When it comes to building your wealth, it’s not about how much you make, it’s about how you work with what you have. You do not need a larger paycheck, you only need to invest and use your money wisely. Yes, more money gives you a larger budget to work from but that simply needs increased consideration.

Here are some tips that will make it easier to build your wealth, even if you do not have a large income.

Adopt better spending habits

Using your money wisely begins with controlling how you spend. If you earn more, and you land up spending more (often on things you may not need), your wealth building plans will never come to fruition. It will simply be: more money in, more money out.

Good spending habits have a positive impact on your wealth building ability. Practically, this looks like a constant assessment, and re-assessment, of your lifestyle choices in order to spend less on current expenses to save more for future expenses. Essentially, if you spend less now, you will have more to spend later! Remember, it’s not about saving for something random; wanting to spend more later is only beneficial if you have a good handle now and what you might like to spend your money on later (like a holiday, car, wedding etc).

Track your spending

To help you adopt better spending habits, actively track your spending. This can seem scary at first, but ultimately this will help you make empowered choices about how and why you spend your money the way that you do.

Automate your savings

Automating your savings is a powerful way to build a large savings pocket without it feeling like a trying chore. When you manually pay into a savings account, you are more tempted to postpone or miss a month. When this happens, it’s easier to miss next month too… and so a pattern develops. However, if it comes off automatically, much like paying tax, you’re more likely to stick to your savings goals.

Seek professional advice

Key to building your wealth is getting professional financial advice. No matter your income level, you can still benefit from consulting with a professional.

Professional financial advice is about more than helping you set up an investment portfolio or sell financial protection products. As part of your financial plan, this advice should assist you with tax planning, goal setting, establishing meaning for your money AND… help you work with what you have instead of ‘always wanting more’ to achieve your goals.

Building your wealth depends less on how much you earn and more on how wisely you use your earnings. This means that when the time comes, or opportunity affords you a higher income, it won’t be wasted but will instead help you build into your own life and the lives of those around you – providing deeper meaning and purpose for your wealth!

A lot of people are quite financially stressed right now. It’s understandable – it’s been a hard few years for most of us, and the uphill climb back to a bustling economy, both locally and globally, is far from over yet.

Does that mean that we have to be stressed with where SA has been in the past five years? Not necessarily.

You can reduce financial stress with the following tips.

Step 1: Communicate

One of the biggest stressors that comes from money is the negative impact it can have on our relationships. Some of us have been shown by generations before us to suffer in silence and not share the money worries with those close to us.

The effects of that have a deep impact.

Here’s the thing – our partner, kids, parents, friends will always know. We are usually not even aware of the tense face we pull when our child picks the most expensive toy in the shop, or the frosty reception we give when our partner speaks about anything with an expense. The problem is that it’s not easy for them to be sure of whether it’s them or money that we’re frustrated with.

Having an honest, vulnerable conversation with loved ones about finances can be healthy for both family bonds and your bank balance. You might be surprised at how willing your other half supports forgoing certain expenses in order to keep your budget robust. Remember, if you’re anxious about your finances, the people around you probably are too.

Step 2: Get advice

When money is already tight, it may seem unthinkable to get a financial adviser involved. It is important to realize that it means you could end up spending a little more to get access to wealth creation strategies, ideas and investment opportunities that you were completely unaware of and could significantly improve your emotional, mental and financial position.

Going to a financial adviser has the same effect on your spending as keeping a food journal for your diet. With an adviser, you can increase your mindfulness to eliminate waste and focus your expenditure into what really matters to you.

Step 3: Be honest

We need to be upfront and honest in financial planning meetings and conversations. Speak up when it’s hard and you don’t feel ready to make changes. It’s important to talk about what we can no longer afford and what we’d like to achieve. Any change that happens before we are ready for it is often not sustainable.

It is these kinds of conversations that bring value to our financial journey and makes financial advice come alive. We can respond with enthusiasm, find new ideas and forger stronger relationships.

Step 4: Use this time to fine-tune and keep honing

Instead of seeing a financially stressful time as a never-ending pit, rather see it as an opportunity for new growth. Economic downturns, bearish economies, recession and all forms of headwinds always come to an end.

What they provide is the opportunity to get our mindset and wealth creation strategy into a lean, mean machine that will skyrocket when conditions improve!

