Writing

What if there was a simpler way to budget?

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Published on Capitec, 27 July 2022

More month left at the end of your money? It’s time to whip your budget into shape and track your spending.

Budgeting is important no matter where you are in your life. You need to know how much money is coming in and what your monthly expenses are. Remember the days when drawing up a budget required some Excel know-how, valuable time wasted recording all receipts and invoices and crunching numbers? Luckily that’s a thing of the past with the many apps and tools available today.

Budget 101

When you draw up a budget, it’s recommended that you follow the 50/30/20 budget principle. How this works is simple: 50% of your household income should go towards essential expenses, 30% towards financial priorities, and 20% towards lifestyle choices.

You should spend no more than 50% of your income on essential expenses such as:

  • Home: 25% (rent, home loan, insurance, maintenance and garden)
  • Transport: 10% (fuel, insurance, car finance and maintenance)
  • Food: 10% (groceries and cleaning supplies)
  • Utilities: 5% (water and electricity)

At least 30% of your income should be used to take care of financial priorities:

  • Saving: 10% (holiday, nest egg and investments)
  • Retirement investments: 10% (retirement annuity and pension fund)
  • Financial services: 5% (personal loan, credit accounts and bank charges)
  • Medical expenses: 5% (medical aid, medicine, doctors and other treatment)

No more than 20% of your income should be used for lifestyle choices. That is, things that are nice to have but not essential:

  • Entertainment
  • Personal care
  • Clothing
  • Hobbies
  • Dining out

Why you need to track your spending

Even with a budget, extra expenses can creep in. When you don’t pay attention to them, you might not realise how much you’re actually spending in a month. Have you remembered to add that takeaway coffee you buy every morning on the way to the office? How about the flowers you bought for your mom? Or the data top-up you needed? All these extra expenses add up, quickly.

To avoid having your money run out before the end of the month, you need to track your spending. It will allow you to adjust your budget where necessary.

How to track your spending

On the new Capitec banking app, you can get a quick overview of where your money goes with the help of different categories like food, transport or communication. Plus, this can help you plan and manage your budget, giving you more control over your money. All from the comfort of your couch and all in one place.

The app is easy to use. Simply tap on your savings account to see what money has come into your account and what has gone out. Want to view your spending categories? Tap on the ‘track’ tab to see what you have spent money on. All money you’ve spent is automatically categorised to give you a clear picture of your spending habits. If the app allocates something to the wrong category, you can change it. The app will then ‘learn’ and won’t make the same mistake again.

Once you start to track your spending habits from one month to the next, you’ll soon be able to identify unnecessary expenses that you could cut back on.

Banking. Now even simpler

Get the new Capitec banking app and automatically categorise your transactions so you can easily track your income and spending habits.

Basani Maluleke: a woman in leadership

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Published on Capitec’s LinkedIn page, 23 September 2022

She made history by becoming the first black woman at the helm of a South African bank, which is why we’re excited to have Basani Malulekejoin our fold. We recently spent some time with her to learn more about her career path and why she chose to join Capitec.

Basani Maluleke started her career in law. “My father was a lawyer who positively impacted the lives of many South Africans, and I aspired to follow in his footsteps. I believed pursuing a career in law would help me do that.” However, after qualifying as an attorney, Basani knew she didn’t want to do this long term.

“Fortunately, I came across a job spec in corporate finance that combined finance expertise and law at Rand Merchant Bank (RMB). As I’d studied law and a B-Com Accounting, this was the perfect fit for me.”

She likens the learning experience at RMB to that of being on a rocket. “It was fast paced, and I had to navigate steep learning curves, but I learned so much, especially about banking.” In 2009, Basani realised she wanted to gain a better understanding of business and went on to do her MBA at the Kellogg School of Management in the United States.

Armed with her MBA, Basani knew she wanted to manage a large business. She returned to South Africa and joined FNB as Head of FNB Private Clients. “A year in, I knew this wasn’t the right fit for me, so I returned to corporate finance for a short period before joining African Bank as a non-executive director.” Two years later she joined the executive team, before moving into the position of CEO.

In January 2021, Basani announced her resignation as CEO of African Bank after a three-year tenure, and in August 2021 revealed that she’d be joining Capitec.

Joining Capitec: a force for good

“I started as divisional executive of business solutions in October 2021 and moved into the role of divisional executive of operations in July 2022,” she says. “My job, in a nutshell, sees me looking after all client-facing channels at branch level and Capitec Direct. A big part of what I do is making sure our front-line staff have the necessary training and support to serve our clients, that they understand all compliance requirements and know how to optimise our clients’ experience with us.

