Landing your dream job – Part One

<div class="separator" style="clear: both; text-align: center;"><a href="http://3.bp.blogspot.com/_rDDO2quPfZk/SzpmNdrZugI/AAAAAAAAAgA/m2vMKSt0qVg/s1600-h/734124.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://3.bp.blogspot.com/_rDDO2quPfZk/SzpmNdrZugI/AAAAAAAAAgA/m2vMKSt0qVg/s320/734124.jpg" /></a><br /></div><br /><span class="Apple-style-span" style="font-size: small;">- Part of the <i><a href="http://ellainspired.blogspot.com/2009/08/money-talks-series.html">Money Talks Series</a></i></span><br /><span class="Apple-style-span" style="font-size: small;"><i><br /></i></span><br />It's all very well and good to have all the knowledge on where to bank and how to invest but in order to put these valuable principles into practice you need to have money. So, in today's edition of Money Talks we will be dealing with job hunting, how to get one, how to keep it and your rights and benefits. <br /><br />As such, this post is divided into three parts:<br /><br /><ol><li>The ins and outs of how to get a job<br /></li><li>Making sure you keep it<br /></li><li>Keeping yourself empowered by knowing your rights and employment benefits<br /></li></ol><span style="font-size: 12pt;"><strong>HOW TO GET A JOB<br /></strong></span><br />Here are the 6 steps involved in landing that dream job whether it be a part time student gig or a fulltime graduate position:<br /><br /><ol><li>Preparing your CV or resume<br /></li><li>The job search<br /></li><li>Approaching employers<br /></li><li>The application form<br /></li><li>The interview<br /></li><li>Getting the job<br /></li></ol><strong>Step one: The CV or resume<br /></strong><br />This is a very important step and without a CV/resume you cannot apply for a job. Your CV/resume is the very first thing that your future employer sees. It is their introduction to you, so it is very important to make it a good one. <br /><br />Always make sure that it:<br /><br /><ul><li>has all the important info about you <br /></li><li>is neatly typed and easy to read<br /></li><li>has no grammar or spelling mistakes<br /></li><li>is 100% truthful and accurate<br /></li></ul>Also make sure that you have all the necessary back up documents available at a moment's notice, this includes degrees, marks, reference letters or school certificates. <br /><br />The set out and information included in a CV/resume varies from country to country so the information here will differ from what you know. In South Africa the basic structure should include information such as: name, address, telephone no, ID no, birthday, place of birth, condition of health, citizenship, marital status, dependants, drivers license details, tax number, current employment. The sections following should be: education – listing your highest qualification to your lowest, work experience – starting with your latest job; give dates; job description; name & address of employer; reference details, General – indicating any community work or extra details indicating the type of person you are, Special Achievements – sports awards, school certificates, were you a prefect on any school boards, Interest/Hobbies&Sports – these should be genuine and you should be open to discussion. Keep all information relevant. <br /><br /><br /><strong>Step two: The job search</strong><br /><br />This part of the process requires time and research. Your job is to identify the best places to find potential employers for the type pf job you would like to get. Here are a few suggestions of places to look:<br /><br /><ul><li>Newspapers<br /></li><li>Trade magazines<br /></li><li>Employment agencies<br /></li><li>Professional organisations<br /></li><li>Employee organisations<br /></li><li>Employer organisations<br /></li><li>Community/Shop notice boards<br /></li><li>Internet<br /></li></ul><strong>Step three: Approaching employers<br /></strong><br />There are two ways of approaching potential employers:-<br /><br /><ol><li>replying to an advertisement<br /></li><li>cold-calling<br /></li></ol>In order to do either of these you need to write a job application letter.<br /><br />Here are some basic rules and guidelines:<br /><br /><ul><li>Keep it short and sweet – one page<br /></li><li>Neat and tidy – type it up<br /></li><li>Accuracy – check spelling and grammar<br /></li><li>Specify – ask about the type of job you are seeking not just any job<br /></li><li>Name – try your best to find out the name of the person you are writing to<br /></li><li>Documentation – these include your CV, references and school/varsity records<br /></li><li>Contact details – so they can reply to you<br /></li><li>Individual letters – write each letter individually<br /></li><li>Copy – keep one of each letter you send so you know what has and has not been said<br /></li></ul>If you are replying to an advertisement make sure you follow the specific instructions. Always keep it brief and to the point as well as professional and neat. If you are cold-calling be sure to find out the name of the individual you are writing to/contacting. Tell them who you are and your reason for contact. Do extra research and find out about the company and weave your info into your letter to show then you are interested in their company. <br /><br /><strong>Step four: The application form<br /></strong><br />Most times you will be required to fill in a job application form. Make sure to read the entire form before filling it in to avoid mistakes. Write neatly and avoid spelling errors. If you can, photocopy the form or take an extra copy and do a trial run. <br /><br /><strong>Step five: The interview<br /></strong><br />Here are a few things to keep in mind:<br /><br /><ul><li>Be yourself<br /></li><li>Dress smartly<br /></li><li>Be on time or a little early<br /></li><li>Answer questions in a clear and precise manner<br /></li><li>Keep eye contact<br /></li><li>Speak up and take a moment to formulate an answer<br /></li><li>Have your portfolio present containing all previous correspondence and important documentation<br /></li><li>Know the company before you get there, simple background knowledge<br /></li><li>Questions – have any questions prepared before hand and think about what salary you would like<br /></li><li>Find out about what happens next, know what the following contact will be after the interview<br /></li><li>Have your diary and a notebook and pen to take down follow up dates or notes of anything necessary for later<br /></li><li>End off by saying thank you regardless of the outcome<br /></li></ul><strong>Step six: Getting the job<br /></strong><br />So you followed all the steps and you landed the job, always say thank you either in person or writing. Be sure to read your contract very thoroughly and take not of important information. If you do not receive a formal employment document it is advisable that you write down what you understand the terms and conditions of your employment to be and show it to your employer. <br /><br />What are your tips for landing that dream job? Leave a comment!

