Wisdom of Rich Dad

            

Money alone does not solve your money problems — financial intelligence does.

This is according to world best selling author Robert Kiyosaki, who will be in the country next week to promote his new book Increase Your Financial IQ.

In his book he says it is not the love of money that is evil, but the lack of it that causes evil. With the current high interest rates and soaring petrol and food prices, many consumers are finding it difficult to service their debts.

According to online money advice company www.justmoney.co.za South Africans use as much as 75 percent of their income to service debt.

The old adage, “knowledge is power”, has never been more relevant now as many people are selling their homes and cars to survive.

A recent survey by www.justmoney.co.za shows South Africans are cutting back on partying and eating out, by as much as 40 percent, as they watch their pennies.

Trim the Fat Off Your Spending

Getting out of a financial pickle is as easy as getting in it. It starts with changing your habits. Start by cutting out luxuries.

Do you really need DStv? While the four public television channels are notorious for their boring recycling of the same programmes, Multichoice does the same thing over 80 channels.  

The gym may be a great eye candy spot, but no body is worth R3000 a year to watch . 

You spend R1000 on groceries every month, and yet pay R100 for a restaurant meal instead of R20 for a home-cooked equivalent.  

You don’t need to buy clothes every month, so you don’t need store cards.  

You see your spouses every night, so don’t call them 12 times a day on your cell. 

Remember that cash is king . So stop living on credit.

~ Abdul Milazi

This entry was posted on Wednesday, July 30th, 2008 at 2:03 pm and is filed under Financial Literacy. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.