Dear Woman

Do you remember how our parents had many children and yet they managed to put all of us through school and paid school fees? There was no free schooling then and there were no child grants. Most of our parents earned less money than us but they did more with their money than us. The secret to our parents’ success is CASH. Cash is king. We earn more but do less because we have too many debts and we are paying too much in interest and other debt related costs such as credit life, initiation fees, interest, etc….

Here are some suggestions to help you on your way to financial independence.

1.       Put away at least R500 monthly for Retirement Annuity. You want to retire comfortably. The sooner you start, the better as compound interest will begin to work in your favour. Compound interest is interest you earn on interest.

2.       Are you already a mommy? If so, ensure that you save for the university education of your children. Find out about Fundisa in my book.

3.       Teach your children the difference between needs and wants. Remember, children do what we do, not what we say. “Monkey see, monkey do”. Do your best to raise your kids to be financially independent

4.       So many people have too many debts. Too many debts are bad for you and they cause you endless worry. Decide that you will have as little debt as possible. There is really no need to have more than 1 clothing store account. Cut up some of your clothing store cards and shop for bargains. And oh, you really don’t need all those shoes in your wardrobe!

5.       Cash is king especially when you are buying furniture. You don’t want to end up paying 3 times more for furniture just because you are buying it on hire purchase. Before you buy furniture on credit, find out what the credit price is. I’m sure you will decide to save and buy it for cash once you know the credit price.

6.       Think twice before you get a credit card – buying things on credit is very costly and we also tend to buy things we don’t need when we use a credit card.

7.       Save at least R100 monthly, more if you can. Put a stop order or a debit order so you don’t skip a single month. Increase this amount by at least R100 yearly. Do not wait until you feel you have lots of money to save or you may never start saving

8.       As far as possible, buy yourself a home before you buy a car

9.       Buy yourself a home, even if it is small. Homes generally increase in value over time so you can sell your home in future and use the profit to buy a bigger one

10.   Increase your home loan repayments by at least R100 yearly, more if you can. This way, you will pay your home off in less than 20 years

11.   Remember your parents’ home is exactly that, your parents’ home- it is not your home. Love, honour and support your parents but remember that whatever you put into your parents’ home, you should not expect to get any of it back.

12.   Drive a car you can easily afford to repay and pay it off as soon as you can. Certainly no balloon payment on your car. Drive it for a few more years when it is already paid up. Use the money you used to pay for car instalments to pay off your home quicker or invest it

13.   Do not sign surety for anyone. You are better off lending someone money or giving them money than signing surety.

14.   Insure the things you cannot afford to lose, including your own life

15.   Learn about investing in the stock exchange. See the last chapter of my book for this

16.   Learn as much as you can about growing your money and protecting it. Read as much as you can about money. The more you know about money, the better your chances of becoming financially independent

17.   Have relationships with men who are financially independent.

18.   Do not compete with anyone. Live your own life and run your own race. Life is not a competition. If your friends and colleagues are living it up, be happy for them but do not change your own plans and lifestyle to impress anyone

19.   Never stop learning and improving yourself – this way you will be more marketable and will continue to grow your income as you grow older

20.   Dare to believe you will be financially successful. Draw a plan to grow your wealth and stick to it.

Fundisa, investing in the stock exchange, saving for retirement, garnishee orders, tips on buying a car and more are found in the book From Debt to Riches by Phumelele Ndumo now also available for R130 at CNA near you.

Enjoy each day of Women’s month

Please send this to the women you love

From Debt to Riches

Warm regards

Phume