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We all know we should save for our future, whether it’s for retirement, our kids’ education or a rainy day. But why is it so hard to stay committed to good savings?

We live in a consumerist world where it’s easy to get swept up by constant urges to have what others have – always being on the hunt for the next big thing.

We spend money on these ‘wants’ first and savings last because spending is instant, visible and tangible. But the only way to make savings work for you, is to pay yourself first, not last, otherwise you’ll never have any money left over for future goals and opportunities.

Self-care vs Self-sabotage

Your future is just as important as the bills you have to pay now. ‘Future you’ also deserves to be looked after. Think of saving money as a method of self-care. You are affording yourself opportunities in the future, whether it’s to start a business or to live comfortably when you can no longer earn a salary. If you don’t save, you’re actually limiting yourself. Don’t sabotage your own future.

What Is ‘Pay Yourself First’?

Paying yourself first is one of the oldest rules of personal finance. As soon as your salary hits your account and you start paying bills, you should set money aside for savings or paying debt. How you pay yourself depends on you – it can be a percentage of your salary or a small amount.

But be warned about a ‘giving mentality’. Giving to others instead of ourselves gives us an immediate emotional benefit of feeling appreciated. But if we channel this generosity into our own savings, we can provide for others for years to come.

Four Steps to ‘Paying Yourself First’

Invest in ‘future you’

‘Future you’ deserves to be paid as much as the school fees, the phone bill and the alarm company. By paying yourself first, you’re mentally establishing saving as a priority. Setting aside money each month to grow your harvest of the future, so to speak, is empowering. It will help you maintain and improve your lifestyle over time.

How to do it: Relook your budget so you know exactly what’s coming in and going out, and so that you can list yourself as a bill with your other expenses. Automate this payment as much as possible, whether it’s a contribution to retirement savings going off before you get your salary, or a monthly direct debit.

If you pay yourself manually, it’s normal to have feelings of pain and loss. But if you never see that money, you’ll surprise yourself with what small, regular amounts can become over time.

Empower yourself with information

Knowledge is power and if you’re going to pay yourself first, find a method that works for you. Just as you would put a lot of research into the right exercise or health regime for your lifestyle, find a method of paying yourself first that is doable and sustainable.

How to do it: Focus on spending less each month and banking the difference. You could also get a side hustle and put all of your profits towards your savings, separating your salary from your extra income.

Get financial advice

It can be hard to know what to focus your savings on. Of course, you may also need to save for a house or a car, but it’s important to take a holistic view of your savings. Talking to a financial planner about your savings and financial objectives can help you strike the right balance. It can help you plan for all eventualities that you may overlook on your own.

How to do it: Don’t be shy to ask for help. We usually get things done when there are other people to hold us accountable. Look into setting up a social savings group with a tax-free savings account and you’ll not only keep one another motivated, but also enjoy lower fees.

Make your savings goals extra visible

As Behavioural Economist Dan Ariely points out, when we invented money, we made spending very visible, but we made saving completely invisible. That’s something we need to change, and having very clear savings goals will help. Research has proven that people who invest money with very specific goals save a lot more over the long term. It’s about retraining your mind to focus less on the now and more on the future.

How to do it: Be very clear with yourself what your savings goals are. It’s good to have short-term and long-term goals. Give each goal a name and an end date, and identify what each goal means to you personally. Make these as visible and specific as possible.

If you want to live in a different country one day, put up photos around your house as motivation. Use an app to see how your savings are growing or create a colourful progress chart.

Three Ways to Spend Less

The world is making it easier to get around without cash, but we should make our money more visible – not less. We should put limits in place to help ourselves think before we spend.
 To spend less:

·       Try the ‘envelope method’ for a week: only spend cash you’ve budgeted for that week. You’re bound to spend less.

·       Try to curb emotional spending, for example buying a new piece of tech because you feel bored or sad. Replace that with something else, like calling a friend.

·       Try to stick to one big shop a month and only one top-up shopping trip per week. The less time you spend at the shops, the better for your bank account.

It’s important to be very honest with yourself about the difference between self-care and self-sabotage, take care of the future you by setting clear financial goals. Consider consulting a financial planner before you make any big decisions regarding your savings and investments.

