“It is the life experiences and lessons that teach us the most.”
Brad Austen, an Insurance Broker for the last 20 years and currently at MiSure in George, shared some valuable insights with Jean Jooste during an interview on Radio CSA. MiSure is a New Age Brokerage that is all about digital, distribution and sourcing the best premium. Wanting to deliver the best prices at the best premium to clients.
Finances are a journey that each of us is on but unfortunately, we learn limited principles during our school education. Brad Austen life by the principle of starting at protecting wealth and then go over to wealth creation.
There are also other financial principles that Brad prioritises in his own life and he continues to share that with others:
- Pay (reward) yourself – Each and every one of us work hard for our Money. Therefore, we need to reward ourself for that as well. We need to enjoy the money we work hard for every month. Having a budget is important for this principle as well. Knowing what your total expenses and financial responsibilities are, will give you the liberty to know how much you can afford to spend and enjoy every month as well.
- Pay it forward concept – If someone shows you kindness, reward them as well. Recently we’ve all been through some form of financial challenge, especially with the lockdown that started in March this year. Once you reach financial stability again (month-end salary or additional income sources), reward those that have helped you in the past as well. This can be any kind of gesture, for example, baking cookies, a cake, buy flowers, etc.
- Know where your money goes – Daily expenditure needs to be taken into account. This might be an admin intensive activity at first but you need to know where your money is going to. Daily, weekly, monthly expenditure needs to be kept in check. This will help with planning where can you cut expenditures, where can you spend more or you can come to the realisation that you can actually afford to save more than you thought.
- Compound interest – This is a very powerful principle to be familiar with. It counts for both investments as well as debt. Compound interests are the addition of interests on an amount and work on the basis of interest applied on interest. The greater the capital amount, the greater the interest payable or receivable. That is why it is always advisable to start saving as soon as possible because you will start earning interest on interest. That goes for debt as well – the sooner you pay off your debt (through paying additional per month to cover the capital loan), the less interest you will pay in total at the end.
- When buying assets – start small. When looking at assets, buy something that is reliable. Don’t buy a money pit, something that will cost a lot to be kept in a workable condition. Property – there is buyers and seller’s market, know when is which. Understand the town you are in as well. The area in which you buy contributes a lot to the value of your property. Strife to pay off loans as soon possible. Just by adding small amounts per month, can cut the number of years you will pay on your home.
- Credit cards – Having a credit card requires great discipline. By using your credit card, you are actually spending money which you don’t have. Decide in advance to only use it for cases of actual emergencies, rather than using it for entertainment or daily expense purposes.
- Set goals – The following percentage are an advisable margin in order to cover the monthly cost and work towards reaching financial goals: 50% of total income: goes toward fixed expenses (tithes are included in this bracket); 30% of total income: for groceries, clothes and other costs; 20% of total income: savings.
- Educate self – There is a variety of Educational Facebook pages, Podcasts, Books, Workshops and People from which each of us can learn more about Finances and how to manage our finances well. (MiSure, in partnership with Mastering It, has weekly FREE workshops for you to attend – see details below).
- Budgeting – a discipline in order to accomplish your goals and break-downs.
- Have a strategy with your Finances
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Start working on your Finances TODAY. Don’t wait for tomorrow or next month or even next year. If you are unsure where to start, chat with someone who can help. It starts will small changes and building up the right financial principles as you go along. Ex. Start with saving R150 per month (or an amount you are comfortable with), and increase as possible.
Looking to reach Financial Freedom? It, however, starts with the basics – drafting a budget. You need to tell your money where to go to, instead of not knowing what your money is actually being spent on at all. Start applying these principles and see how your financial stance in life changes!
Also feel free to attend a FREE financial workshop, done by MiSure.
Every Saturday at 09h00 (online).
You can register here or enquire for more details as well – email@example.com
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