Undertaking to learn accounting can be an interesting and lucrative endeavour. It does, however, require you to pay attention when learning and pay extra attention when executing your work as having a premium financial education means nothing if you aren’t paying attention when it comes to the crunch. Accounting blunders can have dramatic consequences and there have been a number of catastrophic incidents over the past decade that echo this sentiment.
Life is unpredictable, if not for this fact budgeting would be the easiest thing in the world. Constructing and keeping to a budget can be a monumental challenge. Today we will tap into some tips from the financial training specialists at the Academy of Wealth:
Greed is a basic human failing. It is probably the greatest reason why people who can ill afford it fall victim to financial scams. It is amazing that people are prepared to gamble with their entire life savings when they are offered what can only be termed spectacular returns. Trying to keep up with the Jones and making an impression is so superficial and in the end so unimportant. Never lose touch with reality. Money is a strange thing. It takes a long to accumulate but it will disappear very quickly when it is forced to make impossible returns. The most classic of these are the so called ‘Ponzi schemes’. A ‘Ponzi scheme’ is a fraudulent investment scheme which pays extraordinary returns to its investors from their own money or from monies invested by subsequent investors. Once people stop investing the whole scheme comes tumbling down. The owner or operator of such a scheme will usually be vague in what the underlying investment is, describing it as hedged offshore investment or such like. There are many examples of such scheme with the Masterbond and Barry Tannenbaum schemes probably being the best known ones in South Africa. Other well-known schemes for having duped investors are the Fidentia case and Sharemax. The saddest thing is that these schemes catch pensioners who have no financial literacy training and trust those advisors who are recommending the schemes. Whilst we have watchdogs in South Africa such as the Financial Services Board as well as various […]
There is absolutely no doubt that life has become harder for most people. Many are unemployed and for those who do have jobs, salaries are not sufficient to cover all our expenses comfortably. Consumers have had to endure above inflation increases in electricity, water and rates, rising food prices, increases in fuel prices, e-tolls and higher interest rates. Income tax has also been increased during these economically tough times.
You have created a decent work environment, proper benefits, but have you gone as far as assisting your employees to create sound financial habits. Most HR personnel have had to deal with the following: Employees who need loans to carry them through every six months or so Employees who ask for their leave to be cashed in Employees who have had garnishee orders issued against them Employees who leave to be able to access their pension fund money Employees who take more sick leave than they should. Employees who on reaching retirement age suddenly realize that their pension is not enough and do not know what to do