Article source – IOL.co.za, Written by Kenosi Magosha, Head: Client Solutions Savings at Sanlam.
Disclaimer: ES Brokers is not licensed or authorized to give investment advice. This article is posted with purposes of educating and help people with ideas on saving solutions.

Brokers or Intermediaries receive a commission for their services rendered to clients.
With the adoption of recent legislation in terms of the Short term insurance Act, Brokers are now required to disclose any additional fees charged as well as  getting the client to sign a separate agreement called “ consent to Broker fee”.

Although 40% of Domestic personal Lines business is written Direct, which means clients prefer to go Direct to the Insurers and self- manage their own portfolio’s in efforts to save money. The downside to this method is that clients take on the risk by assuming the role of their own Broker, so you need to have fair knowledge of the Insurance Market.

60% of consumers still believe in the value they receive from an Insurance Broker, so let’s look into the role and function of a Broker and how much extra they do in terms of adding value to the market place.

 South African short-term insurance Brokers play an integral role as go-betweens, between Insurers and policyholders during times of crisis as well as adding tremendous value in the insurance distribution process.
Brokers assist personal lines consumers by explaining the types of cover available and ensuring that all the risks identified during the risk needs analysis are on cover. Brokers also assist clients by explaining the terms and conditions in their policy wordings; ensuring that assets are insured at the correct value (the sum insured); and that the Insurer’s risk mitigation requirements are met. A record of advice always follows a new contract of insurance which helps educate the policyholder, making him/her aware of terms, conditions, exclusions that would apply, that they need to be aware of. This added advice will highlight cover not selected; that would expose the client, giving them an opportunity to bridge the gap.

A short-term Insurance broker will interact with his or her clients on an ongoing basis by conducting annual policy reviews; making changes to the policy at the client’s request; and offering support following a loss event, by assisting with submission of a claim and liaising with insurers if difficulties arise.

Technology on the other hand is changing the world of insurance and insurance distribution.
Short Term Insurance Brokers face an ongoing struggle to ensure that their systems meet the evolving needs of the Millennial and subsequent consumer generation.
To do this they must offer clients affordable, flexible, and transparent access to their insurance portfolios and be available to clients 24/7 and in real time.

The integration of technology into a modern short-term insurance brokerage begins with easy wins such as optimized website design and the application of social media to assist with marketing and client servicing functions.

ES Brokers is grateful for the relationships they have built between their clients and insurers.

It is this very relationship that afforded us the opportunity to pass a reduction in premiums to all our policyholders during the COVID lockdown crisis, in times when financial assistance was needed most. (without compromising/reducing clients cover). Again this is yet another example of the benefits of having a Broker.

In spite of regulatory changes, COVID 19 pandemic and subsequent National lockdown as well as Direct competition, on line Avatar services, Bots, AI technology etc, client’s still find the value in human interaction and the need for Brokers , especially at times when emotional support is necessary.

Article written by Andrew Ensor-Smith , managing member of ES Brokers
written on 9 October 2020
(information source- Graduate institute of financial sciences)

South African’s are becoming more and more litigious, therefore Professionals need to ensure they protect themselves against any claims of negligence.

Brokers, Engineers, Graphic Designers, IT developers, recruitment agencies, Private Tutors, Accountants, Lawyers, architects, quantity surveyors, or anyone providing advice or a service to their clients in exchange for a fee, would need Professional Indemnity Insurance.

We help protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit.

The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder.
These are causes for legal action that would not be covered by a more general liability insurance policy which addresses more direct forms of harm (such as physical damage).

Professional Indemnity insurance may take on different forms and names depending on the profession, especially medical and legal, and is sometimes required under contract by other businesses that are the beneficiaries of the advice or service.

Coverage sometimes provides for the defense costs, including when legal action turns out to be groundless. Coverage does not include criminal prosecution, nor a wide range of potential liabilities under civil law that are not enumerated in the policy, but which may be subject to other forms of insurance.

Professional Indemnity insurance is required by law in some areas for certain kinds of professional practice. (for example Insurance Brokers, such as ourselves, are required to carry PI cover in terms of the Short term Insurance Act)

We are able to assist with Professional Indemnity for these very specialized professions.
Simply because we understand the nature of the risk and can provide comfort to our clients with the appropriate professional Indemnity cover.