Most of us know someone who has emigrated, or is about to emigrate. After several hard years for our nation, it can sometimes seem like the bad is overwhelming. And, the South African media often seem to talk about nothing except the next new ‘sure disaster’.

But it’s not all bad. There are some great things about being in South Africa right now! We’re not talking about the weather. Wherever you are, looking on the sunny side helps, whether you’re waiting for your green card or maybe sitting around the braai talking about the latest Moody’s rating.

Here, courtesy of Business Insider’s Helena Wasserman, are five reasons to be stoked you’re a ‘Saffer’:

1. Visitors are liking the vibe

South Africa relies heavily on tourism – which is why Statistics SA’s latest news was so great. After the bumper Easter travel season, Stats SA revealed the latest tourism figures ending after April. According to them, over 217 000 overseas tourists arrived in April this year – that’s a whopping 11.9% more than in April 2018. In terms of who our favourite visitors are, Europe still reigns supreme, with 25% more UK tourists and over 30% more Germans. Nations of good taste!

2. Exports are also excellent

If we’re dependent on people coming in, we’re almost as dependent on selling produce outside. According to Wasserman, who quotes the most recent Sars figures: “Exports jumped more than 8% to R112 billion” and “South Africa recorded a R1.74 billion trade surplus in May. This means we exported more than we imported.” This is huge, for a country with a bias towards foreign goods.

3. No rate cuts means easier spending

Two snippets of good news here: firstly, the South African Reserve Bank’s Monetary Policy Committee issued a substantial rate cut of 25 basis points last month. An interest rate cut effectively means it’s easier for us to spend and borrow from institutions – our rands aren’t more expensive than they were before but rather less. This makes it slightly easier for us to spend and support our local businesses, which indeed is what a rate cut is designed to encourage.

Then, on 18 August, at their next meeting, the tide seemed neap enough for interest rates to remain unchanged for the rest of the year. This means that not only is it effectively cheaper to buy and borrow than before but it is unlikely to increase all year.

4. Best of all? The economy is perking up

Yes, you read that right. A number of industries seem to be having a much happier and more productive season than many lately, with the numbers to match. According to Wasserman, “Manufacturing output increased by 4.6% in April 2019 compared with April 2018, with vehicle sector manufacturing up almost 19%. Wholesale trade sales rose by 5.5% in April 2019 (compared with April 2018) while retail trade sales rose 2.4%. Retail sales of clothing and footwear jumped more than 6%, and of household furniture, appliances and equipment by almost 5%.”

5. About those Moody’s ratings…

This will give you something to say to those naysayers around the braai. According to Wasserman, more and more fund managers are of the opinion that Moody’s won’t ‘junk’ SA after all. Last month, only a quarter of the international fund managers surveyed by Bank of America Merrill Lynch believed that we would not be kicked out of the index. This has now increased to 50% – this means that half of fund managers now expect us to keep our investment grade rating from Moody’s. On top of that, the survey also shows that for the first time in six months, managers see our bonds as ‘undervalued’,” she says.

So, perhaps South Africa is actually alive with possibility, after all? It just goes to show, sometimes it pays (financially) to look on the bright side.

The ancient philosopher Aristotle came up with a single word for what every person wants: ‘Eudaimonia’.
Eudaimonia means happiness but more than that it alludes to a sense of fulfillment.

Many people have viewed financial planning as the management of financial goals and resources. Typical conversations would include questions like: “How much will my assets grow, how can I get X amount by the time I am this age and what will my retirement look like?”

Whilst these have been helpful questions, we are learning that they are only part of a fuller conversation. There are different questions that are starting to emerge in our conversations that are focussing more on meaning and purpose. They are not as easy to answer (sometimes they don’t need answers just yet…) but they help us frame the bigger picture of how we’d like to use our wealth for a fulfilling life.

It’s not only our wealth strategies that need to be diversified for healthy growth but our happiness strategy too.

This Spring, we suggest these happiness diversification exercises.

Exercise your way to happiness

Now that it’s getting warmer outside, it’s time to get our bodies moving again. According to a recent research study, exercise makes people happier than money does. People who stay active are better equipped to deal with stress and have less days when they feel down or depressed.

That’s not too say that too much exercise isn’t a bad thing – it’s important to have a balance and not over-exercise. Either extreme can be detrimental to our experience of happiness, but a healthy balance is a powerful way to experience eudaimonia.

