MONEY INTRODUCED
For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.
1 Timothy 6:10 (KJV)
The verse above is perhaps the most quoted Bible verse relating to money. It has resulted in many people believing that money is somehow evil, or that it is fine to have none and live in near poverty to avoid its evil. The context however is clear if you read the verse deeper - it is actually about the love of money, and referred to early Christians who abandoned their faith to chase money and met many sorrows.
Money is not bad. In fact, money is a useful tool used for the exchange of goods and services. If used wisely, money can make your life rich, and allow you to reach all your goals and dreams. On the other hand, if abused, money can make your life a living hell.
Money is a tool, and as with all tools you need to be trained on how to use it, and understand that you need to continue practising how to use it. Without adequate training, money can be difficult to handle, or understand, and can even be considered dangerous.
The fact is that not many people are trained in using money. It has been the preserve of the few who know how to master this tool and create great wealth, whilst the many have struggled and often handed money to the money masters. Indeed, whenever there is a buyer, there is a seller; a winner, a loser; one with knowledge, one without; an equal and opposite action to every decision we make. So if a money decision is not making us richer, it is most certainly making us poorer.
I grew up in a home with little money; the cash that flowed through our hands (cash flow) was low. We had plenty of people we owed (debt) money to and had little money in the bank or things we could call our own (assets). My parents were not trained in using this tool and life was a challenge. The result is that their habits were learnt by me. Children learn from their parents and often proceed to make the same mistakes.
I know what it is like to ignore calls from people you owe, I know about ignoring the letters hoping that they will disappear, I know what it feels like not to have a plan to deal with debt, and I know about borrowing from Tendai to pay Farai. I, too, have been in that place where there seems to be no hope, that place where you think its easier to live for today and let tomorrow worry about itself. That place where you believe that money is indeed an evil curse and meant for them and not us. That place where you go green with envy at those who seem to have it all. I reached rock bottom, and had to start again.
So as you read this book, remember that I have walked the paths I am writing about, and shared in the pain.
I am not yet rich, but I am now in control of this tool and believe that this book can help you manage your finances. My saving grace was studying to become a Certified Financial Planning professional and learning the money secrets. I hope that this book will help you unlock your financial potential and help you gain control of your financial affairs.
I have also included my money testimony to give a realistic perspective to why I wrote this book and to stop it from being a boring textbook, instruction manual, on money.
This book is titled Imali Yami, Chelete Yaka, My Geld, My Money for it is YOUR money and only YOU should be controlling it. Money in any language is still yours. Money is your tool to use as you wish, a tool that can be controlled, and mastered, to provide lifestyle goals, secure your future and share with others.
This is not a get-rich-quick book but a guide to help you find your confidence, and see money as it really is - a tool that anyone can use. Some use it better than others, but you too have the potential to become a money master.
WHO ARE YOU?
In order to take the first step, you need to take stock of who you are in terms of your money personality. Take stock of what you know, or what you do not know, and understand your money behaviour. It is recommended that you profile yourself at the beginning of this book, and as you decide what you want to become, profile yourself again at the end of the book.
Remembering that money is a tool, you must realise that if you are not controlling it, it is controlling you. Because money does not have a life of its own and is simply a tool, it means that someone is using money as their tool to control you. As long as that other person is controlling this tool, they are using you to work for them and create wealth for them!
Are you being used by others to create wealth for them whilst creating none for yourself?
CHAPTER 1
YOU ARE A UNIQUE INDIVIDUAL
As we prepare to discuss the topic of money, there is a very important fact to remember. We are all individuals and your personal economy will not be the same as another person. Neither can you expect to be the same as another person in how you deal with finances, both psychologically and emotionally.
TWO ASPECTS TO SELF
Money matters involve the mechanics and discipline of money management. There are laws and behaviours which, if performed well, will end with desired results. Budgeting, avoiding debt, investment, compound interest, the time value of money, and saving operate under money laws. Similar to gravity, they are constant.
The inconsistency is your emotions and past experience in relation to money. I can help you learn how to reach a financial goal, like making a million rand, but how that million rand will affect you will differ to how it affects someone else. You may feel happy, feel it is not enough, still be sad, have a low self-esteem, you may become an addict to substances, or just not know how to feel. This book addresses the mechanics and science of money. It provides solutions to problems and treats symptoms on many psychological ills. Doing the steps may result in a shift in your money psychology, or may result in temporary change. And you may need to deal with your money emotions in tandem with learning the mechanics of money.
BILLIONAIRE DREAMS
The bad news is that no one has ever become a billionaire by simply doing the mechanics of money. Billionaires typically are inventors or had a special gift that created millions and then they used the mechanics. Aside from Warren Buffett who grew billions from investing, lets not forget that Steve Jobs invented the Apple brand, Bill Gates Windows and Oprah Winfrey was the queen of talk show.
What this book will teach you is how to turn cents into rands, rands into thousands, thousands into millions and from there a billion is within your reach. You must learn to respect humble beginnings. Respect the brown coins and cents again.
This book is not about financial literacy, it is about making you financially capable to change your situation. It is about the practical application of small steps to a final goal - this is the premise of all financial planning from Certified Financial Planning professionals like myself.
THE PARABLE OF THE TALENTS
The Parable of the Talents in Matthew 25:1430 (KJV) tells of a master who was leaving his house to travel, and, before leaving, entrusted his property to his servants. This Bible story shows how three men were given different amounts of money and ended up with different results. This parable reminds us that we are not the same. Even in the wealthiest nations, there are a few billionaires, many millionaires, and even more with less. What is more important is to be content and happy with our wealth, knowing that we are doing everything we can to make the most of every cent we earn and own.
Read this book with a clear sight of your personal goals and personal economy. You may dream of a comfortable retirement, of leaving property for your children or leaving a business legacy. Remember that wealth is achieved in stages by setting measurable and achievable goals and raising the bar as you go along.