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Financial Planning

Get complete financial peace of mind, no matter what stage of life you’re in.

We know you have big plans and goals for your future, and for your family. Our wide range of financial solutions are designed to make your dreams a reality and enable you to achieve complete financial independence. Our financial planners will assist you with expert advice, so that you can prosper and have the peace of mind that your money matters are taken care of.

Financial Recovery Plan

Perhaps you’ve filed for bankruptcy, or recently paid off a debt (or are trying to do so). Climbing back from the financial bottom is never easy, but the journey is worth the financial freedom at the end of it. Here are the steps to making a full financial recovery.

Setting goals keeps you motivated and gives you something to work towards. Whether it’s higher education, buying a house, or retiring in comfort – write it down and stick it on the fridge so that you’ll see it the next time you feel tempted to splurge on unnecessary luxuries. If getting a good education is your big goal, consider looking into the FlexiAcademic Plus – a unique fund that helps you save, and pays out your savings in four equal annual instalments.

You’re in a poor financial position for a reason – and if you don’t find out what that reason is, you’ll most likely be back to square one again in a month or two. Ask yourself: how did I get into financial trouble in the first place? Perhaps it was your shopping addiction, or maybe it’s because you eat out at restaurants every second night. Once you’ve identified your bad spending habits, you can work on changing it! Learn to budget better and start putting money away in something like a FlexiLife policy, which pays out two-fold when you retire.

You are not alone! Very often it’s that sense of loneliness that plunges you back into your old spending habits. It’s time to come clean! Set up a support system of friends or family members, or join a support group. Surround yourself with people who won’t judge you – people who will be there for you when you’re having a bad day, and who can help you to keep your spending in check.

It’s easy to lose focus again once you have your spending under control. Keep a close eye on your finances by checking your spending on a regular basis. If you have a close friend or partner in your life, make time to go over recent purchases together and check your spending patterns. This will help you to identify any potential problems before it gets out of hand again.

The road to financial stability and independence can be a frustrating one – and when you feel like you’re not making progress, it’s easy to slip back into old spending habits. It’s therefore important to constantly remind yourself where you’re going and what you’re working towards. Create a vision board or photo montage of your goals, and pin it up in your room as a visual reminder of where you’re heading.

Don’t be too strict with your budget, and deprive yourself of indulgences entirely. While you might think you’re saving money, you’ll soon become resentful and fall back into your bad spending pattern. Give yourself a small allowance so that you’re still able to enjoy a taste of the good life – even if it’s just the occasional coffee date or night out.

Over and above your regular check-ups, you also need to make time to re-evaluate your entire approach every once in a while – perhaps once a month or every quarter. Be honest with yourself and, if any bad habits have cropped up again, be firm and make the necessary changes to get back on track. Confide in a close friend or family member in your support group, and ask them to help you assess the overall situation.

Budgeting For Your First Job

You found your first job, or maybe it found you! Either way, it’s a very exciting time in your life –but it can also be incredibly daunting if you don’t prepare yourself for the financial responsibility that comes with it. Life is full of unexpected twists and turns, so it’s important to ensure that you have a solid budgeting strategy in place.

The first thing you need to do when you find a job is to take a closer look at the benefits that your employer has to offer – and take advantage of them! Next you need to calculate your salary deductions – in other words, the money that will be taken out of your pay cheque before you get paid. Lastly, decide how much you want to save every month – whatever is left is what you can spend throughout the month.

The first step of drawing up a budget is to calculate all your fixed monthly expenses like rent, utilities, loan repayments and so forth. Next, you need to work out a ballpark figure for flexible expenses like groceries, clothing or entertainment. In an ideal world, you should also be putting a little money aside in an emergency fund, and set up a long-term savings account for something big like a holiday, a house or a piece of land – even if it means saving in a group!

Another way to approach your budget, is to apply the 50-30-20 Principle.

