Taking a long hard look at our reality…

Today, I am at a loss for words… I am sitting here thinking to myself and contemplating ways to grow out of this destruction.

How… How can I best be of service?

How can I make a difference? How can anyone person stand up in the face of danger and destruction, and make a difference?

After reading all the posts and looking at the videos… feeling the pain of each who has lost; I have to remind myself of the lessons learned I learned from the old masters, from religious tales and age-old scriptures – gnostic, dogma, doctrine and more.

“Shiva” known in the Hindu trinity as ‘The Destroyer’ is the one who creates, protects and transforms the Universe.

“Jesus” as the Son of God in Christianity also had to first be ‘destroyed‘ before He could rise up.

Aristotle, Lau Tso, Confucious, Augustine of Hippo, Socrates, Plato, Pythagoras, Kukai, Sun Tzu, Simone de Beauvoir, Allan Watts and so many more that could be mentioned… Even in the Pagan and Occult information; for that fact, other sections in the Christian Bible and the Quran – tells us that destruction is always followed by new growth.

As the phoenix rises from the ashes, a new cycle will always follow when the old one dies down.

As the grass fields are burned to black crips during the dry and cold winter months… after the first rains of spring, the new grass sprouts will change to field back to green again. Because that is what the grass is focused on in the Spring and Summer sessions. To flourish and grow taller and stronger as their roots are now set deeper than the years before.

But when the field did not burn to crips in the Winter months, it takes so much longer for us to see the new green through the old, dead brown-grey mass.

The Human Body and Spirit also abides by the same Laws of Nature. As we grow year after year, by Nature, there are cells and even ideas and thoughts that are shredded left behind and/or gets destroyed. Our Spirit goes through the same metamorphosis, as we grow and develop in our lifetime. Some beliefs and thoughts are retained while others are lost along the way, as they no longer served a purpose to us.

So, here I am sitting today, looking at the destruction – allowing myself to feel the emotions of pain, anguish, sadness, anger, disappointment, and yes, even fear… not just for myself, my family, my friends, my clients and acquaintances, but for both sides of this story. Reminding myself not to become the emotion but just allow me to experience it. Allowing myself to grow and learn from it so that I (and those I guide) can grow from this experience.

It might not seem as much, and in truth, it does not feel like much – but – once the fact and truth of this reality have settled in, after the freaky waves of confusion, fear, worry and even adrenaline has settled; it will be those who can stand as leaders, those who guide others, those who are not doing it for their own glory but for the betterment of their community, those who are not in the spotlight – they will be the ones who will be able to guide others to the love and light; to heal, to grow and to rise again out of the ashes…

So for now, I will allow my tears to flow, I will allow my heart to ache, I will allow my empathic side to experience this current situation… for tomorrow my analytical and logical side will better comprehend what needs to be done, to be able to move forward.

Children of our beloved country, South Africa, for young and old, for all the races and creeds, for all of you out there – my thoughts and prayers are with all!

In Sympathy, Empathy, Love, Gratitude and Grace,

Yvonne E. Venter-Louw

P.S. Join the Good Things Guy, by…

Make a difference towards a positive change – Sign the Petition

Or join the Facebook group – Save South Africa

Wealth: Trait of a Successful Entrepreneur

Have you ever wondered why some entrepreneurs succeed and why some do not?

Have you ever thought of the things that would make one the best entrepreneurs in a chosen field?

For the lucky some, owning a business might run on their veins but for the most who are just common people with a high desire to start a business of your own, then, careful evaluation and extra time on studying the nature and principles of entrepreneurship is a must. However, this doesn’t mean that an individual who wants to become an entrepreneur should have a thorough background on these nature and principles.

Whether you are conscious about it or not, success and failure always depend on the entrepreneur. Do you want to know what those are?

