Lunchtime Chat

Garth Petersen

Head of Wealth – Simonis Storm

Wealth Management

Financial freedom is defined as having enough savings, financial investments, and cash on hand to afford the kind of life we desire for ourselves and our families without financial distress. Financial freedom can mean different things to different people because of their needs and/or their preferences The goal of financial independence is WWH, which is:

What do I want to do?

When do I want to do it?

How do I want to do it?

Are you willing to get rich slowly?

To achieve financial independence, we need the following: Firstly, save for ‘rainy days’ , save or invest for an emergency fund in a liquid portfolio that you have access to of 3 to 6 times your monthly salary This fund will not make you rich but will give you security, should an emergency arise, you will be able to cover the cost without incurring debts Secondly, stay away from consumer debt which is defined as incurring debts to spend on consumable goods Debt is good if used to purchase an asset that can earn returns which will support you in your journey to financial freedom, while consumer debt is detrimental to your financial freedom journey Thirdly, invest like the wealthy The wealthy appoints a wealth manager who drafts a financial plan according to his goal and holds him accountable by managing the client’s portfolio Upon establishing that you want to be financially free, it is possible to be financially free However, you will need a plan on how you are going to achieve your goal Your financial goal is only achievable if you act, otherwise, it will remain a dream. The question to be answered by the audience is “Are you willing to get rich slowly?”

Klestina Armas Money Matters with Budget Bee Budgeting and Saving

Budgeting is simply understanding your income (money coming in) and expenses (money used to pay expenses) You should never spend more than you earn to avoid spending your future income This is when a student asks another student for a loan to go attend an event and promises to pay it back with her next month’s allowance This means when this student receives their allowance it will no longer be able to afford what it normally does as a portion of it will be used to repay for the debt taken the previous month For students’ income includes pocket money from parents, allowances from bursaries, and Namibia Students Financial Assistance Fund (NSFAF) and expenses include monthly toiletries, textbooks, accommodations cost, transportation costs, and meals or groceries Students need to learn to distinguish between a want and a need while keeping in mind the inflationary times we are living in

This means as the price of goods and services increases because of inflation, students should be ready to make certain financial sacrifices necessary to adjust to the increasing cost of living Furthermore, students must determine a tool that they will use to conduct their budgeting, it can be a book or an Excel document depending on the complexity of their budgeting. At the end of each month, students reflect on how they spend their money by critically comparing actual spending against planned expenses This will help students to understand the root causes of how and where most of their money goes for one cycle and enable them to plan better for the next cycle Lastly, although students do not have a lot of money it is important to put a little money aside for ‘rainy days’ when you can This will enable students to practice financial discipline that can come in handy in their professional life when they start working Students should not take unnecessary financial risks such as taking their loan refunds or saving to invest with forex traders but rather invest in a reputable financial institution where your money is safe, secure, and earn interest! In conclusion, students can engage in part-time work that will not interfere with their studies to earn additional income and learn to save for their future.

Lucia Ndishishi NANSO President

Financial Literacy at Basic and Tertiary Education Level

NANSO is a student organization that represents the interest of Namibian young people particularly learners at basic education, students at tertiary, and trainees at vocational education level. Although NANSO is not a financial institution it also advocates for financial literacy education for the youth In Africa, financial literacy at basic and secondary education levels is an issue of great concern Financial literacy encompasses various key skills and understanding which includes saving, budgeting, investing, and entrepreneurship Therefore, by integrating financial literacy into our education system, we will empower the youth with the necessary skills to not only manage their personal finances but to also make investment choices that will contribute to economic development. The tools that we can employ to improve the youth’s financial capabilities for a secure financial future:

Comprehensive and age-appropriate financial curriculum that is integrated into our education system at all levels. Strategic partnerships between educational institutions, government bodies, civic and private sector organizations are crucial. Digital technology to engage young people and help them acquire vital financial knowledge to better plan for their future

The key to wise spending habits is: “Before making any purchase, always ask yourself if you can purchase 3 of those consumables today and if your answer is ‘no’ then you cannot afford it!”

Fimanekeni Mbodo Founder and CEO of Foster