Everybody is concerned with how tight cash flow is. I am talking normal people, not multi millionaires and their peeps. Too often, the comment of “the recession is really tough” is thrown around. Most of the time, the people saying this are not using it in the right context, or don’t understand what it means.
The abundance of knowledge and the availability to one and all, not only local but anything from any corner of the world. This is the basis of the incorrect use or misunderstanding of this apparent recession. The experts on these shows are indeed that, experts. As with a lot of journalism, their knowledge is taken out of context. This causes a sensational story but causes damage. I call this rubbish, sensational journalism and it does nothing for anyone.
This is the basis of people using words they have no idea about. I xan see why recession is used but i can also see that it cannot be a reality, well at least not in 3 examples:
1. The money spent on cars. There are cars arw worth from about R 300 000 and can be as much as R1.2m. These may or may not be actually needed and warrant the price tag. However, it is the monthly instalments that intrigue me. These can range up to R20 000. This massive chunk of anyones monthly income. Some may be illegally used as “business expenses” but the vast majority? Surely it ,ust put huge strain on the bills when combined with a bond on a massive house as well as many other of the usual expenses. Many of these families will have 2 cars. You see where i am going with this.
2. The local pub is full. Just up the road from us is a newly opened bistro / bar. It is busy every day. It fills up from about 3pm, everyday. In relative terms, eating out and alcoholic beverages is expensive. With the “recession” going on, how do all these people afford this daily event?
3. Money spent on toys. I am not talking about for children, but rather the “big boys and girl” toys. Anything from bicycles to the latest watches and drones to name just a few.
So you have a fancy car, going Foe drinks with mates every night and have the latest toys to show off. All very good but how do you afford the rest of your obligations? DURING A RECESSION?
PS:the other thing is how do people manage to get time from work to go have drinks midafternoon?
The new year ishere andthe resilutions are on everybody’s lips. Have you made any?
Better question is: should you really made them?
Far too many people make all sorts of resolutions which, I believe, they actually have no intention of keeping. There are 3 types of resolutions that are made:
1. Resolutions that are made and kept.
2. Resolutions that are made but not quite kept. Eg: you want to lose 25kg and, despite your best efforts, you lost 20kg.
3. Resolutions that are made with no intentions of being kept.
Number 1 and 2 are great. You got up and changed something in order to get to your resolution. You may not get to it but you gave it your best shot. You can only try your best. Many outside factors can affect this process.
Number 3, however, is a different story. This can happen can for any aspect of life but, more odten than not, it involvesthe fatal words of “diet” and “exercise”.
Examples. I want to be more healthy. I want to go to gym more often. I want to lose 20kg. The list is endless. These often sound like excuses or something that you “should be” doing rather than wanting to do them.
The way to see if you are making the correct resolutions are the responses that you have at the end of the year.
1. Nailed it! Let’s do it again.
2. Oh so close, i will tweak it slightly and nail it this year.
3. Yes, i did but i really should ……. blah blah excuse.
The best thing about resolutions is that they are never cast in stone. They can be revised to a certain degree, not completely and not to suit you not wanting to do it!
Example: you set your resolution at running a marathon in the next year. You are training well and everything is on course. Then you sustain an injury that halts your training for 2 months. The year ends with the resolution not being met. The outside factor changed the outcome but the real motive behind it was met. That is the training, healthy eating and good rest.
Resolutions are and can be incredible life changing promises to yourself and all your friends and family but only if you really want them to happen.
Last question: are you really going to do that? If not, don’t say it, you are only fooling yourself.
There is only one investment that is guaranteed to make a gain in life. That is the investment in family. There are a lot of people to invest in but there are mainly 3 of these people that exist being yourself, your partner and your kids. You could write a whole book on yourself and your partner and this subject is beyond the scope of this book. The focus here is investing in your kids. Not one person has ever looked back over their life and said, “I wish I had worked harder”. If they do say that, then they are just not great people to be around.
You can invest for them such as saving for their education or their long term future. This is fantastic and I would really encourage this because it really does show you care about their well being later in life, perhaps after have passed away. Unfortunately, this is a perfect scenario that cannot always be carried out in the situation you or your family are in.
There are 2 options to make sure they are looked after.
1. Make sure your will is up to date. I am no expert in this and I would suggest a lawyer or attorney for this advice but making sure your will is in order, tells people that you have thought about your death ahead of time. This may sound backward but it will save them a huge amount of time, money and hassle subsequent to your passing.
2. Make memories.
Make the kind of memories that will stay with them forever. Perhaps you will learn a few things too! This type of memory does not have to be long, fancy overseas trips or extravagant gifts. Yes, those are nice but in 40 years time, will they be able to remember what present they got for their 4th birthday?
The type of memories i am talking about here is the kind of memory that they will tell their kids and grandkids and they will passed on through the generations. an example is that they will always remember talking to family and friends around the kitchen table. My kids are already got memories that will stay with them. They know that Daddy goes cycling and they go and watch me. My daughter even asks if I am going with granddad because I ride with my dad so often. These are small things when you single them out but they will last forever.
The investment in family is the only investment that will not fail or depreciate and in fact, it will only grow. It will even continue to grow after you pass away.