Landing your dream job – Part One

- Part of the Money Talks Series It's all very well and good to have all the knowledge on where to bank and how to invest but in order t...

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The Importance of Education

<div class="separator" style="clear: both; text-align: center;"><a href="http://1.bp.blogspot.com/_rDDO2quPfZk/Su_YSHy7uvI/AAAAAAAAAQw/yaDVdZ7Pafs/s1600-h/580591.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://1.bp.blogspot.com/_rDDO2quPfZk/Su_YSHy7uvI/AAAAAAAAAQw/yaDVdZ7Pafs/s320/580591.jpg" /></a><br /></div><div style="text-align: center;"><br /><br /></div>Investing money in education is never ever going to be a waste. Essentially, you are investing in yourself and turning yourself into a sellable commodity. While having a sterling education will not by any means guarantee you a job but will definitely put you way a head of the pack in terms of "hire-ability". <br /><br />Choosing what to study can be a daunting task and very overwhelming as there are so many options out there. Here are a few things to keep in mind when considering what to study:<br /><br /><ul><li>what are specific set of skills and talents<br /></li><li>the long term monetary success of your chosen career, are you skills more suited markets in other countries<br /></li><li>the future prospects of your skills, will they last the test of time, continual learning and education is important<br /></li><li>Most NB of all – will you enjoy your job, do not choose a career based on prestige and money<br /></li></ul>Whilst many students are lucky enough to have parents who pay for their tertiary education, there are also many who don't and need to find avenues of self finance. <br /><br /><b>There are 3 main options open to you:<br /></b><br /><ol><li>Yourself – start working from when you are in school, take a part-time job and save up. Continue working through college. There are many students who support themselves this way. <br /></li><li>Bursaries and scholarships – the best way to find information about these are to check with the institutions you are applying to and apply for as many as you qualify for. Competition can be very tough. The facts that go in to selection are things like: needs, family assets, family income, the course you are applying for, and your marks and ability as a student. Another option is to approach large companies write letters to them/emails and include a copy of your CV, references and photocopies of your qualifications. <br /></li><li> Loans – when all else fails there is always the option of taking a loan. This is what is called a good investment; you are investing in your ability, potential and skills. But, remember debt is still debt and has to be paid off. Always try to borrow the minimum by taking a part time job and supplementing your loan. <br /></li></ol><b>Options for loaning money:<br /></b><br /><ol><li>Your parents employers: many employers will give interest-free or very low interest loans to employees to help educate their children<br /></li><li>A future employer: if you are fortunate enough to find someone who will employ you after you have qualified they will often assist you with a loan. Sometimes they even allow you to wok the loan off by working for them for a certain amount of time after graduating in place of paying the loan back<br /></li><li>Your parents' home loan: home loans have a very low preferential interest rate of up to 3% below the prime rate at which the bank normally loans money<br /></li><li> Banks: student loans are offered by almost every bank with low interest and they often have a package deal bank account with lots of perks<br /></li></ol><b>How to qualify for a bank loan:<br /></b><br /><ol><li>The amount you can borrow – this depends from bank to bank and on what you are going to study<br /></li><li>Interest rates – this also varies according to the course you are going to do, one that leads you to becoming a highly paid graduate with get you lower interest rates, unfair I know. However, all rates for all loans are below prime and postgraduate students often get interest rates that are half the prime rate. <br /></li><li>Loan repayment periods – if you are a full-time student you have to pay the interest on your loan monthly and pay the actual amount in the same amount of time as it took you to study your course once you graduate. If you are a part time student you are required to pay both the interest and start repaying your loan while you study.<br /></li><li>Security – you have to have someone, like a parent, to sign surety on the loan if something happens and you can't. You also have to take out life insurance to cover accident death or disability so that the bank still gets its money back.<br /></li><li>If you fail or drop out – if you fail you will not get a loan for the next year and if you drop out you have to pay back the amount just as if you had finished.<br /></li><li>Other benefits – banks usually have special student account packages which lets you take advantage of loads of different benefits offered by the bank. However, be very careful if they issue you with a credit card, it's not free money, its more debt. <br /></li><li>Renewal – you have to renew you loan each month by sending your exam results to prove you passed as well as proof that you have registered as a student for the following year.<br /></li></ol><i>How are you guys financing your studies? Are studies as expensive overseas as they are here in South Africa? Where any of you lucky enough to get bursaries and scholarships? Leave a comment!<br /></i><br /><i>*eLLa* </i>

The Importance of Education

Investing money in education is never ever going to be a waste. Essentially, you are investing in yourself and turning yourself into a sella...

