FESTIVE SEASON ITS THE TIME FOR GIVING

It’s festive season and its the season for giving and also being generous. I’m sure we have all noticed the Christmas decorations go up and shops gearing everybody into the festive season, if not I don’t know where you’ve been you probably were just too busy to notice and are probably going catch on late to this fever, and marketing ploy.

December is that time of the year whereby we get to meet up with the family, long lost friends (good friends) and people in general. After a long tiring year one deserves to have a break, most of the working class probably are getting their bonuses or their 13^th cheque’s and are probably feeling like they have won the national lotto. This is where I come in to share some advice a sort of survival guide for these holidays and ask that consumers should tone it down and go easy on the spending this festive.

Someone once told me that “Failing to prepare is preparing to fail,” and I think this is very true because if one fails to save up in preparation for the festive season, one will start to find themselves without money or in debt with financial Micro lending outlets or ‘loan sharks’ .

 This will result in you soon ushering in the New Year with an uphill battle and your name being blacklisted by Credit Bureau, this is why it is advisable to plan ahead. 

 The festive season is the time to wind down and regroup this also means we should save during this time because there is nothing more saddening than to see children not going to school because of reckless expenditure over the December holidays. 

It is a common trend to see events of this nature occur in South Africa and especially around the more poverty stricken communities. This is just a little heads up for the December holidays your survival guide for this festive.

Money talks and the poor walk the plank

I am sure we are all familiar with the term walking the plank, if not - this is what pirates used to do to punish sailors or crew members that they had taken over, the crew would be tied up and forced to walk off the boat and plunge into the sea to their deaths.

It has become abundantly clear to see that in South Africa, if you have money you are somewhat above the law or certain things do not apply to you. There are many cases where this is quite evident, whereby the judicial system is put under light. A question asked by many is, is the justice system skewed against the poor?

“But there is one way in this country in which all men are created equal- there is one human institution that makes a pauper the equal of a Rockefeller, the stupid man the equal of an Einstein, and the ignorant man the equal of any college president. That institution gentlemen, is a court. It can be the Supreme Court of the United States or the humblest JP court in the land, or this honorable court which you serve. Our courts have their faults as does any human institution, but in this country our courts are the great levelers, and in our courts all men are created equal” 
― Harper Lee, To Kill a Mockingbird

The poor keep on getting poor while the rich get richer, with the huge inequality gap in South Africa, and the fact that South Africa has over taken Brazil to become number one in the ranking table.

The gap between rich and poor has grown to "unprecedented levels" in the past 30 years in spite of the "remarkable" progress made towards ending poverty, says the report, released by Oxfam.

The really question is, is everyone equal in the court of law? Many public figures have been caught drinking and driving or on the other end of the law, but have never been caught. On the other hand if it were to be your average Joe Soap that would be a different story e.g. I’m sure we all remember the story of the senior traffic official Brain Mc Bride who was caught for drinking and driving and never was taken to task.

With the ever growing inequality gap between the two, this has a major effect on your normal tax payer and sees them taking a huge hit whilst the rich earn more.

The Oxfam report said that multibillionaire US businessman Bill Gates, with an estimated wealth of $67-billion (R727-billion), could afford to spend $1-million a day for 218 years.

         IS POWER FAILURE GOING TO FAIL YOU?

It’s only a matter of time until your area or neighbourhood is left in the dark. Power cuts or load shedding as it’s better known, affect us more than we think. These power outages don’t just switch off the geyser so we don’t get hot water in the morning or can’t go to school or work because there is no iron to iron our clothes. Power cuts in actual fact impact us upon an economical level whereby local businesses and large manufacturing company’s such as Daimler Crystler South Africa, Mercedes Benz South Africa and not forgetting Volkswagen South Africa in Uitenhage, you also can’t make mention of these big manufacturers making mention of the mining sector. Power cuts, if not prepared for, can bring the economy of a country to its knees, this may also in future lead to big companies downsizing to cut the loss of profits made during their slow productive period during the blackouts. This worsens the country’s rather poor employment rate.

