Dear savvy friend,

* Always assume the worst. When you take out a bond, NEVER be persuaded to loan five or six times your annual salary. It's not the way to go.

This level of borrowing is bound to push you to the limit of what you can afford to pay - and that may seem well and good when interest rates are low. But if interest rates go up - even by 0.25% - then the monthly increase on a big loan might suddenly mean you can't afford to pay it back. So make sure you borrow sensibly - 3x your annual salary is ideal. Four is the absolute maximum you should consider.

* Plough any bonuses or windfalls back into the bond. Forget about that luxury holiday or those home improvements - get that loan down.

Your bond is bound to be the heaviest debt hanging around your neck, so the quicker you can reduce it, the smaller (and more affordable) your repayments will be.

* Pay more when times are good! Bricks and mortar ARE a good investment, but not if the bank owns most of the equity.

So work out a budget (allowing yourself a few monthly treats), then think about putting any excess you have against your repayments. By increasing your monthly payments by as little as R1,000 a month, you could pay your bond off 5 years quicker! More importantly, your loan will tumble down, so that if your situation changes and you're suddenly earning less, your bond will be much easier to manage.

* Shop around for a better deal. Find out what rate you are paying, and see if someone else can beat it (but make sure there are no penalties for switching). Any savings you make can go straight into paying more off your loan each month.

For more tips and advice on financial freedom visit our Personal Finance section.

How to make your house bigger with a lick of paint...

    * And when you’re ready to sell your house and bank a sizeable profit… Use these 8 tips to use paint to change the size and shape of your rooms:

      1. Use warm colours, like brown, red or orange to bring walls towards you and make the room look cosier.

      2. For small rooms, try cool colours like blues and greens. This will make the walls recede and create an illusion of more space.

      3. It’s not just colour that shrinks or enlarges a room – tone will also have the same effect. Dark tones will make the walls seem nearer, while pale tones open the room up.

      4. To add height to the room, make sure you paint the ceiling a lighter tone than the walls.

      5. Use vertically striped wallpaper or wood strip panelling to push the ceiling out and add height.

      6. Avoid having a dark ceiling with a dark floor – it will make the room seem much smaller.

      7. Venetian blinds will make your windows look wider.

      8. Beware large patterns on wallpaper! They may look great, but they will shrink your room. Instead, consider using smaller, regular patterns.

Discover more tips to improve your lifestyle here.

In the name of wealth, happiness and success!

Pascale Barrow
Managing Editor of Personal & Finance Confidential

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