time students who require a parent or guardian to co-sign as a surety. Your surety is responsible for servicing the interest and fees during your studies and will be liable if you are unable to repay the loan.
• Self-assured student loan: This loan is for part-time students who are employed and are required to make full repayments from the inception of the loan.
• Student loan without surety: This loan is specifically designed for students who do not have access to a suitable surety and come from households with a gross household income below R600 000 per annum. It is available to students from their third year of study onwards in the fields of science, technology, engineering, mathematics, commerce, and health sciences, and to students from their fifth year of study onwards in medicine, at participating universities. Students can visit the Standard Bank student loans page to view a list of participating universities and applicable courses.

“We understand that finding a suitable surety can be difficult for some students. That is why we offer the student loan without surety option,” says Molanda.

Who qualifies to sign surety for a student loan?

Your surety must be an income-earning adult with a minimum monthly income of R3 000. Only one individual can act as your surety for the student loan.

During your studies, your surety is responsible for paying the interest and fees on the loan. Upon graduation, you will have a six-month grace period before commencing loan repayments yourself.

However, your surety will remain responsible for the interest and fees until you assume full repayment obligations.

How do I apply for a loan?

For full-time students applying for surety-backed loans, and part-time students applying for self-assured loans, the application process is straightforward.

You can get an instant online quote by completing the ‘Do I qualify?’ assessment. Following this, you have the option to either request a callback for further assistance or to proceed directly to a Standard Bank branch to complete the application process.

For student loans without surety, the application process differs. You must apply for this type of loan through the dedicated student loans page on the Standard Bank website. A consultant will be available to assist you with the loan application process.

What documents do I need?

Course-related documents

• Registration letter from the institution (or acceptance letter if registration funds are required; full funds released upon registration confirmation)
• Invoice for tuition, accommodation (if applicable), and study-related costs (textbooks/equipment)
• Latest academic results or, for matric students, final National Senior Certificate results

Personal (FICA) Documents

• ID documents for both the student and surety
• Proof of residence (not older than three months) for both student and surety
• Three months’ payslips for the surety
• Three months’ bank statements (if not a Standard Bank client), for the surety

Documents for student loan without surety

• South African ID
• Proof of residence (not older than three months)
• Proof of household gross income
• Latest academic results
• University registration letter
• Proof of costs for books/equipment (if over R6 000 and funding is required)
• Lease agreement for accommodation costs (if funding required)
• Statement of university tuition or residence costs (if funding required)

Do I need to reapply each year?

Yes. Students are required to apply for further funding each year by following the student loan application process. Product rules, terms, and conditions apply.

This post was based on a press release issued on behalf of Standard Bank.

Did you know that nearly half of employed South Africans engage in side businesses? In this episode of the “My Money, My Lifestyle” podcast, I chat about the growth of the side hustle with my guest, business coach and mentor Willem Gous.

Willem is the author of Side Hustle Success, which is packed with useful insights and tips for anyone wanting to start a side hustle, with a particular focus on Africa and developing economies. In the book, Willem lays out a simple yet effective five-step process to start a side hustle.

Our conversation explores practical strategies for starting your side business on a shoestring budget without taking on too much risk.

We discuss the importance of testing any business ideas quickly, because if you wait for funding or try to come up with that perfect plan, it can stall your progress.

Willem shares insights from his book, highlighting that potential entrepreneurs should leverage their existing resources and focus on understanding customer needs rather than getting bogged down in traditional business planning.

Listeners will learn about the significance of setting time limits for their side hustles, the value of starting small, and the power of listening to customers to identify viable business ideas.

Willem shares some practical examples, including how one woman turned her baking hobby into a thriving business without the need for initial funding, and how another entrepreneur started a clothing brand without owning any stock.

We also chat about the psychological barriers that can often hold back an aspiring entrepreneur, and Willem provides actionable advice on how you can overcome these challenges.

The bottom line is that if ​you ​can’t ​start ​your ​business ​in ​five ​minutes, ​​you may ​need ​to ​move ​on ​to ​a ​different ​idea.

This podcast will help to demystify the side hustle journey, encourage you to take action, embrace experimentation, and hopefully find financial freedom through entrepreneurship.

