Income Protection Insurance

Life assurance covers the family against death and total disability but it is possible that the breadwinner could contract a long-term illness such as hepatitis or have an accident which is not covered by workers‘ compensation insurance. The cover for death or permanent disability would be of no use as it would not then be available, but there is likely to be very little income. Unemployment benefits are not large and they can take a few weeks to become available — but the bills still have to be paid. The role of income protection, disability and accident insurance is to safeguard against this possibility.

When one considers that less than 3% of all permanent disabilities are covered by workers‘ compensation, and that each year one in every eight people will suffer a disability, it is obvious that there is a great need for disability insurance.

Usually employees of organisations such as the civil service and banks have little need for this sort of insurance because they have adequate sick leave and other benefits. However, many other people are not covered in this way. Self-employed people, in particular, are extremely vulnerable. For them this type of insurance is a”must”.

The question to ask yourself is “What would happen to my family if I could not work for six months and we had to live on unemployment benefits?” If the answer frightens you it is obvious that you need some income protection insurance.

Disability insurance is very complicated and there are many options available. A competent insurance adviser can assist you to find the policy that is most appropriate for your needs.

Motor Vehicle Insurance

Compulsory third party insurance is automatically provided by means of a levy on the petrol price and covers injury to passengers, other drivers and pedestrians. In addition most owners take out insurance to cover any damage to the vehicle itself such as theft, fire or collision. However, in some cases a person owns a car of low value and it is not really worth insuring it. In this case they should take out a policy which covers damage to other vehicles as a result of their own negligence. This is called a “balance of third party” insurance. A good example is the old bomb that runs away down the hill and slams into a new Jaguar. Without this “balance of third party” insurance you could be in debt for the rest of your life if the old bomb belonged to you and you had to pay thousands of rands to have the new Jaguar repaired. This policy covers the cost of the damage to the Jaguar.

The premium paid each year to insure a vehicle depends on its value, type and the accident record of the driver. Insurance for cars under hire purchase may be very expensive so it is a good policy to finance by a personal loan if possible. Younger drivers normally have a compulsory “excess’.

It is generally worthwhile to request that an excess of $100 or $200 be included in your policy. The premium is cheaper and if you have an accident where the damage is less than $200 it is not worth claiming on the policy as the loss of the “no claim bonus” can lead to a substantial increase in next year’s premium.

Motor vehicle insurance is not particularly profitable for most insurance companies and you should be aware of the circumstances where the cover provided may be cancelled. These may include driving while under the influence of alcohol or drugs, driving without a licence or having the car driven by some person other than the owner. You should make sure you understand what particular restrictions your own policy contains by reading the policy carefully or having it explained to you.

Householder’s Insurance

A home is the most valuable asset that most people acquire in their lifetime. The usual householder’s policy protects the house and its contents from a large list of possible hazards which include cyclones, fire, earthquakes, impact of vehicles, falling trees, glass breakage and fusion of electric motors.

The policy is likely to place a limit on personal items taken on holidays. Valuables such as furs and jewellery have to be especially noted on the policy document.

Most policies contain a clause which states that cover will cease if the property is left unattended for more than 60 days without the prior knowledge of the insurance company. Therefore it is important to check this clause in the policy and advise the insurance company if any long absence is likely.

In these days of rapidly rising costs it is essential to check the value of the property and contents every year and increase cover as required to ensure that they could all be replaced in the event of a total loss.

There is normally a clause in the policy to cover “public liability” to provide for damage to third parties caused by the negligence of the householders. All too often we have heard the story of the milkman who falls over a child’s toy and breaks a leg. It is customary to have at least $250 000 of public liability — the cost is small and the potential risk is huge.

Some householder’s policies may not cover damage caused by flood or high water and if this cover is required it must be specifically asked for. The problem is that in situations where it is likely to happen it is either impossible to get or too expensive to buy.

