FINANCIAL WELLBEING – Lesson 2

• Financial decisions
• The road to debt
• Your expenditure
• Needs versus wants
• You borrow money
• Consequences
• Sound financial planning
• Wealth spiral
• Personal wealth planning
• Key to successful wealth management
• Characteristics of wealthy people

WHO COULD BE OVERCHARGING YOU?

• Some Banks
• Money lenders
• Credit providers
• Loan sharks

WHAT IS PERSONAL FINANCE PLANNING

• Personal finance looks at how your money and your future is managed.
• Personal financial planning is all about developing strategies for personal wealth management.

KEY TO SUCCESSFUL WEALTH MANAGEMENT

• Develop and follow a personal financial plan.
• Steps to successful financial planning.
• Gather past income and expense records.
• Complete personal budget (income versus expenditure)
• Identify real needs versus mere personal “wants”
• Evaluate your current position (debt/wealth)
• Plan towards future financial wealth.
• Discuss your plan with stakeholders (financial counselor and family).
• Diligently manage compliance to your plan (never give up)
• Celebrate successes with your family and loved ones.

CHARACTERISTICS OF WEALTHY PEOPLE

• Live well below their means. Financial independence.
• If your annual income is say R10,000 and you spend R9,900, you will have happiness and wealth.
• Financial independence is more important than displaying high social status.
• Teach children to achieve, not just to consume.
• Money should not be wasted, no matter how much you earn. Rather invest or save.
• You only take a life insurance policy when there is a definite need to protect your dependents.
• Wealthy retirement requires you to save – current age less 20 years to guide you in terms of monthly percentage savings/investment.