Here are the traits of a successful entrepreneur:

Goal-oriented:

  • Whether short-term or long-term, a successful entrepreneur never misses setting his goal.
  • This trait can be developed at a very young age. For instance, a child set academic goals for himself or set a specific timeframe to achieve something. Say, for example, the child’s parents cannot afford to buy him a toy he wanted. He will try to get this toy by saving money or making money for himself. When he grows up, he carries this trait in doing business. This same child is more likely to become successful for he knows how to get certain things he wants to.
  • But it does not stop there, successful entrepreneur knows how to revise or rewrite his goals whenever he thinks that there is something that needs to be changed.

Opportunity seeker:

  • An entrepreneur knows how to search for opportunities. It may be an opportunity to earn more or to learn further. He will not settle on the things that exist around him. He knows how to find opportunities that may not be visible for most people.
  • Taking advantage of these opportunities
  • Once he has found opportunities, he knows how to take advantage of them. But it does not mean that he will become impulsive for he knows how to identify what type of opportunity will give him benefits.
  • He will ask himself these questions:
  • Will it bring more good than harm?
  • Is it worth the time and money?
  • Will it be able to help me reach my set goals?

Knows his strengths and weakness:

  • Another good trait of a successful entrepreneur is knowing his strengths and weaknesses. This type of trait will enable him to define his limits and knows how to extend his limits. He knows the borderlines but knows how to keep the borderlines expanding. An individual who does not know his strengths and weaknesses is like a person facing a mirror without clearly seeing his face. A successful entrepreneur sees his face clearly in the mirror and recognizes his imperfection. He would then polish his imperfections and convert them to something that would benefit him because a successful entrepreneur does not only know his strengths and weakness, he also recognizes these as parts of his personhood.

Always wants to be the best:

  • A successful entrepreneur does not settle for the second-best. He always finds ways how to be the best in his craft. With the help of his recognition of his strengths and weaknesses, he will achieve what others might not achieve. He has a certain attention to detail and quality. He would as much as possible treat all costumers the same.
  • Enjoys what he does and knows how to enjoy as well
  • A successful entrepreneur loves his work and enjoys what he is doing. He would not be successful if he does not enjoy his business. On the other hand, he does not make his business his life. He knows how to rest once in a while to enjoy life itself.

Knows when to get help:

  • A successful entrepreneur recognizes that he could not do some things alone. He knows that he needs a hand in order to get things right. He knows and respects other’s view on matters regarding his business. They do this to minimize the risk of committing mistakes. He knows what are the type of person that is right for the job.

Key Principles of Entrepreneurs eBook

For more information and resources, feel free to contact us directly -> Click Here

Naturally, creating Freedom, Meaning and Wealth.

With Love, Gratitude, and Grace

  • Yvonne E. Venter-Louw
  • YEVL (Pty) Ltd.: Founding Director & Principal
  • Researcher, Advisor, Educator, Coach, Mentor, Keynote Speaker & Host of the Financial Independent Coach show on YouTube
  • Personal Thesis: The Psychological impact of past experiences (and the rehabilitation thereof) on daily driven financial decisions.
  • Naturally creating and experiencing Freedom, Meaning & Wealth!

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Guest Post: Behavioural Science leads to better returns

Original Article via MoonStone.co.za

Behavioural science leads to better returns

Financial Planner of the Year shares tips – Behavioural science leads to better returnsIn a recent Business Report article, Janet Hugo Financial Planner of the Year, shares how behavioural finance can be used in an efficient and practical manner in the wealth-management process.

 

According to Hugo one of the easiest ways to incorporate investor psychology into financial planning is to apply goal-based investing, which involves creating specific goals with defined time horizons and selecting investments with the correct asset allocation for each goal. She shares that it works very well for pre-retirement clients who are accumulating wealth, as well as for post-retirement clients who need income from their capital.

She also uses behavioural finance in the wealth-management process to create an awareness of emotional biases that affect investment decisions.

Scenario playing is another excellent way to include behavioural finance in the financial planning process.