Bond Insurance

The most general type of bond insurance is a life policy with annual premiums that pays out your bond if the breadwinner dies. It is simply a term life assurance policy that is tailored to your bond repayments.

Here is to show you how to take control of your finances and live as prosperous a life as your circumstances allow. I have stressed that, as a general rule, success or failure does not come in one sudden burst. It is more a succession of small things done, or not done, which makes the big difference over a long period.However, none of us are immune to tragedy, and if an unexpected event such as long illness or heavy loss of possessions due to fire or flood occurs, we can still be wiped out. The purpose of insurance is to protect us from these uncontrollable occurrences.

Taking out insurance is like having a bet on the horses. Many punters bet small amounts of money which go into a pool. If a horse wins at long odds a few punters receive big dividends and the rest miss out. It’s the same with insurance. Because it is most unlikely that your house will burn down you can insure it for $80 000 for a cost of around $250 per annum. If by some remote chance it does burn down your $80 000 is provided from the premiums of all the other policy holders who have not suffered in the same manner.

You can now take out insurance to compensate you financially for almost any occurrence from the birth of twins to a hole-in-one on the golf course. The main areas that concern most of us are protecting our home, personal effects, our vehicles and our income.

Life Assurance

Today life assurance is a crucial part of financial planning. What happens to a family if the breadwinner dies and has no life assurance? It’s a frightening thought, isn’t it? How would the family cope with house repayments, school fees, travelling expenses and all the other daily needs? It would take great strength to carry on. This risk can be eliminated by taking out life assurance. Every year a relatively small sum, called a premium, is paid to a life insurance company, and this enables a large sum to be paid to the spouse and family if the insured person dies. The size of the premium will depend on the sum assured and the age of the person who takes out the insurance. The younger you are when you take out a life assurance policy, the lower the premiums you will pay.

There is also the possibility that you could live “too long” — longer than you had provided for from a financial point of view. Once again life assurance may provide the solution to the problem in the form of income after retirement.

A third possibility is that you may become so ill or injured that you are totally or permanently disabled and can never work again. A straight death cover would not cater for this situation so it makes good sense to add a “total and permanent disability” benefit to the insurance policy to provide for this. The small extra cost can be easily justified because there is a far greater chance of this occurring than premature death.

In recent years there has been a change in attitude towards life assurance. Our parents usually took out policies which fell due for payment at age 65 or upon death. The high inflation of recent years has greatly reduced the value of these types of policies. If the average inflation rate is 16%, the rand loses HALF of its purchasing power every four and a half years. A 20-year-old may believe that $500 000 is a huge sum to have at 65 years of age, but when inflation is taken into account it will be worth less than $1000 in purchasing power in 45 years‘ time. This is what happens when you don’t increase your premiums to keep up with inflation.

Most people have come to realise the value of life assurance and many people today regard life assurance as one of the best forms of long-term saving, while at the same time protecting their families with a substantial amount of money. Types of policies available are term assurance, whole-life assurance and endowment assurance, each of which has certain advantages. Your specific requirements will determine what type of policy you should take out. When you choose a policy you should also compare premium rates and rates of bonuses paid out in previous years, look at terms and take note of special conditions and restrictions. Ask your insurance broker to explain all these aspects to you before you make your choice.

It is now common for both husband and wife to work and the family budget may depend on both incomes. In this case both should have life assurance, including disability insurance.

to be continued

Some finance companies and large retailers often offer to finance goods on hire purchase with catchy slogans and seemingly easy terms. Watch out for this practice. This is often a very expensive way to finance the purchase of goods that will eventually lose their value.

The main hitch is — the interest rate is around 28% and could be even higher depending on the general level of interest rates!

Let’s go back to basics for a moment. Why are we thinking of using this facility? Either we do not have the money at all, or we do not have it with us.

I want to teach you how to translate situations into financial terms. In this case it translates into “I don’t have any money, but 1 must have that item now and I don’t really care what price I pay to get it.” It’s a good way to end up in financial problems.