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Basics of investing

<div class="separator" style="clear: both; text-align: center;"><a href="http://2.bp.blogspot.com/_rDDO2quPfZk/SuW2onVI1dI/AAAAAAAAAPo/ECF_POPqv3o/s1600-h/3067914489_a43026cff0.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://2.bp.blogspot.com/_rDDO2quPfZk/SuW2onVI1dI/AAAAAAAAAPo/ECF_POPqv3o/s320/3067914489_a43026cff0.jpg" /></a><br /></div><div style="text-align: center;"><a href="http://www.weheartit.com/">Image</a><br /></div><br /> <span style="font-size: x-small;"><i>- part of the <a href="http://ellainspired.blogspot.com/2009/08/money-talks-series.html">Money Talks Series</a></i></span><br /><br /><span style="font-size: x-small;"><span style="font-size: small;">This week I will be demystifying the world of investing. For me, this is the crux of the series and the very reason I started writing it. I wanted to know what I could do with my money that was different from just putting it into a savings account and so I investigated different investment options. Many of you maybe thinking but I'm only a student and I need lots of money to invest, this however is not true. While a large group of investments are dependent upon large sums of money there are very accessible options for you and me. </span></span><br /><br />Investing is a vast area and there are many options. As such, I will be touching on all the basics and defining all the different types of investments, whilst highlighting the low risk student accessible options available. I feel that now is a very important time to familiarize yourself and become financially smart, especially as women. These are skills that will carry you though life and allow you to be independent and successful.<br /><br /><b>The Basics</b><br /><br />Put simply, investing is simply one step up from saving our money. You are making your money work for you by taking risks with it; it is earning you more money. The best perspective to have is not that of instant gratification but rather about long term rewards and can in some cases result in whats is called a "passive income".<br /><br />There are three basic ways one can earn money on your savings:<br /><br /> - Interest and rates: a fixed rate paid for the money you invest<br /> - Dividends: profit share that is paid to owners of a company <br /> - Capital growth: this is the money you make when you sell your investments (eg. shares) for more than you<br />   paid <br /><br />There are two types of investments:<br /><br /> - Lending investments: lend money to the bank (interest earning savings account) or a bond (lending money<br />    to the government)<br /> - Ownership investments: property or shares in a company<br /><br />*You should focus on lending investments - these are student accessible options.<br /><br /><b>The risk involved</b><br /><br />Investments are grouped into asset classes. This separates them into groups which reflect the type, the return, and the risk involved in a particular investment.<br /><br />Asset class<br />- Cash: Bank savings, deposit accounts & money market = Low risk<br />- Property: Houses or business properties = Low - med risk <br />- Bonds: Loans to government or companies = Medium risk<br />- Shares: Companies listed/not listed on the stock exchange = Med - high risk<br /><br /><b>What are cash investments?</b><br /><br />Cash investments are where you and I can participate. This is where you should begin and can grow your capital to make larger investments later on. They are a good idea for two reasons, theses are: as I just mentioned, they are a great way to build up capital to invest in bigger things like property and secondly, they don't tie up your cash  for lengthy periods of time.<b> </b>Basically a cash investment is where interest only is paid on your money. Theses interest rates are higher than just your normal savings account. The interest can often either be paid out into another account or you can choose for it to be reinvested thus earning compound interest - interest on your interest.<br /><br />Cash investments include:<br /><br />- Term deposits: or fixed deposits, where you lend the bank money for a fixed amount of time at a fixed<br />  interest rate. This interest can grow as you add more money to your investment. A usual minimum amount of<br />  R1000 to which you can add deposits of a minimum of R250 or more.<br /><br />- Money market: your money is pooled with other investors and lent to big institutions. Here you will receive<br />  a higher interest rate. However, the starting sums are rather large with respect to what a student or graduate<br />  can afford. The minimum starting amount is R20 000<br /><br /><b>What are property investments?</b><br /><b> </b>Def: a property investment is not only buying your own home, there are many types of property in which you can invest. Rental income and capital growth are two good reason to invest in property.<br /><br />Types:<br /><br /> - Residential: someone else pays rent to live on your property<br /><br /> - Commercial/Industrial: a business pays rent for your property<br /><br /> - Mortgage participation bonds: lend someone money to buy their own property<br /><br /> - Life insurance endowment bonds: the basis is in property investments<br /><br /> - Property unit trusts: where you invest smaller amounts in companies that specialize in property investment<br /><br /> - Property syndicate: this is where you form a group (syndicate) of people who all buy a property together<br /><br /><b>What are bond investments?