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Reaching Financial Freedom - In Layman's Terms

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13 Lessons (27m)
    • 1. 01: Reaching Financial Freedom - Introduction

      1:17
    • 2. 02: Financial Goals

      1:53
    • 3. 03: Wants vs Needs And Goals vs Dreams

      3:05
    • 4. 04: Budgeting

      3:26
    • 5. 05: Eliminating Debt

      2:23
    • 6. 06: Importance Of A Financial Advisor

      2:07
    • 7. 07: Car And Household Insurance (Short Term Insurance)

      2:04
    • 8. 08: Medical Aid / Medical Insurance

      1:51
    • 9. 09: Gap Cover

      0:49
    • 10. 10: Income Protection

      1:14
    • 11. 11: Life Insurance

      3:11
    • 12. 12: Retirement Annuity

      2:37
    • 13. 13: Thank You (Outro)

      0:43

About This Class

Reaching Financial Freedom - In Layman's Terms

I am Schane van Zijl and I am a financial planner from South Africa. I entered the financial industry at a young age and was fortunate to work in various departments from day one until, of course, being a financial planner. But during the past 10 years, there was always one thing that bothered me slightly about this industry: they overcomplicate products with huge terms and contracts. Products that are actually quite understandable. So that is one thing you can certainly expect from this course - I will be talking in layman’s terms. 

The goal of this course is to assist you to reach financial freedom and to understand various financial products available. The Why’s, the How’s and the What Not’s. I will also share with you some valuable tips on how to get rid of debt, what questions to ask if you are meeting with an advisor, setting up financial goals and sticking to the plan, what all the different insurances really mean, and a look at how to draw up a straightforward and to the point budget.

The Course consists of the following lessons:

  • Financial Goals

  • Wants VS Needs & Goals VS Dreams

  • Budgeting

  • Eliminating Debt

  • Importance of a Financial Advisor

  • Car & Household Insurance

  • Medical Aid / Medical Insurance

  • Gap Cover

  • Income Protection 

  • Life Insurance

  • Retirement Annuity 

I hope this course will add some value to the future of your finances and that by the end of this course you would be able to start moving towards the goals on your vision board. 

Remember, how we manage our finances is entirely up to us. And by making good choices and sticking to your own rules, you will be able to reach your personal goals. 