It is well known that it is people from lower income groups who tend to use these finance company credit lines most of all. Sadly, many of these people have lower incomes because of lack of financial education. What other reason is there for booking up goods at 28% interest when, at the very least, you could use a credit card and pay a much lower rate of interest. The finance companies justify their higher rates by saying that they lend to less creditworthy people so that they have more bad debts. Accordingly they have to charge more. That may be so but YOU, dear reader, are hot on the trail of financial success. Why should YOU pay a higher rate to subsidise losses on people who are poor money managers?

Finance company credit lines are another enemy of your money tree — unfortunately they have a harder bite than ordinary lines of credit.

Bank and Building Society Personal Loans

If you have to get a loan to buy a consumer item a bank or building society is by far the best place to go. Not only are their interest rates lower than those charged by finance companies but their hidden charges are much less.

Bank personal loans normally carry a fixed interest rate at slightly higher than the prime overdraft rate. Some banks and building societies might have a small application fee but this is not a widespread practice.

Overall there is little difference between banks and building societies when it comes to personal loans. If you need a personal loan they are the only places to go. In the last few years many of the differences between banks and building societies have disappeared.

Credit cards have become one of the growth sensations of this country since Mastercard and Visacard were introduced in the early seventies. They are the new super weapon in the never- ending attack on your rand and represent a bigger threat to your money tree than a plague of locusts. Living within your means is a constant battle — credit cards make it much harder.

The main credit cards today are Mastercard and Visa which are issued by banks and building societies, and the so-called prestige cards such as American Express and Diners Club for which you pay an annual fee ranging from $24 to $50.

As credit cards are accepted almost everywhere and Mastercard and Visa are accepted freely in most countries of the world, I see little point in paying out $50 per year for extra credit cards when the ones available for free will do the same job.

After all, the main purpose of a credit card is to save you carrying large amounts of cash and to give you money available for any purpose if an unexpected need arises.

However, Diners Club differs from other credit cards in that in the true sense of the word it is a debit card as purchases are immediately debited against the card-holder’s bank account. It does not allow the user an interest-free period like the other cards.

Diners Cards have no credit limitations and are mainly used by high net-worth clients and executive businessmen who do not want to be bothered by credit limitations. They are definitely NOT for the man in the street who might be tempted to purchase something that he really cannot afford.

Mastercard and Visa normally give you an interest-free period in which to pay for purchases, so by working around the due date of the card you may obtain up to 55 days interest-free credit. This all sounds wonderful in theory but in reality 55 days free credit on a small amount is not worth a lot of money and you may do better to pay cash and bargain for a discount from the retailer.

You can obtain cash advances on most credit cards and normally pay five to six percentage points above the ruling prime rate of interest on the amount you owe from the date of the advance. This can be a most useful and economical way to borrow money for short periods because there are no extra charges such as application fees or penalties for early repayment.

One of the best uses for credit cards is when travelling or holidaying. They save the need to carry large sums of cash and it is a comforting feeling to know that if an unexpected emergency arises, such as a car breakdown, there is money available to pay.

The interest rates charged by the different cards vary, and so does the amount of free credit you are allowed from the date you purchase something.

However, a word of warning to people who use revolving credit provided by credit cards. This credit is only interest free if the full amount in the account is paid by the due date. Even if only a minimal amount is left, interest will be incurred on all subsequent amounts accumulating as you purchase during the month.

Leave Your Credit Cards at Home

Getting a loan was a lot of trouble in the good old days if you saw something you liked and did not have the money to pay for it. You had to take time off work, make a loan application, wait for approval, sign documents, receive a repayment book and do all the other time-consuming stuff. Now all you have to do is pull out your wallet, hand over your card and 10 seconds later you are in debt.

Credit cards have a built in psychological factor which makes them harder to resist. When you pay with a credit card it does not seem that you are spending as much money as if you had to take out your wallet and count out the banknotes. It is not until the next statement comes that you finally discover how all those little items have added up to such a big amount.