</b><br /><b> </b>Def: a different way of saying you are lending money to a large institution.<br /><ul><li><b> </b>they borrow your money and pay you interest for the time they are borrowing it from you</li><li>investing in bonds and the bond market is very tricky and traders spend years gaining experience in this area</li></ul><b>What are shares?</b><br />Def: you are buying part of a company, essentially making you a part owner.<b> </b> <br /><ul><li>as part owner you can expect to get part of the profit</li><li>when these profits are paid out they are called dividends<br /></li><li>companies often sell shares when they want to expand/buy new equipment and need cash flow</li><li>as the prospects of the company go up so does the price of the shares, thus, you can make a capital gain by buying low and selling high</li><li>if a share has an upward trend (positive) it is called a "Bull Market"</li><li>if the share market has a downward trend (negative) it is called a "Bear Market"</li><li>the share market is also known as the equity market</li></ul> <b>How do I start investing?</b><br /><b><br /></b><br />As a student, especially, investing often seems way out of your reach and even if you have the funds to do so it is a daunting undertaking and often people don't know where to begin.<br /><br />Here are 10 points to keep in mind when you start investing that will lessen the risk:<br /><br /><b>Point 1 - Take your time</b><br /><ul><li>Never be rushed, take your time. There are loads of investments out there and just because you missed out on one doesn't mean you aren't going to make money somewhere else.<b> <br /></b></li></ul><b>Point 2 - Think long term</b><br /><ul><li>Investing is a long term affair and you should never view it in the short term as you will often lose money this way, especially in bonds and shares.<b><br /></b></li></ul><b>Point 3 - Look around </b><br /><ul><li>Always do a thorough job of investigating each investment you consider, don't just invest because someone else made money there. Always make sure an investment is legal - Financial Services Board <a href="http://www.fsb.co.za/">www.fsb.co.za </a><b><br /></b></li></ul><b>Point 4 - If it seems too good to be true....</b><br /><ul><li>Unfortunately it usually is, if you are offered an investment that is guaranteed an unusually large high return be warned that it is usually a scam. No one can reliably predict a consistency of high returns. There of course the odd legal investments which do have very high returns but these are far and few between so do beware. <b><br /></b></li></ul><b>Point 5 - Consistency</b><br /><ul><li>Be consistent, don't switch between different investments. This is a surefire way to lose your money with all the additional cost involved in the admin of switching. Also, your money never has the opportunity to grow to its full potential - THINK LONG TERM.<b><br /></b></li></ul><b>Point 6 - Stay calm<br /></b><br /><ul><li>The markets are always constantly fluctuating so don't panic; stay with your investment. All you have suffered is whats called a "paper loss". The moment you with draw your money you suffer an actual loss so stay calm and confident. <b> <br /></b></li></ul><b>Point 7 - Never invest on borrowed money</b><br /><ul><li>Borrowing money to invest is very dangerous and a big no-no.<b><br /></b></li></ul><b>Point 8 - Nothing can be predicted</b><br /><ul><li>Don't believe those who say that they can predict with certainty what the market will do, if they really could why would they share their knowledge with you?<b><br /></b></li></ul><b>Point 9 - No such thing as a stupid question</b><br /><ul><li>None of your questions will ever be stupid, its your money. Always ask as many questions as you like and get the answers in writing. If the answers are not satisfactory, walk away.</li></ul><b>Point 10 - Diversification</b><br /><ul><li>Avoid putting all your eggs in one basket as they say. Vary your investments across the asset classes. That way you won't lose all your money in one go. </li></ul>As student or recent graduates your best bet is a term deposit. Search you banks website looking under investment and look at the different accounts that they offer. I, for instance have what is called a "notice account". The minimum amount is R1000 and you can add to it at any time with amounts of R250 or more. Interest rates fluctuate depending on the amount of money in the account and are paid daily either into the account of your choice or reinvested thus earning compound interest. In order to access the money you need to give the bank 32 days notice this ensure that you can't make impulse purchases but allows you have access in an emergency or should you wish to make further investments with it.<br /><br />Remember that each bank has a different portfolio aimed at different markets so chop around before you get your foot in the door!<br /><br /><i>Please don't hesitate to ask any questions should you want more info, I'm always ready to help. Have any of you ever invested? Do you have any thoughts on the subject? Leave a comment!</i><br /><br /><i>*eLLa*</i><br /><i> </i>

Basics of investing

Image   - part of the Money Talks Series This week I will be demystifying the world of investing. For me, this is the crux of the series and...