Click here to read the article.

 
 

P.S.: Are you interested to find out more of the “Why, What, When and How…” uncovered and discovered in the process of writing our thesis (The Psychological impact of past experiences [and rehabilitation thereof])? Sign up to our direct mailing list -> CLICK HERE

Re-Blog: How financial advisers get it wrong when they discussing insurance with clients

I have found this refreshing and accurate of what is happening in my profession, and I thought I’ll share it with you – as I could not have written it better…

“Clients are too often being presented with comparisons of hypothetical values for the in-force policy versus some sales proposal/illustration”

By Barry Flagg – Nov 7, 2016 @ 3:51 pm

Meet and greet

Imagine this.

A (prospective) client has a significant investment in a particular asset. You receive notice that the costs being charged inside this product are being increased. In addition, this notice includes forward guidance downgrading future interest earnings expectations by 50 basis points and cautioning that interest earnings expectations could be further reduced by as much as another 100 basis points.

Now imagine the client’s reaction to such news. What would they want to know? For most assets, clients would want to know how increased costs measure up against alternatives, right? And how reduced performance expectations relate to asset class benchmarks, right?

Instead of measuring increased costs against peer-group alternatives and reduced performance expectations against benchmarks, clients are too often being presented with comparisons of hypothetical values for the in-force policy versus some sales proposal/illustration.

Never mind that neither the in-force illustrations nor sales proposals disclose the costs charged inside policies. Never mind that interest earnings expectations are often different in each policy, that features and benefits often materially differ, or that such comparisons are now considered misleading, fundamentally inappropriate and unreliable by financial, insurance and banking industry authorities.

Without the information necessary to understand internal costs, the reasonableness of performance expectations and differences in features and benefits, clients too often blindly choose the illustration that looks better. If such an analysis were presented for any other client asset, the financial adviser likely would be laughed out of the room. Such analyses are also increasingly the source of complaints, arbitration and litigation.

How would advisers who follow a prudent process answer these questions? The West Point Draft of the Best Practices Standard for Life Insurance Stewardship, vetted by leaders of nearly every profession with clients who own life insurance, provides a checklist for the prudent selection and proper management of life insurance.

The best practices standard says questions about cost increases can be answered by reviewing internal policy costs relative to both the original proposal and representative benchmarks. If costs in the original proposal were among the best available rates and terms, and the cost increase is nominal, then the opportunity to reverse the cost increase is modest or nonexistent after considering transaction costs involved in exchange for an otherwise lower-cost product.

On the other hand, if a client doesn’t know whether costs in the original proposal were competitive or excessive, the increasingly frequent announcements about cost increases present an opening to talk to clients about what they are being charged in their policies and whether such costs are acceptable, and to answer their questions in ways they can understand.

The standard also says questions about reduced interest earnings expectations can be answered using RATE: the risk tolerance of the client, the corresponding asset class preferences, the planning time horizon, and the performance that’s reasonable to expect. As such, if reduced interest expectations are consistent with historical performance for the asset classes into which cash values are invested, then reduced interest earnings expectations are likely reasonable.

Conversely, policy earnings expectations set by hypothetical illustrations are too often unreasonable. For instance, the expected rate of return reflected in hypothetical illustrations can vary from as little as 2% to as much as 8%, even though invested assets underlying policy cash values are required by regulation to invest in the same asset classes, and even for different products from the same insurer where assets underlying cash values are actually invested in the same assets.

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No wonder clients are more comfortable talking about almost every other asset on their balance sheet than life insurance. Use the best-practices standards to talk about life insurance in the same way clients talk about every other asset on their balance sheet.

Barry D. Flagg is the founder of Veralytic Inc., an online publisher of life insurance pricing and performance research, and product suitability ratings. Follow him on Twitter @BarryDFlagg.”

With this in mind, as Professional Financial Advisors, we all have to agree that the laws that are being implemented globally are for the best interest of our Profession and those of our clients.