On the other hand, with a weakened rand South Africa’s economy cannot afford to have  any more blackouts as this amounts in billions of rands being lost. The evidence of this can be seen in 2008 where billions were lost in revenue, and business information systems crashed due to these incidents. However Eskom states that it is under a lot of pressure and cannot keep up with the current rate of usage of electricity, but, we must bear in mind that the percentage rate of electricity  will see households and business paying through their noses for electricity as it will be raised to 16% by the year 2015.

Medupi Power Station, this is supposedly Eskoms back up power station. It has taken authorities such a long time to build up and with copious amounts of money being spent for the development of this project which is still not complete, even to date.

                     

The crisis in our country is not getting any better and business need to go out there and get themselves backup systems to store information or documentation, they also need to have operating generators for when days get dark literally and figuratively.

                                                                 Made In China

This a label I am sure we all have come across before, whether it be on a electronic device or a piece of clothing or a pair of shoes for that matter. China over the years has become one of the leading manufactures surpassing Japan so much that it has become one of the leading economies. However we can say that this is contributed by this countries large population and huge labour force, also not forgetting its 'lax' labour laws. China is part of the BRICS setup a joint coalition of five countries, the acronym BRICS stands for (Brazil, Russia, India, China and South Africa). 

On the other hand, trade agreements between South Africa and China have left many South Africans jobless and unemployed. This is evident in the Eastern Cape whereby in the 1990's factories like Da Gama - a clothing textile factory used to provide many with jobs and an income to fend for their families. This was also the case in the Western Cape. However this was not to be the case as South Africa made trade agreements and embargo's that would cripple this country's clothing and textile industry. South Africa has become so dependent on China that it cannot do anything to upset the Chinese government or this will result in a loss of a R200 billion trade agreement between the two countries. Nationally over a 100 000 jobs have been lost between 2002 and 2010 due to cheap Chinese imports which have hem ridged the local market... S.A imports more than 19 billion worth of electronic devices and apparatus yearly from China.  

The recent controversial disallowing of the Dalai Lama to enter South Africa to attend a Nobel Prize l ceremony saw a public outcry whereby many see South Africa as a polecat. This is after the Tibetan spiritual leader was denied access into the country as this would hamper the countries trade agreement with China. 

Made in China, has South Africa become china's puppet or has the world become china's puppet?

PLAN AHEAD

It’s needless to say that given today’s day and age we need to plan ahead and plan for the future. However, this is nothing new.  Recently, I read an issue of the Lifestyle Magazine made by the RCS - a financial accredited micro lender - and came across an article written by Kolosa Vuso. I could not help, but take notes myself after reading this article and felt it necessary to share this with you.

She wrote the following: Saving up for life’s little pleasures or necessities can be very difficult, but well worth the sacrifice when you eventually fly off for that much anticipated honeymoon, or pay – stress – free! – For your child’s education. Here’s how to save for any day, and rainy day. (pg 54 of RCS Lifestyle Magazine – issue 13 of 2012)

In this article, Kolosa Vuso tackles the issue of having children and how you can provide for them in future, financially when they need to go to varsity. She also gives advice on how to start saving up a few Madiba’s (Rands) when having a new born. 

She wrote the following: Raising a baby is not cheap; from the day they are born their needs include baby formula, nappies, toys, childcare, food and things you haven’t even thought of.  Mothers on e-TV’s Great Expectations Forum recommend parenting on a budget while your child is still at infancy stage as it has many rewards.  The forum also suggested buying second hand instead of out of the box. . (pg 54 of RCS Lifestyle Magazine – issue 13 of 2012) Source: https://www.etv.co.za/forum

Others ways of saving up for an education fund include: opening a trust or an educational investment. I found this article very fruitful as it also advises us on how to start putting that little bit of money away on a monthly basis for a better cause in future and get more value for your money.  To get a better financial breakdown visit. www.asisa.co.za/fundisa.  Or source: fin24.com. For more information.

I am sure we all want to retire comfortably and have a plan for our retirement annuity. This article also goes on to discuss this topic clearly:

While saving for a short-term goal can be fruitful exercise, a long term saving plan can be a bit more demanding. Experts say that as few as one in 10 people in South Africa are making adequate provision for retirement. There is a sufficient coverage gap because around a quarter of the formally employed do not belong to a formal retirement plan. . (pg 56 of RCS Lifestyle Magazine – issue 13 of 2012) Source: lifesensefs.co.za

The idea here is to also start young, as this will enable you to save more. You can do this by saving from as little as R145 a month or R1750 per annum because the younger you start, the more time you get in and you will reap the benefits.  The only disadvantage in keeping your money in a policy is your ability to gain access to it, should you really need it.