“The decision to join Capitec was easy for so many reasons,” says Basani. “For a start, I believe Capitec runs the best operations engine of any bank – and potentially any retailer – in South Africa.” She adds that she was enticed by the opportunity to learn how Capitec achieves this, while gaining an understanding of the detail behind the process.

“The impact Capitec has on people’s lives, both in terms of staff and clients, also excited me. I see Capitec as more of a tech company than an ordinary bank, so the proposition to join the business was exciting because there’s just so much to learn.”

The management team also played a big role in Basani’s decision. “They are the founders of Capitec and being able to work alongside them is a truly unique experience. I think there’s a point in our careers when we join a company because of the people rather than the job. The people behind Capitec are genuine, smart and speak to my heart. Capitec was the right company for me to join.”

The Capitec culture

“It’s definitely a fast-paced environment,” says Basani. “People want to be able to make decisions quickly. To be successful at Capitec, you need to know where the North Star is and do the actual work to get us there. Our culture needs individuals who can internalise lots of information and figure out what to do with it.”

The Capitec culture of putting the client first is firmly entrenched. “You can’t overestimate that,” explains Basani. “Many banks talk about putting clients first but having worked in the banking industry for about 20 years, I can say that Capitec gets it right. The number of times we hear positive things about client satisfaction is at a level I never imagined possible.”

Looking ahead

Career progression is important at Capitec. “Gerrie [Fourie] feels strongly about this and he’s right. We need to make sure we provide opportunities for people to grow within their respective roles,” Basani says. “We know people want to feel a sense of career progression in order to be fully engaged. All of us want to feel like we’re growing, and I think that achieving this will create huge value for our people down the line.”

She is excited about the future of the business. “Our business bank continues to grow, which means we’re creating even more opportunities for our people to grow in different areas, to learn different things and enrich their own experience of the Capitec world.

“I have so much to learn, but I love learning. I’m still fairly new in the Capitec environment but having the opportunity to understand how it works is an absolute privilege.”

Rizwana Butler: reimagining women in the workspace

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Published on Capitec’s LinkedIn page, 30 August 2022

She joined Capitec in March 2021 as Group Executive of Human Resources. At a recent event to celebrate Women’s Day, Rizwana Butler shared her advice about how to reimagine women in the workspace.

Here’s her three simple but powerful lessons to share with all women:

  1. Break the rules and own your space
  2. Know your worth
  3. Honour your uniqueness

Lesson 1: Break the rules and own your space

Rizwana grew up in a traditional family where most women, even if they studied, eventually got married and started a family. “I knew at a young age that this was probably not what I wanted to do,” she says. “I wanted to study and have a career!” So, Rizwana dared to break the rules.

Her parents hadn’t saved for her tertiary education but that didn’t stop her. Rizwana wanted to go to university. “I paid my own way and completed my bachelor’s and honour’s degrees.” During her honour’s degree, she received three job offers, one of which was at a mining company.

“The head of the Department of Business Administration at the time said to me: ‘Rizwana, you’re a woman, don’t take the mining job. Take something closer to home because we all know that you’ll do this for a couple of years until you’re ready to do what you’re meant to do: stay at home and raise a family.’”

She decided to break the rules and accepted the job that meant the most to her. “I joined a mine that was about 50km outside of Witbank and when I arrived, I discovered that the only languages spoken were Afrikaans and Fanagalo [a pidgin language based on Xhosa, Zulu, English and Afrikaans].”

Her new employer had only ever had male graduates join the company in the past. “I discovered that because I wasn’t married, I’d have to live in the single males’ quarters. That didn’t bother me, I was there to do a job. I spent the first year of my career living in the single males’ quarters, going underground and doing all the things everyone told me were not typically what women did.”

Throughout the course of Rizwana’s career, she’s continued to break the rules and own her space. This includes her role at Capitec, where she became the first female executive. “When I spoke to people about this opportunity, they’d always ask: ‘Rizwana, you’re going to be the first female executive at Capitec, is that really what you want to do? How are you going to manage the male-dominated Exco?’ My response was always: I’ve dared to defy the rules before. This will be a walk in the park for me.”

Lesson 2: Know your worth

Rizwana admits that although she’s had an incredible career, there have been ups and downs. “I remember a moment when I was going through one of the worst times I could ever think of. You know this situation: nothing ever works out, you don’t have a connection with your team, and you can never see eye to eye with your boss. I couldn’t understand what was happening, and I knew it was affecting my mental and physical health.”

She recalls waking up in the middle of the night with heart palpitations, which was completely unknown to her. “On Sunday afternoons, I’d find myself in a bad mood because I knew that I’d have to go back to the office the next morning. I couldn’t wait to get to Friday afternoon.” Rizwana knew something was wrong and confided in her mentor. His advice was simple: know your worth.