  • 50% of each paycheque is set aside for bills and necessary expenses
  • 30% is set aside for day-to-day lifestyle expenses like entertainment and clothing
  • 20% goes into savings. Pan Africa Life’s FlexiSaver policy guarantees a minimum return of 2% on your savings premium

If your starting salary falls into the ‘low wage earner’ category and you can’t afford to save 20%, don’t panic! The 50-30-20 Principle can be adapted to fit your lifestyle. Even if you just save a little bit, that’s fine too – the important thing is that you get into the habit of saving. Your future self will thank you for it!

Be careful when it comes to choosing your fixed expenses. Luxuries like magazine subscriptions, gym memberships and satellite TV might seem like small expenses, but they add up quickly. Be smart with your expenses, and cut back on as many luxuries as you possibly can.

Learning to budget when you’re in your first job is all about nurturing good habits, like paying bills on time and saving for retirement and emergencies. Because you’re still young, you might be tempted to postpone saving until later. But don’t fall into the trap of thinking that you’ll be able to earn more later than you’ll be able to save now – before you know it, your future has arrived and you still haven’t saved a dime.

Managing Money in Your 20’s

If you’re a 20-something in today’s day and age, you’ve probably come to realised that you have to grow up fast. Between HELB (Higher education Loans Board) repayments, pressure to start a family and expensive urban housing markets, those first pay checks are in demand and there’s little room for error. Here are some tips for getting on top of your finances in your 20s.

Chances are your new job requires a new lifestyle, which can be pricey. You probably need professional clothes, perhaps a new car and a place to live. We recommend you continue living like a broke student even after you are gainfully employed, at least until you get a better handle on all those new expenses.

You certainly wouldn’t be the only one to do so; at least temporarily. Living at home can give the financial flexibility you need to shore up your finances, make a plan for paying back HELB debt, buying house appliances, creating a budget you can live with or bumping your savings account. While you want to be sure to make all monthly payments to HELB, there’s not usually any need to fast track those payments. In other words, you can continue to make slow and steady monthly payments throughout.

We advocate building up a cash cushion for emergency expenses, which can be anything from car repairs to dental work. The goal should be to have six months of expenses stored in a bank account in case of a sudden job loss, but the timeline is more flexible for 20-somethings who can’t build that cushion right away. Perhaps subscribe to Pan Africa Life’s FlexiCash policy which pays 20% of the sum assured plus accrued interest at the first pay-out on the fifth year and another 20% five years before end of the term followed by 60% plus bonuses at the maturity.

Make sure you have health insurance and even disability and life insurance, especially if you are financially responsible for other people, like siblings. Just one accident or illness can wreak havoc on your finances if you’re not covered. Look into the FlexiShield policy which, in case of an accident that leaves you unable to engage in your day-to-day income generating activity, pays you a payout on income of KSh 15 000 per week as you recuperate.

Simply articulating big goals, such as buying a home or traveling around the world, can help you move towards them. If you get an early start on saving up for one of those big goals, then you can take advantage of compounding interest and reach your goal sooner.

Retirement seems like eons away to a 20-something, but starting to save as soon as you get your first job will make it far easier to reach your retirement goals well before the big day actually arrives. If your employer offers matching contributions, then you’ll want to take advantage of that too.

Many people forget to rebalance their investments, check on the fees they are paying or adjust their portfolios as they age. That can result in lost earnings and a lack of preparedness of retirement when the day does come. Check in on your accounts at least quarterly, and ask your financial services provider questions if you don’t understand the fees or investment options.

Before and After Marriage

Marriages and relationships have a number of conflicts and one that tops the charts is finances. A number of things can cause this disagreement; from being dishonest, bad spending habits, a culture of not saving to no financial planning. The first encounter we have with money is probably during our first employment and in most cases; we barely make it to the next pay day hence the famous words mwezi iko corner.