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Debt and How to Deal

<div class="separator" style="clear: both; text-align: center;"><a href="http://4.bp.blogspot.com/_rDDO2quPfZk/Ssm5rbtLfEI/AAAAAAAAALQ/mc_iT7BpW9o/s1600-h/799109.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://4.bp.blogspot.com/_rDDO2quPfZk/Ssm5rbtLfEI/AAAAAAAAALQ/mc_iT7BpW9o/s320/799109.jpg" /></a><br /></div><br /><div style="text-align: center;"><a href="http://www.weheartit.com/entry/799109">Image</a><br /><span style="font-size: x-small;"><br /></span><br /><div style="text-align: left;"><span style="font-size: x-small;"><i><span style="font-size: small;">Part of the <a href="http://ellainspired.blogspot.com/2009/08/money-talks-series.html">Money Talks Series</a></span></i> </span> <br /></div></div>So now that you have learnt the basics of budgeting, banking and saving we can build upon these basic skills and move onto more advanced money practices like debt management, investing ect.<br /><br />Today's Money Talk segment is going to be dealing with debt and how to manage it. There are many important principles and mounds of information however because the majority of you are still students I have decided to filter the information and concentrate on giving you what would be most applicable to your lives as opposed to rattling on about irrelevant concepts that have no place in your current financial life cycle. <br /><br />Firstly it is very important to realize that there is both good and bad debt and that at some point in your life you are going to be in contact with both to varying degrees. There are always going to be people wanting to loan you money and get you into debt so that they can make money off of you. Banks and lending institutions get you by charging ridiculously high interest rated were by you can end up paying more in interest than the amount you borrowed in the first place. This also applies to store cards. Do not be fooled! Store cards are simply another form of debt. They lure you by saying that you can have anything you want and you only need to pay a small installment each month but again you can often end up paying more an the item price itself.<br /><br /><b>Good vs Bad debt</b><br />Good debt - this is when you borrow money for something for which you do not have the money but the item increases with value over time. This is called an appreciating asset. Examples are buying a home and getting an education.<br /><br />Property, for the most part increases in value over time this means that you can sell it for more than you paid should you ever need to. Education is an investment in you, "you are making yourself a sellable commodity." Education is priceless and you should never underestimate its value.<br /><br />However, good debt is still a form of debt and should be payed back as soon asd possible.<br /><br />Bad debt - this is when you purchase items on credit which are consumable and/or which decrease in value over time. These are known as depreciating assets and should be avoided when possible. Examples of these are: food, clothes, furniture and cars.<br /><br />Bad debt is not always unavoidable and when these things happen it is important to know your options.<br /><br /><b>Unavoidable Bad Debt</b><br />There are times when bad debt is unavoidable:<br /><ol><li>Bad luck - car accident, medical problems, being unable to work for a period of time.</li><li>Necessity - needing a car to get to and from work</li><li>Interest rate fluctuations - a rise can cause you to pay even more on your debt</li><li>Once in a lifetime experience - this can be a study abroad programme, educational trip, concert. These are often luxuries rather an necessities. </li></ol><b>What are my borrowing options</b><br /><b> </b>The unthinkable has happend and you need to borrow money, what are your options. There are a few options at your disposal with varying interest rates and repayment schedules.<br /><br />These are:<br /><ol><li>Family and friends - This is often the cheapest option. Interest is low or sometimes nothing and repayment options are flexible. However, it is always best to keep it professional and keep to a repayment schedule. <br /></li><li>Study loans - These often have very favorable repayment schedules and interest rates as they are very keen to have your business as a successful graduate.  <br /></li><li>Home loans - These are normally the lowest interest rates of all as the bank has the reassurance that they can reposes the house at any point if necessary. <br /></li><li>Overdrafts - Interest rates here vary and are often well above the prime rate making them not a very good option in terms of paying back your debt. <br /></li><li>Hire purchase - This is for example when you borrow money to buy a car. Basically, you are renting the car until you have paid it off. The rates on such a purchase are very high. <br /></li><li>Credit cards - Credit cards are the easiest way to get into debt and the most expensive to pay off as the interest rates are astronomical. </li></ol>All in all, when borrowing money for any purpose it is also vitally important to read the fine print as there are often penalties for both paying late and paying your loan off early.   <br /><br /><i>What are your thoughts? Is this useful to you? Do you have any debt reducing tips? Are any of you studying by means of a study loan? Do any of you have store or credit cards? How do you resist temptation and keep yourself out of debt? Leave a comment :)</i><br /><br /><i>Have an inspirational day :)</i><br /><br /><i>*eLLa*</i>

Debt and How to Deal

Image Part of the Money Talks Series   So now that you have learnt the basics of budgeting, banking and saving we can build upon these basi...