“Sometimes you must take a step back and ask: Is what you’re doing to yourself worth it? I decided not to leave the company, and I transferred out of the team instead. It was the best decision I could have made. I started to enjoy my work again and everything fell back into place.”

Don’t be afraid to ask for help either, she adds. “We’re scared of seeing the imperfections in ourselves, and sometimes we forget that there’s a sisterhood around us — other women who are so keen to see us succeed that they’re willing to lend a helping hand. And let’s not forget our male counterparts, who are often standing next to us, cheering us on, even if we don’t notice it. Help can come from the most remarkable sources.”

Lesson 3: Honour your uniqueness

Rizwana admits that early in her career she strived to be like her male colleagues, from their banter to how they managed conflict. “Guess what? I failed miserably. It took me a long time to realise that I was unique.” Her uniqueness, she explains, comes from her ability to connect with people and to intuitively get a sense of what’s going on.

“We’re often told not to say anything until you know the facts, until you have all the data from that. But sometimes you must trust your female instincts and then find the data later to support what you have to say,” she concludes.

Money talks: imagining women on our banknotes this Women’s Month

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Published on Capitec, 27 July 2022

This Women’s Day we asked 3 female artists to reimagine the Rand and design what South Africa’s first banknote portraying remarkable women could look like.

Although women make up around half of the global population, only about 9% of the banknotes in circulation feature women.

In South Africa, our banknotes have only ever featured 2 people – both of whom were men. So, we asked 3 female artists two important questions: if you could imagine a woman on our banknotes, who would it be and why?

Anja “Nanna” Venter: Representation matters

Cape Town-based artist Anja “Nanna” Venter chose an important historical moment as inspiration for her banknote. “I’ve recreated the 4 women – Lilian Ngoyi, Sophia Williams, Helen Joseph and Rahima Moosa – who led 20 000 women in the Women’s March to the Union Buildings on 9 August 1956 to protest the pass laws.” She captured them at the moment they walked up the steps of the Union Buildings carrying a petition with 5 000 signatures showing power and solidarity in the face of oppressive and dehumanising legislation.

This image depicts an important milestone for our democracy and women’s rights, says Anja. “It was the first time that the protest song Wathint’ abafazi Wathint’ imbokodo! (You strike a woman, you strike a rock) was sung. The women stood together and showed that speaking truth to power is important and necessary.”

Most of the role models Anja admired as a child and modelled her career after – Jaime Hernandez, Kurt Vonnegut, Andy Warhol, Craig Thompson – were men. “All my female role models were pop stars or rock stars. There just weren’t as many visible role models that were women in creative professions. It’s not that they didn’t exist, it’s just that there wasn’t as much representation,” she says.

“I think that depicting inspiring, strong women on currencies will show young girls, and everyone who doesn’t identify as a cis-heteronormative man, that they can reach those too. That they matter and can make a difference.”

Anja says that art is a tool which can help us draw attention to important issues. “Through visualisation, we can imagine radical futures, new possibilities: we can make intangible matters material. Art is both a mirror and a window to the world.”

Rendani Nemakhavhani: Telling important stories

The idea of featuring women on banknotes is something Rendani Nemakhavhani, who also goes by “PR$DNT HONEY”, had already been thinking about. “I actually started visualising what it could look like back in 2020, which is why I’m really excited to be part of this campaign,” she says. “Partnering with Capitec is giving me an even bigger platform. We can’t keep speaking about women empowerment without seeing it in practice.”

Rendani has chosen to feature Miriam Makeba on her banknote. “I feel as though her story hasn’t been told enough,” says Rendani. “Although she was banned from the country for a very long time, she never spoke badly about South Africa. Wherever she went in the world, she’d speak about what was happening and how important it was to liberate her people. She played a critical role in convincing people outside South Africa to support the struggle.”

All Rendani’s art is inspired by people. “I love people and their stories,” she says. “I always try to tell a positive narrative.” She wears many hats as a creative director, illustrator, art director, graphic designer, photographer and artist living in Joburg. She describes her work as layered, colourful and warm. “I strive to create work that makes me want to look at it. Sometimes I’m surprised by a piece. I don’t always have a plan when I start a new piece, but it makes sense as I work on it.”

Zanele Montle: Finding our voice

Unlike Anja and Rendani, Zanele doesn’t yet know who she will be depicting. She’ll only know once the woman South Africa chooses or nominates through the course of the campaign has been decided.

