Money Moves with
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Waking Up and Smelling the Money
How Desire Can Help You Achieve Financial Freedom
3 Money Making Moves that Build Wealth
Rising Costs!
3 Points
to Ponder BEFORE Taking out a Loan
Exactly how to Use Your Money Wisely
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Letter from the Editor, Winning Reader’s Letter 3 Money Making Moves that Build Wealth Waking Up & Smelling the Money How Desire can Help You Achieve Financial Freedom Rising Costs! Exactly How to Use Your Money Wisely New Survey, Win R500 Cash! 3 Points to Ponder before Taking Out a Loan
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From the Editor Dear Readers, July is South Africa’s National month of saving. It couldn’t come at a more pertinent time. With inflation rising above the Reserve Banks’ inflation target. Interest rates have skyrocketed, the household food basket has increased, fuel prices have become unbearable and consumers are feeling the crunch. There are ways to combat the crunch. Knowledge is the first step in the right direction. For example, if you want to know more about inflation, watch the video below or visit our Money Moves with Debt Rescue YouTube Channel. Below you will see the Winning Letter from last month’s digimag. Make sure to send us your letters and stand a chance to win R250 Cash. This month we want more of your saving tips and tricks, anything that you believe would help your fellow South African get through the month. Please whatsapp your answer or email the editor. Good luck. Another chance to Win is in our Young Person’s Money Index Survey enter it here and stand a chance to win R500 Cash.
Winning Letter Mr Levy Robby Ngomane Nowadays we are are struggling too much. I started to plan a new system of using money. First of all, I draft a plan of how I’m going to use my money. I only buy necessary things all the time. I also look for special items and I go shopping at the cheaper shops so that I can not waste any money. I buy things in bulk because you get more for your money. This is my advice to save money and have less debt in your life.
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3
Money Making Moves
that Build Wealth “You aren’t wealthy until you have something that money can’t buy.” ~ Garth Brooks
Money is not everything. They say that money cannot buy happiness. But, as you may know, the saying goes, “Money can’t buy happiness but some say it’s a large downpayment though.” Money affords the experience of life. It is the one tool that allows you the liberty to live life on your terms. Wake up late or early to catch the first flight out to wherever you want to go. If you decide to chase summer, you can do so, with enough money, of course. So, what is the answer? How does one become wealthy? Mindset and Action. Are you doubting your ability to become wealthy? Keep reading to find out what 3 fundamental Money Moves will set you on the road toward wealth. Money Move #1: Get Rid of The Lacking Mindset There are thousands of books on the subject. Change your mind and you will change your life. Change your thoughts. Do morning and evening affirmations. Draw your future. Put up a vision board. Get into the right frame of mind. So many different methods to change the mindset, but many people still fall short of wealth. Why? Because you need to paint a different picture entirely. Do you believe deep inside you that you don’t want to be wealthy? Maybe you believe that you do not deserve to be wealthy. These are limiting beliefs that may have been ingrained into your subconscious mind. Like taking a dog for training to make it stop behaving badly, you need to do the same for your mind. You can change anything and everything in your world. If you believe that those boundaries pertain to you, then they will. But why would you want to? If you can wake up every morning and live a better, more wholesome life filled with brilliant dreams come true.
To get rid of the lacking mindset, you need to get real about your current situation. Look at your credit report and understand two things: Where your current financial situation is and where you want it to be. Once you know these two points, you can realistically look at what is needed to connect them. Then do one thing every day that will get you closer to your goal. Even if this means that you need to cut down on debt repayments with debt review. Or if you need to slow down on the luxuries and gifts for everyone around you. Money Move #2: Stop Fixing the World Outside Fix your inner world first. It sounds selfish not to help everyone, but by helping, you are sometimes destroying their and your ability to live successful lives. You do not need to feel guilty. We all have the opportunity to work hard and climb the ladder. And unfortunately for some, it may take longer. However, the more you try to fix the world outside, the less you will be working on yourself and your journey. And that could mean not reaching the goals that you have set for yourself. Money Move #3: Learn Everything Studying further is costly in South Africa and not an option for many people. However, the internet is filled with free training in any subject that you can think of. Besides YouTube, which is fantastic for learning. Learn as much as you can to bring you closer to the direction of your wealth. Over and above that, learn everything you can about money. It is, after all, the tool that you need to achieve the wealth that you’re after.