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How to save and where to bank

<div class="separator" style="clear: both; text-align: center;"><a href="http://3.bp.blogspot.com/_rDDO2quPfZk/SqWKVqp5wZI/AAAAAAAAAIA/-JgGGkMX41s/s1600-h/20090815010600.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://3.bp.blogspot.com/_rDDO2quPfZk/SqWKVqp5wZI/AAAAAAAAAIA/-JgGGkMX41s/s320/20090815010600.jpg" /></a><br /></div><div style="text-align: center;"></div><div style="text-align: center;"><a href="http://www.weheartit.com/entry/653293">Image </a><br /></div>So, as mentioned before saving is an important aspect of managing your money. There are different ways to save and there are different savings plans to consider.<br /><br />Here are two savings plans to consider:<br /><ol><li>Time-based savings plans - this is a great plan if you would like to achieve a monetary goal by a specific date. Take the total amount which you are aiming to save and divide it by the amount of time in which  you wish to achieve the goal and you will see how much you need to save each month to reach your goal. </li><li>"Percentage of earnings" savings plans - in this plan you decide what percentage of your income/allowance you can afford to save. </li></ol>Two very important concepts that you need to be aware of when saving are:<br /><br /> <i>Interest </i><br />This is the percentage of money that you earn on having your savings in the bank. This is a very valuble concept and is what helps the rich get richer. You will have the opportunity to be earning two different types of interest rates on your cash. The first is <b>simple interest </b>and is the rate of interest the bank will quote you on for having your money in their account for a fixed period of time. The second is called <b>compound interest</b> and is your biggest friend. This is when you have for example saved R1000 for a year and earned R120 in simple interest, you then leaving the money in the same account and you earn more interest, instead this time you are earning interest on R1120, thus you are earning interest on your interest - this is called compound interest. <i> </i> <br /><br /><i>Inflation </i><br />This is the opposite of compound interest and is your enemy. Basically, inflation is the increase in prices of products and services over fixed periods of time.<br /><br />So when you start saving money in the long term you need to be able to realistically calculate the growth of your money and this is called "real rate" of growth. You can calculate it by subtracting the inflation rate from the interest rate you are earning.<br /><br />Once you have decided what type of savings plan is best for you and have worked out how to calculate your "real growth" rate you need to find a suitable bank with which to save your money. Its always best to do a little research to find the best bank for you. One way to do this is by means of a chart. Across the top list the banks you have to choose from and own the side list the following  services: Account Name, Interest Rate, Minimum balance, ATM charge, Other ATM usage charge, Monthly charge, Deposit charge, Cash deposit charge, Any other charge and No of withdrawals allowed a month. This will give you an excellent idea on which is the best place for you. You would be suprised how much money you can save on bank charges alone.<br /><br />It is a good idea to have two accounts, one where yu have your everyday money that you use for your expenses and another where you keep your savings. Its very useful to have these accounts linked for easy transfers. It also makes spending your savings less tempting, especially if you leave your other card safely at home. But do keep in mind the fancier the account and the more services it offers the higher your bank charges will be.<br /><br /><i>What are your saving tips? What long term goals are you saving for? Leave a comment and I would love to know :)</i><br /><br /><i>Have an inspirational day</i><br /><i> </i><br /><i>*eLLa*</i>

How to save and where to bank

Image So, as mentioned before saving is an important aspect of managing your money. There are different ways to save and there are different...

