5 things you need to know in SA business today and 7 things people who are good with money know that the rest of us don't
1. Today is all about the GDP. The second-quarter number is out at 11:30 this morning.
Big day tomorrow. Release of Q2 GDP for SA. If above expectation and a upward revision of Q1, SA shares should rebound sharply.— Wayne McCurrie (@WayneMcCurrie) September 2, 2019
2. The situation remains tense in Turffontein, Johannesburg, after police clashed with groups of residents who looted shops owned by foreign nationals in the area. Outnumbered police officers, who were only armed with their service pistols, stood helplessly by as the mob moved from shop to shop. Meanwhile, traffic across the country has been disrupted by a trucker protest.
3. As from Wednesday, petrol will be increasing by 11c per litre for both 93 and 95, while diesel will be increasing by 26c per litre.
4. In its half-year results, which showed a 10% increase in its headline earnings, Old Mutual says it is planning to exit a company founded by its on-again, off-again CEO Peter Moyo. Moyo owns 25% of a company called NMT, which he cofounded, while Old Mutual also owns 20% in NMT. Since 2004, Old Mutual invested almost R300m in various NMT companies.
5. Sun International also released its results, which showed a 4% increase in headline earnings. While the Time Square casino in Tshwane saw a 15% increase in income, Sun City (-6%), Wild Coast (-9%), the Windmill casino (-9%) saw declining income.
7 things people who are good with money know that the rest of us don't
Reported by Liz Knueven
For people who are good with money, it's not about always having the latest and greatest, or even having huge incomes or bank accounts. It's about good habits for saving and planning for the future.
According to Lynette Khalfani-Cox, an author and money coach, there are certain habits those who are good with money know that the rest of us just don't understand:
They know they don't need to buy everything that crosses their path
Khalfani-Cox says that one of the things that people who are good with money do is say no to consumer culture.
"People who are good with money are often not afraid to go against the grain and to actively unplug from consumerism," she says.
"Whereas the person who is deep in debt and broke and living paycheck to paycheck might drive a BMW and have designer handbags or some of the trappings of success in terms of material goods, the person who does far better has several hundred thousand in the bank," she continues.
For example, Warren Buffett still lives in a house that's worth just .001% of his net worth (not that you have to be a billionaire to be good with money). For those who are good with money, it's all about living on less than you really need to.
When they do buy things, they're not chasing brands
People who are good with money aren't chasing name-brand goods. Instead, they're chasing value and deals, as well as searching for quality items that will last.
"They're more concerned with quality as opposed to quantity, and they're also less interested in brand names just for the sake of flossing and just trying to look good," says Khalfani-Cox.
And when people who are good with money do splurge, they're thinking about things long-term. "If they are going to buy a R10,000 bag or something, it's going to be like, 'oh, this bag's gonna last me 10 years,'" she continues.
And they spend their money on experiences over things
"People who are good with money that they would rather have an experience than an item to be able to show off," Khalfani-Cox says.
Millennials are increasingly displaying this pattern, and making spending on experiences a priority. As Business Insider's Hillary Hoffower reports, in a survey of millennials, "more than a quarter of respondents said that after a rough week, the thing that would bring them the most joy is some form of entertainment, such as going to the movies, happy hour, or a concert."
And in Khalfani-Cox's opinion, millennials might just be onto something.
They plan carefully for the future
Those who are good with money are planning ahead, whether it's through saving, investing, or working with financial planners.
"People who are not as capable with money are present-oriented," says Khalfani-Cox.
One of the key differences between those who are good with money and those who aren't, in her experience, is that those who are good with money are planning ahead. "Be strategic in your planning and don't be so driven by everything today," she says.
They're willing to invest in getting financial help
"People who are good with money buy the financial products and services, and buy the team that's going to help them to gain further wealth," says Khalfani-Cox.
They see these kinds of expenses as an investment. "The person with a wealth mindset knows that accountant, that money manager, that financial planner, et cetera, is going to help them to double their wealth or to further grow their assets, and potentially their income as well," she says.
Those who aren't as good with money are going to feel that they can't afford this expense, and won't see it as an investment, she says.
They make saving and investing a part of their routine
Those who are good with money aren't waiting for a raise or a large gift to save - they're making it a part of their routine and using whatever money they have now.
"People who are good with money know that discipline and consistency are far more important than large gestures of any kind," says Khalfani-Cox.
She's seen this particularly with those wanting to invest. "The person who is not particularly good at investing or not as good with money is thinking, 'oh, I have to wait until I get R10,000,' or, 'I have to wait until I get a lump sum of cash to be able to invest that,'" she says.
Khalfani-Cox emphasises even the smallest of contributions are valuable. "These people have made saving or investing a habit and they're more successful as a result," she says.
They're not always millionaires — they just know how to do the best with what they have
"Anybody at any income or asset level can be good with money by practicing fiscal discipline and smart money management habits," says Khalfani-Cox.
While she acknowledges that building wealth is a very different scenario for those with little access to credit and lower incomes, there are still things anyone can do.
Rather than saying they can't, people who are good with money see anything as a step in the right direction. Someone who is good with money would say, 'If I can just save, even if it's R100 a month, that's better than nothing,' rather than, 'Why bother saving if I'm only saving R100 per month?'
It doesn't take tremendous wealth to manage your money well - whether you're saving R100 or R2,000 per month, anyone who's good with money knows how to work with the wealth they have.
Receive a daily email with all our latest news: click here.
Also from Business Insider South Africa:
- This eye-popping graph shows Woolworths is drowning in debt – while Clicks and Mr Price owe basically nothing