A few days ago I sent an article that Tony Vidler made me aware of, to Kobus Klein with regards to a Financial Advisor who has been barred for churning.

Although regulations, compliance and all the other jargon might seem like a waste of time and paper for some clients – believe me when I say there is a good reason for it all and it is all to safeguard you the client much more than us as financial advisors.

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To our continued success,

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What is in your financial cupboard?

  • It is our ability to choose that makes us human → Madeleine L’ Engle
  • The good life is the enemy of a great life → Nancy Dornan 
  • The future belongs to those Who belief in the beauty of their dreams → Elenor Roosevelt
  • Dreams come a size too big, so that we can grow into them → Josie Bissett 
  • What you’re Suppose to do when you don’t like a thing a thing change it! If you can’t change it , change the way you think about it. Don’t Complain ! -> Maya Angelou 

Just like these remarkable Ladies, there are so much more… Even in our own South African history:

  • There are those who did not just understand the secrets of success but paid it forward to the generations who followed.
  • From Our ancestors who thrived in a harsh and untamed wilderness to those who move to unknown lands to start from scratch.
  • Strong Women, women Who stood up for our rights and our protection.
  • Women who have fought and are still fighting battles – Women who lead by example.
  • Women who today still speak out for what IS right  = Making a stand. Leaving their mark, their legacy in our world….

But how does this rich history tie into Finance? What does this have to do with what is in your cupboard?

Everything = It is a reflection of the impact of those who have gone before us, the lessons that we have been taught … or what we have not been taught; and the perception of our understanding of what has been given to us. It should be our reflection of gratitude … Proverbs states = When there is no vision / the people Will perish

This is not a history lesson or a “Who has first right” or a religious sermon … This is not a  “wihsy-washy” Wish Your dreams come true kind of thing. This is directed to each individual Lady sitting here, reading this blog → to keep an open mind and listen to the message intended for you! For everything happens for a reason and there is a reason why you are sitting here today!

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Imagine You are Standing in front of this cupboard = Boring ….. right? There is nothing to wear?

But…What of the Unseen? The proverbial skeletons that take up space in this cupboard?

This is similar to Your financial planning -…. your finances —— Your life. Something is missing

We all come from different backgrounds, influences/houses (unless You are siblings) but even then Your perception of that environment is different to your closest sibling. We are all individually Unique by nature, and our uptake and thoughts of these inferences are just as such…. unique to us. For instance, let’s pretend You have a “Once in a lifetime” event and this is Your cupboard…

Your wedding or even a State Dinner to meet face-to-face the queen of England or Us President Or any international public figure that you will never ever be able to meet again, let alone be able to sit next to at the dinner table … Are you going to use what is in this cupboard? Are you going to borrow from friends and family? Or are you going to go BIG and buy or even have a new outfit tailored for You?

DO You have the ability to do this with what is in Your bank account today, without batting an eyelid? Or swipe a credit card or chase up a Credit limit On a clothing ACC? Are you going to do Your own hair makeup and nails? Or are you going to get a friend to help you? Or are you going to get professional help?

But remember You must still keep up with Your daily/ weekly/ monthly Commitments and did I forgot to mention the event is Tonight!

Realistic … and let us be 110% honest – Which option can you take today?

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What if I give you a fourth option? This Complete Cupboard stock with only Your selections and size to fit?

No credit; No if, and, or, but’s ….. And you have in this cupboard a limitless choice?

Can you look like a showroom model or celeb on the red carpet?

What if – You can live your life knowing that whatever may happen – you will be more than just fine or okay? Let’s say this once in a lifetime event is not a happy one … You are diagnosed with Cancer / Parkinsons / Alzheimers today … or have a stroke or heart attack or motor vehicle accident?

Can your financial Cupboard support you for 6 to 9 months of treatment to recovery? Or support You and those Who are dependent on You, for the remainder of Your natural life or until they can Support themself? The facts are and statistics show that 95% of us here …. will not be able to!