START TO SOAR OVERCOME YOUR FEAR OF SUCCESS

                                                               

“Many women have the attitude that success is for others. Nonsense! Acknowledge that you’re worthy and deserving of success.”  - Adele Benvie

This piece seeks to inspire and motivate women, especially those in the business field dominated by matriacle culture. I came across the above heading whilst picking up an old issue of the Destiny Magazine and thought this could not be a more fitting title for my blog. I cannot help but agree with the words of Adele Benvie, in general women cannot help but feel lesser about them compared to their male counterparts when it comes to business or being in positions of power.  However this may not always be the case, because if we look throughout history there have been women in powerful positions who also happen to have been listed as influential women. An example of this would be women like; Hillary Clinton, Angela Merkel (The Germany Chancellor) and Michelle Obama just to name a few.  In South Africa we have initiatives such as take a girl child to work day, it is initiatives such as these that we need more of, to help bolster the number of women in Business in South Africa.

Sisters doing it For Themselves

South African entrepreneurial women can look up to women like self-made millionaire Ipeleng Mkhari  and various other influential women like Coni Fergurson, Nhlanhla Nciza and former Miss South Africa Basetsana Khumalo, as these women are living examples that success is possible for women in a male dominant world. The fear of success, Abraham Maslow coined the phrase “a Joanna Complex” writer Fiona Coyne who wrote the book “Who Moved My Ladder” a success guide for women; goes on to describe this as a feeling that women get when they seek, above all a sense of innerfulfilment and that they only achieve this when they realize their potential in its entirety and become all that they can be.

Beautiful Powerful You

Not outer beauty but inner beauty, the mind to create and think up new solutions to problems and entrepreneurial ideas; But to feel this way one must first learn to love themselves. One of America’s song writer and singer Whitney Houston said that learning to love yourself was the greatest love of all. I have to say I agree with this too, because as much as we give love to other people and things we need to do the same for ourselves and invest in ourselves. Remember the key to happiness and success: Dream big, work hard stay focused, and surround yourself with good people.

                       Money is not everything, but everything is Money!!!

                                                          

I’m sure we all have ambitions or had ambitions of being as rich as Warren Buffet or Donald Trump or even having as much money as sheiks, or probably becoming a business magnate like Richard Branson.  Well, growing up my father always used to say to me that ‘MONEY IS NOT EVERYTHING, BUT EVERYTHING IS MONEY.’ It wasn’t until later on in life I would come to realize the true meaning of this saying, whether it’s going on a dinner date or just to the movies with friends one can agree that money will certainly be spent. The following piece will go on to try provide solutions to people during these tough economic times and also leave some change in your pockets and get your money’s worth.

IT TAKES MONEY TO MAKE MONEY:

 This can be said to be true, as the more you invest or put in financial support in the hopes of receiving a better return. However this is not always the case but the fact remains that it takes some form of money to get started. I came to realize this while sitting in business class during my schooling days as nothing comes for free, trust me nothing! So a considerable investment can be made in trying to obtain what you desire.

DISCIPLINE:

If there’s one thing that sport has taught me during my junior years, that would have to be discipline. It takes a lot of discipline to save and saving can be one of the hardest things to do especially with all the influences around and adverts always promoting new products.

START THEM YOUNG:

Get your children to learn the importance of saving at a very young age, as you never know what the future holds. The concept of saving at a young age is important as this will allow them to reap the rewards of their patience, they will also learn to appreciate the value of money a bit more and become more financially independent in life. They will also know that they have planned ahead, especially when the cost of living is at an all time high and stagflation has taken place.

Money is not everything but everything is money, as ambitious as we are we should realize that; excuse the cliché “money makes the world go round.” And that even people like your Warren Buffets, Donald Trump all started off by saving, so with that being said people should budget, plan and save money effectively. This should be a principle we teach all try to teach ourselves.