Episode 4 Money Hacks - Manage your money as a freelancer

The Money Makeover journey has passed the halfway mark and many of the contestants have learned some hard lessons.

If you haven’t started already, follow six ordinary South Africans as they take up the City Press/Absa Money Makeover Challenge and undergo a money makeover boot camp. During the six-month competition they test their resolve and make tough decisions on every aspect of their finances.

Each candidate has been allocated their own Absa financial adviser who will assist them in organising their finances and reaching their personal financial goals. Along the way for those who stick to their money plans there are incentive prizes and the chance to win the big investment prize.

This is the fourth in a series of six video Q&As that offer you the chance to ask your questions and learn from our contestants. To do this we tap into the Absa experts to help our candidates with any issues they may be facing that are also relevant to our followers.

This week Maya Fisher French and her guest, Absa Investment Specialist Faizal Noor, talk about how to manage your tax as a freelancer or ensure your side hustle income is properly managed.

Zinzy’s story: Becoming money smart

University lecturer Zinzy is academically smart but acknowledges that when it comes to her finances, she has made some “ignorant financial decisions”. Managing money is not something you learn at school or university, and without that knowledge, even well-educated people can find themselves in difficulty.

Zinzy’s debts are putting her under financial pressure. Her debts include a large tax bill owed to SARS which they are deducting from her salary and a piece of land she cannot afford to build on. “I have a son who I would like to develop better money skills than me. I hope to be debt free or at least have a healthy handle on my debt with savings for emergencies.”

Though she admits to making multiple money mistakes, she says freelancing to earn extra income and not sorting out the tax implications is one of the worst. Thankfully, with the guidance of her Absa financial adviser, Phumzile Dube she is on her way to building a sustainable financial future and wealth through holistic financial planning.

In this episode find out how tax rates work and why when you earn more, the marginal tax rate increases. This includes rental income from property too, for example.

Zinzy’s nasty surprise from SARS applies to anyone with a side hustle too. We help you understand what to put aside and how to calculate what this amount should be. Also, find out what expenses you can deduct too.

Listen in and ask your questions on our dedicated social Twitter and Facebook pages, @CPMoneyMakeover