Planning Perspectives with Palesa Tlholoe

Palesa Tlholoe

Turning passion into profit

JUNE is Youth Month, when we remember the young people who gave their lives in 1976, fighting for freedom and equal education under apartheid. Nearly half a century later, however, the harsh reality is that young people still don’t have much to celebrate: the unemployment rate is sky high and there’s no solution in sight to the ongoing student loan crisis.

But despite the hardships they face, young people today are brave enough to be different. Sthandiwe Msomi (21 years old) – a full-time student at Wits University and co-founder of The Finance Gym, an online toolkit to help improve financial literacy in South Africa – summed it up: “Our generation has said ‘no’ to the old way of life,” she told me. “We value our unique skills and we want to find a way to make our passion become our day job.”

It’s an admirable idea, but turning your passion into profit is incredibly difficult in real life and requires a total reboot of the way we think about financial education.

Entrepreneurship skills should be taught to kids in primary school, and parents have to be advocates of the change they want to see in society. You can’t say, “Do as I say and not as I do” anymore, because your 14-year-old will just say, “Why?”

Let’s have a look at three simple but powerful principles that we can all introduce into our lives, so that we model a better future for our children.

MINIMALISM

Where finances are concerned, minimalism is about ignoring frivolous distractions and focusing on the things that are important – it’s about setting money aside for tomorrow’s needs instead of spending it on today’s wants.

Should you classify your passion as a need? Of course! But like any other need, you need to think and plan for the long term. You might have to consult with a professional, such as a life coach or business coach, to help you make money from your passion, but if you work hard and follow the process all the way through, you will see results in time.

FRUGALITY

Being frugal means being economical with what you have – it’s a tough concept for many people to grasp! As humans, we like to throw things away, get new things, and spend, spend, spend…

In a business context, frugality means when you land a big project that pays you well, you still act with caution when spending it, saving the rest for the future. It’s a lesson best learnt at home. If parents demonstrate skills like good cashflow management, even if it’s just by balancing the home budget every month, then future entrepreneurs will be at a massive advantage when they launch their own businesses.

CONTENTMENT

When it comes to being content, the world of business closely mirrors that of social media: if you’re not satisfied with who you are, your goals, and how you’re going to achieve them, then you’ll blindly follow anyone and anything that is trending.

If you want to turn your passion into a trade, make sure it’s not one of those trends that is here today and gone tomorrow. Talk to people in the industry you want to get into – you’ll find that us adults aren’t all boring and unhelpful! We’ll happily share the lessons we have learnt and offer guidance where we can.

From a money management point of view, it’s also a good idea to consult with a Certified Financial Planner so that you can draw a clear line between your personal finances and the money you want to put into your business venture. Having a safety net in place is always a good idea when you’re planning to take a big leap! Palesa Tlholoe, CFP, is co-Founder and a wealth manager at Imvelo Wealth