Furthermore, can you be assured you will be emotionally strong enough to make it through… after all that you have already been through – can you carry on? Or will this be the straw that breaks the camel’s back?

True life story ….. Mrs SG:

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Mrs SG was a young, happily married mother of a 4-year-old boy. Her husband has just started what seemed to be a very successful business and they had everything going for them. New house, new cars, new school for the little one. Everything was fine-and-dandy … or was it?

For one night he did not come to collect her from work. He was not answering his phone. Nobody knew where he was… He was gone!

Unfortunately, more than a week later Mrs S G found her husband – dead, marked as a John Doe in the State Mortuary …  How would You feel …. finances aside … Would this be you?

9O’ % of us have had these feelings on a regular basis, even though it was not due to the passing of a loved one or diagnoses of some kind … but rather of other circumstances or situations. Less than 10% of us might never even go through these feelings, reality is we are all going to go through this at some point in our life, or have already gone through it … and might currently be in this turmoil of feelings.

But what if…?

What if there is a way to prepare ourselves? A way to ensure our own Financial and Emotional, Success, Freedom = The certainty of knowing tomorrow the sun will shine again? Knowing that “Money” will be there → “Support” will be there … even if it has never been there before?

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It is all possible with the correct planning/ assistance/ motivation/ coaching … with the right “person” by your side, guiding you and providing you with the correct resources and tools… and a few “life-Hacks” along the way.

The same as the clothes in your cupboard …. not one size and style fit all and unfortunately, this is something that the general society wants to imprint on us.  Although most do not want to admit to the fact, they also find themselves sometimes standing on the outside looking in … but would rather pretend to fit in just to not draw the wrong attention to themselves.

For those of us who have been standing on the outside for so long, that we have become accustomed to the view and the feelings … this is meant for you!

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BUT WHY SHOULD YOU LISTEN TO ANYTHING THAT I HAVE TO SAY?

Cause I have already walk more than just a mile in these shoes, I know what it feels like when there are no longer tears to flow … When the light of day does not even light the dark of the hole you think you are in…

It does not become easier, time does not heal all wounds, and not all friends are really the “correct” influence on your life!

Compare these facts:

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Last week at a seminar, which I attend as part of my research,  I started off sitting by myself and was joined by a total stranger.

We started talking and I found myself later with an additional two strangers sitting at our table – hanging on to every word that has been exchanged. That being said – I was only made aware later, of the crowd that was standing around our table, who were all also following the conversation…

Once again I realised how little of the knowledge and know-how is actually been shared with those who really need it.  Even those who are willing to share their knowledge, their experiences and their “formula” to success – are only willing to do so at a HUGE PRICE TICKET… Or even bigger Commissions that indirectly affect each and every Mrs YOU out there.

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Now let’s be honest, where are you sitting today?

Are you enjoying every Summer Sunset and Spring Flower that starts to bloom?

Or are you stuck in a Winter of your own discontent?

Or are you just surviving through this Autumn?

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Do you want to achieve your own success? 

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Do you want to maintain a balanced lifestyle?

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Do you want to have the financial and emotional freedom you have always dreamed of … but just never seem to achieve?

It’s your choice!

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P.S.

  • For ease of access and to your benefit – we have compiled a list of our templates to assist you with your personal/business accounting -> Click Here
  • For assistance, advice, coaching or mentoring, feel free to contact us directly -> Click Here

Impulsive Spending – Move! Magazine

14 July 2016
Attention: Thulisa Mancotywa

Move! Magazine’s proposed article on Impulsive Spending.

Thulisa,

Thank you for your request and the opportunity to provide you with input on this article; I firmly believe that your target market will benefit from it.

However, should you use any of the content of this letter – kindly send me the final draft before it is published for sign-off of using the content and crediting it to my name.

