What are Bonds?

How to invest in bonds

What are Bonds? Should I invest in Bonds?

Bonds, loans, debt. They have the reputation for being very safe with minimal returns. Is this true? What are Bonds? Should I invest in bonds?

What is a bond?

Bonds, loans, and debt are a type of investment where you buy the debt of a company, institution, municipality or government. The return earned is on the rise in value of the bonds, as well as the yield/ interest rate paid. Think of it as you acting as the bank, you loan the money to Joe and he pays you back plus interest.

Government Bonds are often considered the safest option as a government is very unlikely to default or not pay their debts. Companies or corporate bonds are often considered a higher risk as they could go bankrupt.

What is a bond market?

A bond market is similar to the stock exchange where bonds are traded. These markets bond markets are often available only to wealthy individuals and institutions.

Where do I invest in Bonds?

The Bond Market

We know what the stock market is, but what is a bond market? To buy bonds directly, one would need a lot of money to invest. In excess of R1 mil. It is thus often only available to wealthy individuals and institutions.

Bonds Etfs and Unit trusts

For the likes of you and me, we can look at Bond Etfs and Bond Unit trusts. These are Etfs and Unit Trusts that are invested in bonds directly. Giving you access to top-quality bonds managed by seasoned investors and fund managers.

What are government bonds?

Government bonds are bonds issued by the government of a country. They are great options for investments and savings. But only once you understand what are government bonds.

Locally we can invest in Government Savings bonds directly from the Government at RSA Retail Bonds. They are good returns but your money is locked in for a specific period.

What are bonds

What is a bond yield?

Local bonds offer very good yields in the form of interest. As of May 2020, the RSA Retail bonds offered a 5 year bond yield of 10%. This means you will earn 10% per year back on your money.

Should I buy bonds?

That is up to you and your advisors. But Warren buffet, Benjamin Graham, and many other investors recommend keeping between 10 – 30% of your portfolio in cash/ bonds. Bonds are also good for shorter term investments and do offer a safer option for those nearing retirement.

Bonds, Debt, and Loans can be a good investment, depending on your goals and should be considered. The yields locally can offer great returns with little risk. Speak to your advisor about bonds or do some research and decide yourself.

Keep Safe and Keep Investing

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The Benefits of Compounding!


“My wealth has come from a combination of living in America, some lucky genes, and compound interest.” – Warren Buffet. Here we will show The Benefits of Compounding!

From the man himself Warren Buffet! Warren Buffet is known as one of, if not the best investor of our time. He is one of the richest men in the world and has pledged $50bn to charity, mainly the Melinda and Bill Gates Foundation.

Now we don’t all have the ability to live in America, we have no control over genes, but we can compound.

What is compounding?

Compounding interest is the interest made when you reinvest money earned from Interest. So if you have R100 invested in savings account. You earn R5 interest, you can either take that interest out or reinvest it. Reinvesting that interest will cause you to earn interest on R105, not just R100. Causing you to earn more interest.

Now this seems easy, but the real magic happens over times as shown in the table below, The Benefits of Compounding!:


We can see that you make a low more money using the compounding method, and with little to no effort! When possible always reinvest and let money compound! The Benefits of Compounding!

Compounding will help you with your savings and investing. Compounding will help you achieve better returns with minimal effort! Just the way we like it here at Once A Week!

Be Smart, Be Safe, and only check your finances once a Week!

Have a question? Ask Away!

Book Review: I will Teach You To Be Rich – Ramit Sethi

I will Teach You To Be Rich - Ramit Sethi

“No Guilt. No Excuses. No BS. Just a 6-Week Program That Works”. This is our I will Teach you to be Rich Book Review.

Ramit Sethi, who Forbes called a “Wealth Wizard”, has one of the best New Day Finance books on the Market. Available both on HardCopy and on Audible! He covers exactly what our blog is about….simple, easy to understand, and it works!

The main principles of this book are:

  • How to get rid of Debt!
  • The Method to setup low cost bank accounts
  • The Strategy to Automate your finances
  • How to Save lots of Money Every month!
  • An easy and low maintenance investment strategy
  • How to handle the financial stresses of life (Buying a car, Getting Married, Buying a house, Traveling, Having kids)
  • The best negotiation strategy to get Salary Increase

Ramits philosophy of “Buy all the Latte’s you want” i.e. focus on the big stuff or stuff that matters is relatable to us in real day life!

I will Teach You To Be Rich is an Easy to Read book that will help you dominate your finances! Buy the HardCopy or on Audible! This is our I will Teach you to be Rich Book Review.

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Do I have the Wrong Type of Loan??


You have all heard talk about good loans vs bad loans. And now if you stress like me, you are wondering….what if I have the wrong type of loan??

Well lets break it down, on what are good and bad loans.

Good loans are loans used to improve your assets or earning potential. This would be loans for studies, courses, houses, rental properties, and some types of investments. Even a car repayment as this allows your to travel around and get a potentially better job.

Bad loans are a night out on your credit card, overspending, debt from travelling, debt from Credit Cards, and more. This often occurs when we have impulse buys or if you’re me had a little too much wine!

So are Bad loans bad??

Not necessarily. Sometimes things hit the fan and there is nothing we can do to stop it. But we must try to keep our Bad loans to a minimum. As they often have high interest and offer little to no return on the cost. Do I have the Wrong Type of Loan?

Most important thing to remember is that you are human, you are not alone, and you can get out of the debt! Make a plan! And stick to it and you can make it through. And if you are struggling, speak to professionals like DebtBusters! They can assist you in negotiating with your creditors and help you consolidate. Call them on 086 999 0606

Be smart and enjoy life!

