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					WITNESS (Durban)
Wednesday, 29 July 2009, p. 9

 An         Absa                     advertorial                             in          support                         of           National Savings Month.

   SAVING                                                                         MAKES                                                                     CENTS
  Now      more          than        ever,   saving makes                Annuities will put you                    in   control       of    your            you motivated, make                             a    list      of    all    your
  sound financial sense. Ideally you need                                financial future.                                                                  debts starting from the smallest balance
  to    save for short-term needs and plan                                                                                                                  to   the    largest.           Pay the minimum                              payment

  for    your long-term goals and Absa has                     a         A    savings account can also act as an                                                       on    every debt and put your extra
  range     of    savings and investment                products         emergency fund and should cover about                                              amount towards your smallest debt                                           until
          that    will   help    you do both.                            5    or    6    months    of   your living expenses.                               its paid off. Then add the money                                                you
                                                                         This       money can           help       you    to   survive a
                                                                                                                                                            would have spent on that debt                                        to     your
  By      investing        in    a       savings plan, you               personal misfortune, such as                          ill     health
                                                                                                                                                             extra      amount and                    put       all    that       money
  will    soon build up              a    nest   egg that    will        or       retrenchment            a        real possibility             in
                                                                                                                                                            to   the     second            smallest debt.                        Repeat
  cushion you             and        your family against                 these economic times.                          An emergency
                                                                                                                                                            until      all   your debts are                           paid        in        full.
  unexpected short-term expenses that                                    fund should be                 easily          accessible and
  may come your way. A savings plan,                                     not       subject to long notice periods.                                          Remember, debt                       is   the       most expensive

  such as Money Builder account from                                                                                                                        thing      you can buy.                    Customers who require
  Absa or an Absa 32-Day Notice Deposit                                                                                                                                assistance            in       managing their debt
                                                                         Contro your               debt
  account will enable you to deal with the                               Its       pointlessto     save
                                                                                                      if you pay more on
                                                                                                                                                            can call Absas                       Debt Repair Line                            on

  sudden need for a new school uniform                                   interest on         your debts than the interest                                   0861 227 353.
  or    replacing a broken kitchen applianc?.                            that       you receive on your savings or                             investment

                                                                                            accounts. Having               a   debt         management      Reward yourself                            by saving
              your savings can be used                                                      plan   is   essential and the                    first          Once        youve         got         a    budget and found
  to     pay accounts that come along                    periodically,   thing          you should do         is   draw up        a    budget               some        extra      money              by cutting unnecessary
                  like   your TV licence or school                       to       see where your expenses are, where                                                 expenses, save                     it.     If   you can save
  fees.     A slightly          longer term saving plan                  you can save and how quickly you can                                               at   least       10%      of   your net salary, you                             will
  such as Target Save account from Absa                                  pay off your debt.                                                                 be    prepared for any eventuality. The
  will help save for a holiday or to buy
                                                                                                                                                            best    way       is to   have the money automatically
  something that you really need by                         saving
                                                                                                                                                                       deducted from your account                                      at   the
     for an extended period of time.
                                                                              The time                         to                                           beginning          of     the        month               that        way you
  When            comes               long-term planning,                                                                                                   wont        accidentallyspend                                        you get
             it                 to
                                                                             save             is        now.                                                a    bonus         save              before you spend
                                                                                                                                                                                                                     it.    If

  good savings and investment products                                                                                                                                                      it                                              it.

  such as Unit Trusts and Retirement
                                                                             If   you need immediate results                           to    keep
WITNESS (Durban)
Wednesday, 29 July 2009, p. 9

  Teaching                          your   children         to    save

      Teach Children To Save was launched in South Africa on 25
      July 2008 in Diepsloot, Gauteng. This campaign, based on
      one started by the American BankersÒ Association, is targeted         -

      at Grades 4 to 7 and aims to teach learners basic financial

      AbsaÒs participation
      In 2008 Absa reached more learners than any other participating

          financial institution.24466 students were educated by 270
      bank staff who volunteered to teach a class. A generic toolkit
      was developed covering the basic concepts of saving, budgeting
          as well as the difference between needs and wants.   Each
      learner was given a money box and a leaflet on savings tips.

      Teach Children To Save in 2009
      Absa developed material that is aligned to the Department of
      Education curriculum for Grades 4-7. During Employee Volunteer
          Week 156 305 learners were taught by 3 682 Absa staff.
      Teach Children To Save was launched on 22 July at a school in
      Rustenburg, North West, the province with the least participating
            schools    in    2008.

      In   addition   to Teach Children To Save campaign, Absa has
     encouraged             to collect books that were donated to the
                           its   staff
      participatingschools. These books will be used to ÑstartÔ libraries
          in the schools and encourage literacyamongst the children.

     To make  sure your children have every opportunity available
            them, you should start to save for their education.
     You can do this by opening a FuturePlan account from
     Absa. This account allows you, and anyone else, to contribute
            to your childÒs education. You can open this account
           with only RIOO and only need to put in a minimum of
     R100 every month. Absa also contributes to your savings
     by means of an additional3.5% interest on deposits up to
     RI 000 per month.

     For more information about how you can start saving for
     your childÒs future, visit an Absa branch,
     or call us on 0860 III 515.
WITNESS (Durban)
Wednesday, 29 July 2009, p. 9

   The                                           rule                                           o112

   If   you want            to   find out            how    fast        your savings            will   double      Ù   apply the
   Rule of 72 and youÒll have the answer.                                          If   you want         to   see how        many
   years        it   will    take you to double                         your money              Ù just    divide 72 by            the

   interest rate you expect to earn.

   For example 72                     ý   6%     =   12    years.