You are more than welcome to take a look at my website, schanevanzijl.co.za 

Transcripts

1. 01: Reaching Financial Freedom - Introduction: heavy, I'm sure from cell And I'm a financial planner from South Africa. I entered the financial industry. Young Asian was fortunate to work in various departments from day one on, so off course being a financial planner. But during the past 10 years, there was always one thing that bothers me slightly about this industry. But overcomplicate products with huge terms and contracts, products that are actually quite understandable. So that is one thing you can certainly expect from the schools. I will be talking in name instance. The goal of this course is this sister to reach financial freedom and to understand various financial products available wise, the house and the what nots. I will also share with you some valuable tips on how to get rid of dates. What questions? To ask if you are meeting with an advisor, setting up financial goals and sticking to a plan. But all the different insurance is really mean. And look at how to draw up a straightforward and to the point pageant. You're more than welcome to take a look at my website. If you would like to know more about this emissions from sales of Theodore, I hope you enjoy the schools and that I will be able to assist you on your journey to financial freedom. 2. 02: Financial Goals: The most important part off your financial goal is to envision what you want for your future. The first thing would be to start we all right now, start writing down the date from the smallest amount to the largest. Also, start writing down your life expenses. Things like your rent or bond vehicle, finance, fuel, food davits, entertainment, etcetera. Here it is important to identify exactly what you're giving out every month and what it is that is holding you back at this stage. The next step would be to write down your in goal. Personally, I work on vision balls. These are physical boards or documents saved on your latter. What you want to put on this board off things you see for your life. Get pictures of things and post them onto your vision board. The great thing about a vision board is that you don't have to limit yourself, and you will get a clear picture off what you want for your life. My clients usually put some variations off the falling on the vision boards, the car you want to drive, the how she wants to live in the salary amount you would like to earn vacation destinations and also the hottest they would like to pursue and the health goals and other things like further in your studies and what you want for your relationships. I noted half goals for the vision board because, as you will see later on, your health is a big contributor to financial freedom. If you're unhealthy, your finances will be unhealthy. But in order to be healthy and be secure in your finances, you need financial freedom. We'll go into this topic of it later. So now you have identified two things that are keeping you back and, most importantly, your future goals. But this vision board somewhere where you will be able to see it every day. This will just help you to keep on track and work towards making your dreams a reality. 3. 03: Wants vs Needs And Goals vs Dreams: it is important to fully understand the difference between wants and needs as well as goals and dreams. A lot of people spend more money than what the and this is usually because they don't understand the difference between a need and a want needs are literally what it says needs . These are experiences that you need to make to survive. These are nonnegotiable experiences. You can't cut it and you can't eliminate it. Whereas once all the things you can live without but want and it is usually the things we want and not need that leads to date. And the more date you have, the less you can afford the things you need on a piece off Piper. Draw two columns, the one your name needs and the other one you name wants. I want you to be able to see the difference between your needs and your wants, so go back to the list of expenses you wrote down earlier and try to slap them into the wants and needs. Columns needs would be expenses like rate food, fuel, school fees, medical aid, etcetera. Well, something like eating up Laptop Gift's new TV, a new car, New clothing would be a once at this stage did. Unfortunately, fourth under a neat because by making date you have created in me needs off things we have to pay And death is one of those things. When you have done slotting items underneath and ones, I want you to take a look at all the items on your sheet, go through each and every item and see if they truly all wants or needs. You need to be honest with yourself. You most. If it's on, you will think that we need something when actually we can live and breathe without it and by having bad judgment between needs and once we end up spending more than we can. This Nevo effect is huge as this could lead to you not being able to afford your needs or wants for that matter. And it will keep you away from your future goal. At this point, you might wonder why our street to create a vision board when I basically just said you shouldn't spend money on once the things on your vision board are whites after all. Quickly take a look at your needs and one sheet and your Vision board again. Can you see that by not giving into your immediate once you will be able to save towards the coals on the vision board? By not buying that TV, you'll be able to save towards your dream holiday. But by buying a lot of things on your once list, you are further away from your goals. So that's quickly checked about the difference between goals and dreams. At this stage, most things on your vision board are only dreams. If you are making monthly contributions towards those dreams, only then they become golds. If you don't save to drive a nice car, the car just remains a dream. Realistically, dreams weren't country without action. A dream within down with a date becomes a gold. The goal, broken down into steps becomes a plan. Plan backed by action becomes reality. It's cheesy, but it's the truth 4. 