If you are serious about becoming wealthy do as I do and don’t carry credit cards. If I walk past a book store with a credit card in my wallet I am worse than a child in a toy shop. Some internal robot will steer me inside and I will emerge an hour later with a heap of books. If you leave your credit cards at home, and see something you wish to buy, you can always ask the shopkeeper to put an item away for you and come back to get it later.

There is no use in pretending that we have iron wills. It is far better to acknowledge our human weaknesses and help ourselves by avoiding temptation. One of the greatest enemies of a savings plan is impulse buying and if you don’t carry credit cards you can’t fall victim to it. You will be amazed that when you get past that tempting item in the shop the desire normally goes away.

1. Do not have any of your bills sent to your home. Always list your post office box as your mailing address. An even better solution is to pay your bills online—but do it safely. Companies like Paytrust or E-bills are great solutions for paying your bills securely and on time. If you have a personal accountant, discuss the possibility of setting up a system to have your bills sent to and paid by them.

2. Do not list your full name on your utilities, credit cards, or personal checks. Always use your first initial and last name for bills and credit cards. If possible, use a company name or trust. Use an initial and last name or company name on your checks, and make sure to use your post office box or accountant’s address. There is no need to put personal numbers like telephone, driver’s license, social security, or any other private piece of information on your check. Think about how many people come into contact with that check before it gets to the bank.

3. Do not list private contact information on credit card or utility applications. Once again, your address should be your post offic box, your bill paying service, or your accountant. The phone number should be your cell phone or work listing.

4. Do not fill out random credit card applications that you get in the mail. If you want a credit card, go to your bank or call a company directly. Filling out forms that require extremely personal information such as Social Security and bank account numbers should be done in a secure environment with a bank clerk or account manager.

A credit report holds the most personal and vital information anyone can have. The information contained in the report influences crucial decisions on loans, insurance coverage, employment—even housing. Although this information is supposed to remain top secret and extremely confidential (according to the Federal Fair Credit Reporting Act—FCRA), it’s relatively easy for anyone to get their hands on these personal records.

One of the potential leaks of confidentiality comes from the excessive amount of “extra hands” that are involved with your report. Banks, retail stores, and credit card issuers all have outside companies managing different aspects of their businesses. Having such a large number of people with access to this data inevitably means trouble. Criminals would love to get hold of you_rcredit report. It’s the simplest way to steal your identity.

Order Your Credit Report

The Federal Trade Commission (FTC) recommends that you look over a copy of your credit report once a year. To protect yourself even more, you might want to think about seeing your report twice a year. A lot of damage can be done in a year—just ask any victim of identity theft.

The three biggest credit bureaus are Experian (used to be known as TRW), Eqifax, and TransUnion. All you need to do is call or contact them online, and for about $8 you will receive a copy of your report. You can receive a free report if you have recently been denied credit, been a victim of fraud, are unemployed, or receive welfare benefits. Check the Resource Guide for contact information.

If You Think You Are a Victim of Identity Theft

Check your credit report for any new accounts or credit inquires that have shown up.

Contact the credit card companies or banks where you have seen inconsistencies or problems. Ask to speak to the security or fraud department. Review your account with them and highlight any incorrect charges or unauthorized business. If it is more than a billing mistake, you should close the account immediately and change all ID numbers and passwords.

Contact the major check verification companies if you suspect someone has set up a bank account in your name or is using your stolen checks. If you can pinpoint a merchant that has received one of your stolen checks, find out which verification company they use and contact that company immediately.

Document all contacts. As with all cases dealing with victimization, you need to be your own detective. Keep a notebook documenting a log of all conversations, complete with names, dates, time of call, details, and telephone numbers.

Contact the fraud department of each of the three major credit bureaus. Tell them that you think you’ve been a victim of identity theft and that you want them to put a “fraud alert” on your file and issue no new credit without your approval.