Further reading: More articles on side hustles can be found here.

Have you made provision for who should care for your beloved animal friends after your death?

A giant ginger cat called Kevin. A tiny guinea pig named Didi. Cheetah the Doberman. Many of us have pets we’ll never forget. They love us unconditionally. They are our faithful companions. They help us stick to daily routines. They lower our stress levels and aid our mental health.

They just make life better in so many ways.

Unfortunately, they also break our hearts when they pass away. But have you made provision for your beloved animal friends when you pass away?

An estimated 1.4 million South African pet owners do not have a valid will. Part of caring for our faithful furries is ensuring they are looked after when we are not around to do so ourselves.

Read more about what you should and should not include in your will, in our Estate Planning section.

Elmarie de Vos is a Trust Administrator with leading wills and estates specialists, Capital Legacy. Here, she answers five of the most common questions from pet owners.

Can I write my pets’ care into my will?

You certainly can, but be aware that nobody can be forced to take on the responsibility of caring for a pet if they are not willing or able to do so.

You can state in your will, for example, that your labrador Bella must be placed in the care of your brother Brian, but this is only a wish and cannot be enforced by law.

So, in your will you can indicate who you want your fur babies to be placed with in the event of your death, but it is not legally binding. That’s why it is far more important and effective to ask a trusted, animal-loving friend or family member to be responsible for their care in the event that you pass away.

Should I name specific pets in my will?

Your last will and testament is a legal document that includes your final wishes, to be carried out after you pass away. So, should Max the Staffie or Luna the Siamese specifically be named in your will?

It might surprise you to hear that you should not put lots of detail in your will. The simplest wills are often the best wills because they lead to fewer delays in the deceased estate administration process.

In a legal sense, for the purposes of drafting your will, it is useful to understand that pets are not considered property, like a residential home or a vehicle (unless the deceased was a breeder whose animals were registered, for example with the Kennel Union of Southern Africa or a similar institution).

To avoid having to update your will constantly, it is therefore advisable to state simply that your pets should go to whoever you have asked to look after them, without stating the pets’ names, breeds and ages.

It is a good idea, however, to name the person who has agreed to look after them. It could speed up their rehoming and enable them to settle in sooner if the executor of your will does not have to track the person down.

Is it sufficient simply to ask someone to care for my pet?

Yes, it is. In fact, this is crucial to ensuring your pets’ care after you pass away – more so than mentioning them in your will.

If you don’t make a practical arrangement with a person who is willing and able to care for your pets, they could end up at an animal charity.

If you don’t mention your pets in your will, your heirs or beneficiaries will have to make the decisions about what to do with them at a very challenging time in their lives, adding to their emotional trauma.

If your loved ones don’t know what your wishes are, it could lead to delays, confusion and even disagreements, compromising the care of your pets. So even though these conversations may feel uncomfortable, talk to your loved ones and agree who will look after your furry family members in the event that you pass away.

What if no-one can take my pet?

Even if a friend has agreed to care for your pet after you pass away, circumstances could preclude them from doing so.

For example, the friend or family member who is nominated in the will resides in a sectional title complex where pets are not allowed, or they have moved to a smaller place that is not suited to keeping a large dog or multiple cats.

In these instances, and if Capital Legacy has been appointed as executor of the deceased estate, we would ask them to get in touch with the SPCA so that arrangements can be made to rehome the pet.

Other animal welfare charities we work with regularly include the Guide Dog Association and Paws.

How can I ensure my pets are looked after?

With pets it’s a lot like being an organ donor: it’s more important to communicate your wishes to your loved ones while you’re alive than to write it down as part of an official document like a last will and testament.

The same goes for pets because whatever wishes you put in your will, they are only ever that – wishes. They cannot be enforced by law.

So, rather make sure your loved ones know what you prefer and then everyone can enjoy peace of mind.

This post was based on a press release issued on behalf of Capital Legacy.

28 February marks the tax year-end. Everything up until this day will be part of your 2024/2025 tax filings. As this date approaches, it’s crucial to focus on your financial affairs to ensure that you maximise any available tax deductions to lower your tax liability.

