Learn to manage your money and you could win Don by dalmatian


									Learn to manage your money – and you could win R10 000!

Don't become one of the statistics! On average, 150 000 judgments are handed down each month
against individuals who are financially overcommitted.

According to research, more than 50% of all South Africans are compulsive shoppers. Their need to
spend is fuelled by easy access to credit, changing priorities and new products and services. They
have one thing in common with addicted gamblers: they cannot control their impulses.

It is a disconcerting fact that the average person spends a staggering 44% of his/her monthly income
on servicing debt – i.e. to pay credit cards, housing loans, motor vehicles, hire-purchases, personal
loans and in-store accounts – while the accepted international limit is 35%.

What is perhaps even more alarming is that most individuals don't save enough or at all for their
retirement, because only 19% of income is spent on short-term insurance, life assurance, and
healthcare and saving for their old age.

In the recent past UASA introduced members to the programme and services of Money Sense, offered
free of charge because of a generous sponsorship. Since then, Money Sense had 19 180 interactions
with UASA members based in Gauteng until the end of September 2006. These interactions include
personal Money Sense assessments, e-mail and call-centre interactions, pamphlets, the Money Sense
newsletter and the distribution of the Money Sense Toolkit to members with e-mail. Simply visit
www.moneysense.co.za or open the attachment to this communication. Complete the “Input” and send
it to Money Sense.

To entice you to make use of this programme for your own benefit, each member who do their
individual Money Sense reports from now until the 12th December 2006 will stand a chance of
winning a R10 000 cash prize from Money Sense! This competition has just been announced in the
newsletter submitted to members during the first week of October. More details about the competition
are also available on the Money Sense website.

We thought that you might be interested in the contents of the first report received from Money Sense
regarding spending and other patterns of our UASA family of members:


One of the purposes of Money Sense is to assist individuals to improve their budget, irrespective of
their financial position. This is achieved by identifying the areas where the employee could improve his
or her financial lifestyle by either spending more or less in a budget category.

Financial lifestyle is the way an individual or household selects to spend his, her or their money over
the short and long term. Each individual needs to make financial lifestyle choices. Different issues are
important to different people. However, it is important that the financial lifestyle of an individual is in
sync with his or her monthly income. Each person (or household) has different financial priorities and
this is influenced by the financial lifestyle choices that are made.
There are normally ten systems of cost within each household. These are:
    • Housing
    • Food
    • Clothing
    • Transportation
    • Recreation and entertainment
    • Education
    •     Health and personal care
    •     Saving and security
    •     Debt servicing
    •     Addictive behaviours

Spending on the above systems of cost must be in balance with monthly income. It is normally the
imbalance caused by spending too much or too little on each item that creates financial stress.

                                CLASSIFICATION OF BUDGET ITEMS


– Domestic:              Domestic & garden workers, Garden Service.
– Groceries:             Food, meat, bread, milk, vegetables, fruit, toiletries, pet food, stationery,
                         stamps, baby diapers and food.
– Water & Electricity:   Monthly and/or pre-paid water and electricity.
– Telephone:             Monthly and/or pre-paid phones in household (Telkom & cellphones),
– Security:              Security company, protection, NetStar, Tracker
– Entertainment:         Sports, hobbies, social clubs, gym, magazines, paper, TV, DStv, M-Net, TV
                         rental, cinemas, dining out, liquor, cigarettes, Lotto, gambling.
– Petrol/Travel:         Petrol, vehicle service & maintenance, train, bus, taxi, parking.
– Rates & Taxes:         Monthly Municipal Rates and Taxes, Body Corporate Levies.
– School Fees:           Monthly school fees, boarding fees, crèche, higher education costs.
– Family Expenses:       Church, charity, pocket money, maintenance, hairdresser, dry cleaning,
                         chemist (non-medical), vet, household maintenance & repairs, pool, gifts,
                         banking costs.
– Other:                 Any other regular monthly cost not included above.


– Assurance:             Monthly Life & Endowment, Funeral Policy.
– Insurance:             Monthly Short-Term Insurance – houshold contents, vehicle(s).
– Medical Aid:           Monthly Medical Aid subscriptions, medical cost (not covered by
                         medical aid), medical insurance, hospital plan.
– Pension & Risk
  Benefits:              Monthly Pension Fund contributions, Retirement Annuities.
– Other:                 Monthly Educational Policy, educational savings, regular bank savings,
                         Unit Trusts.


– Credit Card:           Monthly amount due on all credit cards.
– Bond:                  Monthly bond, rent, lodging payments.

– Car Repayments:        Monthly car and/or other vehicle repayments.
– HP/Lease:              Monthly furniture and/or appliances repayments.
– In-Store Accounts:   Monthly amount due for clothing or other goods.
– Other:               Any regular debt repayment not mentioned above, such as loans from
                       friends or family or work.
                                        MONEY SENSE STATISTICS

Group:            UASA                          Number of Interactions:       19180

                                    CLIENT STATISTICS BY AGE:
                 Age Range:                                     Percentage:
                    18 to 24                                        8.33
                    25 to 34                                       58.33
                    35 to 49                                       16.67
                    50 to 60                                       16.67
                 61 and greater                                     0.00
                    TOTAL                                         100.00

                                  CLIENT STATISTICS BY GENDER
Male:                     25.00%                Female:                    75.00%

                              EXISTING BUDGET PLAN STATISTICS
                    Status:                                     Percentage:
Single Under 30                                                   21.43%
Single Over 30: 1 Child                                           28.57%
Married Under 30: No Children                                      7.14%
Married Over 30: No Children                                       7.14%
Married Over 30: 1 Child                                           7.14%
Married 0ver 30: 2 Or More Children                               28.57%

               Average Income                                      9,431

                                  CLIENT STATISTICS BY INCOME
               Income Bracket                                   Percentage
                    0 to 2,427                                     0.00%
                  2,428 to 4,075                                  21.43%
                  4,076 to 6,455                                  21.43%
                 6,456 to 11,566                                  21.43%
                11,567 to 18,649                                  28.57%
               18,650 and greater                                  7.14%
                                            MONEY SENSE STATISTICS

 Household total % of income                                                    39.35%
 Financial % of income                                                           15.8%
 Debt % of income                                                               34.01%
 Total % of income                                                              89.16%
    Where the total expenditure exceeds 100% it means that employees on average spend more than they earn.
    Where the total expenditure is less than 100% it means that on average employees have a cash surplus on a
                              monthly basis (based on input provided by employees).