04: Budgeting: budgets, probably one of the most clear words going about. But budgeting is important because this is a vital step in reaching your goals and taking control of your finances. A budget is nothing more than a game plan. It is dangerous when your badge it becomes the most dreaded and complicated thing. It is supposed to be an exciting part of your life as this sheet and allows you to do the things you need and want. Try to keep your budget straightforward. I've created a very basic budget to work from with various categories, but you'll need to figure out with the help of a budget is to see how much you spend on certain categories to be able to see where you can eliminate unnecessary expenses. Every month, I work from a basic spreadsheet that is divided into different columns and rows. They are called fixed life expenses, date saving and other. The fixed life expenses are basically your needs. All the things you have to pay every month to live your range, medical aid, school fees, food feel, insurance, etcetera. As I previously explained, date is also in need because this is something we have to pay every month. I just split it from fixed life expenses for you to be able to easily keep track off your date and to see how much you're actually contributing to date every month. The next step is savings. Now, this is real sick with your vision board and decide which item to start saving for. Remember, when you're not contributing to something financially, it will always stay a dream. I contribute to an emergency fund every single month. Life happens, and you never know when you need money for emergencies. If you have a fun you're building, it won't be necessary for you to use your credit. God, an emergency fund is specifically there to keep you out of dates and out of trouble, so make sure that you contribute something every month. Don't just contribute what Emery's left in your budget. Make the emergency fund and monthly line item. You will also use the savings app for things like saving for a holiday away. The Dream car fuels all you want to throw a birthday party note these year and say for them . Some banks allow you to have more than one account within an account, usually a few advantage. Spread the savings into those accounts as if saving for something specific using envelopes . The last column is other. These are your once the slightly more flexible and sometimes unnecessary expenses you will budget for things like entertainment, eating out shopping, etcetera. Remember, the less you spend in the other type, the more you have to contribute towards your saving that I also use the other tab for things that don't recur every month. Maybe you have to stay in someone's waiting. Go to family reunion by someone to get budget for these things under the other column. Next step is to do a simple calculation. Add up all your expenses and make a little tab to be able to see if you're still within your budget, five in your income and your experiences, and make a calculation to see if you're above or below budget. I would highly recommend that you contribute. The amount left to your emergency fund will tackle good date. Which brings me to our next lesson 5. 05: Eliminating Debt: debt is the biggest wild stealer. After the budget video, you should have had a good idea of state off your date, which is the first step in eliminating your date. You should also be away off the fact that your date comes with interest. You have paying back more money than what you initially got. This makes it tricky to fight back quicker as you're paying back the initial amount plus interest over a certain period of time. So when you like double payments on your monthly installments with the idea that you're paying off your date, chances are that you're not bang back the money owed it. You're paying back the interest amount. So honest separates Richard, have all your date listed with the interest amounts. This will give you a good idea of what it is you're actually going. Ideally, you should save money and buy a lump sum amount on the account because this will probably put you in a position where you will be able to get a settlement amount with discounted interest. If you follow the next steps carefully and diligently, you should be able to get rid of your date as discussed. No you date and its interest rates do not fall behind on your monthly payments. If you have money left after working on your budget, save this money to be able to pay lump sum amounts on your date. Like mentioned previously, lump sum payments will benefit you more than making double payments. If you do not have money left after working on your budget, try to bring down your living costs for a few months to be able to save up lump sums, get rid of the smaller states first and work your way to the big ones. Getting rid of the smallest first put you in a position where you can save that money you paid monthly and contributor to pay off the bigger amounts. Getting rid off your dates might feel like a big stretch, but it will be beneficial long term and will bring you closer to your goals on your vision board. Sacrifices made today will pay off tomorrow on your budget sheet. You will see the amount of money you need to pay every month. Imagine not having to pay anything on date at all. Not having day to pay will enable you to buy things cash will say. For them, having date usually leads to more dates and don't make dates to sickle date. This is like driving over bridge to miss a core collusion. 6. 06: Importance Of A Financial Advisor: after this video, we will be talking about all sorts of insurance and investment products. I will not be going into too much detail with each, because every country and company has their own rules and regulations. And where's the structures? A products? I will be giving a broad overview off all of these, but it is based to speak through financial advise about them, bringing me to the topic off financial advisors. In the age we live in, technology is advancing at the speed of what we are used to having everything at our fingertips, and this is the same when it comes to financial advisors. Some companies of robo at ones we can get insurance or investments but answering a few questions online, and it calculates what you need. Personally, I'm not in favour off this because it is too many downsides, one of them being that you just have to trust that the robot at violence calculation is off base. Interest to you taking out policies online also limited knowledge. You're not really able to sit down and ask much needed questions. Face value is so needed when it comes to your