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“Lose an hour in the morning and you will spend all day looking for it.”
Waking Up & Smelling the Money
“You may say I’m a dreamer, but I’m not the only one” ~ John Lennon.
Finances are a tough subject to discuss in any circle. But unless you are discussing, contemplating, planning, and pushing yourself to understand financial matters, it can be difficult to put a plan in place. Many people leave the matter of finances to the likes of chance, fate or even luck. The unbelievably freeing moment is when you fully understand what it takes to become financially free. It is time to live the life that you have always dreamed of. This article is aimed at jolting those who are still swaying in the bliss of Lennon’s lyrics and believing that destiny will take care of the bills and debt repayments that are falling behind. Not everyone is guilty of this dreamer state, but the majority of us are unfortunately. Waking up financially is one of the most responsible and toughest moves that you can make in your life. Below are steps to bring yourself to a place of action and out of dreamer mode. It’s not easy, because we are emotional creatures. We must remember that the laws of money are not emotional. If you want to become the master and throw away the old financial struggle, then read on.
Money Move #1: The Sorting Pile (aka Reality Check)
For example, if you place an overdue personal loan letter in the left-hand box, state, What you will need: “This is breaking my future.” If • One month’s account stateyou place your bond payment ment which was on time in the • Two shoe boxes right-hand box, state “This • 1 x Black Marker decision is building my future.” This sounds like a very simple Put all your accounts, debts, exercise, but it’s a financial bank statements, post-it notes exercise that will allow you to of money you may owe friends see the extent of your or family and place it in a nice current financial situation. You pile in the middle of the floor. do not need to have anything Have a seat in front of it. On in the box on the left. There your right-hand side, place one are avenues, such as debt shoe box and on the lid write review which can assist you in the following, “Building my becoming a future builder and Future.” On your left-hand side keep your life on a steady path place the other shoe box and toward financial freedom. write on the lid, “Breaking my Future.” Money Move #2: Know Your Begin sorting the pile. In the Credit Score left-hand box place every single debt you have that is Your credit score does not just overdue. Place the debts that impact your ability to take out you can manage or have loans or receive the best managed in the right-hand interest for a home loan. It box. Place the bank statements affects your career as well. of savings in the right-hand When you apply for a job, your box. Each time you place employer has the right to look something in either of the at your credit profile. boxes read the name of the box.
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Your Credit Score doesn’t only impact your ability to take out loans or receive the best interest on home loans...
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This quote is a perfect example of how many of us think about money. We tend to be dreamers, instead of planners. And a dream without a plan will forever stay a dream.
Money Move #3: When You Have No Money to Begin With If after the bills your salary is gone, then you need to restructure your life and make serious decisions. If you cannot meet your debt repayment obligations, there is assistance. If you are supporting many people who are not carrying their weight and sharing costs, then you need to be logical and look out for yourself and your welfare and that of your immediate family first. If you are jobless and in debt, then you need to start anywhere you can. Take the first job that you can, even if it means that you are going to do something which is not in line with your passion. Currently, the world is facing an economic storm. Not something humanity hasn’t faced before, but with prices rising, not earning money is a terribly risky position to be in. If you were a director of a large corporation before and cannot stand the sight of lowering your position, then you are still in the lyrics of the John Lennon song. In this day and age, fortune comes to those who act. And action means getting up and doing what needs to be done so that you can survive to see tomorrow. Falling is not failure, not getting up because you
Money Move #4: You First!