                                    AVERAGES ON BUDGET ITEMS

                                        HOUSEHOLD EXPENSES
                                           Rand AVG            % Of AVG           Number          % of Users
           Budget Item
                                             (Note 1)           (Note 2)                            (Note 4)
 Domestic                                         342.56         3.56%                              64.29%
 Groceries                                      2,069.23        23.21%                              92.86%
 Water and Electricity                            635.71         5.97%                              50.00%
 Telephone                                        285.00         3.29%                              85.71%
 Security                                           0.00         0.00%                               0.00%
 Entertainment                                    394.17         3.73%                              85.71%
         Going Out                                300.00         2.79%                              50.00%
         Sports                                   300.00         2.07%                               7.14%
         Own Entertainment                        121.43         1.17%                              50.00%
         Gambling                                  55.00         0.60%                              28.57%
         Other                                    152.00         1.93%                              35.71%
 Petrol                                           737.14         7.82%                              100.00%
 Rates And Taxes                                  275.00         2.86%                              28.57%
 School Fees                                      607.00         4.99%                              35.71%
 Family Expenses                                  550.00         9.12%                              57.14%
 Other                                            400.00         3.13%                              14.29%

                                          FINANCIAL SERVICES
 Assurance                                        338.38         2.70%                               57.14%
 Insurance                                        693.67         4.73%                               42.86%
 Medical Aid                                      930.11         7.95%                               64.29%
 Pension And Benefits                             662.67         6.73%                               85.71%
 Other                                            600.00         7.20%                               21.43%

 Credit Card                                    1,261.43         15.23%                              50.00%
 Bond                                           2,991.33         19.65%                              35.71%
 Car Finance                                    1,910.00         16.17%                              28.57%
 Hire-Purchase                                      0.00          0.00%                               0.00%
 In-store Accounts                                461.11          4.93%                              64.29%
 Other                                            991.00         12.43%                              78.57%

Note 1: Average rand amount of members who spent money in category.
Note 2: Percentage of average salary of members who spent money in particular category.
Note 3: Number of members who spent money in this category.
Note 4: Percentage of members who spent money in this category.


   The following comments can be made on assessments to date:

   National norms on Money Sense:

                                                     National Norm            Ave Exp
                                                           Note 1
                                                                                Note 2
                                                     Percentage of income    Average Rand
   Household expenditure                                 33.02%
   Domestic                                               3.99%                     555.88
   Groceries                                             11.17%                   1,282.77
   Water & Lights                                         3.71%                     452.98
   Telephone                                              3.38%                     402.27
   Security                                               1.38%                     242.00
   Entertainment                                          5.44%                     635.80
           Going Out                                      2.64%                     482.44
           Sports                                         1.55%                     350.96
           Own Entertainment                              1.73%                     298.95
           Gambling                                       0.44%                      84.20
           Other                                          0.99%                     174.54
   Petrol and travel                                      6.10%                     690.07
   Rates and Taxes                                        2.98%                     424.02
   School Fees                                            6.32%                     755.35
   Family Expenses                                        5.52%                     676.10
   Other                                                  7.40%                     836.86
   Financial Service                                     18.97%
   Assurance                                              5.10%                     593.49
   Insurance                                              4.52%                     562.15
   Medical Aid                                            8.61%                     978.54
   Pension                                                9.29%                   1,028.76
   Other                                                  5.21%                     627.10
   Debt Repayments                                       44.02%
   Credit Card                                           12.61%                   1,478.58
   Bond or Rent                                          23.95%                   3,032.55
   Car Finance                                           16.79%                   2,257.31
   HP and Leases                                          6.45%                     691.17
   In-Store Accounts                                      6.70%                     703.42
   Other Debt Repayments (Loans)                         18.76%                   1,802.43
   Note 1: National average represents the average percentage of member income where amount spent per item exceeds zero.
   Note 2: National norm represents the average amount spent per item where spending on the item exceeds zero.
Requests for assistance during the month included the following topics:

       •   How do I invest money?
       •   What is best – fixed or variable rate?
       •   What process to follow when you want to invest money?
       •   Is this a Scam?
       •   When should I replace my vehicle?
       •   Information on Money Market accounts.
       •   Impact of CGT when I sell my house?
       •   Should I use my bond to consolidate my debt?
       •   Information on unknown Service Providers. Can I use them?
       •   Information on Credit Bureaux and how they work.
       •   How can I improve my credit rating?
       •   How to apply for a credit card?
       •   Should I accept all the credit cards offered to me?
       •   Assistance with debt restructuring.
       •   Calculate repayments. Can I afford this?
       •   How to manage a Garnishee Order?

Feel free to use the programme. There are no strings attached. All personal information is treated as
absolutely confidential. The sole purpose of the programme is to assist you with your personal finances.

                                     Client quote of the month:

  I did not know what to expect from Money Sense but I must say the Toolkit is
 great and my personal report helped me to sort out my personal finances. The
practical tips are fantastic. Also the fact that you don't sell a product is just great.
                             Thanks a lot Money Sense!

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