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Personal Finance

The Right Preparations for the Future

Review your life cover regularly to ensure you are putting enough aside.

Bryan Hirsch




Inflation is the enemy of all investors – particularly when it comes to life insurance. If you do not review your cover regularly and die prematurely, the effects on your family could be disastrous. At an 8% inflation rate, the purchasing power of money will be halved and therefore your current life cover will be half the value in nine years.

50 years of development

The first life insurance policies were non-profit, had no surrender value, and the only benefit was to your family in the event of your death. The next to be developed were policies which included some bonuses. These policies built up pockets of cash which could be used as loans – and many policyholders cashed in their policies if they had not died by, say, the age of 70.

During the 1980s, when inflation reared its head, life policies included inflation escalators, whereby cover increased on an annual basis but never by the same rate as the escalator. For example, a 10% increase would only provide a 6% increase in life cover with the balance going towards building cash values in the policy. With further innovation, the industry has gone full circle and consumers are now purchasing straight life policies to provide a payment on death without including any fancy frills to try and build up an investment account. The costs, including commission – and the inability of insurance companies to provide good investment returns – have resulted in this change.

Realistic calculations

It is always difficult to calculate exactly how much life cover is needed to ensure that families are able to maintain themselves in the event of the death of the main breadwinner. If you are using life insurance purely to cover a debt, the calculations are reasonably simple. However, when providing for a family’s future – education, inflation, home renovations and the purchase of cars, all need to be taken into account. It is at these times that you must remember that an amount insured for today – and the resultant investment income from these funds – may only provide for a lesser time period than the family’s actual requirements.

When calculating how much life cover you require, include the life cover you may already have as a member of your company’s provident or pension fund. Although this could be taxable on your death (depending on whether you are a member of an approved or non-approved group life scheme), you will need to add the after tax portion of this cover to your own personal cover.
If you leave your company, this cover falls away, unless you take up the continuation option within 30 days of leaving. This is usually offered free from most medical requirements.

Play it safe

It is always better to be safe than sorry. Rather be over-insured than under-insured. It is necessary to take into account all eventualities and plan your life insurance while you still can. You should always reassess cover in the event of any major life-changing events such as: marriage, the birth of a child, the purchase of a home or taking on bond finance, changing jobs, or divorce.

One of the most important aspects of life assurance is to nominate a beneficiary in the event of death. If the nominated beneficiary is a spouse or dependant(s), then the policy pays out virtually immediately – to the stipulated beneficiaries. If, however, the beneficiary is the estate, then it may take a considerable time for the funds to be paid out to the dependants, as payment first has to be made to the estate. During this time, unless other arrangements have been made, your family may struggle with day-to-day living expenses. Direct insurers now compete with companies who use agents and brokers. It must be noted that rates can vary enormously depending on health, job description and additional benefits such as disability and dreaded disease. Therefore, I believe it is in your own best interests to use a broker, who will search for the best deal in the marketplace.

BRYAN HIRSCH has been in the financial services industry for 47 years and is a director of Bryan Hirsch Colley & Associates. He has written two books, the first Bryan Hirsch’s Guide to Personal Finance and more recently, Steps to Financial Freedom. Bryan has written for many of South Africa’s top financial and business publications, has been a weekly guest on Radio SAFM for 18 years, and has his own weekly TV show You & Your Money on Summit TV.

Personal Finance

6 Ways To Develop A Millionaire Mindset

Chasing money has remarkably little to do with getting rich.



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If you truly want to have a million dollars, you must first be and think like a millionaire. By doing so, you will attract the necessary resources to you.

So, you want to become a millionaire entrepreneur? You’re not alone. Many dream of leaving their job and becoming their own boss, enjoying the various millionaire lifestyles we watch on TV. But there’s a difference between those who dream of becoming millionaires and those who do. And it begins and ends with mindset. If you don’t develop that mindset, you will continue to spin your wheels, working just as hard, but never going anywhere.

Developing a millionaire mindset requires you to stretch your thinking. Start by developing the following six attributes.

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Personal Finance

4 Ways To Become A Millionaire Even When You Start With Little

It costs nothing to take advantage of the limitless opportunities online.

Timothy Sykes




The hardest part of becoming successful is getting started to begin with. But despite the challenges ahead of you, there’s a way to become a millionaire when starting with little. I’m going to show you four reasons why you can become a millionaire with just a small investment.

1. First focus on learning, not big gain

Education is your greatest weapon. Focus on learning in the beginning. Don’t make the mistake of focusing on making huge gains in the beginning. Learn everything you can because this is how you build the foundations for long-term gains.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

They say that if a millionaire goes bankrupt they’ll nearly always be able to get it back. And that’s because they might have lost their money, but they have the knowledge of how to get back to where they need to be.

2. You can learn loads about any topic online


I’m grateful for the internet. It’s the single biggest library in the world. You’re reading this article right now and you’re acquiring knowledge you wouldn’t have been able to acquire 40 years ago.

Use the internet to its fullest extent, whether that’s through reading books, browsing articles or watching video tutorials. Set some time aside every day to learn something online. It could be a video series or a favorite blog.

When you get into the habit of learning regularly you’ll find that you advance much faster.

3. Focus on the niche you love

These days you can learn about anything and target the niche you’re passionate about.

This is what I was able to do with penny stocks. I found a gap in the market and provided knowledge to people who wouldn’t have otherwise being able to access this sort of information.

You can do that with absolutely any niche. When you find a niche you’re passionate about and you use the reach of the Internet you start to make huge gains.

4. Prove your expertise by creating free content

Your reputation as an authority is the new business card. There’s a reason I created a penny stock guide and made it free for all. You may have already seen ads for it on social media. The way to succeed with little is to create a reputation through your content.

Related: How To Become A Millionaire, Explained In 1 Minute

It’s the gateway to success because through free content you start to build relationships with others who value your work. And from there everyone gets richer.

You can do lots with a little

The days when you needed a huge investment to become successful are long gone. These days you can do so much with just a little. Find what you love, advance your knowledge in that area, and create a product that fulfills a need. Finally, work on building up relationships through portraying yourself as an authority on your subject.

Combine everything together and you can accomplish anything.

This article was originally posted here on

Related: 13 Habits Of Self-Made Millionaires You Could Adopt Today

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Personal Finance

10 Tips To Become A Millionaire This Year

Becoming a millionaire requires changing your mindset and implementing some changes.

Murray Newlands



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Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.

Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.

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