With the recent repo rate hike, you can make your savings Almost every self-help book on grow even faster. Start putting money away into savings acthe market speaks about the self-first. This can sound terribly counts. An emergency fund for unexpected expenses and selfish and rude in many people’s eyes. But the difficult truth a security fund of at least 6 months salary. pill to swallow is that if you cannot help yourself, then how in the world do you expect to help anyone else? By assisting Set savings goals. Do it. Watch our Money Moves Channel, and financially babying the specifically the one about people around you, you are setting goals, here. You can weakening them and yourself. reach the dreams and the ideal life, but you need to be Difficult decisions equate to realistic, logical, and success and emotion cannot completely geared for success. be involved if you desire a financially free life. There are no half measures on the road to success. Long Money Move #5: Save Now! hours, sacrifices and putting your emotions in your pocket is Saving month is around the what the path to financial corner. How massive are your freedom requires. No excuses, savings? How many assets do just your eyes on the prize. you have and how close are You can reach any dream that you to achieving your you desire, against all odds, financial goals? If you you need to simply want it squinted or scrunched your badly enough. face at any one of those questions, you need to take R10 right now and place it into The question is: How badly do you want a savings account. financial freedom?
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Financial freedom comes with sacrifices and those sacrifices are as simple as remaining within your budget.
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If your job requires someone who is organised and has their ducks in a row, and your credit score looks like a Christmas tree of unpaid or neglected payments, it will not do well for your career. Get a trusted and confidential copy of your credit report right now, here.
HOW
DESIRE can help you Achieve Financial Freedom
“If you don’t put a value on money and seek wealth, you most probably won’t receive it. You must seek wealth for it to seek you. If no burning desire for wealth arises within you, wealth will not arise around you.” ~ Dr. J. F. Demartini Do you want wealth or instant gratification? The human search for greater comfort is never ending. We want our families and ourselves to live better lives. We want our own lives to be easier. The constant wish for an ending to financial struggle is a struggle in itself. Wealth hardly ever factors into desires. Instead, the dream for most is one of a little more comfort, fewer bills, and anything to remove the financial strain. This constant hunt for instant comfort is not conducive to the hunt for wealth. Humans abhor struggling and very few would willingly take the hard road to reach a goal of wealth if they can simply end the struggle today. Unfortunately, it is always darkest before dawn. There needs to be a certain amount of understanding and struggle endured to be able to breakthrough into the light.
Change Your Mindset Breaking through into a life of wealth does not mean that you are fighting to end financial turmoil. It means that you are working towards attaining the goal of financial freedom. The mental shift happens when you stop fighting against what you don’t want and start working for what you do want. When you make this shift, your bills will be paid on time, you will spend less on luxuries and instant gratification purchases. Why? Because every cent will become a powerful asset towards reaching the horizon which contains your dream of wealth. Decisions fuelled by fear, hatred and negativity will yield a cycle of negativity. Decisions fuelled by excitement, hope and dreams fulfilled will yield more fruitful actions. More fruitful actions will mean that you attain that which you have set out to. Exercise Your Willpower Regardless of how terrible you are with numbers; you are either a master over your money or a slave to it. Economies will rise and fall multiple times in your lifetime. Interest rates will skyrocket, and stock markets will plummet. Change is inevitable. How you ride this change is up to you, and you, alone. Your financial situation is yours to master. You can make budgets until you are blue in the face. Stick notes to every wall in your home to remind you to become better at finances. You can go for thousands of courses on minding your money.
Without a strong willpower, something will catch your eye, break the budget, and burn down your dreams of attaining wealth. Unless you constantly exercise your willpower, you are likely to remain in the comfort zone of financial struggle. . Decide to attain wealth, whatever that means for you. Once you know what wealth looks like, make it your life’s mission to reach that goal. Use willpower as your super side-kick power that will block all bad decisions around money. If it is not in the budget, it simply isn’t bought. Desire Wealth, Desire it With Your Heart and Soul How badly do you want wealth? Do you want wealth more than the jacket that you saw on sale? Do you want wealth more than the latest model vehicle? Do you want to be wealthy, more than a Saturday night bill of R2000?