“While I can’t wait to see who she’ll be, the overall message is especially important to me as a young, black, female artist. I see this as an opportunity to have uncomfortable conversations but also to celebrate us as women. It’s about having a voice and cultivating that voice.”

Zanele believes this campaign has the power to reach even more women. “I look forward to the conversations that will be sparked by it. I’m excited about potentially putting female figures on banknotes. Plus, the campaign is for women, by women. Overall, it’s a beautiful, powerful and empowering campaign.”

She describes her style of art as simple, vibrant and bright. “I paint people in different settings. Sometimes I leave the background empty, other times I include objects or add the title of the piece. I’m inspired by the day-to-day lives of the family and people I grew up with. There’s a lot of storytelling in my work,” says Zanele.

Have your say

Join the conversation on social media about which women you think should be featured on South African currency. Share your suggestions with @CapitecBankSA and use the hashtag #ReimagineTheRandSA.

Investing 101 with EasyEquities

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Published on Capitec, 22 July 2022

Have you been thinking of starting your first investment? The good news is it’s super simple with the Capitec banking app and EasyEquities widget.

When you think about investing, business people in stuffy suits in a busy office might come to mind. What if we told you investing is something anyone can do? And it’s the way South Africa’s up and coming are making their money work for them. You don’t need to have a finance degree to get started. You have direct access to the widget through the Capitec banking app where you can start investing from as little as R5.

You’ll be able to buy shares on both the South African and US stock markets, and save 20% on the commission you would pay when you make an investment. If you are already an EasyEquities user, it’s easy and secure to link your profile on the Capitec banking app.

We’ve partnered with EasyEquities so that we can help you improve your financial life by providing simple access to easy investing.

Investing is for anyone

Capitec client Yolande de Beer, 33, says she was looking for an alternative to opening a normal bank savings account or investing through a financial services provider.

“I had absolutely no investing experience at all. After doing research online, I found some interesting information and reviews on EasyEquities. As I already have the Capitec banking app, I simply used the EasyEquities widget to invest in a company that was affected by the COVID-19 pandemic as the share prices were cheaper. I believed it would pay off in the long run.”

And it did for Yolande. “I’ve seen growth of more than 7% on my investment so far,” she says. “It also means I have immediate access to my money, if need be, unlike most high-interest savings accounts that have a notice period for withdrawing funds.”

Understanding investment terminology

Before you dive into the world of investing, it’s important to understand the 4 different types of investments available to you through the EasyEquities widget on the Capitec banking app.

Equities

What they are: Also known as stocks or shares, equities are the most simple and well-known type of investment available. In basic terms, equities allow you to invest in actual companies.

How they work: When you buy equities, you’re essentially buying a tiny portion of a company, such as Capitec, Dis-Chem, Pick n Pay or Vodacom. If the share price goes up, you have the opportunity to sell and potentially make a profit. However, if you sell after the share price has gone down, you could lose a percentage of the amount you initially invested.

ETFs

What they are: Exchange traded funds, or ETFs, are a collection of companies or shares either made up of different industries or isolated to a single industry or sector. ETFs are a great way to invest. They’re relatively cheap to buy, easy to invest in and offer the diversification benefits of unit trusts. The difference between an ETF and an unit trust, however, is that ETFs are listed on the stock exchange, so you can buy or sell them at any time of the day. Unit trusts, on the other hand, are not and prices are only set at the end of the day.

How they work: You can buy an ETF with a single transaction, which gives you exposure to many different companies. Because a single ETF holds shares in different companies or industries, your risk is spread. You can also choose whether you’d like to invest in South African or overseas companies.

ETNs

What they are: Exchange traded notes (ETNs) are essentially unsecured corporate debt, which means you aren’t buying a collection of assets like you would with an ETF.

How they work: An ETN works like an IOU from a bank. This note indicates what you’ve bought and puts you in line for a potential payout when it matures. With an ETN you won’t own anything but will hold the debt, in the same way a home loan works. The difference between what you paid for the note and sale price of the underlying commodity is your profit.

Cryptocurrency

What they are: Cryptocurrencies are digital currencies like Bitcoin and Ethereum. They are secured by cryptography, making it virtually impossible to counterfeit. You can buy or sell them on cryptocurrency exchanges and in some instances use them to pay for items or services.

How they work: EasyEquities gives you access to 10 cryptocurrencies, which helps to diversify your investments. In a nutshell, you can buy tokens on the EasyEquities platform and they are then kept for you by DCX10. This means your cryptocurrency tokens are kept secure off the internet, which puts them out of reach of hackers. Just keep in mind, though, the value of cryptocurrencies fluctuate quite radically, which makes them a risky investment.

