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How good are you at budgeting? Can you stick to a budget? 

Most of us from time to time are tempted to suspend/bend our budgetary disciple and spoil ourselves a bit… but research shows this kind of indulges can seriously hamper our dreams.

A story is told of two men, who worked in the city. They were both young and quite ambitious, the one we shall refer to as Person A started a business and in no time had, his earnings were R 1 million (R 1 000 000,00). Person A rented a nice flat in an upmarket suburb and bought himself a luxury car, plus fineries, etc. It goes without saying that soon he had not a cent left.

Person B, however did not fare so well… he found a job earning R 10 000,00 (Ten thousand) and decided to live within his means… in fact he saved R 5000 and spend the other half on sustenance etc.

The question I would like to ask you, the reader is which one, is richer Person A or Person B? No brainer right?

Obviously Person A, nice flat, luxury car and fine threads, etc… I mean he earned a R 1 million, correct? Wrong!

Say what? Truth to Power! Person A is broke… he has no money, unwisely spent on things that did not increase in value or earned him an income. Person B, however has R 5000, 00 in the bank. He spent half of his earnings and saved the other half. Wow! Blew your mind? Imagine person B earning 1% of what Person A had earned (10 000 X 100= 1 000 000). So how can it be that Person A is broke but Person B has MORE MONEY than Person A?

Well truth be told, it is not how much you earn, that makes you rich it is how much you can save! The more disciplined you are with saving the more likely you are to become successful? Weird right! I mean this goes against everything that we have been told. Get a good paying job, etc. Financial disciple is key!

It is what determines, whether or not you will pay off your debts quicker, own your own home, or even retire financially free! Now before we start blaming the parents and our own hardships. Let us realize that at any point in time, we can decide to become active or better savers… in other words, we can choose or make a conscious decision to better ourselves and learn the power of Financial Discipline… Financial Mastery/ Financial literacy or financial empowerment all the same thing.

Even if we decide to start saving a R5 or R 10,00 we can whether individually or in a group achieve many of our goals.

The trick is to be disciplined (focused) on the goal and to decide came hell or high water I will not relent I am going to complete my saving programme come hell or high water. Consumerism is nothing but distractions aimed at forcing us to realize we need more money (borrow) and then to repay it with INTEREST!!

So how can poor discipline keep you from owning your own home?? Well let us look at from this point of view:

If you don’t save, you have no nest egg, nothing to fall on in bad times ( the Covid 19 pandemic a good scenario), whilst if you save no matter how small the amount, the effect can be astounding. Consider this, even if you save R 10,00 per month but you saved it in a group for a longer period of time, it will bear fruit… likewise starting early to save for your own home, will reap benefits…


We have all heard that expression, so if you start saving towards owning your own home and miss (for whatever reason) you have incalculated a good trait… you might even end up starting a business with the capital, etc.

My advice is to start saving by writing down goals and trying to achieve this by having short time, medium and long term goals. There are thousands of stokvels and thousands of products designed to increase saving.

The simple answer is to take action! Start saving today!

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