Increase your retirement contribution

You may contribute up to 27.5% of your income to your retirement fund without incurring taxes (capped at R350 000). This not only diminishes your tax obligations but also supports your future retirement needs. So if you haven’t yet hit the maximum allowable contribution for the current tax year, now is the time to top up your retirement savings.

Max out your TFSA

If you haven’t yet utilised your R36 000 yearly tax-free savings threshold, consider making a lump-sum contribution before the tax year-end. It’s important because annual limits restrict how much you can invest, and missed contributions cannot be recovered in subsequent years.

Make use of all allowable expenses

Compile your deductible expenses meticulously. If you’ve been working remotely, explore potential claims for home office costs. For medical expenses, it’s wise to route all costs through your medical scheme, even if it doesn’t cover them in full, to maintain a comprehensive record for SARS.

Utilise your CGT exemption

Should you decide to sell assets like shares or unit trusts, consider spreading the transactions over February and March. This can help distribute the tax liability across two tax years while taking advantage of the R40 000 annual tax exemption.

Get your travel logbook sorted

For those claiming travel expenses for business purposes, maintaining a logbook is essential, as you’ll need to provide this when submitting your tax return later in the year.

Choose a dedicated notebook or use a digital app specifically designed for tracking mileage. For each business-related trip, make sure to record the date of travel, the starting point and destination, the starting and ending odometer readings (which will give you the distance covered) and the reason for the trip.

Keep the logbook updated regularly, since it’s easier to record the details at the time of travel as opposed to trying to remember them later.

If your car is used for both personal and business purposes, include all trips and clearly differentiate between personal and business mileage. This helps in calculating the percentage of business use versus personal use.

Keep any relevant receipts or documentation (e.g., tolls, parking fees) that corroborate your business trips.

Consider using apps or software that automatically track your mileage using GPS. This can save time and increase accuracy.

Ensure a stress-free filing process

By being organised and staying on top of your admin throughout the tax year, you will have everything you need at your fingertips when the time comes to prepare your tax return, alleviating any stress and making the process of filing your return a breeze.

In this month of love, Lauren Jacobs, Senior Portfolio Manager at Satrix applies the concept of the five love languages to investing, and shares a quick quiz to help you pinpoint your “investing love language.”

Are you the type of person who needs to be hands-on or do you prefer a hassle-free investing experience? Take the quiz to find out.

1. How do you feel most confident about your investment strategy?

A) Having clearly defined goals with set time frames to achieve them
B) Checking in regularly and making adjustments as needed
C) Talking to an expert to confirm I’m on the right track
D) Contributing consistently and watching my portfolio grow
E) Knowing that someone else is handling the details for me

2. What’s your ideal way to stay engaged with your investments?

A) Reviewing my long-term goals and ensuring I’m on schedule
B) Logging into my investment platform often to track performance
C) Having regular conversations with a trusted financial adviser
D) Setting up automated contributions and watching my balance increase
E) Trusting a professional to take care of everything for me

3. If your investment strategy were a relationship, what would it look like?

A) A committed, long-term partnership built on planning and structure
B) A hands-on, passionate connection where I stay involved daily
C) A supportive relationship where I check in for advice and encouragement
D) A rewarding one where I put in the effort and get returns over time
E) A stress-free experience where someone else handles the details

Understand your results

Mostly As – Quality Time Investor
You love setting investment goals and seeing them through! Staying the course for each goal’s defined timeframe is your superpower.
Your love match: Your disciplined approach leads you to longer-term wealth creation. Think about investing vehicles like tax-free savings accounts and retirement annuities you can commit to for five years or more. 

Mostly Bs – Physical Touch Investor
You like being hands-on with your investments, monitoring and adjusting them regularly. Control and accessibility matter to you.
Your love match: Investing via a platform like SatrixNOW could be very fulfilling for you, with a 360-degree view of your investing universe at your fingertips.

Mostly Cs – Words of Affirmation Investor
You thrive on expert advice and reassurance. Having a financial partner who keeps you on track is key to your confidence.
Your love match: Having a long-term relationship with a trusted financial adviser to bounce ideas off and keep you on the right track could be just what you need.

