| Liberty Monthly Communication |  |
January 2010 |
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We would like to wish all our clients a very Happy New Year. We hope that you begin this new year rested, restored and ready to take on the opportunities and challenges of 2010. The beginning of a new year is always a good time to review one's life, to understand where we are coming from and what we would like to achieve in the year ahead. We've decided to ease you into the year with a short newsletter which gives you a brief economic update and includes some tips on getting your finances and personal life in balance. |
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Economically 2010 is not expected to shoot the lights out, but we should see a moderate economic recovery. South
Africa is very fortunate to be holding the World Cup as it will help our recovery by creating jobs and giving us
a psychological boost which will improve the confidence of consumers and businesses.
Inflation, which has already come back into the target range, should remain under control for the first half of the year. Unfortunately, Eskom prices hikes will put upward pressure on inflation and there is a strong possibility of an interest rate hike later in the year. There may be more job losses in the first quarter of 2010 and we do not expect an improvement in unemployment until later in the year when companies feel the positive impact of the recovery. All in all, although we will still be shaking off the effects of last year's recession, 2010 should be a better year for most. |
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New Year's resolution for your finances Draw up a personal balance sheet at the beginning of each year which will help you understand your current financial situation and set financial goals. This is not as hard as it sounds and we have included a balance sheet in the newsletter to get you started. All you need to do is:
Are your monthly debt repayments more than 40% of your income? If so, you need to focus on your debt first. Pay off as much as you can now because interest rates are expected to increase towards the end of the year. New Year's resolution for your life It is just as important to have a healthy financial balance sheet as it is to balance our time. Make a new year's resolution to spend more time with people who make you happy, both family and friends. The following story, taken from an email that has been doing the rounds for a few years, illustrates the importance of spending time on ourselves and on our loved ones. The mayonnaise jar and two cups of coffee A professor stood before his philosophy class and had some items in front of him. When the class began, wordlessly, he picked up a very large and empty mayonnaise jar and started to fill it with golf balls. He then asked the students if the jar was full. They agreed that it was. The professor then picked up a box of pebbles and poured it into the jar. He shook the jar lightly. The pebbles rolled into the open areas between the golf balls. He then asked the students again if the jar was full. They agreed it was. The professor next picked up a box of sand and poured it into the jar. Of course, the sand filled up everything else. He asked once more if the jar was full. The students responded with an unanimous 'yes'. The professor then produced two cups of coffee from under the table and poured the entire contents into the jar, effectively filling the empty space between the sand. The students laughed. 'Now', said the professor, as the laughter subsided, 'I want you to recognize that this jar represents your life. The golf balls are the important things - spirituality, family, children, health, friends, and favourite passions. Things that if everything else was lost and only they remained, your life would still be full. The pebbles are the things that matter like your job, house, and car. The sand is everything else - the small stuff'. 'If you put the sand into the jar first', he continued, 'there is no room for the pebbles or the golf balls. The same goes for life. If you spend all your time and energy on the small stuff, you will never have room for the things that are important to you'. Pay attention to the things that are critical to your happiness. Play with your children. Take time to get medical checkups. Take your partner out to dinner. There will always be time to clean the house and fix the dripping tap. Take care of the golf balls first -- The things that really matter. Set your priorities. The rest is just sand.' One of the students raised her hand and inquired what the coffee represented. The professor smiled. 'I'm glad you asked. It just goes to show you that no matter how full your life may seem, there's always room for a couple of cups of coffee with a friend.' |
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Thank you for the feedback we have received on these newsletters so far. Your comments and suggestions will help us to give you relevant information for planning and managing your finances. Please keep talking to us and telling us what you think! You can email your comments to [email protected] If you don't have a financial adviser or if you have any questions about your policy, please call us on 0860 456 789 or email [email protected] Kind regards Steven Braudo Chief Executive Officer: Liberty Insurance |
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