File a police report. Get a copy of the report for the bank, credit card company, or anyone else who might need proof that a crime was committed.

File a complaint with the FTC hotline (877) 488- 4338 or (877) ID-THEFT: The FTC doesn’t actually deal with the prosecution of identity theft, but it can help victims resolve financial problems that can occur as a result of the theft.

Contact the Postal Inspection Service if you think a criminal has submitted a change of address in your name or used any other postal service to commit acts of fraud.

Contact the Social Security Administration if you have reason to believe that your Social Security number is being fraudulently used.

Contact the Internal Revenue Service if you think improper use of your identity has resulted in tax violations.

The first trick to avoiding credit card fraud is to take charge of your cards. Following these simple tips will greatly reduce your chances of becoming a victim.

Spell It Out

As soon as you get a new credit card, write the phrase “See ID” on the back in the space that is supposed to contain your signature. You would be amazed at how many times store clerks still don’t ask to see your ID. This is an added reminder for them to do so, and can be a huge deterrent to a thief trying to use your stolen card.

You Oughta Be in Pictures

One of the best security choices you can make is to have your photo and signature imprinted on the front of your credit card. Most cards these days contain a hidden hologram or secret imprint to make it harder for criminals to make new cards from a stolen credit card number, but there’s nothing better than having your face on the front of the card for merchants to compare with the customer standing before them—despite the occasional bad hair day.

Did You Get a Receipt?

The easiest way for a criminal to get your credit card number is from a receipt. Credit card slips should be tucked securely in your wallet. Do not throw them away at the store. Keep your receipts for your records and always make sure you tear them up before you dispose of them.

Take Charge of Your Receipt

Never sign a blank receipt. If a clerk says, “We’ll total it up and bill you later,” decline the offer and purchase your things elsewhere. Make sure that the amount is accurate. Dishonest cashiers have been known to add a few items here and there on other people’s tabs, conveniently taking their “freebies” home at the end of the day. Always draw a line or a circle around the amount and initial it. That way a clerk cannot tack on more charges after you leave.

Put the PIN in Your Memory Bank

Many credit card companies assign a personal identification number (PIN) to your card so that it can also be used for getting cash. Never keep your PIN with your credit card. Put it somewhere safe at home and memorize the number. (If your memory is as good as mine—don’t worry, they usually aren’t too long.) If you are using a cash machine, be sure to block the screen so that no one can see your code. Thieves have been known to stand across the street with binoculars to obtain that valuable information.

Less Is More

Try to limit the amount of credit cards you use. (Finally, my husband was right about something!) As tempting as it may be, multiple credit cards can get you into trouble; not only financially, but if your wallet is stolen, the thief has a better chance of running up your bills while you’re trying to cancel all your cards.

Beware of the Credit Card Con

We all get a rush out of receiving a letter in the mail that says, “You’ve won a prize!” But, the truth of matter is, it’s probably a scam. Enclosed is usually a compelling letter telling about all the fabulous prizes you’ve won, along with an application the sender would like you to fill out first—in order to claim your “prizes.” This form may request your bank account or credit card numbers, or such personal information as your Social Security card or driver’s license numbers. Don’t fall for this con; leave your prize winning for the summer carnival.

Beware of the Jilted Lover

Think long and hard before you authorize someone to use yourcredit cards. Many a heart has been broken and credit report ruined by an ex’s charging or opening new accounts on an old flame’s dime. It’sandbest to allow only your spouse—thatis, one you plan to stay married toforever—to charge on your account. No matter how in love you are, the only person authorized to charge on your card or use your credit should be you. That goes for co-signing bank loans, as well—you don’t want to be left holding the bag when the ex bails on his loan.

Check Monthly Statements with a Fine Tooth Comb

Be sure to check every monthly statement thoroughly. Look for any inconsistencies or purchases you know you didn’t make. Contact your credit card company immediately if you see something that doesn’t make sense or raises a red flag.

