Financial foundations
Where you stand, before anything else.
Financial health is six questions, not one number
A bank balance cannot tell you whether your debt is affordable or your family is protected. The six questions that show where you actually stand.
2 min readAn emergency fund buys time, not returns
Money can look like savings on a statement and still make a poor emergency reserve. What access really means, and why “three months” is a starting point rather than a verdict.
2 min readWhat counts as an asset, and what only looks like one
Next year's salary is not an asset. Your car probably is. What belongs on the list, and why an honest estimate beats a confident guess.
1 min readNet worth is a dated snapshot, not a score
R800,000 in assets less R500,000 in debts gives R300,000. The sum takes seconds. What it cannot tell you about next month is the part that matters.
2 min readA debt list needs two numbers, not one
A big debt and a heavy debt are not the same thing. Record the balance and the monthly repayment, and the difference becomes obvious.
1 min readR64 is the whole idea behind compound growth
R10,000 growing at 8% becomes R10,800, then R11,664. That extra R64 is growth earning growth, and it is the reason time matters so much.
2 min readCash flow is why you can own a lot and still feel short
A balance sheet shows one date. Monthly cash flow shows what the month actually feels like, including the costs that did not arrive this month.
1 min readYour inflation rate is not the published one
A R1,000 basket that now costs R1,060 has taken buying power from you without a single debit appearing. Why the average rate may not be your rate.
2 min readThe financial costs you never see as a debit
A life-policy premium leaves your bank account. A fund fee is deducted inside the investment and never appears as a debit. How to find both.
2 min readIdentify financial risks by consequence, not by product
\"I have a policy\" is usually where the conversation stops. Which income would stop, which expenses continue, and how long current resources last.
2 min readConfirmed, estimated, unknown: label every figure
A picture can look complete while resting on old values and confident guesses. Three labels keep it honest, and unknown does not mean zero.
2 min readA financial snapshot is not a plan, and that is the point
Six parts on one page, with the confirmed, estimated and unknown labels left in. The open questions are often worth more than the totals.