Simplify your life. Invest with EasyEquities

“Being able to use my Capitec banking app to access the EasyEquities widget gives me complete control over my funds and means I can cut out the middleman,” Yolande says.

Her advice to newbie investors is simple: “Do your research before you decide to invest. COVID-19 has had a harsh effect on our economy and on our own budgets, but we can take advantage of current low share prices to invest in local companies. Take that leap of faith. It was worth it for me.”

Use the Capitec banking app and get access to investing in shares through EasyEquities. You can invest as little as R5. Investing made simple, convenient and affordable.

*This EasyEquities user story does not constitute financial advice. The user was also given an EasyEquities voucher for their participation.

 

Investing really is as simple as 1, 2, 3

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Published on Capitec, 22 July 2022

Investing can be for everyone. And you can start today with as little as R5 using Capitec’s banking app and EasyEquities widget.

His investing career started at the age of 11, when he bought three shares for $38 each in a company called Cities Service Preferred on the stock market. He’d go on to sell those shares for a $6 profit. Today, Warren Buffet is 90 years old and considered one of the most successful investors in the world.

But it’s 2021 and investing is not just for the Warren Buffets of the world. Capitec, in partnership with EasyEquities, has made investing simple and accessible to everyone, no matter your age or financial experience.

When you download the new Capitec banking app and activate the EasyEquities widget, you’ll be able to invest securely from anywhere, at any time. You can start investing immediately from as little as R5 and, as a Capitec client, you’ll save 20% on the commission you would pay when you make an investment. Already have an existing EasyEquities profile? It’s simple and secure to link to it on the Capitec banking app.

No investment experience? No problem!

It’s completely understandable if you’re wary of investing your hard-earned money on the stock market, especially when you have zero experience. Fortunately, the new Capitec banking app gives you access to the EasyEquities’ widget, which has a demo account allowing you to practice.

As a new user, you’ll get a demo account with a balance of R100 000, which you can use to play around on the Johannesburg Stock Exchange. This will allow you to get a feel for how markets perform while monitoring your profits and losses without the risk of losing any real money. You can also try your hand at the US markets by investing the $10 000 in your demo account.

Once you have a better understanding of how the stock market works, you can use your own money to invest for real. And the best part? You can start investing from as little as R5.

Simplify your life

Capitec client Afuah Asare-Baah, a 21-year-old accounting student from the Eastern Cape, had been thinking about investing for some time but didn’t want to go through the hassle of finding an affordable broker. “Since EasyEquities was already on my Capitec banking app, I thought it would be more convenient to just use it instead,” she says. “I also realised that the investing fees were a lot cheaper. The fact that it’s associated with Capitec also gave me the impression that it is a reliable platform.”

“EasyEquities is easy and safe to use. The Capitec app already has good security measures in place so I don’t have to worry about someone accessing my investments fraudulently.”

Diversify, diversify, diversify

Although she has no experience with investing, Afuah used the knowledge she acquired as an accounting student to help her choose the best investments. “You need to do a lot of research before investing in a company,” says Afuah. “Don’t just follow your gut. And never put all your eggs in one basket!”

She’s not wrong. Diversification is one of the simplest ways to boost your investment returns while reducing your overall risk. In fact, the Nobel prize-winning economist Harry Markowitz once said, “Diversification is the only free lunch in investing.”

When you diversify your investment portfolio, you reduce your overall risk while increasing your potential for overall investment growth and returns. Some of the time some assets will perform well, and others won’t, but a year from now, their positions might very well be reversed.

Invest for the long term

Another important factor in successful investing is that it has to be for the long term. Historically, shares typically produce positive returns over longer periods of time that can offset the short-term risks. If you can, hold on to your investment for at least 10 years.

In his 1989 book One Up on Wall Street, Peter Lynch, a highly successful portfolio manager, wrote, “If I’d bothered to ask myself, ‘How can this stock possibly go higher?’ I would never have bought Subaru after it had already gone up twentyfold. But I checked the fundamentals, realized that Subaru was still cheap, bought the stock, and made sevenfold after that.”

In essence, what he’s saying is this: you should consider investing based on future potential instead of past performance. Although large short-term profits are tempting when you’re new to investing, experts all agree that investing for the long term is essential to greater returns and success.

Simplify your life. Invest with EasyEquities

Use the Capitec banking app and get access to investing in shares through the EasyEquities widget. Investing made simple, convenient and affordable.

*This EasyEquities user story does not constitute financial advice. The user was also given an EasyEquities voucher for their participation.

 

Capitec LinkedIn content

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Beacon social media content

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Sanlam Reality

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Your 9-point legal checklist

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Published in Nine Yards magazine, Issue 1, 2020