   If   you want            to       find      out what         interest rate you                  need       to   earn      if   you
   want      your money                   to    double         by   a    specific year, then divide 72 by the
   number            of   years.

   e.g.     you need your money                           to   double       in 8        years, so the sum              is:

   72   ý   8   [                =    9%

   Therefore you need                           an   interest rate of 9%                   in   order for you to reach
   your target.
WITNESS (Durban)
Wednesday, 29 July 2009, p. 9

  The Rule       of 72   approximates              the   number
    of   years   it   takes     to   double       your money.

  72 ý 3%    interest                                    24years

  72 ý   6% interest                 12   years

  72ý12%     interest
WITNESS (Durban)
Wednesday, 29 July 2009, p. 9

 Compound                          interest                   the   8th         wonder                of      the              world
  Albert Einstein said,     ÓThe   most powerful force   in   the
                                                                    For     example,   if   you   invest Ri        000    and      get      5%
  universe   is   compound
                         interest.Ô High praise indeed,
                                                                    annual    return on     your interest,at the         end     of the    first
  especially coming from a genius.
                                                                    year youÒll have Ri 050 (Ri 000 investment plus R50

  HereÒs how       t   works                                        interest). The next year you will receive 5%                 but   now      it

  Ifyou start saving today, you will start earning interest         will   be on Ri 050 instead of Ri      000. At the end of the
  immediately. Next month your savings will be more                 second year youÒll have a total      of   Ri    i   02.50 (the        interest

  and you will even     start   earning interest on the interest        now being R5550). Now              imagine         the    snowball
  every month.                                                      effect of this over 40 years.

                                   The power      of   compound          interest
                                 R200 Monthly Savings for   35   Years (age 30    -   65)

                                3% interest              R148 680

                                6% interest                        R286 370

                                12% interest                         R    3   Million
Wednesday, 29 July 2009, p. 9
WITNESS (Durban)
WITNESS (Durban)
Wednesday, 29 July 2009, p. 9
                                   How            to save on your credit card
                                           Õ    Choose the credit card with the interest rate and usage benefits
                                                that suits             your financial situation. Our consultants will advise

                                Bank       Õ
                                                you on
                                                By     paying the
                                                                 which card

                                                charges on your credit card.
                                                                                      will   be the best for                your needs.
                                                                                     amount every month youÒll avoid any finance
                                                                                                                                                                             and   save   a
                                   How                to        save on your home oan
                                           Õ    Try        to    pay-off all other short-term debts prior                                         to   buying new
                                                property so               you         can        put    any         extra        cash        into      your bond.
                                                Remember, your bond                              is   your cheapest form                     of   debt.
                                           Õ    If   you can, increase your monthly bond instalments.
                                           Õ    Pay any bonuses or lump sums                                       into     your bond.
                                           Õ    DonÒt lower your home loan                              if   the rates drop.
                                           Õ    Interest rates vary, so                      try      and    fix   your rate       at    the       lowest rate.
                                           Õ   Switching your home loan from one bank                                               to   another can cost
                                               you money.

                                   Whether                      youÒre    a    first-time             buyer or looking to upgrade, Home
                                   Loans from Absa has the loan                                        to    suit you.           Call    0860 111 007.

                                       as some    assets, e.g  vehicles, will lose value while homes
                                       generallyincreasein value and you donÒt want to be under-insured.
                                       Compare quotes from different insurers and make sure that the
                                       quotes reflectwhat you want to ensure.
                                       Ask for discounts Ù some insurersreward no-claim behaviour.

                                  Contact an Absa Insurance Advisor                                          at    your nearest Absa branch.

                                  How            to        save on vehide finance
                                           Make             sure        the      car        you        buy         suits     your        needs          regarding
                                           passengers, distances,
                                           Make sure you                  sell       your old car            at    the best price.                The more you
                                           get, the             bigger the deposit, the less you                            will   pay on the new car.
                                   Õ       You can save by buying                            a    used car from              a   reputable dealer.
                                           When you                are   budgeting               to   see how much you can afford, donÒt
                                           forget          to   factor    in   insurance, maintenance and servicingcosts,
                                   Õ       Shop around and negotiatethe best price with                                                  a    dealer.
                                   Õ       Decide whether you should buy or lease. Choose the best deal
                                           for       your       life   stage and circumstances.
                                   Õ       Negotiate a good deal and arrange                                        for a    residual         value which     will

                                           lower the monthly instalmentof your car finance.

                                  When                     comes
                                                    to saving on finance costs, fees and charges the

                                  good             you can. Whether itÒs using the right ATM or
                                                     news        is,                                                                                           researching

                                              the best place for a home loan, if you take the time to
                                  find the right product that suits your banking requirements, it can be
                                  done. And Absa will help you find the right mix that suits your needs.

                                  How              to save on banking costs
                                       Õ       Use your bankÒs ATMs - you will pay more at other banksÒ ATMs.
                                       Õ       ItÒs cheaper to draw one large amount of cash than many smaller

                                       Õ       Make sure you have enough money in your account when your
                                               debit orders go through.
                                       Õ       Always check your bank statements.
                                       Õ       Choose the account that suits your banking requirements.
                                       Õ       Use your debit and credit card instead of cheques and cash.
Wednesday, 29 July 2009, p. 9

                                       Õ       Remember, itÒs cheaper to do banking at an ATM or through
                                               Internet, Telephone or Cellphone Banking.

                                  How            to save on insurance costs
                                               Know the current replacement costs of your home, vehicles or
WITNESS (Durban)


                                               home content Sb assets are insured at the correct amount.
                                       Õ       Update your insurance policies with the most recent valuations