I took to social media over a week ago to find out why so many Black professionals were heavily indebted and some have to go under debt review. Several reasons were advanced and the most common was “we are not taught about money at school or at university”. It is for this reason that I am very happy when companies invite me to do workshops for their employees on personal finance management. Tshepo Mkhwane is a young BSC graduate and is on a graduate development programme offered by Sandoz. He is one of the lucky few that take part in our full day webinar where we talk about all things money. I was particularly impressed that even though Tshepo is still earning a learner salary, he is so eager to practise what he learned that he immediately decided to take life cover for himself in preparation for the time when he is ready to buy a car and a home, a small retirement annuity- this is something that I always have difficulty getting the younger customers to commit to and a Tax Free investment. I have no doubt in my mind that as his salary increases, he will also increase his contributions to the investments.

Tshepo’s advice about money “…..Thus taking control over your finances requires a great deal of honesty to oneself and discipline….”

What he is doing is following the advice to build his investment profile instead of getting into unnecessary debt to build his credit profile. At the right time when he is about to buy his first car, he will take only the necessary debt to enable him to have a credit score to qualify for a home loan and  a car loan. Sadly, many professionals, even those who are well above 30 years of age are still battling with debt issues. I wish more companies would invest in educating their employees about their personal finances and just maybe we would have more people with healthy and balanced financial lives
 
Tshepo’ s summary of the book demonstrated that he has a clear understanding of the following subjects;

  • Interest rates
  • Credit score
  • Why a home loan is good debt
  • How to use budgeting to achieve one’s long term financial objectives
  • Credit life and why this might not be in one’s best interest
  • The implications of buying a car on residual
  • Different types of marriage contracts i.e. ANC with and without accrual

Do you want invite us to conduct a webinar for your staff members? Email us info@thuthuka-sa.co.za or send a message to  064 513 1021