Times have changed. Gone are the days the man would take on a loan to finance the wedding or pay for it solely. Couples are now into financial planning for it allows them to make joint decisions and this provides a golden opportunity to establish good patterns for financial management in the marriage. Financial planning for a wedding

This way, you will both be in a much better position to control and monitor your costs. Most couples change their mind many times over exactly what they want and how much they are willing to allocate to any given item. By recording any changes on your budget, you will always be aware of their impact on the total cost and thereby giving you the opportunity to adjust your expenditure levels accordingly. To the few years or months leading to the date you can subscribe to Pan Africa Life’s FlexiCash policy which pays 20% of the sum assured plus accrued interest at the first pay-out, which is done on the fifth year of the policy. This will also go a long way in reducing the stress that you will undoubtedly experience during your wedding preparations and will also set a pace during your marriage life for your day to day expenses.

Everyone has a different idea of the perfect wedding, so you need to sit down with your spouse and determine what is important to both of you – Is it the wedding gown, the wedding venue, wedding cake or your honeymoon? As you begin to find out what aspects of the wedding are most important, you’ll then have a list of priorities that will be used to determine how much money to spend. Opening up your financial communication lines at this point will also help you in the future to establish your dreams and ambitions i.e. buying a home or schools for your children and many more.

Financial fidelity. Issues to do with credit/debit cards, loans, investments, income, in-laws, friends and spending habits have to come out of the box now. If you are an addicted gambler this is a good time to admit and tell. Revealing past credit problems, bad habits and good ones too will allow you to work together as a couple now, during and after. Anything left out is bound to cause a conflict between. Create a system that works best for you. Achieving short-term and long-term financial goals requires a money management strategy that fits your needs. Work together to arrive at a system you both can live with. Will you have one account or two? What are your financial obligations? How much can you afford to save each month? Which insurance package do you prefer? During the wedding planning, negotiate for the best deals from the wedding vendors if possible use talented friends to cut costs. For example use a friend who loves baking to bake the wedding cake or a musician to entertain the crowd, however choose wisely to avoid last minute let downs and broken friendships after. The key to a successful marriage, financially speaking, is to establish a clear game plan and stick to it.

Money Moves Before the Big 40

Your 30s are a big decade, often filled with significant life changes, from marriage to parenthood to career moves. To make sure you make it into the next decade with your finances intact, consider taking these steps before celebrating four joyous decades.

Creating an emergency savings fund can prevent you from going into debt when unexpected costs strike. Lack of savings and debt go hand in hand … an emergency cushion is insurance against debt. Consider a minimum investment of Ksh 75,000 with Pan Africa Life’s FlexiPlus policy and watch your money grow.

Approaching the big 40 can mean developing a support system. Being part of a group that contributes to a kitty or chama is a wise move. Insurance is always that thing that we don’t think about that we should. With us you are spoilt for choice when it comes to Pan Africa Life’s group policies which range from Pan Africa Life’s Group Life Assurance, Group Last Expense, Group Mortgage to Group Credit Assurance policy. With this you have the option of annual premium or single premium paid.

While some people prefer to manage their money on their own, others benefit from a professional’s help. It’s easy to feel overwhelmed by all of the competing expenses sitting down with a financial planner can help you understand where your expenses are and what is discretionary versus essential, and then you can create the right kind of budgeting and savings plan for you.

Many companies provide employee benefits. Those benefits include retirement, housing allowance, reimbursement and health insurance. If your company is paying for these and more benefits, you can take advantage of them to help boost your own wealth.

The single most important financial move you can make in your 30s if you have minor children is to put the time, effort and money necessary into drafting a solid will. With the help of a lawyer, the will should include among others durable power of attorney and advance directives.

You don’t need to become a financial professional, but knowing your way around the stock, investment and financial market will help you make the right decisions for your own long-term savings and investments.

This decade is also the time to make slow and steady progress toward paying off any remaining debts. Becoming debt-free by age 40 is definitely something to celebrate.

Sanlam Life Insurance is a licensed financial service provider.
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