Mapalo Makhu - You’re Not Broke, You’re Pre-Rich: Ditch debt, stop living from payday to payday, and manage black tax to #liveyourbestlife

Contents

Youre Not Broke, Youre Pre-Rich

Published by Zebra Press

an imprint of Penguin Random House (Pty) Ltd

Company Reg. No. 1953/000441/07

The Estuaries No. 4, Oxbow Crescent, Century Avenue, Century City, Cape Town, 7441

www.penguinrandomhouse.co.za

First published 2019

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Publication Zebra Press 2019

Text Mapalo Makhu 2019

Cover image Asier Romero/Shutterstock.com

Texture rawpixel.com/Freepik

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the copyright owners.

ISBN 978 1 77609 459 2 (print)

ISBN 978 1 77609 460 8 (ePub)

CONTENTS

I wrote this book because I believe the road to financial freedom is a journey everyone can embark on. I wrote this book with you in mind. You, who perhaps have never been taught how money works. You, who have been too intimidated to pick up and read a book about personal finance because you were too scared of the jargon. You, who want to #getyourmoneyright. I had you in mind when I wrote this book.

In this book, I share the knowledge and insights I have gathered from people who I know are passionate about educating others about personal finance. But more than that, I include the stories of real people who were in a situation similar to yours. I believe that learning from others can provide great insights. You can learn from what they did right and avoid the mistakes they made.

Although I wrote this book as a step-by-step guide to help you build the foundation for your personal finances budgeting, paying off debts and investing, in that order you can read it in any order. Feel free to jump from one chapter to another, reading and taking away from each one what is relevant to you.

This is your journey: have fun with it!

The author has put many months of work into researching and writing this book. This ebook is NOT free, and should be bought from an ebook retailer. If you are circulating it for free, you are breaking the law and can be prosecuted under the Copyright Act 98 of 1979.

I had just taken my car in for a service and I took out my laptop to do some work while I waited. When I downloaded my email, there it was a message from the publisher, which I had to read a few times before I could get excited about its contents. But excitement soon turned to fear-stricken thoughts of Who am I that a publishing house would want me to write an entire book on money when I myself am not a cash millionaire yet?! Imposter syndrome had crept in.

Nevertheless, I resolved to say yes as I always do, even when I am terrified of something. I decided that I will give it my all and fake it till I make it.

But I found that something strange was happening as I started writing this book. I was only about 12 pages in (anyone who has ever written anything will know how gruelling it can be to write just 12 pages!) when I realised that what I was writing did not sound like my voice at all! I realised that Id been trying far too hard to sound smart and was writing one jargon-filled sentence after another. Thankfully, I recognised this and committed to writing a book to which everyone could relate, and one in which my true voice would come through: the compassionate, strict but fun, tree-hugging and get-your-act-together voice that my Woman & Finance audience has come to know.

First and foremost, I dedicate this book to my father, Nako Mohaila Tsoanamatsie, my biggest cheerleader and the man with the biggest heart. His love and support of my mom, my siblings and me have been life-giving. I love you, Mofokeng, and I thank God for your love and your gentleness.

To my mom, Agatha Tsoanamatsie, who is a lioness: I love you! You have taught me to be fierce and fearless. I have watched you ask of life what you desire, and you got it! Thank you, Mokoena a motle.

To my siblings, Manako, Sepholla and Nthabi: you have shaped so much of who I am. I can go anywhere in the world knowing that I am wholeheartedly loved and accepted by you. I can hold my head up high, knowing that I can face anything because I have you as my loving siblings. Nthabi, thank you in particular for your love and support as I was writing this book. You know every emotion I experienced throughout the process and supported me through every single bout of crying.

To my husband Ofentse: I never tell you this, but your gentleness reminds me so much of my dad. Your love and support of my dreams are unmatched. Thank you for everything. I love you!

Lastly, to my amazing son, Moeletsi: what a wonderful and playful world you continue to reveal to me. I love you more than anything in this world. I love you and wish you wisdom and joy.

What is it about money that excites us, makes us anxious and downright terrifies us? The word money can stir up many emotions. While some people are comfortable talking about the topic, most people will go to great lengths not to talk about it at all.

So, what is it about money that has so much power over us?

First of all, let me give you a little history lesson on South African society, and black South African society in particular. Most young black South Africans are the first in their family to have gone to university to earn a bachelors, honours, masters or doctoral degree. Most are the first in their family to become part of the middle class. Because of the injustices of apartheid, previous generations did not have the opportunities we have now. Many young black professionals are therefore playing asset catch-up: many are the first in their family to be able to afford a car or a house in a good neighbourhood.

Our parents never spoke about money, the education system did not teach us about money, and we dont speak about money. And so the circle will continue unless we do something about it!

We are the generation that was told we can have it all: go to school, get a good job and voil! we will be financially free. But we missed out on financial education, and it has been proven time and again that financial freedom is not about how much money you make, but how much you keep and how you make it work for you.

Most of us only learn how to deal with money well into adulthood. It has always puzzled me why governments dont introduce financial literacy from primary school all the way through to university. Think about it: when we leave school to go to university or get a qualification, we all study different things some to become doctors, others to become lawyers, entrepreneurs or accountants. But the one thing we all have in common is that we will all have to deal with and manage our finances.

Once we start out in real life, we might talk about buying a new car, getting our kids the latest gadgets or sending them to the best schools, yet we cannot seem to comfortably talk about money. And guess what: all these things we buy require money.