Being an Independent Insurance Intermediary we have access to Insurers who are able to tailor a policy to suit our clients Individual needs.

For queries or quotes on Professional Indemnity Insurance please leave your details on our website and we will make contact with you.
www.esbrokers.co.za

Recent statistics on the number of consumers who have fallen behind on their debt repayments for vehicles and homes make for difficult reading.

It is now estimated that the number of vehicle and home loan accounts that will fall into arrears will reach unprecedented heights.

If you’re struggling with your finances and have fallen behind on paying for a home or vehicle, there is no reason to feel ashamed.

“Avoiding phone calls or ignoring letters of demand from lenders is a common reaction when people feel mired in debt, but it’s not a solution. There are options, but it is important to act before you face the possibility of having your house or car repossessed.”

Debt counselling is one of these options, and arguably one of the best options that allow you not only to retain your assets, but also secure better payment terms on them.

Debt counselling is an effective and well-regulated industry. It was introduced as part of the National Credit Act in 2007. It’s a way of helping over-indebted or soon-to-be over-indebted consumers repay what they owe through an affordable repayment plan.

“If you are feeling trapped by debt or are avoiding your creditors, you should get help. One of the cornerstones of debt counselling is that you can include your assets in the process. In fact, more than half of the consumers who sign up to debt counselling do it to secure their assets.”

It works like this:

·       A registered debt counsellor will do a financial assessment to determine how much you owe and whether debt counselling is a potential solution.

·       If it is, you formally apply for debt counselling. The debt counsellor will then inform all your creditors and credit bureaus that you have applied for, and are undergoing, debt counselling. Once they are informed, creditors deal with the debt counsellor rather than contacting you directly, which should help ease some of the pressure.

·       The debt counsellor then negotiates reduced monthly payments on all credit agreements that fall under the National Credit Act, including vehicles and home loans. This is done within agreed industry parameters and what you can afford. In most cases, interest rates for vehicles and home loans could be reduced to repo rate plus 2% through renegotiation with lenders – this equates to 5.5% at the moment.

·       Once the more affordable repayment rates are negotiated, the ‘rearranged debt’ is approved by a court or the National Consumer Tribunal. This confirms that the creditors have agreed to the rates and cannot change them for the duration of the debt counselling.

·       You then make one affordable payment each month, which is distributed to the creditors via an independent payment distribution agency, also regulated by the National Credit Regulator.

·       Reputable debt counsellors have a client-service team that is available throughout the process to offer help and support.

Debt counselling usually lasts for between three to five years, depending on the amount of debt, the rates the debt counsellor is able to negotiate and what you can afford to pay.

On completion the debt counsellor issues a clearance certificate confirming that all of the accounts listed in the agreement are paid up. Home loans are the exception. These do not need to be fully paid up but must be up to date.

Article courtesy of IOL.co.za under the personal finance section. Written by Benay Sager, Chief Operating Officer at DebtBusters

Disclaimer: ES Brokers is not authorized to offer advice on debt counseling. This article is intended for information purposes only.

December 2018 was littered with sentiments as the country battled to understand the new spectre of Load shedding, reminiscent of over a decade ago when South Africans were first introduced to rolling blackouts.
During the period of load shedding in December 2007 and January 2008, South Africans came to understand that this could become the new norm.

Power surges due to rolling blackouts can cause damage to electronic devices (computers) and appliances (fridges and Tv’s), which has led to more frequent insurance claims.
It is therefore important to read your policy document, schedule and wording in fine detail because load shedding in itself, is not an insured peril.

It is important to note that load shedding is not accidental, nor is it sudden and unforeseen, but rather a deliberate act on the part of the supplier (Eskom).

Accordingly, any damage arising from load shedding is not covered. We encourage customers and policy holders to take all the necessary and reasonable precautions to better manage related risks and ensure the safety of their people, premises, plant, equipment, etc.

Having an uninterrupted power supply (UPS) installed, allows your home or office to receive a steady and stable flow of electricity. Even when there is instability in the flow of electricity (Load Shedding), a UPS can quite literally save a business and it’s electronic equipment, especially during unexpected power interruptions.