Kindly take note: before answering the questions you posed, I want to make it very clear that any individual reading these answers should seek the professional advice and coaching of a professional financial adviser/ coach/ accountant. The content of this letter is for information purposes only and should in no way be taken as individual direct advice of any sort.

All of the information contained in this letter is based on personal experience, knowledge, anecdotal evidence and physiological research in the specific field. Although I have strived to be as accurate and complete as possible in this letter, notwithstanding the fact that I do not warrant or represent at any time that the contents herewith are up to date and accurate, due to the rapidly changing nature of the Internet.
While all attempts have been made to verify all the information provided in this letter, I assume no responsibility for any errors, omissions or contrary interpretations of the subject matter within. Any perceived slights of specific persons, people or organizations are unintentional.
In practical advice books, like anything else in life, there are no guarantees of income made. Readers are cautioned to reply on their own judgement about their individual circumstances to act accordingly.
Although I am a Qualified Financial Advisor by profession; this letter is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to contact me in my professional capacity or refer to the services of a competent professional in legal, business, accounting and finance fields.
I assume no responsibility for the use or misuse of the information, or any injury, damage and/or financial loss sustained to a person or property as a result of using the content of this letter. The information contained in this letter is for informational purposes only.
ALL RIGHTS RESERVED: No part of this letter may be reproduced or transmitted in any form whatsoever, electronic or mechanical, including photocopying, recording or by any informational storage or retrieval system without express written, dated and signed permission from me.

What is the difference between normal spending and impulsive spending?
First, the reader must understand the distinction between what is seen as normal and what is seen as impulsive spending. And although the ‘norm’ is not always the ‘norm’ for all individuals – there are some that will describe what you and I describe as impulsive spending as their own ‘norm’.

Now I know there are those that will argue with me on the following, but this is how I assist some of my clients to understand what their own normal spending would be described as.

The easiest way to distinguish what is the normal spending for any individual is to establish what are the basic needs which the individual has every month, month after month. Purely by this measure can you then state it to be the normal spending habit of an individual.

For instance, although both Miss X and Miss B have the same basic needs – such as housing, nourishment, transport, clothing, and so forth; Miss X might have an additional financial dependent where Miss B does not. Thus they would have two different normal spending patterns a month. Please also understand that a financial dependent is not always or only a child or children but in some instances, it could be a niece or nephew, a grandmother, grandfather, father or mother who is dependent on your reader to meet certain financial needs.

Once the reader has established her own normal spending month after month, of her own basics and those of her dependents; any other spending would fall in a category of additional need. Because the lines between the two can get very blurry at times – confusion between the basic need and additional need is a common occurrence in a lot of households.

Impulsive spending is not just on frivolous items that do not fall within the description of the basic or additional needs but could also be on this basic or normal need fulfilment.

For example, although the normal spending includes nourishment, the purchasing of ‘take-aways’ on the way home, because you are too tired to cook, would classify as impulsive spending.
A home-cooked meal would cost for argument sake, let say R50 feeding 2 adults and three children
‘Take aways’ would cost for argument’s sake R180 feeding the same 2 adults and three children

Now although the basic need for nourishment has been met – the impact on the normal spending or better known as your monthly budget would result in 3 and a half meal times budget spends in one instance of not being in the mood to cook.

Impulsive spending, as I would classify it – is any and all spending that has not been pre-planned and budgeted for on a month-to-month basis.
What are some of the common reason that makes people want to spend money impulsively?
Impulsive sending would generally be earmarked by either a physical or emotional need of fulfilment that the individual wants instant gratification on.

Although the need or even want for the fulfilment of any physical need is not the issue – it is the instant gratification that creates issues. Any purchase that has not been pre-planned and budgeted for can create in itself massive implications for any individual or household.

Furthermore, most emotional spending is impulsive, of which a great deal is regarded after the fact; maybe not for the fact of now owning the product that was purchased, but rather a regret of the money that has been spending.

