The secret is in your pocket

This is the final Your Money, Your Lifestyle page for the year so we wish our readers a restful year-end. We hope you take this opportunity to look at your finances and get your money under your control to get it working for you.Write to us with your stories, ideas and what you would like to learn more about in 2013

‘What if I told you the secret to becoming wealthy or being debt free simply lies in taking a second look at your wallet?’ asks Liziwe Ndalana, who went on Old Mutual’s On the Money financial-management programme

Old Mutual’s On The Money financial-management programme, which targets mainly lower to middle-income earners, helped me understand that the secret to being financially independent does not lie in earning a lot of money, but rather in learning to manage the money you already have.

It made me realise that the money you have can double in value if it’s used wisely. This means avoiding spending money you are yet to receive, not living on credit and committing to becoming debt free.

Moving from being over-indebted to being financially independent takes a change of mind-set and that is not always easy to achieve.

The course bases its concept of money on simply looking at each of the South African banknotes. Each note represents a member of the Big Five, and each of these animals possesses a behavioural trait we can adopt to better manage our finances.

On The Money focuses on achieving behavioural and mind-set changes for consumers in handling their money.

John Miyake, the head of financial education at Old Mutual, says: “(The programme’s) aim is to foster a sense of financial management planning in a non-intimidating and non-paternalistic way for people who want to improve their financial literacy.

“The Big Five is the most appropriate tool to use in teaching people financial management principles, as it
is most familiar to them.”

The programme is accredited and has been incorporated into many training programmes by corporations as well as the public sector.

Entrenched in the programme are five key financial-management principles such as budgeting, getting rid of or properly managing debt, setting out clear financial goals, having a plan, and being disciplined enough to stick to that plan.

It is a fact that successful people have taken time to allow their money to grow. Investors get jittery when they see the market not performing well, but what they fail to realise is that saving is a long-term commitment.

Overall, the course brought home three main aspects that financial freedom requires: willingness, commitment and loads of discipline.

This does not mean you’ll always get it right, but having a goal to achieve helps you stay on course.

» For more information: www.oldmutual/financialeducation.co.za or 0 0860 388 873