finances. The financial advisor will give me exactly just that advice. The best way to find a good financial advisor is almost always word of mouth. If you know someone with a good advisor, set up a meeting with that adviser. Remain that you're more than welcome to meet with a few advisers until we find your fits. Your financial freedom and well being is a personal journey and you need someone you can trust. And don't just say cool for anyone. Make sure they are willing to walk the extra mile with you instead of just being another client on their books. A good advisor will meet with you. Gather enough info from you to be able to do a full financial needs analysis and should be able to tell you exactly how much cover you need and why you need that cover. The worst stop of advisor are the ones just day to make a quick buck out of you. And if you get that feeling from your advisor, get a second opinion. Let's jump over two different types of insurance and investments and why it is important to get them in place 7. 07: Car And Household Insurance (Short Term Insurance): What is it? It is a type of insurance that protection vehicle, household items and portable positions like cell phones, laptops and jewelry. Why is it important? In a case of your valuable items being damaged or stolen, you'll be able to replace fix these items. If you have insured them, this will off course. Happy to not. A planetary emergency fund will make it what to look out for. If your vehicle is so financed, make sure there is a credit short. Full benefits both into the policy as this will enable you to settle the value of your car , plus the interest that the bank charged you. What you do not want is for the value of the car to be insured, and you will still be liable for the interest on the money, wrote the critic. Short for benefit covers this. There is a difference between market value and retail value. Make sure that your cause insured who reads our value not market valley market value will pay you what the car will be sold for. Retail value will pay you what you paid for the car. This is a very important point due to the depreciation off equals. You don't want to be paid out place than what you paid for the car. There are some items that you will need to specify when taking our household insurance. These are the items that you take up off your house on a regular basis, like phones, laptops, cameras and jewelry. The insurance will not pay out to you if these items were not specified and got stolen outside your home. Also specify items off high value items like paintings, coin collections. Plants are value. Make sure if you have excess or no excess on your policy. This is the amount that the insurance company will charge you before they play out Any claim. If you have a policy with no exists, chances are that you might be a slightly more on your premium. Always make sure off the excess payable before signing anything. 8. 08: Medical Aid / Medical Insurance: What is it? Medical aid or medical insurance is a top of insurance that covers medical expenses like hospital expenses, medicine, doctors, appointments, etcetera. Why is it important? Medical expenses are some of the biggest experiences. We don't always need to go to the doctor, but when we do, it usually costs a lot. So having a medical aid or insurance will cover you from sitting with unexpected bulls. It is also important to have it because this will give you access to better health services . What to look out for? A lot of people are not away off whiting periods attached to their medical insurance. It is important to find out if you have any waiting periods. If you have, for example, Whiting period of three months, you will have to pay them monthly premiums for at least three months before you are covered . This protects the medical scheme from people taking our medical aid, claiming immediately and then cancelling that they often some medical insurances will exclude certain illnesses based on your medical history. If you have a pre existing condition, their march excluded from the insurance completely or give a whiting period before you're able to claim on that condition. Certain medical schemes only give you access and cover in certain hospitals in certain areas, so make sure that you at least close to one of these hospitals. If your insurance exclude certain hospitals, some countries, depending on the medical regulations, might have a late join a penalty feet If you join a medical aid after a certain age, these countries have you people above a certain edge as more prone to Unisys and will charge accordingly. In most countries, medical aid contributions are tax deductible and will benefit you financially. 9. 09: Gap Cover: What is it? Gap covers an additional medical policy. There is only offered by certain companies, which will cover your shortfalls. Should your medical ed not pay all your hospital expenses, why is it important? Some medical aids do not cover hospital expenses, and you might need to see a specialist not covered in full by the medical aid gap. Cover covers. The specialists percentage that the medical insurance is not willing to pay what to look out for before you go For a certain in hospital procedure, find out from your medical aid. If you're chosen, Specialised is covered under the network. What percentage that Dr charges and what percentage? The medical aid group A. This will make it easier to establish beforehand if you have additional costs that the gap cover will have to pay. 10. 10: Income Protection: What is it? Income protection is exactly what it says it is insurance that particular income. Should you not be in a position to generate that income due to temporary or permanent medical reason? Why is it important? The ability to generate an income is your biggest asset. If you have a medical condition and cannot generate this income, income protection will pay you income for that specific period. What to look out for, depending on your occupation and insurance. If you're temporarily booked off, they will cover anything from one week to 24 months after 24 months. In most instances, the doctor will declare you permanently disabled and your permanent income protection benefits will start paying out. This benefit can pay outs until age 65. 