Financial fitness with Entrepreneur Nicolette Mashile

Financial fitness with Entrepreneur Nicolette Mashile



Komachi are still watching your story on the s ABC News Channel now July is that national savings month in South Africa at this time people are encouraged to start putting money outside every month instead of spending spending spending but it does seem that we're a country of big borrowers and poor savers various reports suggest that metro working populations spend an average of about 20% of their salaries just paying back debt and as little as 48 percent of credit active consumers up to date with their credit repayments so what do we do to turn our situations around well financial education entrepreneur Nicolette my Sheila joins me now to give us some clues Nicorette or financial thank you so much all right it's sad that we only have one month because it should be every single day of every year that we have a national savings day so why do we not save in South Africa why are we among the worst savers in the world look I think there's a there's a whole lots there's a big mix of how we got to where we are right and I think one of the biggest reasons is obviously coming from the you know very painful past that we come from where a group of have-nots for a very long time but I think also because of that there was then be a build of structural state things that have stopped us from you know being able to save and one of those is the fact that we are probably one of the most financially excluded communities you know in the world so I think some of those things are the reasons but there is also a little bit of you know as yourself actually admitting that you are not saving but I think one thing we can do and we can do correctly so start maybe redefining what savings is it's not necessarily just taking a sum of money and putting away somewhere else we need to start looking at our own personal finances and saying how do i beta save if I cannot take 300 rent every single Mountain actually put it away so what kind of things can we do other than taking cash and putting it away what date you spoke a little bit about how we spend 20% of our incomes you know servicing date right debt is probably one of the most crippling things that's happening in this country and is one of the reasons why people cannot save so if you look at your interest rate that you get given just one short-term date right so this is your most expensive date your unsecured date it's probably ranging between 12% to 23 27 percent if you start channeling some money into paying off your date you start to free up some money now you can save right so I think we need to aggressively tackled it and that is one way of saving so instead of me trying to convince myself that I need to put away 300 rent every single month let me see if I can take that same 300 rent and actually put it towards my date now how do I do that the thing about saving is that it's not in isolation pizza it goes hand in hand with the other money rules so you do have to make some financial sacrifices you do have to live below your means I mean I want to solve the story I at some point I was working in an advertising agency I mean I was not earning great but I was earning okay but I still shade even at my big age and the thing is people say to you I don't want to shave oh my gosh I need my space personal space you know look you've got a save so you can make a financial sacrifice you know and then use that money and a channel to do something else so I think that's the most important thing is you as a person know your own personal finances and it's so important that I need to put this out people need to stop jumping on the bandwagon of just saying we can't save because it's just implicitly to just say I cannot save right so if you're employed what you have to do the first step is to say this is how much I get every month I have to live a life that survives below this about it that's it I always say to people why do people actually pay saps they pay start because it's a legislator thing they have to pace us but somehow they've managed to live what that specific amount that comes into their bank account now if you decide that monetary is how you're going to be saving and you just put in a stop order on your account and some money gets literally put away you will start to adapt to living with a literally below your means but it is a habit that you've got to learn it is a culture saving is something that you've got to keep practicing and you've got to keep choosing it I think they are the biggest thing is that people don't know where their money is going a lot of people know how much they earn but they don't know how it's paint he will say oh I don't know what happened to my money this month uh uh last month you managed to survive with the same Thailand this man called up say you don't know how do you check what do you say you've got to have a spending plan and it's up also sometimes called a budget you have to you have to you've got a write down what it is that you do with your money I almost say I wish the banks could create envelope systems so that when you get your salary right it will go into different envelopes in accordance to how you've actually proportioned it right so you know that once your petrol money is finished there's no other money you allowed to use for petrol now you can't gallivant now you got a system the problem is that a lot of us because we can move money from one element of our budget to another that's where we get it wrong so people we need to start budgeting and start creating a proper space one of the other issues is once we move to electronic money we had no sense of what money moves and gets spent yeah because it's just swipe and sometimes we swipe we haven't even seen what's registered on the till yeah and you remember that with some of the with some of the banking mechanisms it doesn't go off the ledger doesn't actually update immediately so now you've spent you spend you spend you think many so let me keep spending so there isn't that psychological pain of paying because everything is convenient everything is noodles two-minute noodles we just boil it happens so I think I think people have to be intentional about being managing their money a little bit better and unfortunately it does that with you as a president see there's black people we have black texts as well are you must plan for flex X what does this know it doesn't just jump on you you know what is happening in your family you're well away you're probably one of the only people that know what is happening in your family outside of everybody else right that's number one so you've got a plan for black dads if you know it's coming plan for it what is the first thing I think families need to have emergency accounts every single person who is in the family who is employed must contribute to