There is a saying that to be rich one must become more frugal. In fact, regardless of one’s income level, people that tend to live within their means and save slowly while living modestly are more likely to be on the right path to real wealth. The reality is today, too many South Africans spend more than they actually earn, while continuing to rely on credit until their next pay date – often times using this credit to pay off other debts – causing even bigger financial problems…
The Savings Institute of South Africa1 (SASI), promotes a strong culture of saving during the month of July, being National Savings Month in South Africa, an awareness campaign encouraging South Africans to focus on alternative savings solutions. The objectives of the campaign are to promote discussions about saving, raise awareness about the benefits of proper financial planning, and motivate consumers to be proactive with regards to their savings. This is the perfect opportunity to make South Africans aware that with appropriate planning, a good saving culture can have a positive impact on achieving both financial stability and success.
Given that the nation’s economy is in the doldrums, the poor retirement statistics and seeing how we landed up in this mess, Capta Financial Services has developed a particular interest in understanding why very few South Africans achieve great financial success and freedom, while most of the population always seems to battle financially, no matter how much they earn. From all of this Capta FS Wealth Strategists and Authors of new book, Rands and Common Cents, Donavan Maree and Bronson Friedman, wanted to find out if there was a way to significantly enhance the chances of success i.e achieving financial freedom in a straightforward manner.
From their research and experience they found that people who had a plan, fared better than those who didn’t - simple. But what they also realised is that even by having a plan that wasn’t necessarily that good, greatly enhanced one’s chances of at least achieving financial security… This got the team thinking: if having a plan in place is clearly so important, then why don’t more people have one?
The answer lies in the type of advice clients receive. Most of the middle to upper income class have some sort of broker or financial adviser they get advice from, so surely this guarantees that at least they will have a plan in place? Unfortunately, this is not the case says Maree, “Instead of ending up with an easy to understand financial plan which covers every aspect of your personal finances, most advisers prepare very lengthy (sometimes up to 50 pages), Financial Needs Analysis (FNA), with complicated graphs and figures which look impressive but don’t prove to be very useful. These FNA’s fail to answer the questions that most of us ask ourselves when managing our finances and wanting to save, namely: Should I settle my debt or invest? Should I invest more for retirement or have more in cash as reserves for now? How do I create a surplus so I can save more? Where is my money going every month? How much should I invest locally and how much should I invest offshore?”
These are questions that every individual asks themselves, yet for the vast majority they remain largely unanswered. One needs to rather look at what it is they are looking to achieve at the end of the day which should be according to Friedman, “To have a much better understanding of where you currently are in terms of YOUR financial journey, to know where the different elements of your existing portfolio fit in terms of YOUR bigger picture, to understand what YOUR immediate priorities are and to have a structure for determining YOUR future priorities.”
It was from sitting with numerous clients and answering these questions time and time again that Maree and Friedman realised there was a need for a blueprint to building a personal wealth strategy, regardless at what stage you might be in your life. It was from this thinking that The Wealth Navigator Blueprint™ system was born. This blueprint is a 14-step paint-by-numbers approach to designing your own wealth strategy with the ultimate goal of reaching financial freedom. The purpose of this is to provide a roadmap for you to follow, so that you feel more in control of your current financial situation, and to also help you understand what your immediate and future priorities should be, in order to reach financial freedom. Ultimately, the WNB™ is a tool that helps guide you through every phase of your financial journey.
In their new book, Rands and Common Cents, Maree and Friedman take their readers through their WNB™ system, highlighting the importance of cashflow management; budgeting and spending plans, to understanding financial products that are key in implementing a solid financial strategy… Optimising a retirement plan, annihilating bad debt and setting up a savings strategy are all other key topics that form part of the 14-step approach that assist in laying the foundations of a financial plan that ultimately lead to you becoming financially independent. “This book becomes your starting point and a reference guide”, says Maree.
Other topics also include:
Four Reasons why people don't have a financial plan
The four phases of your financial journey
Seven Steps to drafting your Will and eight requirements for a valid Will
Recommendation for dealing with medical aids and short term insurers
How much risk cover (life cover, disability & critical illness) you really need
How to develop your own estate plan including four tools and techniques that can be used to decrease your estate duty
Four strategies to increase your income at retirement
Why an emergency savings account is so important to have, and the easiest way for you to get one
When to open a Tax Free Savings Account and how to select the right one
The concept of having an 'Opportunity Fund', how you can get yours in place and when to use it
The value of having your own personalised Wealth Navigation Blueprint™ is not only from a financial perspective, but also from an emotional one. Chances are you have already started working on or completed some of the steps without even using this Blueprint. In our experience says Maree, “the new clients we take on board generally have financial products, but very rarely do they have a plan (a blueprint), and certainly not one that covers all areas of their financial well-being. They typically have some kind of insurance policy, some RAs, perhaps some money in unit trusts or endowments, and less than half will have a Last Will and Testament (which may or may not reflect their current wishes).”
“The WNB™ is greater than the sum of its parts. The individual steps involved in this Blueprint don’t contain any new ground breaking, earth shattering information that has never been heard about before, but what it does do is put your current financial components into context and establishes a structure for future decision making and outlines the basics so one can have a solid financial plan in place to assist in saving for the future and to aid in their financial success and freedom”, concludes Friedman.
One of the most important reasons we save is because we cannot predict the future, so take control and become proactive in managing your current situation to ensure you are able to save and plan better for your future…
Contact us TODAY for more information about our Wealth Navigation System™ or for a basic financial analysis!
To purchase a copy of our new book, Rands and Common Cents, click on the link: https://www.captafs.co.za/book - please note all profits from the sale of the book will go to the Make a Difference Foundation