Avoid financial ruin after a break up

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Financial experts say it’s important to have a secret investment as security in case your relationship doesn’t work out. Screen Shot 2016-06-30 at 3.21.26 PM Even the best relationships can have us wishing we had a getaway plan – especially when one partner is financially dependent on the other. In an article titled Secret Stash of Money: Sign of a Failing Relationship or Okay?, marriage expert Sheri Stritof says some believe that having a stash of money hidden is a sign of a failing relationship and shows lack of trust in their partner. But, relationship coach Mandisa Mahlobo disagrees. “We live in a time where money is king, and securing your future is what matters most. If a woman is not brave and smart enough to take care of her money matters, she will, unfortunately, have to pay the price when she finds herself in a vulnerable financial position if her relationship or marriage fails.” Personal finance guru Iona Minton explains that two in three marriages today end up in divorce, and it is usually the woman who loses financially. SO WHERE DO YOU START? Financial consultant Khumo Mahuma and financial planning expert Baisi Mosoane- Pambo offer these five easy ways you can invest and save:

  1. Flexible investment – has no terms attached to it, and will allow you to access your money within days, and without any termination costs.
  2. Tax-free savings – are flexible as you don’t have to commit to any future contribution, giving you the option to invest a lump sum of up to R30 000 annually, or regular amounts. The returns on your earnings are completely tax-free.
  3. Property investment – is viewed as one of the safest and easiest options. Once the property has been acquired, you can put it up for rental and never have to pay a cent towards it while it grows in value. It’s important, though, to ensure that you purchase in a safe and sought-after area.
  4. Shares – there are some platforms where trading is made very easy and where you can buy and sell shares online, and access your money within days.
  5. Preservation funds – if you can help it, don’t cash in your pension or provident funds when changing employment. This money can be put into preservation funds, which allow you to make one withdrawal in times of need.
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