Bootcamp: Intro to Your Financial Independance

Why would you consider financial coaching?

Let me answer you with a quote: “It’s our ability to CHOOSE that makes us human” – Madeleine L’Engle

  • 97% of the world is living on credit in some way or form … Bond/Mortgage, Credit Cards, Clothing accounts, Cellular contracts, and so forth. Instant gratification – a scenario of give it to “me” first and then “I’ll” pay you later.
  • 99% of Small Businesses die within the first 5 years, of the remaining 1%, only half does actually make it out of survival mode.

What do these two facts have in common, you may ask … And what does it all have to do with Financial Coaching?

Everything – for it is our choices as individuals and small businesses, a lack of knowing our numbers, or blatantly ignoring them which affects our financial standing.

Why? A fear that leads to procrastination, a lack of knowledge/education and off course, my favourite … “I already know all of this” … so why is your life not already a reflection, an illustration of applied knowledge?

Applied knowledge reflects in each and every self-made millionaire’s and financially independent individual’s life.

So if you are one of the 3% of individuals or of the 0.5% of Small Businesses … I thank you for reading this page today and bid you farewell because I am not preaching to the choir.

Now with that out of the way and if you still find yourself reading; you have clearly understood  who this information is meant for … it’s meant for all individuals and small businesses … it’s meant for you!

Why?

We were not created to be in the constant struggle for survival. We were created to experience life and live abundantly. Life is too short to live on bread and water alone – we should at least try the good wine and savour the aroma of exotic dishes… even if we do not like them in the end.

Experience the beauty and wonder of this magnificent planet we are all sharing … We should dream, we should set out to achieve it – it’s all experiential of life! That is why our dreams come in size too big – so that we can grow into them … as was stated by Josie Bisset.

How can we make our dreams come true?

Making one choice – one choice can change your enter life for better … or worse! This brings another question to the table – which is the correct choice?

For instance – How is Financial Coaching different to Financial Planning, Tax Consulting, Debt Consulting or Review?

In 20 years plus experience in the Financial Industry, I can honestly say that I have not experienced true coaching from either one of these professions.

  • Financial Planning as described in the FAIS act of South Africa (FAIS – Financial Advice and Intermediary Services) is regulated advice leading to ‘sales’ and services or better said implementation of commission paying financial instruments; in short, and my colleagues will argue this shortened explanation – but let’s call a spade a spade and move on.
  • Tax consulting or better known as bookkeepers, accountants, and auditors are bean counters. For them the numbers in black on white is the whole truth and nothing but the truth. No exception to the rule and numbers do not lie – which is all correct … but neither of them is going to advise or coach you in making different decisions.
  • Debt Consulting or Review is that last stop before liquidation and/or sequestration. The system that is supposed to provide you with life support to prevent financial death. Yet in so many cases it causes more damage than resolving any issues.

There are so many books filled with legislation to regulate these actions, procedures, and services … yet none of them go down to the root cause of the matter. All are like treatments to the symptoms of an illness … the rate-race. Not solving the cause of the illness itself!

It’s only once you look into the psychological side of financial matters that you find, that as with any illness, thsat there is a cause that created the effects we see today.

Let me explain it this way … in my own life story – the effects of abuse and a lack of guidance sent me unannounced on a mission to find solutions. Growing up in a household where the “Victim-mentality” reigned supreme, with a step-father (who could to the day of his death) not take responsibility for his own act of abuse inflicted for years; who always blamed it on his own upbringing and a whole lot of other reasons. A mother who to this day still lives in her own world, who refuse the facts of the past and everyday blames somebody else for anything and everything that goes wrong. A biological father, who made the same choices over and over, resulting in him abanding his only child. And by my own hand, walking away from one abusive relationship to the next…This is not a cry out for sympathy or empathy – this is to paint a picture of from what and where I come from.

I have made my peace with all of this and have forgiven each and everyone … and I am grateful for the part they have had/still have in my life. Should I have not been through all of this, I would have most probably still be working for the mere survival, be on medication and possibly also be playing the “Jannie-jammer-gat” or “Oh-dear-oh-me-how-hard-life-could-be” victim mentality.

Year of experience, qualifications and in-depth research the past four years (and psychological experiments) I have tried, tested and proven these solutions.

Financial Coaching is very much the same as any professional sports coach. A passionate individual, who can find the natural talents, develop and train these natural talents; provide discipline, guidance, support, motivation, and inspiration – for an individual to exceed their own expectations. However, just as you can bring a horse to the water and not be able to make it drink – nobody can help an individual who does not want to be helped.

