As South Africans we are inclined to take financial advice from reading, listening or watching international media, which isn’t completely problematic because the fundamentals remain, but essentially our mindset around money, spending culture, and economy is just different.

Financial freedom is not a term used loosely in our social circles, frankly, speaking about money, in general, is sort of taboo and quite uncomfortable, but if we just knew how much power we’d have being adept to learning and understanding the true essence of money and handling our finances: Completely Life-changing.

Money On My Mind

It is important that we adopt a culture of saving with an intent to create a pool of money that is over and above what we earn as a salary – essentially forming a habit. When that becomes organic to us then it gives us the opportunity to open up the conversation to teach our families and communities, building a healthy financial mindset for our future generations to mimic. This is important because in order for our future generations to carry on a powerful legacy, we must start with business-minded thinking

  • Earn a salary but always have legal ideas on how to increase that salary by 50%
  • Saving for a rainy day (or a sunny day – whatever you prefer) and constructive strategies that feeds into doing the things you love without feeling guilty
  • Effectively pay off your credit and minimise your active accounts by at least 50%

Motivate and awaken the entrepreneur in you leading you to take that first step in ‘how to get my business started.’ Speak to a consultant at Elo and get the nitty-gritty on start-up tips.

Before I purchase anything that holds interest; I should take the time to work out that interest and be aware of what I’m repaying.

note To Self

The teaches us that: What does it take to borrow money? The answer: More money

Good Debt Or Bad Debt?

It’s simple…

Bad debt does not increase your wealth and usually relates to items purchased which doesn’t have a long lifespan like retail accounts, eating out, expensive holidays on credit and even that fancy car you want – the minute you drive out of the dealership the value of your luxury vehicle, basically any vehicle, drops!

Good debt on the other hand is a wealth builder; it comes in the form of a loan that gives you the chance to turn that money into something more for the future. The common forms of good debt are buying property, student loans and even starting your small business.

Can I Be Financially Free?

Eventually we all need to ask this question of ourselves, and the answer will probably hang unanswered until we realise that with financial freedom comes the power of options. These options come with risk, but calculated risk which we can stand for because we’ve already found a way to have that pool of funds and use it to elevate our wealth.

Teach yourself to do this habitually:

  • Make a budget – And relook it every 2nd month so that it doesn’t seem like a limitation. Check out this awesome budgeting tool available for your iPhone or Android phone MINT
  • Pay off credit/debt – Try your best not to skip repayments on any credit balances, and work that amount into your budget
  • Spend less by buying experiences and not things – Easier said than done, but can be done and once you find inexpensive experiences, you’ll literally be richer for it
  • Make a vision board – You know what you want and in order to keep yourself on track, create a vision board showing off those things you want to acquire. Look at it daily, affirm it and use that affirmation to motivate the saver in you.

PS. Remember that when we have financial freedom, we have options – whether it is retiring early, taking an international trip, feeling confident about paying for your kids’ education or buying the home you’ve been dreaming about.

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By Gareth Collier - Crue Invest (Pty) Ltd and posted...

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