Mostly Ds – Receiving Gifts Investor
As soon as your income is in, you prioritise gifting your future-self first and growing wealth steadily. Watching your portfolio appreciate over time brings you joy.
Your love match: You’re good to grow! Keep diversifying your portfolio through exchange-traded funds, for example, which give you lots of different types of assets in ‘one basket’.

Mostly Es – Acts of Service Investor
You prefer a seamless, hassle-free investing experience, where someone does you the service of doing the admin for you, freeing you up to focus on other things.
Your love match: You may prefer the convenience of contributing to the funds and having a professional manage your portfolio for you.

Understanding the five investing love languages

The Quality Time Investor: Sticking to the right timeframes

The original love language: Value undivided attention and quality interactions.

The investment edition: Time is your golden thread. Time with loved ones setting shared goals together. And timelines for these goals to ensure you meet your milestones. Whether you’re saving for a home, funding a child’s education, or building retirement wealth, you understand that each goal comes with its own investment horizon. Your disciplined approach keeps you focused, helping you stay on track despite market fluctuations.

Your love match: Investment vehicles like retirement annuities, endowment policies, and tax-free savings accounts suit your strategy, offering structured timelines, tax efficiencies, and long-term growth potential. If you value quality time with a loved one, then consider having monthly meetings to set shared goals and celebrate milestones.

The Physical Touch Investor: Hands-on and in control

The original love language: Physical affection is a fundamental way to feel loved.

The investment edition: You see investing as an interactive experience, preferring to be hands-on in managing your portfolio. Monitoring performance, making adjustments, and staying in control of your investments is important to you. Accessibility and flexibility are key, allowing you to react to market movements and refine your strategy as needed.

Your love match: Digital investment platforms like SatrixNOW cater perfectly to your approach, giving you real-time views of your portfolio and a broad range of investment options at your fingertips.

The Words of Affirmation Investor: Guided by expert advice

The original love language: Expressing love through verbal compliments, praise, and positive reinforcement.

The investment edition: You feel most confident in your investing journey when you’re working together with a financial adviser, spouse or family member to review your financial plan, goals, and investment progress. Regularly scheduled check-ins are important to you.

Your love match: Setting up regular meetings with a financial adviser to discuss your investment strategy gives you the reassurance you’re on track. You also value collaborating with loved ones to set goals and work towards them together.

The Receiving Gifts Investor: Disciplined in gifting your future self first

The original love language: Value the thoughtfulness behind giving and receiving gifts.

The investment edition: You see investing as a way of consistently gifting your future self, making this a priority before anything else. This disciplined approach ensures your wealth grows steadily over time.

Your love match: Watching your portfolio appreciate brings you satisfaction. Investment vehicles like exchange traded funds (ETFs) and unit trusts give you exposure to multiple asset classes in a single investment, ensuring steady growth with reduced risk. Consider gifting loved ones investment vouchers to get them started on their journey to build lasting wealth as well.

The Acts of Service Investor: Entrust someone to do you the service of making investing easy

The original love language: Actions of service speak louder than words.

The investment edition: You value convenience and prefer a seamless, low-maintenance way to grow your wealth. You often entrust professionals with the service of making your money work harder for you, leaving you free to focus on other priorities.

Your love match: You may gravitate to discretionary investment management services and fully managed portfolios, to lean on experts to follow strategies that align with your financial goals.

Understand your own investing love language

The important thing to remember is that you may lean towards one love language, but it’s best to include aspects of all of them! Knowing yourself and your preferences is a pivotal part of goal setting. You need to understand what motivates you, what worries you, the timeframes you can stick to, what you can afford, and how you keep yourself on track.

Remember, it’s best to aim for a diversified portfolio that ticks the boxes of growth and stability. Challenge yourself to speak other languages of love. For example, if you’re an ‘Acts of Service’ investor, consider the SatrixNOW platform to manage your money yourself. If you’re a ‘Words of Affirmation Investor’ then upskill yourself, so you feel empowered to check in on your own journey, alongside your adviser.

Investing in your future is an act of love, whatever the language you use to do it.

This post was based on a press release issued on behalf of Satrix.