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How do you spend your money

<div class="separator" style="clear: both; text-align: center;"><a href="http://2.bp.blogspot.com/_rDDO2quPfZk/SpeZLTC_lCI/AAAAAAAAAFs/pE24q8TwPHc/s1600-h/20090502031523.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://2.bp.blogspot.com/_rDDO2quPfZk/SpeZLTC_lCI/AAAAAAAAAFs/pE24q8TwPHc/s320/20090502031523.jpg" /></a> <br /></div><div class="separator" style="clear: both; text-align: center;"><a href="http://www.weheartit.com/entry/550525">Image</a><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><i>Part of the <a href="http://ellainspired.blogspot.com/2009/08/money-talks-series.html">Money Talks Series</a></i><br /></div><div class="separator" style="clear: both; text-align: left;"><i> </i> <br /></div><div class="separator" style="clear: both; text-align: left;">How many times have you asked yourself the question, "Where did all my money go?" or "What did I spend my money on?" A key life skill to have that will set you in good stead for life is the ability to learn good spending habits early on. Skills like that will set you up for life and benefit you no matter your income.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><i>A spending experiment<br /></i><br /></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">The quickest, easiest and most importantly, the most honest way to see precisely what you spend and on what is to keep your receipts. So I challenge you to conduct a <i>spending experiment</i>. You can choose the length of time for which you do it, but, it must fall between a week to a month, nothing less. Anything more is overwhelming. I suggest you do it for a full month to get a really good overall perspective.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Step 1 - empty or box or a drawer in a prominent place preferable wherever you put your handbag down when you come in the door.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Step 2 - make sure you request receipts for all your purchases no matter how small.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Step 3 - put them in your purse or handbag till you get home, no throwing away.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Step 4 - when you get home place all the receipts for the day directly into your chosen place immediately.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Step 5 - any purchase you don't get a receipt for or money that you paid someone back for or debt orders off your account need to be recorded in a notebook. ALL OUTGOING MONEY NEEDS TO BE ACCOUNTED FOR.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Step 6 - when your allocated time comes to an end set aside an hour or so of your time to sort the slips and notes. Sort them into categories according to the purchase type. Eg. Clothes, going out, groceries, make up<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Step 7 - Next, either using an excel spread sheet or a piece of paper make columns with headings that correspond to the piles you have made.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Step 8 - make a note of each purchase in its respective column stating the totaled amount on the slip and what the purchase for.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Step 9 - tally each column. This will give you a clear idea of what you spend the most on. It will show you where you are wasting money and where you could be saving.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">This exercise is truly eye opening and give you the necessary wake up call you need when you see it in writing as to where all your hard earned money goes and what that money could actually be doing for you in the long run.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">The good news is, is that now that you know where your money is going you can now reallocate those funds to more deserving purposes :)<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">The Steps to achieving this are:<br /></div><div class="separator" style="clear: both; text-align: left;">1.) Having set goals - concept of paying yourself first<br /></div><div class="separator" style="clear: both; text-align: left;">2.) Distinguishing between needs and wants<br /></div><div class="separator" style="clear: both; text-align: left;">3.) Creating a budget<br /></div><div class="separator" style="clear: both; text-align: left;">4.) Starting an emergency fund<br /></div><div class="separator" style="clear: both; text-align: left;">5.) Holding onto your cash<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><i>Step one - Goals </i><br /></div><div class="separator" style="clear: both; text-align: left;">As mentioned in the previous article you need to establish your short, medium and long-term goals as applicable to your age. Next you need to determine how much each goal is going to cost and how much you are going to put aside each month for each goal in order to achieve it. This is called PAYING YOURSELF FIRST and you should look at it as a reward, as a good thing. It should be, other than debt, the first thing you do with your money every month.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><i>Step two - Distinguishing between wants and needs</i><br /></div><div class="separator" style="clear: both; text-align: left;">It is very important to know the difference between wants and needs. You need to pay your rent but you don't need to go out for dinner every week. Always spend your money on your needs first that way you will have all the rest to play with. You will know exactly how much you have left for all those wants. The aim is not to deprive you, quite the contrary, the aim is to let you enjoy your money and fun. And won't you have more fun knowing that what you have left is all yours to play with and you don't have to worry about spending money you don't have?<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><i>Step 3 - Creating a budget</i><br /></div><div class="separator" style="clear: both; text-align: left;">A budget is a written record of what happens to your money. It looks at the present (keeping track of your money), the future, (what you are going to do with your money) and the past (where has your money gone). It is important for keeping you out of debt and helps you to enjoy the money you have earned.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><i>Step 4 - Starting an emergency fund</i><br /></div><div class="separator" style="clear: both; text-align: left;">This is especially necessary if you are in the working world. This fund is to provide for those unforeseen circumstances that happen. What is the most financially devastating thing that could happen to you? Plan for it with an emergency fund. Often it is to look your job or source of income. Thus, the most common, is to save up enough to keep you going for between 3 - 6 months should you loose your job. This is just another reflection of how important it is to keep a budget so you know exactly how much you need to stay afloat for a month.<br /></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><i>Step 5 - Holding on to your cash</i><br /></div><div class="separator" style="clear: both; text-align: left;">Don't let yourself be swept up by people trying to sell you products that you don't need. A few ways to hold on to your hard earned cash are:<br /></div><ul><li>set yourself a weekly cash budget and stick to it, carrying large amounts of cash in your wallet is a bad idea<br /></li><li>pay cash wherever you go and ask for a cash discount</li><li>carry your student card with you and ask about student discounts</li><li>when grocery shopping buy the stores "no name" brand as they are just as good as branded products but cost much less</li><li>get secondhand textbooks and for novels check out your local book exchange</li><li>look for furniture for your dorm room or apartment at second hand shops or auctions and refurbish</li></ul>Good luck with conducting your own spending experiment and don't forget to leave any tips, tricks comments or to fill us in on your own experiences :)<br /><br />Have an inspirational day :)<br /><br />*eLLa*<br /><br /><br /><div class="separator" style="clear: both; text-align: left;"><i> </i><br /></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><br /></div>

How do you spend your money

Image Part of the Money Talks Series How many times have you asked yourself the question, "Where did all my money go?" or ...