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Do you want wealth more than take-aways every week? That answer lies with you. If you want it badly enough, nothing is stopping you. The time frame is different for everyone. Wealth is within your reach though, nothing is stopping you, except your desire. The greater your desire, the greater your willpower will be. Nothing will get in your way. So, if you want wealth, make the decisions that count. Want it with every fiber of your being. Desire it and attain it. The road is not easy and there will be many obstacles and temptations along the way, but with impenetrable desire you cannot be swayed from achieving your goals. Sometimes the hardest decisions on the road to wealth, is asking for assistance to make ends meet. If you need assistance with debt repayments, simply ask, and we will see where and how we can make your money work for you.
Unless you constantly exercise your willpower, you’re likely to remain in the comfort zone of financial struggle
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RISING COSTS!
Exactly How to Use Your Money Wisely. As inflation rises, everything else follows suit. You only have to walk into your local grocery store to see how the prices have changed, drastically. Not all households will be affected the same, but one thing will stand true – every household should make an effort to work better with their money going forward. We know that old habits die hard. But old negative spending habits will only leave you in a worse off situation. Let us look at 3 price hike tips to reduce: • The cost of groceries • The cost of petrol • The cost of electricity We will also take a look at how you can build a budget around these price hikes. Quick Tips to Cut Grocery Shopping Costs The best way to cut costs is to always work with a “researched” shopping list. What do we mean by that? A list that was compiled throughout the week or month based around current specials available and any meals you can plan based around any specials.
Almost every newspaper and major chain store in South Africa has free saving advertisements. Most grocery stores usually have them on a display rack at the door. Next time you go shopping, grab the offers and start planning your next shop. It is imperative that you get the most value for your money while prices are so high. If you see that you need coffee, but the coffee is only on special on Saturday, put money aside and only go in to buy your coffee. When we shop with store specials and a “researched” shopping list, it makes it easier to only buy what is on the list and what you have budgeted for. The long-term benefits of learning to shop this way, means that you will be saving more and experiencing far less financial stress. Quick Tips to Cut Electricity Costs Electricity is up again. To make sure that by month end your bill does not skyrocket,here are some tips to help you lower those electricity bills: • Putting proper geyser blankets around the geyser to keep it warmer. • Install a timer on your geyser. • Switch off the lights that you do not use.
• Braai more often by using an outside fire pit or gas braai. • Use a flask of coffee to refill instead of boiling the kettle for another cup. • Keep lights off during the day. Quick Tips to Cut Fuel Costs The petrol price is really hurting everyone’s pocket, even those with the most economical of tanks. If you can carpool to work, then it’s a brilliant idea to pitch together petrol money with other colleagues and alternate between using different cars to minimise wear and tear. If you live close to the shops, rather walk to the shop than drive short distances. If you do not live close to the shops, then choosing a shopping centre that caters for all your shopping needs will be more economical than driving to separate shopping centres and using unnecessary petrol. The Budget Having a budget and sticking to it is now more important than ever. If you have not started budgeting yet, then you need to start right now. Before we break down the simple aspects of budgeting, it must be noted that budgeting
Your budget needs to have 4 categories: Income: These are finances which you can rely on every month. It can be any income stream if it is the same amount each month. Expenses: Fixed Expenses: These expenses are paid every month and remain the same amount, i.e., School fees, Rent etc. Variable Expenses: Variable expenses are expenses which can change such as food, petrol and electricity. This can also include unforeseen expenses. Debt: Any agreements made with Credit Providers. These are home loans, personal loans, overdrafts etc. Savings: The rule of thumb is to save 10% of your monthly earnings. Place your money into a fixed term savings account with a high interest rate. The repo rate increase will now boost your savings much faster than before. Remember that having an emergency savings fund now is more important than ever. Research the options out there to find the most suitable product for you.