that account so if anything comes up we've caught somewhere we can pay you know what people say to me oh yes he family I'm Nikole X no stop that we've got a built a proper trust we've got a trust deficit amongst the black community we've got to start building and things like Spock sauce didn't come out of no way our parents were using them and they were working why are we not taking that model and modernizing it but the first thing we do is we trust big corporations that I mean what's the difference the funds that these big corporations have or button versus the stocks all that your parents have none those are just big modernized stock sells I get a sense also that you have to teach kids from young how to behave with money yes how do you do that what do you teach them let me give you an example when we were growing up a lot of us in the black community the one thing we knew was end of the month because that's what you heard most of the time right wait until the end of the month so we all wait to the end of the month in a miracle financial miracle head of the bank right but what you is what parents are essentially doing then is that they were actually teaching us that at the end of the month somehow we can make things happen so what do what happens to as we grew up to become adults that don't understand the difference between needs and once so when money comes in coming even a saying shelter 20 break my name is awake so now but man you must work but how does it work it doesn't mean that it works by as buying and just consuming right and if we are consuming and you said something a little bit about it in the beginning you said we are consumer country I'm like you know what it's fine let's be a consumer country but what are you buying that's the most important thing because what is important is that people need to start buying assets now when you say assets people are like oh I don't have money to buy a house what does this go talking about no guys they are assets that a chicken is an asset it's livestock yes it's not easy nothing in life is easy right but you've got to start understanding the stock market how many of us are so afraid of going to the stock market why because in this country they've made the stock market very elitist I mean the like honestly speaking there really is no huge science to investing in the stock market and their shares that are going even below 10 Rand that you could literally teach your children to start buying shares from as young as they are right but because we've made it a them thing and an ass that's where we create a problem so I think it's so important that when we do start teaching children about money we need them to actually understand how to cordon off and out of proportion your money to certain areas of Finance that is investing that is saving that is even donating children need to understand that money doesn't have a power over them and the banking institutions financial institutions are not these high and mighty things that they have to look at only when they need help so we need to start creating a proper healthy relationship with children when it comes to many you know this book and I think you've you've read it you've talked about it The Millionaire Next Door yes and what I found fascinating about that is that they don't live a millionaire lifestyle well but they have accumulated the wealth and so what it speaks to is you know drop this code on a lifestyle and all of that and just as your wealth as you job gets better and you get more money you don't have to move house you don't have to get a bigger car you now have an opportunity to to take that extra cash and start investing it but obviously psychologically we've gotta ask the question how do you explain to a graduate that's just come out of university oh my goodness the three years were so harsh or they've gone to medical school how dare you tell them to buy to drive an a to be right also may be because they've been influenced by their fathers their heroes you know the fathers may be liked a certain luxury brand car and it's like my son is gonna get this car when he gets out of school first job so I think it's a lot of psychological stuff that we do need to work through as as South Africans generally but I think the beauty of the melanin install which is what a lot of people don't seem to cross is that money doesn't have a look people think that they have to look rich no you don't have to look rich because when you start looking rich we know that you're not spending all your money on the outside and there aren't many investments that are happening I don't I don't hate on anybody that has the ability to spend their money and how they spend it that is up to them right at the end of the day but if you are that person who is living a very luxurious life but you're not you don't know where the next paycheck is going to come from or it's just you're in your world it's just an outflow of money that is something that you need to start asking yourself why am i doing it why do I need to drive a certain car why do I need to live in a certain house why do I need to wear certain brands I think that's when you start to understand at 3:00 a.m. at night when you are lying in your bed and you like I don't need to do this yeah at a time but perhaps is a final final thought it's the 8th of July now most of our David orders have gone through we spent too much money the dev in July we already now starting to dip into our credit cards what do I do tomorrow to stop this madness I think the first thing you need to do is to become intentional about your money I think that's probably the most important thing you also have to be honest because the reason why people get so touched when you talk about money is because they actually feel like you are taking them personally so you've got to be honest about your money I think that sit down and redo your spending plan relook at how much money is coming in and how much money am I actually taking out and then also way because it's not about how much you make it is truly about how much of it are you keeping and take away the psychological barrier that you've put in your head that I cannot save you can you can just find ways to do it thank you so much it's always a pleasure listening to you and getting these pearls of wisdom and and I get a sense that if we try we can also educate ourselves on these issues yeah definitely I mean education is important because I think so much indeed we'll chat again soon I promise thank you so all right sir so it's national savings month but it should be an issue that you deal with every single day throughout the year and not just this month now in order to general's report on the northwest municipalities points to the appointment of incompetent and unsuitable senior municipal officials as a major conscious

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