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Money Talks - Introduction

<a href="http://3.bp.blogspot.com/_rDDO2quPfZk/So2hwpA1ArI/AAAAAAAAAD0/ommuw7HeLeE/s1600-h/20080918154955.jpg" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5372127787537990322" src="http://3.bp.blogspot.com/_rDDO2quPfZk/So2hwpA1ArI/AAAAAAAAAD0/ommuw7HeLeE/s320/20080918154955.jpg" style="cursor: pointer; display: block; height: 214px; margin: 0px auto 10px; text-align: center; width: 320px;" /></a><a href="http://www.weheartit.com/entry/116683"><br /></a><br /><div style="text-align: center;"><a href="http://www.weheartit.com/entry/116683"><span style="font-size: 85%;">Image</span><br /></a><br /></div><i>Part of the <a href="http://ellainspired.blogspot.com/2009/08/money-talks-series.html">Money Talks Series</a></i><br />I was recently luckily enough to be payed double my normal fee for a contract that I completed which I must admit was a rather difficult job. As a result I now have a rather large sum of money and while it is ever so tempting to use this windfall to purchase an entire new wardrobe and decorate my new flat with everything I am lusting after I decided instead to “save it for a rainy day”. And so, I embarked on a quest to find out the best way to go about putting my money away and along the way I accumulated a wealth of information in the form of a book which which I thought I would share with all of you :)<br /><br />So, to begin with you need to formulate a plan.<br /><br />How To Formulate A Plan<br /><br />You need to know:<br />- Amount you are receiving<br />- Amount you are paying out<br />- Amount you are owed<br />- Amount you owe<br />- What your financial goals are<br />Your plan needs to be:<br />- realistic<br />- and flexible, must be able to adapt to your changing lifestyle<br /><br />The 4 steps of creating your financial plan<br /><br />1.) Set your goals<br /><br />Your goals should be divided into categories:<br /><br />- Short term goals: these are usually needs as opposed to wants eg. paying for studies or a car<br />- Medium term goals: these are both wants and needs eg. starting a blog to support yourself<br />- Long term goals: these are goals that are mainly thought of for when you are working<br /><br />Ideally you should have an estimated cost of how much each will cost you. The types of goals which fall into each category will be different for everyone and depend on which stage of your life you are in. Don’t frightened in to thinking you have to start a retirement fund today. The concepts outlined here are to help you get a general idea and hopefully give you a sound financial knowledge that you can use for many years to come.<br /><br />2.) Make a Budget<br /><br />This records where you are planning to spend your money and how you have spent your money. It outlines what you get in and what you spend. This helps answer the question that many students and young people have of, “where did all my money go? What did I spend it on?”<br /><br />You have to:<br />- Be realistic<br />- Make sure income to exceed expenditure<br />- Prioritize<br />- Paying yourself first<br /><br />These will be expanded on later.<br /><br />3.) Your Balance Sheet<br /><br />This is a representation of what you own and what you owe others. Do not be deterred if you do not have many things if anything to list.<br /><br />4.) Finally, you need to pull everything together into a cohesive plan<br /><br />Your aims here are to use what you have identify what you need, what you can realistically afford and to determine which of your goals are a priority.<br /><br />- All ideas and concepts are based on reading the book “Getting Started – Money Matters for Under 25’s” by Bruce Cameron<br /><span style="font-size: 85%;"><span style="font-family: verdana;"><br /></span></span><span style="font-family: verdana;"><span style="font-size: 85%;"><br /><br /></span></span>

Money Talks - Introduction

Image Part of the Money Talks Series I was recently luckily enough to be payed double my normal fee for a contract that I completed which I ...

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Money Talks Series

<div style="text-align: center;"><a href="http://4.bp.blogspot.com/_rDDO2quPfZk/Sow2rxpmXFI/AAAAAAAAADs/NNea62vFXCQ/s1600-h/5208_245072945625_853960625_8217708_1010110_n.jpg" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5371728581236251730" src="http://4.bp.blogspot.com/_rDDO2quPfZk/Sow2rxpmXFI/AAAAAAAAADs/NNea62vFXCQ/s320/5208_245072945625_853960625_8217708_1010110_n.jpg" style="cursor: pointer; display: block; height: 240px; margin: 0px auto 10px; text-align: center; width: 320px;" /></a><br />I’m going to be starting a 10 part series called “Money Talks” which will cover everything from opening a bank account to investing and even financing a pair of wheels. <br /><div align="center"></div>The topics are as follows:<br /><a href="http://shlemie.blogspot.com/2009/08/money-talks-introduction.html">1.) Introduction – How to formulate a plan</a><br /><a href="http://ellainspired.blogspot.com/2009/08/how-do-you-spend-your-money.html">2.) How do you spend your money</a><br /><a href="http://ellainspired.blogspot.com/2009/09/how-to-save-and-where-to-bank.html">3.) How to save and where to bank</a><br /><a href="http://ellainspired.blogspot.com/2009/10/basics-of-investing.html">4.) Basics of investing</a><br /><a href="http://ellainspired.blogspot.com/2009/10/debt-and-how-to-deal.html">5.) Debt and how to deal</a><br />6.) The importance of education<br />7.) <a href="http://ellainspired.blogspot.com/2009/12/landing-your-dream-job-part-one.html">Landing your dream job</a><br />8.) Moving onto your own place<br />9.) Financing your own wheels<br />10.) Venturing overseas<br />So check back regularly :)<br />Have an inspirational day :)<br />*eLLa*<br /></div>

Money Talks Series

I’m going to be starting a 10 part series called “Money Talks” which will cover everything from opening a bank account to investing and even...

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