WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2007-07-31 Time: 00:00:00 Posted By: Jan
[Here is some good advice from the Sunday Times. All youngsters who LEAVE SCHOOL, should read the book: Rich Dad, Poor Dad; before they start working. Its a must. It could change their lives VASTLY FOR THE BETTER! Jan]
Perhaps it's still a hangover from 1994. Perhaps we enjoy our freedom so much in this country that we're still living for today. If what came before was so dreadful, what is there to say that the future will be any better, we ask ourselves.
It's understandable, but it's also a financial time bomb.
What we know is that right now, for those of us lucky enough to be participating in the South African economy, things are good. The problem is, however, that no matter how carefree we may want to live our lives, at some point we have to retire.
The trick is not only to enjoy the here and now, but also to prepare for your retirement too. The earlier you plan your retirement, the more comfortable it will be.
That means South Africans need to start saving, something that at present just isn't in the culture of young South Africans.
Paul Berkowitz at Econometrix says the situation is “pretty bad”.
“There's been a long decline in the private savings rate, and for the past five quarters, the savings rate has actually been negative. The negative savings rate means that people are actually spending more than they're earning (151) and they're likely taking it in the form of equity out of their properties, through remortgaging,” said Berkowitz.
Berkowitz said the earlier you start saving, the better. “If you start saving for retirement at age 30 for retirement at 65, you'll have a nest egg of about R285 000 by retirement at R200 a month with a real return of 6% annually.
“However, if you start saving just five years earlier, you'll accumulate 40% more by retirement, and if you'd started at age 20, you'd have almost double that money upon retirement,” he said
The nuts and bolts of how to prepare for a financially secure future without compromising your life today can seem complicated and intricate. Fortunately there are many books on the subject, three of which are listed below:
The Money Book for the Young, Fabulous and Broke, by Suze Ormon.
Ormon is a personal finance guru from the US, so while her books are squarely aimed at young Americans, the lessons contained in The Money Book apply just as well in South Africa.
Ormon gives it to you straight. The book is very much aimed at those people aged between 25 and 35 who have credit cards at the limit and, while perhaps earning a good salary, never seem to gain any actual real wealth.
Ormon covers pretty much all the personal finance bases for young people, including the different options for savings and investments and how to manage debt. It's a great book to start with.
Rich Dad, Poor Dad, by Robert Kiyosaki
If books on personal finance can become classics, then this is just that and it's one you're likely to find in all big book shops. However, it's not a book to buy for concrete investment and savings advice, as it is largely full of anecdotal lessons. Based loosely on the stories of two men, one rich and one poor, Rich Dad, Poor Dad investigates the different way the two men approach the business of handling their money.
Key lessons in the book include a realistic way of looking at assets and liabilities and, as far as possible, how important it is to “own the means of production” rather than just work for somebody else.
While these are sound ideas, it is not a book that is immediately useful for a young South African.
Sunday Times
Sunday, July 29, 2007 10:19:00 AM
URL: http://www.netassets.co.za/personalfinance/pe…/p>