70 off for the remainder of your life, depending on which option we chose at the start off the policy. Please also make sure off the waiting period on your income protection policy. If you have a waiting period of one month and the doctor books you all for seven days, the income protection will not cover this. They won't in this guy's only cover you if you're booked or for four months and more 11. 11: Life Insurance: What is it? Life insurance is an amount that you ensure your lawful. If you should pass away, this amount gets paid to have been a fishery, usually a spouse or child. This amount could also be ceded to any bank or person. Your own money. Why is it important life insurance? Main function is to make sure that your loved ones are taken care of when you pass away. This is Abel's theme to say through any off your outstanding debt and to be able to continue financially as before what to look out for. It is very important to establish what your family will need. You together with your financial advisor should determine what your assets and liabilities are. Liabilities are debts and expenses. Your assets off things like property, vehicles, investments, money in the bank and items off great fellow like paintings and antiques. Some plants do not need life insurance because the assets can be sold. Win that pass away to take care of their family, but everything you owe and everything own. Make up your estates. This will be important to know, as you have to ensure that all liabilities plus funds for your family are covered with your life insurance. Life insurance normally would also cover things like disability, trade, disease or severe illness. It is vital when it comes to these products to make sure it is added in your policy and that these products are structured correctly. Please make sure that your disability and severe illness cover is separate or standard loan products from your life insurance. If there are linked to your life cover and you have a claim on disability, they will subtract that amount from your life insurance as well. This my platoon in position that your life insurance could be depleted and they will be no payouts. You have been officious after your passing. Please also note that if you're covered for disability and you become disable that this does not necessarily mean that you will be able to claim in full its products or severity based. If you claim it's not that serious, they might only pay out 20% for example. This also applies to severe illness lamps. Another thing to look out for is your premium patterns. This is basically an indication as to what your yearly premium increases will be. Ask your financial advisor to explain the increases to you, as there are certain premium escalations that would go up by 20% every year from a certain period. You do not want to be in a situation with this policy gets too expensive, and you have to cancel it. In some countries, insurance companies offer the option to stop paying your premiums off the 65. With your insurance remaining in place, this option is usually slightly more expensive but worth looking into. Also. In some countries, there are life insurance policies that offer cash back options on premium spied after a certain time. This will always be beneficial, as this could be cash that you can say for your retirement. Which brings me to my next topic. 12. 12: Retirement Annuity: What is it? A retirement annuity or a when some other countries school or a A is a top of investments specifically to save for retirement? Why is it important for retirement annuity put you in the position to be able to have an income when you retire. If you do not have an R E, chances are that you will have to continue working well past retirement age. What to look out for this type of investment funds will only be available from a certain age, depending on your country's legislation. It is very important to read the fine print and know the rules and tax implications. In some countries, you're only allowed to take a certain percentage off. The money saved one to reach retirement and the rest, you're obligated to invest into an investment that will provide you with income depending on your country's rules. Saving money into your or I could also be a great tax benefits. As you get taxed on it. The contribution that you like you could be able to claim tax back from your monthly contributions. It is very important to have a financial advisor to help you sit up your retirement annuity . Other investments for retirement. There are so many calculations to be done to determine if you will have enough money saved to be able to retire comfortably. A financial planner or advisor will also be able to help you when it comes to rules and regulations off Ari's and other investments. It is basic eight professional help of us when making lump sum contributions into your or and make sure to disclose your advisor where this Lampson came from. If the land some or contributions are tax free money, you do not want to put it into an investment that will be text in sitting down with your financial advisor discussion. Retirement annuities Make sure to ask the following questions. What are the fees that I have to play inside of wine basement like asset managers fees, financial advisor fees, etcetera. What are the tax implications and benefits regarding each investment type? Ask your financial advisor to make a full calculation. To be able to see what your monthly income will be retiring based on your current monthly contribution, you will be able to see if you're contributing in that's retirement savings are probably the most daunting conversation I have with my clients always keep in mind that saving something is better than seven. Nothing you might not currently be able to afford a big amount to save every month. But starting small is starting somewhere. 13. 13: Thank You (Outro): and that brings us to the end off the schools. I hope that I added from valley to the future off your finances and that by now you would be able to start moving towards to go on your vision board. Remember how we manage our finances is entirely up to us. And by making good choices and sticking to your own rules, you'll be able to reach your personal goals. You're more than welcome. Second, look at my website. She's from cell 0.0 dot city. Please remember to rate and review this course as it gives us the opportunity to produce more of these courses for you. Goodbye and good luck with your journey to financial freedom.