Tag: Tax Free Savings Account (TFSA)

South Africans should understand that if they have substantial sums of money deposited in either a bank or investment account, they will inevitably be required to pay taxes on the income or capital growth derived from it.

Nobody enjoys paying tax, but since it’s our legal obligation, we may as well make the most of it by legitimately saving where we can. Because tax savings - even if fractional - compounded over prolonged periods of time can contribute significantly to any person’s financial position.

The South African Revenue Service (SARS) has announced the deadline dates for filing income tax returns for the 2022 year of assessment as well as the details of those exempt from filing returns. On 3 June 2022, SARS will publish a notice in the Government Gazette specifying the taxpayers that do not need to file income tax returns for the 2022 year of assessment, and the deadlines for taxpayers that have to file an income tax return.

Saving even the smallest amount regularly will make a difference to your long-term financial independence. Well-planned investing and taking advantage of the ‘magic’ of compound interest are two of the most powerful ways in which South Africans can elevate themselves financially, and secure their financial independence one day.

South Africa has one of the lowest household savings rates in the world. To encourage the culture of savings, the government introduced tax-free investment and tax-free savings accounts in 2015 to incentivise good savings habits.

The COVID-19 pandemic has forced many individuals to significantly adjust their lifestyles. The personal finances of most South Africans have been greatly impacted by job losses, salary cuts or no bonuses/increases, so much so that their livelihood have taken a significant knock.

With the cost of living increasingly expensive, it is important to know how and where to save money. In this way, you can get a handle on your finances and feel more in control. We all have different money management styles. Along the way can find ourselves making mistakes, which can cost us a lot and possibly set us back on our money saving quest.

The stock market can be volatile, but it’s a market that many people will delve into at some point in their lives whether directly buying shares or through their employer retirement saving fund. I believe that investments should form a core part of any financial planning, even during uncertain times.

Sparking an immediate celebration in the rand and bond markets, the 2020 Budget Speech ticked all the right boxes for markets, depicting a government that is reform-minded and ready to show its muscles.

January marks the start of both a new year and a fresh and exciting new decade with many more challenges and surprises in store. So, as we wrap up 2019 and prepare to set off into the roaring 20s, I found myself pausing to reflect on the key financial lessons that life has taught me thus far, offered here for the benefit of others walking their own financial journeys.