Sechaba Gqeba Hi everybody, welcome to the Eight
Steps to Financial Fitness series of workshops with Old Mutual. My name is Sechaba Gqeba,
and I'm your host. So, I can't think of a better time to be having this discussion,
and talking about ways to become more financially fit. 2020 hit us on the side of the head,
it was a very difficult year. We went through the global pandemic,
which turned everybody's lives upside down. We all had to look within, we all had to kind of
look at other ways to make money, we all had to tighten our belts when it came to our finances.
And being a freelancer and a host, and being in the industry that I'm in, I had to look at
my life in other ways and think to myself: I won't be able to go out and host events.
I won't be able to go out and do voiceovers. I'm a mother of two, I'm a married woman,
I had goals that I had to kind of go back to the drawing board and adjust as a result of 2020. So,
we're going to be linking this to your fitness physically. Because a lot of the times when you're
out there and you're trying to be fit and get the body of your dreams and be healthier, you do it in
steps. So, I've got the perfect person to take us through this. We've got eight of these workshops,
and we're starting with Elize Botha, who is the MD of Old Mutual Unit Trusts. Elize,
welcome to the show. Elize Botha
It's wonderful to be here, Sechaba. Sechaba Gqeba
Well, not the show, but the workshop. You look absolutely amazing. Thank you for being
with us today. Elize Botha
Oh, so do you. It's great to be here. Sechaba Gqeba
All right. So, we can't talk about finances without stressing the aspect of goals, making
goals. Why is it important to set goals? Elize Botha
I think what we are passionate about is South Africans and helping them to achieve their goals
and prosper. But you can't achieve a goal if you don't have a clearly defined goal and a clear path
to reach that goal. It's like when you are overweight and you decide to go on a diet.
You decide what your goal weight is, you agree on an exercise plan, you agree on an eating plan.
And then you set your timeline. It's the same with financial fitness. You need a goal,
you need incremental steps, and you need to stick to it to reach the end destination.
Sechaba Gqeba But being in your industry,
you're more clued up on the process of goal setting and kind of structuring your goals.
Someone out there is probably thinking, where do I start? You know, after a year like 2020,
we were all just derailed. So, where does someone who perhaps lost everything or
perhaps lost a fraction of the salary start with regards to setting goals?
Elize Botha Firstly, start with a blank page.
Last year was a difficult one. Between now and 2021, we can start afresh. So, firstly understand
what your values are. You can't be successful in goal setting, if you do not knowing what you
value. And people ask, "So, how do I know what I value?" It's what you surround yourself with,
where you spend your time, where you spend your money. And then secondly, what you have to do
is you have to just brainstorm. Put down everything you want to achieve,
everything you've ever wanted to do. And then you narrow it down. Then you decide out of this
20/30/40 things I've put down, "what is the most important to me?"
Then you end up with a maximum of five things. But like a life wheel, there's also a financial wheel.
You must make sure that all your goals are not in the same bucket, because it will be completely
lopsided. For instance, we need an emergency fund. Last year we saw that things happen. You don't
know about it, you don't plan for it. Have the emergency fund to help you through life's journey.
Second thing, have joy goals. You know, those beautiful holidays, the weekend away with the
friends, that's also important. And then your long term goals: retirement, buying that house,
solving for your kids education in the future. And make sure that you've got one in each bucket. And
that will make your wheel quite round, and that will help you on the path to financial freedom.
And just make sure that when you have your five goals, that you've got one in every bucket. They
all can't be in the joy goal division thing, then you won't retire comfortably, or you won't be able
to buy that house of your dreams. Sechaba Gqeba
Why do we find this whole process so intimidating as human beings naturally?
Elize Botha I think we're scared of
finances. We believe finances is a very difficult thing, we don't believe we can actually change our
lives. We think we're not rich enough, we think we are not well off enough. And just by starting,
you're actually already changing your future. Sechaba Gqeba
True. Alright, so, I have so many competing goals and you spoke about it, structuring them
is a good thing. But perhaps I might think this is important. And the next person might think that's
not important, my husband would be like, "but I don't think we need to do that". So, how do I
go about going through competing goals and saying this is the most important one and this is the one
that I really need to put on number one? Elize Botha
If you have a spouse or a partner, the most important thing is to sit down with
them and agree what is your joint goals and to plan for those. And you have to debate,
I'm sure there will be lively- Sechaba Gqeba
There will be a lot [laughter]. And they do get intense, trust me.