Best known as “Retail Therapy” – it provides the individual with a stimulus to satisfy an emotional need or want. Although this need or want might be justifiable, the instant gratification of that need or want is where impulsive spending occurs.

Another common reason individuals spend impulsively is purely to keep up with the individuals next to them. This is another example of an emotional need or wants been met purely because … “my friend has one…”.

Is impulsive spending common amongst specific groups of people?
Impulsive spending, in my own experience, is not just found in a specific age, income or even ethnic group. Impulsive spending can occur in any of these groups.

Should you wish to link impulsive spending to a group label – I would say it is a group of individuals that are not disciplined in pre-planning and budgeting any and all need or want fulfilment. It could very well be an individual that has a stable month to month income or even an individual with a very irregular income.

Strangely enough, I have found it is the individuals that can least afford it that is more subjected to impulsive spending.

Is this an addiction that can affect relationships, lifestyle and even health?
This question should be answered twofold…

Is it an addiction: Yes and no… In some cases, the emotional needs or wants for instant gratification can become an addiction. However, in most cases it is purely a lack of … I won’t say knowledge or even understanding, but rather a lack of practical implementation of financial planning and accounting measures that creates issues for the individual.

Does it affect relationships, lifestyles and even health…? Yes to all the above.

Relationships can be seriously affected to the extent of ending the relationship. On official records, there is many divorces – which are due to one partner’s lack of financial discipline and the other partner’s lack of willingness to maintain the relationship due to financial issues.

Further to this, the individual’s lifestyle will be affected by impulsive spending to the extent that they could end up in such a deep debt hole, that the only solution at the end of the day is to declare themselves insolvent

Health issues are also very common. This can be either due to the emotional turmoil (stress) related to the regret after the fact or the constant “month that is left after the money has ended”; or due to a physical lack of basic needs fulfilment as a result of impulsive (over) spending.

What is your advice to Move! Magazine readers about the importance of financial planning?
Before I give the readers any “advice”, there is something that the individual must understand clearly. Financial Planning is not buying a policy or starting a savings account or even taking out medical aid… No – financial planning, the same as accounting starts with what may seem two of the smallest of things, that is overlooked by many individuals …

Income should always be greater than Expense!
You fail to plan – you plan to fail!

This is where most individuals misinterpret financial planning and thus then fail to implement it in their own lives.

One of my own personal mentor’s favourite sayings is that “Money flows to where it is best respected and protected” … This is where proper financial planning adds not just emotional and physical value to the individual’s life… BUT when implemented, disciplined and managed, it will create monetary value for the individual.

Personal Financial Planning, in my opinion, should already be taught to children as soon as they are capable to understand what money really is… a tool to obtain and maintain wealth!

Purely by teaching them the correct basics of personal financial planning, we would not just raise a generation that would be capable of implementing this, from the first day that they start looking after themselves financially; but also a generation that will change any country’s economy in leaps and bounds.

For those who were not privy to this kind of upbringing or background understanding – I would urge those individuals to seek not just a financial planner/ broker/ advisor, but a financial coach/ mentor to guide them through a process of reconditioning of their own financial habits. This will include not just the initial planning but the accounting and recording of your own financial habits, teaching you how to constantly monitor and adjust your behaviour to ultimately achieve your own financial freedom.

So to come back to the original question – the importance of (proper) financial planning?
Financial planning is not just of vital importance for any individual who wants to live a financially sound lifestyle, but also impacts greatly on the economy of the country!

It all boils down to the less the country has to spend on taking care of those who could not, did not or cannot take care of themselves financially, the more the country can spend on progress in its own economic growth, instead of just trying to maintain its current standard.

I hope and trust that this information assists you in your article. Should you have any further questions or need information feel free to contact me via email.

