Seven steps on how to save – Liberty Life

Here are seven steps that will help you save without a sweat, these steps are publish by Liberty Life.

1.Check your bank fees

A common oversight by many young people is not to change their savings account into a transactional account when they start work.

Banks estimate that you save around R80 a month by moving onto the correct package. That is a R960 a year saving! If you added the saving each month to your long-term investment plan you would boost it by R6000 within five years.

Also reduce day-to-day banking costs by only ever drawing cash from your own bank’s ATM, and if there isn’t one nearby you can use your debit card to draw cash at your local Checkers, Spar or Pick n Pay for less than the cost of an ATM withdrawal.

Also set up a debit order to pay your credit card instalment so that you never have any penalty fees or interest — it will also boost your credit score.

2. Watch the small day-to-day stuff

Do you know that if you buy one cappuccino a day you will spend R6500 a year?

This is not to say that you should stop having the occasional coffee, but if you cut back to three coffees a week you will save R3700 a year or R300 a month. Invest that monthly amount for five years and you have a tidy nest egg of R23 000. The same applies to packing lunch for work rather than buying a meal every day — here the savings could be even greater. Continue reading

Absa CEO foregoes bonus

Absa CEO Maria Ramos

Absa CEO Maria Ramos

Business Day has reported on Wednesday that the ABSA CEO Maria Ramos will not receive a bonus this year, this followed after a nine percent decline in ABSA’s earnings per share in the full year to end December 2012.

This was mainly because the bank was hit by impairments in its home loan and commercial property finance book. The home loan contracts were signed between 2006 and 2008.

Asked why Ramos was taking a knock in her bonus, she said: “What matters is we have to do the right thing. Last year’s results are what they are. I am not happy with them and the shareholders are not happy with them.”

She did not say if other Absa executives would forgo their bonuses.

“The fact of the matter is, impairments have impacted in a big way… everybody has taken their fair share.”

She added that her leadership team included people who “held themselves accountable”.

Nedbank is SA’s most expensive bank

Cape Town – Nedbank Group [JSE:NED] has again emerged as the most expensive bank in South Africa, the annual Finweek Bank Charges Report released on Thursday showed.

It has been eight years since sister publication Finweek first published the report and “finally the country’s big financial institutions seem to be paying attention”, the magazine said in its cover story of its latest edition.

Finweek’s investigation revealed that three out of the country’s big four banks have reduced fees across a range of products and offerings.

Nedbank, the banking group with the country’s smallest retail footprint, has emerged as the country’s most expensive bank.

“We rated it as the most expensive in our earliest studies, and after it aggressively cut fees in 2007, it has seen a steady rise in pricing while its peer group has taken the hatchet to the cost of individual transactions,” according to Finweek.

Some of the findings inlcude:

In 2012, FNB has again emerged as the cheapest bank on the Pay as You Transact option and Absa Group [JSE:ASA] is the cheapest bank on the Package option, having dropped their fees by 33% when compared to the 2011 charges.

As in 2011, Standard Bank Group [JSE:SBK] is the most expensive bank on the Package option, however, the Standard Bank fees dropped by 38% on the Pay as You Transact option, when compared to the 2011 charges.

All of the banks effected double digit decreases in their 2012 fees for the Pay as You Transact option, with only Nedbank imposing a marginal increase (of 3%) for this option.

For the Pay as You Transact and Package options, the percentage difference (in monthly bank charges) from the cheapest to the most expensive bank is 58% and 67% respectively.



How to invest in 2013

Accepting that consistently high returns are probably in the past is the most important investment tip for 2013, according to Marius Fenwick, Chief Operating Officer for Mazars Financial Services.

“Don’t expect the returns we’ve seen, especially not from the same asset classes. And if you want higher returns, be prepared to take on more risk.”

Fenwick says listed property, which has delivered excellent returns of late, is likely to disappoint over the next few years with lower returns and a possibility of capital loss.

Nor is cash by any means a good investment. Fenwick insists that investors avoid keeping cash in the bank unless they intend to spend it within two years. “Even pre-tax returns on cash are below inflation. Cash should only be a parking ground for money in between transactions. Continue reading

Standard Bank to cut UK Jobs

Standard Bank on Friday anounced that it would cut up to 15% of its staff in London to save $100m, as Africa’s biggest lender scales back operations outside of the continent.

The cuts would come in its corporate and investment banking operations internationally, it said.

“At this stage, in London we envisage that this will potentially eliminate between 10% and 15% of … approximately 900 permanent roles,” the bank said.

“The process for communicating the impact to our staff in other jurisdictions outside Africa will be completed next week.”

The bank has been drastically cutting back its operations outside of Africa.

It had previously aimed to become a top emerging markets bank, but has said it has no longer those ambitions