Prioritise experiences and people over possessions

Invest in making priceless memories in life. Instead of buying that luxury car you do not need, try saving up for a family holiday. Going out with friends or family to concerts, movies or picnics are just some of the happy experiences you can give yourself in life. Prioritise taking walks in nature, reading a book or playing a game with your kids.

Believe in something bigger than yourself

As we spend time with other people outside of a working relationship, it becomes easier to see and believe in something bigger than our own reality. It’s not about faith or religion, it’s about connectedness. If we want to find more ways to invest in our fulfilment we need to experience generosity to causes that are bigger than ourselves.

Fulfilment, happiness and productivity should grow when we contribute to others. It’s a healthy circle of sustainable growth that is not reliant on market performance or bank balances. Being willing to ask bigger questions and find deeper meaning to our wealth is where we can begin to experience eudaimonia.

A lot of people misunderstand the term ‘dread disease cover’… and with that name, it’s enough to take the smile out of anyone’s day. But dread disease or CI (critical illness) insurance is a powerful tool to ensure that health emergencies don’t trip up your financial dreams or weigh heavily on your family.

Dread Disease Cover vs Disability Cover

Sometimes called CI cover, dread disease cover is different to disability cover, which protects you and your finances after an accident temporarily or permanently leaves you unable to work. In a similar way, dread disease cover is there for when a health setback floors you temporarily or for a longer period of time. From strokes or heart attacks to serious illnesses like cancer, this cover helps you focus on your recovery without having the added stress of loss of income each month just when your medical and associated expenses are skyrocketing.

Dread disease cover isn’t about dying… it’s about surviving

When the average person thinks of cancer, a tumour or a stroke, they imagine the worst. And no one likes thinking about it… it will never happen to us anyway, right?

But in reality, these things are more common than we realise and are not a death sentence – far from it.

“Statistics confirm there is a high likelihood of contracting a major illness such as heart disease or cancer. And thanks to advances in medical technology, people are more likely to survive these illnesses than ever before,” Old Mutual’s Ferdi Booysen says in insurance publication FA News.

Get peace – get well

Research shows that one of the single biggest impediments to recovery in any illness (barring chronic mental illness) is stress. Research also shows that finances are one of the biggest things that people are concerned about when ill – a vicious and ironic circle.

And they’re not wrong. There are lots of little unforeseen expenses surrounding illness and hospitalisation. Even if you have an amazing medical aid in place, there will be things the medical aid doesn’t cover. And what about other things you may need, like therapy for you and your spouse after the trauma of a stroke?
With dread disease cover, it’s easier to relax and focus on recuperation knowing that everything is in place. In fact, most CI cover pays out a lump sum so that you can decide what’s important for your recovery journey.

But don’t just survive – thrive

Falling seriously ill or having a health episode is never pleasant, but it is a fact of life – and it needn’t be the end of it. In fact, it can be the start of a whole new one.

Those who have experienced these things with the support of insurance and the ability to focus on themselves rather than being forced to work when physically unable, often describe their journeys as powerful wake-up calls that helped them re-prioritise and improve their lives, relationships and trajectory.

So don’t just pretend it won’t happen to you and don’t just survive – thrive.

What you think you can do and what you can do are not the same thing. What would you try with your finances if you couldn’t fail?

When it comes to the things we want in life, most of them are inextricably linked with our finances.

Buying the dream home for your new family requires money. The time to spend precious quiet moments with those you love requires finances, too, to keep and maintain life’s endless demands and bills as you smell the roses for a minute, a week or a well-earned holiday. The peace-of-mind that allows you to weather life’s storms requires integrated financial management.

Research and experience are clear: reward follows risk; fortune favours the bold. The more you ‘do’ with your money over various asset classes, the harder it works for you. And we all want our money to do that.

And yet, a curious thing happens in the minds of most people when they contemplate the words ‘financial management’ and ‘financial advice’. They picture someone older, wealthier, probably in a suit, probably with a spread of complex assets in various locations. Maybe something cleverly tax-evading in the Cayman Islands. ‘It’s alright for them,’ people say, picturing this person, but not for me.

What is interesting about this suited, older individual? They almost never actually exist. It is a stereotype we make up in our own minds. And that stereotypes excludes us.