The other aspect to load shedding which customers seldom take into consideration is their Home or business alarm system.
Some alarm back up batteries are only designed to run surplus power up to 2 hours.
If a monitored alarm with 24 hour armed response is a condition for theft/burglary cover, it is the clients obligation to meet this warranty.

That means, in the unlikely event of a burglary there must be an alarm activation report and the patrol unit would need to conduct an on site inspection, in order for the insurance policy to respond. Please ensure that you communicate with both your security provider and Insurance Adviser to discuss the requirements during these periods.

Some Insurers may require you to purchase Power Surge cover separately, it’s therefore imperative that you familiarizes yourself with the policy terms and condition of your Insurance contract. At the same time being cognisant that damage caused through load shedding can’t be construed as Power Surge.

Should you have any queries or concerns or wish to know the difference between Lightning/power surge and load shedding damage, please feel free to contact our offices or leave your details on our website www.esbrokers.co.za and we will call you.

Article written on 6 October 2020 by Andrew Ensor-Smith, managing member of ES Brokers

Summertime is commonly associated with hail season in the northern parts of South Africa, and short-term insurer, Santam confirmed afternoon they received the first storm and hail damage reports from Mpumalanga. The South African Weather Service issued a warning earlier this week that Friday would bring thunderstorms for Mpumalanga, Gauteng and Free State with possible strong winds and large amounts of small hail. Hail stones vary vastly in diameter – from the size of marbles to the size of golf balls causing millions of Rands worth of damage each year.

Hail is an extremely destructive natural weather pattern. Hailstones can measure up to 7 cm in diameter, so it is easy to see why so much irreparable damage is done to vehicles and property. Windscreens are shattered, vehicles dented, roofs damaged and house windows broken.

The cost to repair and replace vehicles varies according to the severity of the storm and whether the damage could be repaired paintless or not. Not only are the costs crippling, but the repair process can take months, depending on the availability of car parts and the capacity of approved motor body repairers.

Statistics show an average of six to eight hail days each year in parts of Gauteng and Lesotho, the eastern Free State, KwaZulu-Natal and Mpumalanga. So, how can South Africans living in these parts of the country prepare for the inevitable fallouts of these storms?

Here are some tips to help policyholders be adequately prepared for hailstorms:

If you are on the road or vehicle is parked:

·       Drive slowly – slower driving minimises the damage of hail and combats slippery roads.

·       Locate a safe, covered area immediately or pull over under an overpass, provided it is safe to do so.

·       Undercover parking at malls and petrol stations are good temporary solutions to protecting your car during a hailstorm.

·       Stay inside the vehicle. Large hail stones pose genuine injury threat.

·       Keep fleecy blankets in your boot so you can cover your car to minimise the impact of hail.

·       Take careful note of the extent of the damage to your car, look for damage to all glass items including side mirrors, taillights and head lights. Taking pictures may be useful when it comes to claims time.

·       If you are affected by hail, immediately report the incident to your insurer.

When you are at home:

·       Keep your gutters clean. It is important to clear gutters of leaves, twigs and any other debris regularly. Hail takes a while to melt and an overflowing gutter could lead to a leaking roof and further damage. Hail buildup is also heavy so make sure that the guttering is sound and in good order.

·       Trimming trees close to your house helps get rid of branches that can cause severe damage during a storm

·       Keep your blinds down. Make sure you close all curtains, blinds or shutters to prevent broken window glass and hailstones from entering your home and injuring you or your family.

·       Park your car in the garage or in a sheltered undercover area.

·       Ensure that you are adequately covered against hail damage in your insurance policy so that you have cover when you need it.

Now is not the time to compromise on your insurance cover – it is very important to know exactly what you are covered for and for what amount. Consumers should make sure their policies are up to date and take a note of the insurer’s available emergency services. Choose an insurer that assists you in protecting your assets in severe weather situations by sending out weather alerts.

Looking for the right Household and car cover?
Simply visit our website www.esbrokers.co.za, leave your details and we will contact you.

Article courtesy of Santam, written by Marius Neethling

Know when thunderstorms are on the way.
Staying up to date with the latest weather forecast has never been easier: simply turn on your weather app notifications before planning a trip or a commute. Or, if you’re old school, stay tuned to the weather reports on the radio or TV. Then try and stay off the roads, if at all possible. Driving in a storm is risky, and no fun.