Your expenses need to be carefully considered when creating a budget. Once you’ve set a budget for the month, you need to stick to it.
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Not all households will be affected the same, but one thing will stand true – every household should make an effort to work better with their money going forward.
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requires willpower. You need to tell yourself that you will stick to that budget no matter what item you see or who asks you for financial aid. If it isn’t calculated into the budget, then it’s a ‘no’!
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3 Points to Ponder
Before
Taking Out a Loan “Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” ~ Will Rogers
The decision to take out a loan, for whatever reason, should never be taken lightly. Besides the many considerations and qualification criteria you need to satisfy first, taking out a loan often causes a negative long-term change in your financial habits. The additional cost of a loan every month, can and usually does, have a knock-on effect on how we decide to spend in the future. Having debt means you have less to save. And with the recent hike in the repo rate, now is the time to save and get a return from your savings every month. A savings account could also protect you from getting further into debt when an unexpected emergency occurs. On the flip side, if you have debt, it’s going to cost you more every month instead. This will ultimately put a strain on funds available for living costs. We borrow money for many reasons. Whether it is to finance a small business, a quick online loan for an emergency,
or even something as large as a home loan or vehicle finance, we have all at some point been exposed to the world of borrowing. But do we think about the long term cost when we decide to borrow?
Asking yourself repeatedly whether this purchase is a luxury will help you program your mind towards being more aware of your spending on credit.
You need to budget for luxuries with your income. Create a realistic budget and Before you dive into signing stick to it. You can put a certain that financial agreement, let us amount away every month to investigate 3 things to consider cover treats such as an Uber beforehand: Eats delivery or a night out with your friends. #1: Is it Necessity or Luxury? Financial freedom comes with We often feel we need a changes. And those bigger home and a better car. changes are as simple as reMaybe we only like to shop at maining within your budget. a certain grocery store that’s a Wait until you have saved bit pricier than the rest. But is it money, before choosing to really a necessity? We have to splurge on a luxury. The pay attention to our real peculiarity is that as soon as desires. If the purchase is you want to spend money entirely luxury, you should not which you have saved on an be using credit at all if you can unnecessary luxury, you will help it. find that it is much more Money which you have not difficult to do so. acquired through saving, but borrowed instead, to purchase #2: How Much will I be items seen as a luxury only, is Paying Back? unquestionably unnecessary. Is it really necessary to go out Different creditors offer for a meal with friends when different interest rates and you can only afford to pay terms of agreement. using credit?
The interest rates which you will be charged are also heavily dependent on your credit score. Before agreeing to any loan make sure to shop around for the best interest rate as well as the term of repayment that suits you. As you make payments every month towards your personal loan, you will notice in your statements just how much you’re paying towards your actual debt versus interest. It may take you over a year before you actually make a dent in that personal loan. Because of the high amount of interest you’re paying every month, compared to actual payments off your balance, your actual balance will remain high over several months or possibly years depending on your terms. To get your debt down quicker, you need to put more into your loan every month over and above the minimum repayment. Another cost implication to consider before taking out a personal loan…
#3: If there is a Crisis, Will I Still Be Able to Afford the Repayments? In the case of an unexpected emergency, such as loss of employment, a family illness or any other unforeseen financial stumbling block, how will you keep up with repayments? Before taking out a loan, ask yourself what will happen if there is a crisis and you are unable to pay your financial obligations. Or what if the interest rates increase? Whatever the reason for applying for a loan, take the decision very seriously and really consider tomorrow. Once the hype of taking a loan for unnecessary reasons is gone, there is only financial struggle left behind. Never take out a loan on someone else’s behalf. If you have already taken out a loan and are finding it difficult to meet your repayments, immediate financial relief is available now.