Here we reach or second open door to exit, should you not be willing to be open-minded and be willing to learn, experience new ideas and concepts, and be willing to put all the effort into this … Well, then here is where I with gratitude for your attention invite you to feel free to leave.

No offense or judgment will be directed at you at any given point.

Should you decide to read further – this is where the proverbial rubber hits the road.

How can Financial Coaching help you as an individual, a family and/or a small business owner?

Every day’s little financial habits have a compounding effect. Again, every cause has a direct effect on the current situation and as observers/participants of the current situation we influence the results. This has been proven in Quantum Physics … ever heard of Albert Einstein’s theory of relativity?

  • In psychology, it has been proven by Pavlo and his dogs … an experiment that turned out to condition the dogs to start drooling every time they heard the bell … due to the fact that they started associating the bell with food.
  • In accounting, other than maths, a negative added to another negative creates a greater loss.
  • In the insurance industry, a claim leads to higher premiums or even refusal of future cover – if it was not repudiated.

However, all this is true, in financial coaching you learn from these experience before it might even happen to you. This is where the added benefits come to play; having a financial coach provides you with the advantage of years of experience, first-hand knowledge – which you personally do not have to experience to learn from. All coaches, may it be sports, cultural and even life coaches have a toolbox filled with all kinds of resources to assist you to achieve your best performance.

One of these tools in our toolbox is the restructure system for H.P. (hire purchase)/Credit or Interest bearing accounts; The South African Banks Act (Credit Providing Financial Services) may charge interest per day on outstanding capital balances, and so they do… but are only allowed to recuperate this interest once a month. For illustration, we use a bond/mortgage of 20 years at a fixed interest rate of 10% at the base cost of R 1,500,000-00 for first payment date July 2017. In 20 years you would have paid a total of R 3,474,080-45, this is the original base cost capital of R 1.5 million plus R 1,947,808-45 in interest … it does not include any insurance, maintenance or utilities.

Take note:

  • 99% of the time Banks insist that you have Life Assurance and Short Term Insurance on the bonded/mortgage amount and property…
  • Which they would gladly include into the bond/mortgage… but this results into bulk purchased an annualized cover that is not individually underwritten …
  • and may exclude pre-existing medical conditions on life policies and general exclusion on structural/short-term policies – which at the beginning of each year inflates the outstanding capital and results in you paying interest on insurance premiums.
  • You might want to confirm these details on your own bond/mortgage account.

But for now and the purpose of this illustration – we are going to state that you are educated in these facts and have stand-alone life cover and short-term insurance… On this 20-year bond/mortgage, you would have made 240 payments; that is 240 paychecks to your last payment July 2037.

Should we restructure your payment schedule without increasing the amount required to be paid in monthly – we can cut your interest by 1/3 … down to R 1,492446-60 in interest and your last payment to be in May 2033. This is a saving of R 481,613-85, and four years and two months less in installments. And why stop there, add to this a tax benefit on the bond/mortgage payments and utilities … would this be of interest to you?

Or, another everyday example most South Africans complain about – medical schemes cost. By restructuring a medical scheme to complete medical cover, can dramatically reduce your cost and ensure that you utilize the full current tax benefits available to you. For illustration, let us use the medical scheme cost of a higher end package – R 4,506 main member, plus R4,264 for an adult dependent, plus R898 per child – in our case lets times that by three … a total monthly cost of R 11,464. Restructured at the same year’s cost on the same brand, with the alternative products available – you can save between R 1,430 to R 1,625 per month.

Take note:

  • This restructure includes up to 700% in-hospital cover, day to day funding controlled by yourself, shortfall cover and all-purpose evac… and an additional tax benefit.
  • No annual threshold or inflating self-payment gap
  • Savings earn positive interest and roles over year-on-year … and this savings is an asset in your balance sheet – not the medical schemes.

Interested in finding out more…? We have now covered two simple examples of reducing cost on a month to month basis while increasing benefits in your hands … but this is just the tip of an iceberg … there are a plethora more you can implement to control the effects of Parkinsons 2nd law.

Maybe this would rather be to your interest, Investments?

A common mistake made by individuals when investing. With almost every individual that have lost money on investments; were never taught how to really know and control their numbers, nor did they have dedicated assistance tracking these numbers. It was just another sale resulting in commissions somewhere.

