LET’S LOOK AT THE SECRETS OF THE BIG FIVE.

How can I look after my money better?

THE SECRETS OF THE BIG FIVE

In Africa, we are very close to the laws of the jungle - learning through watching and observing our magnificent wildlife.

At Old Mutual, we looked at how the lion, leopard, elephant, rhino and buffalo behave to protect themselves. We have applied these laws of the jungle to the streets of Africa to help you manage your money better.

Discover the Secrets of the BIG FIVE and how they can be used to improve your finances.

HOLD ONTO YOUR SEATS, LET THE MONEY SAFARI BEGIN.

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CONTENTS

1. THE SECRET OF THE LION page 2

2. THE SECRET OF THE LEOPARD page 3

3. THE SECRET OF THE ELEPHANT page 4

4. THE SECRET OF THE RHINO page 6

5. THE SECRET OF THE BUFFALO page 7

6. HOW CAN I PROTECT WHAT IS IMPORTANT TO ME? page 8

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LET’S TALK THE SECRET OF THE LION

Why do you think the male lion eats before the rest of the pride? No, it’s not because he is greedy and bossy… it’s so he can be sure of having the strength he needs to protect his family from any danger in the future.

It’s a good lesson.

Before you do anything else, put aside a set amount when you get paid and save it. In other words, pay yourself first - and make sure you look after your future.

Put some money away, even if you think the amount is too small, you’ll be surprised how quickly it mounts up.

SOME TIPS ON CREATING A HABIT OF SAVING FOR YOUR FUTURE• Take a portion of what you earn and set up a monthly debit order for a savings plan.• Decide on a specific amount and invest it every month in a savings plan.• Plan a monthly budget and don’t exceed it.• You can even ask your bank to put a limit on how much you can withdraw.

You could choose what type of savings plan you want to invest in. This could be a simple savings account or you could invest in unit trusts, but the best way is to talk to a financial adviser. They’ll give you the advice on how to save and, most importantly, grow your money.

How can I save when I have little money to begin with?

• PAY YOURSELF FIRST LIKE THE LION• CREATE THE HABIT OF SAVING• START WITH A SMALL AMOUNT

EACH MONTH

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Have you ever watched a leopard hunt? They like to climb high on a tree or hill from where they can plan their day.

The leopard decides what it wants to eat and then never lets its prey out of its sight, patiently planning and moving towards the goal.

You can learn from the leopard to create a financial plan so that you always keep an eye on your goals.

SO WHERE DO YOU WANT TO GO? Like the leopard, you need to hunt for what you want the most out of life. Begin by writing down one goal under each of these headings:

LET’S TALK THE SECRET OF THE LEOPARD

How can I create a plan for my future?

• PLAN LIKE THE LEOPARD• CREATE A VISION • WRITE DOWN YOUR GOALS

SHORT TERM GOALSThese are goals you want to achieve within the next two years. Examples: Buying a new lounge suite; buying a new computer.

NOW, HOW WILL YOU ACHIEVE THESE GOALS?Begin by developing a plan that can help you achieve your goals. Many people save a little bit for each of their three goals, which make sense... as you feel that you are working towards rewards now and in the future.

MEDIUM TERM GOALSThese are goals you want to achieve within three to five years. Examples: Get a part-time education or start your own business in a few years.

LONG TERM GOALSThese are big goals that could take more than five years to achieve. Examples: Buying a house; making sure you have enough money when you retire and stop working.

First 2 years 3 to 5 years After 5 years

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LET’S TALK THE SECRET OF THE ELEPHANT

Elephants are known for having a great memory and are careful to make visual notes of food sources along their migration paths. It’s a good lesson. We can manage our money much better if we write it down in order to keep track of it.

And, of course, knowing exactly what your expenses are can take out the worry and stress of spending.

Save, spend, record, and remember. Gain control of your finances:

STEP 1 LEARN WHAT YOU EARN

Look at how much you earn every month and ask yourself:

• How much money can I be sure of getting each month?• What gets deducted monthly, such as tax or pension?

STEP 2 KNOW WHAT YOU OWE

Gather all your bills together and write them down.

• What do you spend your money on?• How much money do you owe?• Are there other things you have to pay for in the next 6 months?

STEP 3 THINK ABOUT YOUR EXPENSESHow much do you have left after you’ve paid for everything?

• Are you spending more than you need to?• What can you sacrifice or change?• Are you saving enough?

How can I keep track of what I am spending?

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STEP 4 DRAW UP YOUR BUDGET

Design a workable budget for your household:

• How much money do you have left, after bills and essentials?• Write down your future costs that you expect to pay. These could be fixed monthly amounts

(e.g. rent) or amounts that can change every month (e.g. food). Don’t forget about irregular costs, like entertainment and clothing.

• What can you change to live within your means?

STEP 5 REVIEW YOUR BUDGET

At the end of the month, compare what you budgeted to what you actually spent.

• Are you sticking to your budget?• Is your budget realistic? • What changes do you need to make to your budget?

• REMEMBER LIKE THE ELEPHANT• LEARN WHAT YOU EARN• KNOW WHAT YOU OWE AND SPEND

TO LEARN HOW TO BUDGET, ALL YOU NEED IS A PEN AND PAPER TO WRITE IT DOWN.

