Company Values:
- 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
FINANCIAL DECISIONS:
Your financial decisions and actions can take you down one of the 2 roads below: Financial Wellbeing or DEBT.
THE ROAD THAT LEADS YOU TO A DEBT SPIRAL:
Your financial decisions and actions can take you down one of the 2 roads below: Financial Wellbeing or DEBT.
THE ROAD THAT LEADS YOU TO A DEBT SPIRAL:
YOUR EXPENDITURE
ACTION 1 – YOU SPEND ON “NICE TO HAVE”
(WHAT YOU WANT) NOT WHAT YOU NEED:
ACTION 2 – YOU BORROW MONEY:
CONSEQUENCE – YOU ENTER THE DEBT SPIRAL:
WHAT BORROWING REALLY COSTS YOU:
You need to pay for your grandmother’s funeral:
SOUND FINANCIAL PLANNING:
THE ROAD TO FINANCIAL WELLBEING-
- Start saving for emergencies and retirement.
- Debt relief solutions.
- Know how much you spend.
ACTION 1: GETTING OUT OF A DEBT SPIRAL:
Reduce your spending:
- Buy only what you need
- Reduce or minimise your ‘nice to have’ expenditure
- Pay back debts with all bonuses
- Involve your family
Make extra money-
ACTION 2: HOW YOU CAN SAVE:
YOU ENTER THE WEALTH SPIRAL:
CONSEQUENCE:
YOU ARE FINANCIALLY HEALTHY AND STRESS FREE
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.