Tag Your Own Account

You can have your credit card companies put a fraud alert signal in your records. This notifies the company every time you make a transaction or if someone is applying for a new card. The cashier then will be required to call your credit card company and have you get on the phone with them and verify certain personal i_nformation (for example, mother’s maiden name, password.) This might seem like a hassle when you’re in a hurry, but it’s worth it if someone else tries to use your card. If you’re opening a new account, the company will contact you at home to verify the personal information required.

Let’s look at each area of spending in turn because the only way to better our financial position is to earn more or to spend less. Remember that cutting back on spending is the same as getting a large pay rise.

Savings

The stressed the importance of savings — the most important item in the budget. If your budget does not include savings you will never grow a money tree.

Contingencies

These are the 101 things that crop up that we never foresee — car repairs, house repairs, emergency trips to sick relations, and so on. The amount to be put away depends on your income but, if nothing is provided the whole budget will be blown when the first emergency arises.

Essential Fixed Spending

These items cannot be reduced without major adjustments to your way of life. Certainly you could reduce school fees by changing schools, reduce bond payments or rent by moving and eliminate telephone rent by having the phone cut off. But, generally, these items don’t change much.

The best way to meet these is to divide the total yearly amount by the number of pay packets, and have that amount put into a \special savings account each pay day by your employer. It could be called John and Mary Smith — Fixed Spending account.

In the early stages you may strike a period where the bills all come together and exceed the amount in the account. Borrow the shortfall from your bank and pay it back from your next salary. As time goes by the account will stabilize so that you will not have the same problem. In fact it is a good idea to add a small sum to the regular deductions to provide some extra protection against emergencies.

Essential Variable and Discretionary Spending

It is here that people get into trouble. These are areas where large savings can almost certainly be made on budgeting available for the person who wants to get serious about the subject. What happens is that without a budget everybody tends to overspend in the variable areas. Then there is not enough left over for the fixed expenses and nothing at all for savings.

The correct way is to take savings out of the pay packet first, then fixed expenses and then variable expenses last of all. Perhaps you are saying: “By the time 1 have put aside 10% for savings, and banked enough to cover my fixed expenditure there is not enough left over for all the variable expenses.” If that is the case, and it probably is, you will have to analyse your variable expenditure and cut it back. If you don’t, you will continue living beyond your means and continue experiencing the pain which doing that brings.

There are plenty of areas where variable expenses can be cut. Why not get together with some other people who need to reduce their expenses (there are plenty of them) and discuss ways to do it. Every change of habit needs constant reinforcement and group sharing is a very powerful way to help each other’.

The following things cost little or nothing and can enrich a life enormously:

Growing flowers in your own garden and using them for decoration

Walking in a park or near the water

• Joining a library
• Doing a self-education course
• Having the occasional dinner at home by candlelight
• Making your own jams, pickles and chutneys
• Buying a second-hand bicycle
• Going to a free concert in the park
• Getting the whole family on a walking and jogging programme
• Helping at bazaars and fetes etc.

Meanwhile, here are a few tried and true suggestions to think about to get your mind working.

Telephone calls — put a money box next to the phone and ensure that every time a call is made 30c goes in the box. With the cash that accumulates you can either pay the phone bill, or something special once a year.

Food — You can throw up your hands in horror but believe me, the top selling items in supermarkets are soft drinks, bread and cakes, sweets and chocolate, pet food and cigarettes. Most of these items could be eliminated, or severely cut down, and both our health and bank balance would be much better off. Most families could save $20 per week in this area alone.

Child-minding — can be very costly but have you thought of sharing with your neighbours, and/or pooling so that they look after your children one day and you look after theirs the next?

Clothes — after the motor car, clothes are probably one of the biggest areas of waste for the average person. It might be fitting to make a comment here on the way we live. Often people who wish to appear wealthy adorn themselves, at great cost, with all the trappings of wealth. This then stops them from ever accumulating enough money to become wealthy so it is a self-defeating exercise.