Yours truly,

With Love, Gratitude & Grace

  • Yvonne E. Venter-Louw
  • YEVL (Pty) Ltd.: Founding Director & Principal
  • Researcher, Advisor, Educator, Coach, Mentor, Keynote Speaker & Host of the Financial Independent Coach show on YouTube
  • Personal Thesis: The Psychological impact of past experiences (and the rehabilitation thereof) on daily driven financial decisions.
  • Naturally creating and experiencing Freedom, Meaning & Wealth!

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StratCol: South Africa – Debit Order Collection Service

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Marketing Director

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To invest or to Insure… That is the question?

This morning started the same as most other mornings in the office, assisting clients, making calls and sending documentation out. A normal morning until…

We receive a phone call from one of our clients, let’s say her name is Ms G.

Now Ms G is a widow for a few years now and she has been able to adjust to a lifestyle of receiving just her income. When her husband passed away she did receive lump-sum payouts of death cover, but she used this money to her own discretion. Resulting in the fact that these days she only receives her own working income. We have had several discussions and several times we have advised her to re-look at her budget and the spending of money on certain policies.

YEVL Financial Advice & Services (Pty) Ltd.
YEVL Financial Advice & Services (Pty) Ltd.

Like any client, she has the right to choose if she is going to follow the advice or not. These discussions have stretched over the past three to four years and every time Ms G decided to keep what she has and continue the same way forward…

The situation:

This morning, though – we received a phone call from her and we are going to quote some of the content of this call…

“I am just calling to inform you that I have now cancelled all those **** Bank policies”

We could at first not understand why she called to inform us of this action and proceeded to inquire what happened.

“Well it is just like you said – Yvonne – I was wasting my money”

It turns out that the **** Bank has phoned her this morning, trying to sell her on additional benefits to the one policy. The sale was accepted by Ms G and they proceeded to the “Underwriting”  of the policy, which in effect is the medical questions…

Halfway down the list of questions, the sales agent, ask her if she had previous heart problems… to which Ms G answered  – YES.

The sales agent continued with a few more questions, one of which was ‘are you a diabetic?’. Again Ms G answered – YES.

Apparently, after a few seconds of silence, the agent asks her how did she obtain the original policy. To which Ms G answered – **** Bank sales agent phoned and sold her the cover over the phone…

And right here dear readers is where the proverbial hit the fan…..

Let us explain…..

  • Ms G has more than one medical condition, present and in her past history.
  • These conditions include, but are not limited to cancer, low blood sugar and now high blood sugar, life-long heart condition and so forth
  • Further,  Ms G has had a couple of operation in her life of over 55 years

Taking all these factors into account, she cannot just obtain any type of insurance; she has to look very carefully at the detailed cover limitations and exclusions of any policy. She needs to ensure that whichever cover she decides to implement does cover these conditions past history, present existence and possible future complications… IF NOT – she will be wasting her money!

Wasting her money is exactly what has happened – our words rang true in her ears when the sales agent stated…

“But Ms G – they should not have sold you this cover, as this cover will not pay out in any event to you due to …”

We hate to be the messengers delivering the bad news newsflash –  but this is how these small policies work! These Bank policies that are sold to any Bank client are not always the best choice for any client. The structure of the cover against the applicable premium is constructed to fund a pool of “Potential Healthy Clients” that might one day claim – if they have not cancelled the cover beforehand. And R50 to R100 a month is not a lot, these premiums mostly go un-noticed by clients for years.

BUT these policies have very specific claim clauses, to the extent of which is sometimes remarkable that the use of the policy could be questioned… And so it was with all these policies that Ms G had from the bank.

The problem:

Ms G has spent on average R300 a month on these policies – which now she has lost all those contributions due to the platform of the policies being short and long term insurance. A total contribution of  R10,800-00 over  3 years… GONE! And as MsG rightfully said:

“I could have used that for my vehicle exspenses this year… which as you know I had to borrow”

Readers this is what we would call ‘flushing your money down the drain’ and not making your money work for you…

The solution:

Read more

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