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LET’S TALK THE SECRET OF THE RHINO

Rhinos are fairly peaceful and don’t have many enemies, yet the mother rhino often has to defend her calves from predators or dangers.

The rhino weighs up her options but when she is threatened, she charges down the predator to protect herself.

It is the same with your money; if you borrow too much money then this can threaten your financial security. Loans can be expensive and sometimes, you need to take charge by reducing your debt.

TIPS TO MANAGE YOUR LOANS

MAKE A PLAN: • Compare interest rates and find the best loan for you. Do some research and ensure you

don’t go for the first available loan.• Try your best not to miss payments.• Seek financial advice if you don’t understand what you are about to sign.• And if you have many loans, first pay off the loans that charge the highest interest rate

to keep your costs down.

USE WHAT YOU BORROW FOR A GOOD REASON • Avoid buying stuff that loses value, like a fancy expensive watch.• Only borrow money when it creates an opportunity. For example, taking out a loan to

start a business can be a good investment in your future.• Can you afford it? Remember you have to pay back more than what you borrowed

because interest will be added.• Cash is king! If you can wait for something, save money and then pay cash. You may

even get a cash discount!

• CHARGE DOWN DEBT LIKE THE RHINO• BORROW MONEY RESPONSIBLY• REPAY HIGH INTEREST LOANS BEFORE

OTHER LOANS

How do I take charge of loans and the money I owe?

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LET’S TALK THE SECRET OF THE BUFFALO

• PROTECT YOUR MONEY LIKE THE BUFFALO• AN ADVISER CAN HELP YOU PLAN YOUR FUTURE• REPAY HIGH INTEREST LOANS BEFORE OTHER LOANS

It’s a fact that buffalos form really big herds, some of the biggest in nature. And, even though building a large herd takes a great deal of time and patience, it pays off in the end in terms of extra security.

Buffalo can inspire you to protect your assets by getting a financial adviser to be your partner. They will help you invest wisely to grow your wealth.

LEARN TO INVEST YOUR MONEY SAFELYInvestments take time and they will grow steadily. Follow the steps below to invest your money safely:

STEP 1 Set financial goals you want to achieve in the next few years and for the future.

STEP 2 Make sure you have a financial adviser you trust, someone who will help you identify which investments are right for you.

STEP 3 Choose an investment or insurance company that has a good reputation to give you peace of mind that they will deliver what they promise.

STEP 4 Ask lots of questions. For example: What happens if I stop saving? What happens if I want to withdraw my money?

STEP 5 Every year you must review your financial plan with your adviser. Keep track of your long-term goals.

How can I grow my money safely?

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LET’S TALK INSURANCE

Insurance is a protection plan that you buy to pay you cash when certain unexpected bad events happen. When you buy insurance, you pay a small amount every month for this protection – this amount is called an insurance premium. This gives you and your family peace of mind that you are protected.

LIFE INSURANCE PROTECTS YOUR FAMILY IF YOU PASS AWAY

What happens when you are no longer around? Buying life insurance is one way of making sure that your family receives a cash payment in the event that you pass away.

Life insurance can be used to pay for any expenses, such as using the cash to pay for groceries and daily expenses. It can also be used for things like funeral services, unsettled hospital and medical bills, mortgage payments, business commitments or education costs for your children.

An example of life insurance is a funeral plan. This plan usually pays out a specific amount of money to your family within a few days of a death.

Another example of life insurance is disability insurance. This pays you out if you become disabled and are no longer able to work and earn an income. This type of insurance is also called income protection.

HOME AND CAR INSURANCE PROTECTS YOUR ASSETS

You can buy insurance to pay you if something bad happens to your home or your car or other assets that are important to you or your business.

For example, you can buy car insurance to pay you out if your car gets stolen or damaged by another person or gets damaged in a fire. This means that when the event happens, you do not have to come up with a large amount of money to cover the cost of repairs or a new car.

How can I protect what is important to me?

LET’S TALK FINANCIAL ADVICE

An Old Mutual Financial Adviser can help you answer these types of questions:

A FINANCIAL ADVISER CAN HELP YOU PLAN FOR YOUR FUTURE• How much money should I be saving each month?• How do I create a financial plan to protect my family?• When is borrowing money a good thing and when can it be bad?• Which loans should I pay off first?• How do I know if I am borrowing too much money? • How much insurance do I need to buy to protect my family?• How much will insurance cost me every month?• How do I know which company I can trust to make sure we get paid when bad things

happen?

WHO CAN I CONTACT FOR MORE INFORMATION?Come talk to us at Old Mutual. At our branches our financial advisers can help you with savings, investments and insurance services. We also provide financial advice. For more information, visit your nearest Old Mutual branch or go to www.oldmutual.com.

We look forward to helping you with your money matters.

The information provided on this document is general advice only. It has been prepared without taking into account your individual objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. Speak to your adviser or visit your nearest Old Mutual Branch for advice that will suit your needs.

But I don’t earn enough to save!

But why must I save?

How much must I save?

Where do I put my savings?

But I’m always short of money!

What do you mean by automatic savings?

Who can help me manage my money?

INVESTMENTS SAVINGS INSURANCE

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This brochure is proudly brought to you by Old Mutual’s ON THE MONEY PROGRAMME.