Many people make their own clothes and many more are happy to buy “as new” second-hand clothes from shops that sell them. In any event, judging by the millions of rands worth of near-new clothes that are tossed out every year, it is an area where big savings can be made.

Buying second-hand — Huge savings can be made by buying near-new articles through advertisements in various newspapers. Not only did I save on the cost of the machine but the man who sold it to me is a computer wizard and has become a very helpful friend. Furniture, electrical appliances and exercise equipment are areas where great bargains can be found second-hand. Don’t look down on second-hand goods — everything is second-hand once it leaves the shop!

Petrol — The government loves this form of taxation, particularly as it cannot be avoided. If you look at cars in the street you will find that most of them have one, or at the most, two people aboard.

Have you considered sharing with others to reduce costs of travelling to work, or even using public transport and driving your car to the bus stop or railway station?

Cigarettes — We all know that they are bad for us and those who smoke always claim it is the one thing they could never give up. Yet most who have given up smoking say they have never felt better. Let’s compromise — if you can’t give it up — cut it back. You will be able to watch your savings grow instead of going up in smoke.

One thing about a budget — it forces you to make choices. If it gets down to a choice between cigarettes and planned savings, you can at least understand that the cigarette you are smoking is not just costing you your health. The nourishment for your money tree is going up in smoke, so it is also costing you your financial independence.

Entertainment — This is different for everybody but you can have a lot of fun making your own. Some of my happiest moments have been spent enjoying the free treasures of nature such as walking on a beach, or going into the country or the Botanical Gardens for a picnic, instead of dining out. It’s fun, and far cheaper, to involve the whole family in making a pizza, preparing a salad and having it by candlelight with a glass of cask wine. Follow it up with a walk around the neighbourhood when it’s finished and you have a close, happy involved family.

Gifts and Christmas — The best way to plan for Christmas is to open a special account at your bank and put a fixed amount away every month. Everybody overspends at Christmas but if you put something away every month it will be there when you need it.

Whatever you do — don’t get caught up in the “Buy for Christmas — pay in March” treadmill. What you are doing is buying goods you can’t afford, with money you don’t have. Surely your friends and relatives don’t expect you to get into debt to give them a present?

So many people overspend on Christmas presents. My children have cupboards full of toys that friends and relatives have given them and still prefer to play in their sandpit or mess about in an old cardboard box.

Hobbies — They can range from the expensive such as flying, to the very inexpensive such as fishing with a simple rod and tackle. Perhaps your hobbies can work for you. Maybe you can make things and sell them. Could you run training classes? There is a great chance to make extra income here and the field is limitless.

Interest on money borrowed — It is in this area that the poorer sections of our community are not only hit to leg, but hit so hard that many of them get to the point where they never recover.

1. Do not have any of your bills sent to your home. Always list your post office box as your mailing address. An even better solution is to pay your bills online—but do it safely. Companies like Paytrust or E-bills are great solutions for paying your bills securely and on time. If you have a personal accountant, discuss the possibility of setting up a system to have your bills sent to and paid by them.
2. Do not list your full name on your utilities, credit cards, or personal checks. Always use your first initial and last name for bills and credit cards. If possible, use a company name or trust. Use an initial and last name or company name on your checks, and make sure to use your post office box or accountant’s address. There is no need to put personal numbers like telephone, driver’s license, social security, or any other private piece of information on your check. Think about how many people come into contact with that check before it gets to the bank.
3. Do not list private contact information on credit card or utility applications. Once again, your address should be your post offic box, your bill paying service, or your accountant. The phone number should be your cell phone or work listing.
4. 4. Do not fill out random credit card duplications that you get in the mail. If you want a credit card, go to your bank or call a company directly. Filling out forms that require extremely personal information such as Social Security and bank account numbers should be done in a secure environment with a bank clerk or account manager.