Elize Botha They do, they do,
and then once you agree on that, decide on your individual goals, because then you can say, "Okay,
I want to do this, but you don't." And by doing it that way, you can still get up to your five goals,
some joint, but some individual. Sechaba Gqeba
Love it. And what is your biggest financial goal? Personally.
Elize Botha At this stage in my life,
I'm about financial freedom. And to achieve financial freedom, you have to be debt free. So,
you have to service that debt and get rid of it, and then have an investment portfolio that is big
enough to sustain your lifestyle. Sechaba Gqeba
Okay, I'm going to stop you right there. Because an investment portfolio,
someone is watching and thinking, "investment, what?" Could you just break that down for us?
Elize Botha Again, getting back to your
previous goals. So, for instance, there's a lot of company websites that gives you tools to say,
what is the best option for you. From as little as R500 a month, you can invest. And so, people
usually think I need 1000s to start. You can do a debit order and do it monthly. So, basically,
you can go onto companies' websites, you can go onto oldmutualinvest.com. And you can see exactly
what to do and how to start, and it doesn't take a lot of money. That's the good news.
Sechaba Gqeba Lovely. And do you have any advice on how to stick
to your goals? Because I do think, especially think of a year like 2020: you could have had your
goals, and then you had to kind of shift things around and go back to the drawing board. So,
how would you advise one goes about doing that? Elize Botha
I think the most important thing is to start with a blank canvas, like I said before.
Understand your values, that's probably the most important thing. And don't buy stuff
that you don't really need to keep up with the Jones's or the Khumalo's, don't do that.
Just make sure that you fulfill what you really need, and go from there. Start a vision board.
Now, I know that sounds very airy fairy, but it's actually so important. Put pictures down
of exactly what you want to achieve, and remind yourself of it so often. And then another thing
to do is to make sure that you don't listen to outside noise. Markets are going to fluctuate,
there's going to be new politicians elected and things are going to sometimes be very noisy.
Just don't listen to it. And don't be influenced too much by outside parties about what you
should think about. Sechaba Gqeba
Which can be quite difficult, especially in this kind of industry. But I love that you touch up on
the vision board. I think with any other industry, people would advise you to put something down
on paper, pictures, so to be able to visualise it. So, for me, I - it's a little embarrassing,
but I think I'd only put together a vision board twice in my life. And I think the one thing I'm
going to take from here is I need to regularly remind myself of what my goals are. What would
you want people to take from this workshop? Elize Botha
First thing is, nothing is impossible... if you plan. Understand yourself, because financial
fitness is all about you as an individual. Then, don't be scared of something you don't
know. Just start today. If you save R500 this month, it's better than where you were in 2020.
So, use 2021 as a blank canvas, and just paint your financial future.
Sechaba Gqeba I love it. And I love that you took us through
the steps. But just to summarise, in case someone is kind of just going over this and going "I just
want to go through the main pointers". In terms of a summary, what would you say your top three
things are, that are most important to take out from what you and I have discussed right now?
Elize Botha Firstly, understand what you're about,
and where you are going. Secondly, put a vision board together and then utilise tools that we have
on company websites to decide: "Where am I going to invest?", "For what am I
going to invest?" and just start today. I think that is the most important thing.
Sechaba Gqeba I love it. Elize, thank
you so much for the advice. And I think a lot of people will be taking a lot from these workshops,
and hopefully doing better after such a difficult year. So, thank you so much for your tips. I think
one thing I took from this, is to have your goals, be able to prioritise, which are very important.
Vision boards, being able to visualise, and not listening to the outside noise. Just remember we
have seven more of these workshops coming up, and you're going to be taking a lot from them. Thank
you so much for joining us for the first one. Transcribed
by https://otter.ai