When starting an investment or if you are already in an investment there are key factors to always keep an eye on and physically track from month to month or at least quarter to quarter…

  • The base unit cost, adjusted for a predetermined time period
  • The interest growth or loss over the time period
  • The dividend allocation over the time period
  • And your regular or ad-hoc contributions towards this investment

Most individuals only calculate the last three in their equations and never even look or consider the cost of the units. For example, when your monthly or initial contribution is invested, you are effectively purchasing units. Tracking the unit price will ensure that you do not end up in a situation of having hundreds or even thousands of units that are rather not worth ‘the paper that they are written on’. For illustration – the original unit cost of R100 per unit … five / ten years down the line, when you decide to withdraw on your investment – you might find yourself sitting with 1,000 units, yes … BUT due to changes over the years such as the fund being capped, other investors withdrawals and no new investor allowed to enter and share the fund cost – will result in an overall decrease in unit value. The unit value could now hypothetically be something ridiculous such as R10 a unit and a total investment value of only R 10,000-00 instead of R 100,000-00.

We can continue with these examples, but this has nothing to do with policy sales, not unit trust sales or medical schemes or life insurance – we are merely illustrating these examples to you, and although each of these products mentioned have a specific purpose and can be utilized in different scenarios for different reasons … We are merely stating that there are certain things you should be careful of and be observant to … which will either cost or save you in the long run.

This is an age-old problem of individual focusing on money instead of wealth (or rather profit), as money in and by itself will not allow you the sense of financial freedom; nor will an increase in your income allow you to breathe easier at the end of the month – as your expenses will just rise to match or exceed the increase. Further to this the negative perceptions and beliefs associated with money add to the stress. Although 99% of individuals desire financial independence, less than 1% … in a matter of fact only 1/3 of the 1%, do actually achieve true financial freedom.

How do we solve this, on any income level?

Firstly, we need to understand and implement the accumulation of assets (not liabilities) through the use of tools and resources, for the money (which is only a tool) to grow your total portfolio or rather your net-worth. These assets should, independently from you, generate and provide you with a passive income. The 80/20 rule should apply … 20% of your efforts, should generate 80% of your income. Instead of 80% of your efforts only generating 20% income.

In truth, we have to invest for long periods, not just in our assets but in ourselves as well, and it is not just in policies. Today we have so many ways to create diversification in any portfolio that does not include the fund-class type of investments, but actual different kinds of investments. Persian rugs, oil paintings, Kruger Rands which had been hidden away in your garden with a treasure map, property investments, block-chain and cryptocurrencies, online stores and PayPal/Clickbank accounts…

It really does not matter what kind you decide to use … as long as you make the decision, discipline yourself to stick to it and see it through by learning the hard way – through your own experience or …

Invest in a coach that will assist and collaborate with you to identify your specific niche or portfolio diversification… and provide you with a holistic, balanced approach to life itself (for who really wants to be a slave tied to a vault?).

The methods, the resources, and tools, to be able to read the numbers and understand what you are reading every step of the way.

Would you be willing to do this for yourself? For your own financial independence? For your family’s financial freedom?

Should you agree – say “I am” -> CLICK HERE

BUT … and here is it!

What would the value of this be for you – personally?

What would you be willing to pay for this kind of guidance … in other words what could you afford realistically?

What if … and this is one of my favourite exercises; What if we should tell you, it does not matter if you should choose personal or group coaching sessions … the cost is based on your own personal affordability?

Would this be a solution to your thoughts of … “I would love to do something like this, but the price tags are too high!”

I have to warn you though, we don’t  coach anybody for free. Even our pro-bono clients are taught that a fair exchange for services and goods must always be upheld and installed. Keeping all at a standard measuring system – FICA compliance will justify your affordability for each and every person. Furthermore, can we agree to the terms that if you waste our time, time that could have been used to save someone else’s financial life, we charge you for it … and if done on a consistent basis we hold the right to “fire” you as a client?

Should you agree -> CLICK HERE

Complete your name and contact details, and we will contact you to range your initial free introduction consultation, might it be via phone call, What’s App / Skype video call, anywhere in South Africa.

-> CLICK HERE

I leave you with this last quote:

“The future belongs to those who believe in the beauty of their own dreams” – Elenor Roosevelt

Take the first step in your journey toward your own freedom, meaning, and wealth in this lifetime!

With Gratitude for your attention;

Naturally creating Freedom, Meaning, and Wealth!

Yvonne E. Venter – Louw

P.S.: This special offer is valid for the next 366 days for the date that you read this page -> CLICK HERE!

P.P.S: Professionally qualified Financial Advisor, Certified Financial Coach combined with qualifications in Psychology, Hypnosis, Subliminal Therapy, and NLP (Neuro-Linguistic Programming)…

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