If you have never met with a financial adviser, or never traded in the stock market, or never invested in equities or offshore, why not? Is it because, secretly, you equate those things with someone who is wiser in years, has more money to throw around and more financial acumen? Does this person even exist? What if you knew that most of the people who invest in equities, stocks and offshore products… are people just like you?

There is only one difference between people who do and people who don’t: somewhere, somehow, they received permission to try, so they tried. Trying closes the gap.

When the sky didn’t fall if they failed, they would try again. Well, today – here’s your permission slip to try!

However, here’s the caveat: Trying something new with your finances should happen within the scope of your lifestyle financial plan.

In finances you can fail, and fail badly. An imprudent financial decision has wrecked people’s finances, their futures, marriages and hopes.

That is why the importance of a financial adviser/coach/partner cannot be overstated.

Reward follows risk and fortune favours the bold. So, we need to be able to take risks and be bold if we want to see our financial resources grow to meet our lifestyle goals.

A good financial adviser will never push you towards the latest, hottest thing at the risk of your livelihood. A trusted financial adviser is the opposite of the gambling spirit which takes so many life savings away. Risks that are worth taking and opportunities that are worth trying will always have the potential to push you forward, not destroy your future entirely.

It’s worth a try…

It’s not for nothing that cyber crime and hacking was considered 2019’s number one “major risk” by the world’s largest insurer, Allianz, in their latest Risk Barometer Survey. These days, it’s not if the security of your electronic identity and assets will be tried by a criminal, it’s when.

While no one is completely guaranteed safe from a cyber attack, these seven habits will mean that you’ll be a harder target than someone else and so, by default, cyber secure.

1. Cyber secure people never use free WiFi
South African speaker and social media legal expert named Emma Sadleir has a wonderful saying: ‘when something is free, you are the product.’ Don’t ever use a network that you don’t need a password to log onto, or even one that’s free. Hackers often either set up their own (very legimate-seeming) hotspots or sit in an existing one waiting for prey.

2. Cyber secure people use two-bit encryption
The more encryption you can use, the better. People who are secure online use systems where they will be told of logging on to banking and all banking steps via email or SMS and get One Time PINS (OTPs) for everything. OTPs make use of two-bit encryption and if you don’t have the code, you can’t complete the transaction. This sort of security is far harder for a hacker to hack and so, usually, they won’t go near a bank account with two-bit encryption.

3. Cyber secure people never, ever, ever give someone else their login details
There is a chilling tale of a savvy business woman who was called by her ‘bank’. They had her ID number, they had her card number. They just needed her PIN, please. They even had a call-back mechanism which directed her to her bank’s authentic call centre. She almost fell for it. Here’s the thing – no bank will ever, ever ever EVER ask you to type in your PIN, say your PIN or write your PIN down. The same goes for your username and password. It doesn’t matter if you’re in the bank itself. Never write down, say or otherwise disclose those three things.

4. Passwords are never easily guessable with the cyber secure
Anything that could be guessed at by someone who isn’t your spouse or mother isn’t safe for a password or PIN, including your birthday, anniversary, year you were born, address or ‘1234’. That goes for your security questions that the bank asks you too. Don’t just put your high school or first job – someone could stalk you on Facebook and find that out. In fact, criminals use this trick all the time.

5. Cyber secure people have varying, different passwords
This one, many of us are guilty of. Not many of us have unsecure passwords like our birth dates, 1234 or the word ‘password’ anymore. We have one strong and hard-to-guess one with upper and lowercase letters, numbers and symbols in it – but only one. It’s so much easier to just remember one password, isn’t it? But cyber criminals know that too, and so they know that they just need to get your details off one not-so-secure site and then it’s open sesame for everything else. So, use different passwords – completely different.

6. Cyber secure people are wary of personal info on groups
Those not-too-safe sites we just mentioned? Well, few are as unsafe as groups on WhatsApp, Facebook and Telegram. Especially not those really large ones where you don’t know each individual on there very well. We don’t care if it’s the church group or the over 70 year-olds’ group – don’t send any personal info including bank details and your address. You never know who is part of the group and looking for information.

7. … Or Gmail
This may come as a shock, but some cyber experts consider Gmail accounts easily hacked and not too safe. The extreme popularity of them might be one reason but, just to be safe, do not send sensitive information over Gmail if you can help it.

Remember, we can’t be 100% secure online as new hacking techniques are being unceasingly developed – but we can be mindful of our online security. If you are ever in doubt, update your passwords.