Park your car under cover

Insurers see hundreds of claims for hail damage every year. The simplest way to avoid hail damage is to park your car in your garage, or under a carport. If you don’t have covered parking, you can use a car cover, or even a blanket, to minimise damage and protect your car’s most exposed surfaces, like the windscreen and bonnet.

Find a safe place if you’re caught in a storm

If a severe thunderstorm starts when you’re on the road, stay calm, and use your GPS to get you to the nearest sheltered spot as quickly as possible, like a petrol station or an underground parking area in a shopping centre.
A tree doesn’t count as a safe place, as falling branches and debris can damage your car. And stopping under a bridge on the highway in the middle of a storm is neither safe nor advisable.

Make sure your wipers are in top condition

In case you’re caught in a storm and there’s nowhere to go, your best defence is proactive preparation. Get your wipers checked before rainy season starts, and use water repellent for your windscreen, to make sure your visibility is as clear as possible while you’re on the road.

Check your tyres are storm-worthy

In rainy weather, water creates a tiny barrier between the road and your tyres, which means you can lose traction and hydroplane. Thousands of accidents happen each year because of wet roads, and your preparation starts with your tyres: make sure they have at least 1mm tread depth, and that they’re inflated to the correct pressure, especially if your car hasn’t been driven for a while.

Don’t skimp on your insurance

In spite of our best efforts, stuff happens. Make sure that you have comprehensive insurance for your pride and joy, which can help cover expenses related to thunderstorm damages, such as flash floods and bumper bashes. Many insurers, also have specific ‘scratch and dent’ cover at a super-low excess.

For information and advice on insurance related matters please leave your details on our website www.esbrokers.co.za.

Article source – Kathorus Mail, written by Wynand Van Vuuren.

There are many factors that influence how your car insurance premium is calculated. But did you know that you will likely pay lower car insurance premiums if you are female?

We got in touch with an insurance expert to find out why this is the case, as well as look at other factors that play a role in calculating your car insurance premiums.

It all comes down to statistics

According to Christelle Colman, insurance expert at Old Mutual, around the world, it’s a proven actuarial finding that women are statistically lower insurance risks than men. 

Women take fewer risks, are more careful in their decision-making, hardly ever exceed the speed limit, and shy away from any form of road rage. Statistics show that women have fewer accidents, and the accidents they do have are less severe.

Considering that the cost of repairs is one of the biggest driving factors when it comes to pricing motor insurance, it is easy to understand why women are charged less. Statistically, the damages incurred by women simply cost less to repair. 

It’s worth stressing that this phenomenon is not limited to South Africa, and the trend is well established and accepted as fact around the world.

Colman points out that race is never used as a rating factor in motor insurance in South Africa.

Which other factors are considered? 

Besides gender there are a host of factors considered when motor insurance premiums are calculated. For example, insurers look at credit scores, place of residence, occupation, and claims history to determine your insurance premium. 

However, it may surprise you that the colour of your vehicle also has an impact on your insurance premiums. This is because, statistically speaking, certain colour cars are more at risk than others.

Whilst colour of vehicle is a well-known rating factor, the influence of the vehicle colour is often rather small. Insurers pay more attention to knowing if you have had any previous accidents, the number of kilometres you drive annually, and where you live.

Your age will also have an impact on your insurance premium. If you’re under the age of 25, you will likely have higher premiums because you haven’t been driving for very long. On the other hand, if you’re a pensioner, you may have access to a reduced premium.

Most insurers offer a significant discount on motor insurance premiums, or reduced or even zero excess if you are over the age of 55.

If you use your car for business purposes it’s recommended that you disclose this to your insurer. You may end up paying quite a bit more, or the insurers will ask you to insure the car on a business policy. 

However, if the usage of the vehicle is not disclosed, you run the serious risk of having your claim rejected in the event of an accident during working hours.

For a quotation on your vehicle, to see whether you qualify for any further discount, you can phone our office on 031-5021922 or leave your details on our website www.esbrokers.co.za

Article featured in “Just Money”, written by Christelle Colman – Old Mutual