Have a question? Ask away!

Top 4 Tips to Dominate your Budget


Budgets as I showed in my previous post ” Budgets! Agg… ” are not the old boring things we were taught in school. We control our budgets as our destiny. So here are my Top 4 tips for Dominating your budget!

Pay yourself first

Yes I know that sounds weird. But you worked hard for your money and you should benefit from that. So spoil yourself sometimes and spend on yourself in furthering you. From Excerise, to studies, to books and courses. Pay yourself first


So I know most of you are probably not Handymen/women. And if you’re anything like me it could be dangerous if you were. But doing some basic fixes around the house can save you money versus calling in a repairman/women.


Savings as I have stressed before are very important! Especially for emergencies! As COVID19 has shown a lot of us, Savings can help you get through these difficult times.

Have a Misc section of your budget

Misc. or miscellaneous are expenses that are small, but unexpected. From a late day at work causing a needed takeaway or extra fare or petrol to visit a family/ friend in need. This allows you some breathing room in your budget and can help you out sometimes.

These are my Top 4 Tips to Dominate your Budget and I hope they can help you as much as they helped me!

Have a question you want answered? Ask away!

What’s Better for me? ETFs or Shares?

What's Better for me? ETFs or Shares?

The question argued, debated, and disagreed upon. Which is better for me? ETFs or Shares?

We all have limited time, resources, and investing capabilitiesin our SHort Lifetime! And we therefore need to make this choice wisely! And everyone’s choice is unique to them.

ETFs or Exchange Traded Funds are funds that are traded on the Stock Exchange They are publicly traded and easy to purchase through your broker! (I use Easy Equities) They are similar to a unit trust owning pieces of many different companies. This is proven to have less risk as when one company does badly, another does well.

Shares are direct investments in One Company through your Broker. They allow you to build your own group or fund of shares, and essential build your Results! This means you can invest in exactly what you want to and have the potential to make more…….or lose more.

So which one is for you? That depends on your risk number and how long you are investing for. Speak to a professional Broker who can help you work this out!

Don’t miss out! Ask away!

Opportunities in a Down Market!

investing tips

A down or bear market is what we are experiencing currently! These are trying times and many people freak sell sending markets plummeting! However, times like these are when some of the greats, such as Warren Buffet, have made fortunes! There could be many opportunities during and after COVID19! (Please note this is not advise! Please consult a professional before making any decisions)

Value is what a company or asset is worth! This in a perfect world should be reflected in the share price, however this is often not so. Especially in a bear market! And you can find many opportunities! For example, OPEC has flooded the oil market sending oil prices down to $32 a barrel at one point. Some may view this as a great value (Please note this is not advise! Please consult a professional before making any decisions)

Many people get disheartened seeing their investments plummeting due to the bear market! But I say, lets look for opportunities in the long term investment market!

Ask away!

Unexpected Events Effecting Your Financial Goals

With COVID19 spread across the world and now hitting our nations, many industires have been badly affected! Many people have lost their jobs, been temporarily laid off, and even retrenched. This is stressful and will effect your finances in a huge way.

How do you deal with these Unexpected Events Effecting Your Financial Goals? You have to know that things will get better! Look for ways to get through this as Banks and Government are working along with businesses to help us get through this. You also need to accept that these events are out of your control and are unavoidable.

So even if you have lost your income or taken short time. Know that is okay to draw out of your investments and stop saving for a month or two. I know I have! And once these things settle we can hit the ground running once again!

Ask away!


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Corona Virus? Earthquakes? Tsunami? Panic?

When these epidemics happen, it causes heart ache, hurt, and widespread panic. But if we all panic and sell during these times, we often loose more due to the panic.

So what should we do?

First: Keep you heard!

You need to think clearly and not hastely! You can destroy months or even years of work if you just go and sell when these big events cause market dips. And after all your hard work saving and investing its understandable that youre panicing. But this is when you need to keep your head and think rationally! Don’t panic!

Second: Look at the bigger picture!

Just like when we invest, we need to look further than the next few weeks or months. And yes these events will cause short term loses, but can they be made up in the long term?? That is when you need to look at the bigger picture, talk to your certified advisors and make a wise, rational decision.

Lastly: Keep calm!

All things will work out in the end. So dont have sleepless nights over these things as you cannot change them. Look for new opportunities and hold on tight through the bumpy bits! Don’t panic!

We’d love to hear your thoughts and questions here!


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Budgets! Agg…

Budgeting is one of those complex things that forms part of our adult lives, or at least try to for us wannabees. It is hard! And it sucks to say no to eating pizza every night! But building the art of managing your finances is something that will help you achieve your goals of traveling, buying a house, and without uncontrollable debt.

What do I mean by uncontrollable debt? Is Debt Bad?

No debt is not all bad. But like all things it needs a purpose. A bond on a house is usable debt to buy something you couldn’t afford without it. A delayed paycheck or family emergency may need you to dip into your credit card or overdraft. But its not bad. Debt only becomes bad when you no longer have control over it. Ill touch more on this in a later article.

But back to budgets & budgeting. Everyone is different and spends there money differently, and that’s okay. You don’t have to justify your spending to anyone but yourself. That being said you have to justify it to yourself and know where tour money is going and coming from.

A simple list of your incomes and expenses will help you keep track of everything and help you see where you are spending money that you don’t need to. This helps you free up money for saving or spending on something that makes you happier.

I use 22 seven to manage my finances. They help you automatically record all your spending in an app on your phone. Find them here!

Be in control and don’t care what others think! You be you!

And if you have any questions ask us Contact us!