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Personal Finance

Spending Yourself Homeless?

Living beyond one’s means can derail the finances of even the highest earners.

Andrew Padoa




In today’s society, where impressions are so important, we even find wealthy individuals spending to impress. One famous person comes to mind – Mike Tyson. “Iron Mike” was earning $30 million a fight at the height of his career. He spent his fortune on mansions,Bengaltigers and jewellery.

In South Africa, not many of us own Bengaltigers, but many individuals feel compelled to purchase a flashy car or beautiful apartment on the beach – both of which might be well beyond what we can afford.  Living within our means is the foundation of financial stability. Below are a few signs that you are living beyond your means.

1) You can’t survive without your salary for at least three months.

Everybody needs an emergency fund as the basis of their financial plan. How big this fund should be depends on how long you would expect to be unemployed if you were retrenched.  A fund equal to three months’ salary is reasonable but six months would be ideal.

However this is unattainable for many South Africans. If you are a self-employed individual then you should provide for at least six months – especially in the current economic conditions.  Your emergency fund could also be used for some other unanticipated emergencies, such as a major medical expense, or vehicle repair.

2) Saving less than 10% of your salary

The majority of South Africans are chronically under saving. It is critical that we are saving at least 10% of our income from when we get our first job for our retirement. If we start saving later in life, we would need to save significantly more than 10%.

If you need to save for a shorter-term goal such as travel or buying a big asset, then you might have to save even more.

3) Our housing costs are more than 30% of net salary

Our housing costs are too high if we are paying more than 30% of our net salary towards a bond or home rental. This is a general rule of thumb, but we would be in a significantly better financial situation if we follow this guideline. Consider moving to a smaller house if this sounds familiar.

Also consider this number if you are applying for a bond. Just because the bank is willing to offer you a loan of R1 million, does not mean you should take the entire amount, if the bond instalment is more than 30% of your salary.

4) Not budgeting

Stick to a budget. If you’re currently living beyond your means, a detailed budget can help you get back on track. Keep in mind that while you may think you can keep a tally in your head, it’s important to have a written budget so you can keep track of all your expenditures.  It is very easy for things to spiral out of control if you are not following a budget or planning your expenses.

Also, not budgeting can increase emotional spending – which could very quickly get you into debt. ‘Retail therapy’ adds up – and all too often, it leads to financial disaster.

5) Constantly using your credit card

Although credit cards may come with fantastic benefits (such as eBucks through FNB) and allow us to purchase items online, it is important that you are aware of how much you are spending. According to several studies, shoppers who rely on credit cards rarely know how much they spend until their statements arrive.

Shoppers who use cash should be a lot more aware of what they are spending. Consider paying with cash or transferring money to your credit card if you find yourself getting into debt through credit card purchases.

Andrew Padoa works in the Private Client’s division at Consolidated Financial Planning. His area of expertise is investments, estate planning, retirement planning and portfolio benchmarking. He has had numerous articles published in the media on a number of topics related to personal financial management. Andrew is passionate about educating people and has given several financial literacy talks to both schools and corporates. His objective is to use his abilities and knowledge to help others achieve their financial goals. Visit for more information

Personal Finance

6 Ways To Develop A Millionaire Mindset

Chasing money has remarkably little to do with getting rich.



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If you truly want to have a million dollars, you must first be and think like a millionaire. By doing so, you will attract the necessary resources to you.

So, you want to become a millionaire entrepreneur? You’re not alone. Many dream of leaving their job and becoming their own boss, enjoying the various millionaire lifestyles we watch on TV. But there’s a difference between those who dream of becoming millionaires and those who do. And it begins and ends with mindset. If you don’t develop that mindset, you will continue to spin your wheels, working just as hard, but never going anywhere.

Developing a millionaire mindset requires you to stretch your thinking. Start by developing the following six attributes.

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Personal Finance

4 Ways To Become A Millionaire Even When You Start With Little

It costs nothing to take advantage of the limitless opportunities online.

Timothy Sykes




The hardest part of becoming successful is getting started to begin with. But despite the challenges ahead of you, there’s a way to become a millionaire when starting with little. I’m going to show you four reasons why you can become a millionaire with just a small investment.

1. First focus on learning, not big gain

Education is your greatest weapon. Focus on learning in the beginning. Don’t make the mistake of focusing on making huge gains in the beginning. Learn everything you can because this is how you build the foundations for long-term gains.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

They say that if a millionaire goes bankrupt they’ll nearly always be able to get it back. And that’s because they might have lost their money, but they have the knowledge of how to get back to where they need to be.

2. You can learn loads about any topic online


I’m grateful for the internet. It’s the single biggest library in the world. You’re reading this article right now and you’re acquiring knowledge you wouldn’t have been able to acquire 40 years ago.

Use the internet to its fullest extent, whether that’s through reading books, browsing articles or watching video tutorials. Set some time aside every day to learn something online. It could be a video series or a favorite blog.

When you get into the habit of learning regularly you’ll find that you advance much faster.

3. Focus on the niche you love

These days you can learn about anything and target the niche you’re passionate about.

This is what I was able to do with penny stocks. I found a gap in the market and provided knowledge to people who wouldn’t have otherwise being able to access this sort of information.

You can do that with absolutely any niche. When you find a niche you’re passionate about and you use the reach of the Internet you start to make huge gains.

4. Prove your expertise by creating free content

Your reputation as an authority is the new business card. There’s a reason I created a penny stock guide and made it free for all. You may have already seen ads for it on social media. The way to succeed with little is to create a reputation through your content.

Related: How To Become A Millionaire, Explained In 1 Minute

It’s the gateway to success because through free content you start to build relationships with others who value your work. And from there everyone gets richer.

You can do lots with a little

The days when you needed a huge investment to become successful are long gone. These days you can do so much with just a little. Find what you love, advance your knowledge in that area, and create a product that fulfills a need. Finally, work on building up relationships through portraying yourself as an authority on your subject.

Combine everything together and you can accomplish anything.

This article was originally posted here on

Related: 13 Habits Of Self-Made Millionaires You Could Adopt Today

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Personal Finance

10 Tips To Become A Millionaire This Year

Becoming a millionaire requires changing your mindset and implementing some changes.

Murray Newlands



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Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.

Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.

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