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Owned or Borrowed

David Aladegbaiye Patricks

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women

I recently saw an advert of a car i want for free for the first 2 months and i only start paying in January 2015. It was very tempting but then i calculated my expenses every month minus income and realized i would do better off, if I saved and bought the car cash, a decision that i really much appreciate at the time of writing this article. A few months ago a business colleague leased a car based on a huge contract he landed and he changed his lifestyle to accommodate his new status, un-calculated situations landed him with huge debts and a more worse financial standing.

So, is it good luck that some people borrow and never end up bad and others do and get off worse than they started with, over the past weeks I have meet a couple of people and done a quick survey on their monthly expenditure , income and also helped them weigh their expectations in terms of liabilities and asset and the results are very baffling.

On note that I am not trying to be racist or segregative in this article , I found that whites are more organized in their finances than blacks and that the elderly of all races are more careful of their spending than the young working class group. I found fashion, lifestyle class and a need to please friends and family at the top of reasons why people have debts.

A young man I spoke to earns a salary of R16,000 gross salary and R13,768 after deduction and has a loan repayment of R5,465 on a monthly basis, owed to 4 different financial institution. He drives a Audi A3, 2012 model with a monthly repayment of R3,920.80 for 72 months calculated on a 50% ballon interest with 130,000 due on final term date. The Car value is R260,000 but with the ballon arrangement for 72 months repayment, he would pay R412,298.48. He shares a property with a friend with a monthly rent payment of R2,450 and uses R760 for petrol per month depending on the rate of petroleum. He buys grocery of R1,800 and has 4 clothing account that amounts to R634 per month. Has a child contribution of R800 monthly and almost spends R1,000 monthly on refreshment.

Now, i get confused and asks how he gets along knowing he has quite a huge debt burden and calculating the term needed to sort the bills , not considering interest rates and refinancing that would be offered to this individual on the long run, i felt there was a need to discuss this topic.

On the other hand, Gregory Swartz in Olifantsfontein (said i can mention his name). He finished paying off his debt in 2012 and decided to live a low budget life, save and earn what he calls his. He started saving R3,500 every month , the same amount he was paying for his car before he finished off the payment. He moved from a high class duplex into a townhouse where from R8,940, he now pays R5,500 per month. He opened a part time dog breeding business to raise extra income and makes at least R1,900 when business is low and R12,000 when good.

He buys his pack of 24 beers with grocery every month and braii packs, saves liquid capital in the bank and a fixed deposit for emergencies. I compared the two individuals and i see the low level of worry in Greg and a very unsettled atmosphere around the first individual i did the survey with. I also after this article made a few changes where necessary and hope you the reader make some after checking my points to living a burden free financial life.

Here are 5 points that has made a lot of successful individual peaceful :

1. Definite Aim, Vision and Purpose – Successful people constantly seek clarity in their lives. They know what they want and they follow their own dream. Vague desires and beliefs lead to vague outcomes. It is this sense of direction that gives them the staying power to stick to their goals and achieve their dreams. Hence a lot of people do not attain much when they have no vision and get dabble by different thought and opinions that would end up to consequences of ungrounded decisions.

2. Flexible – One misconception that ordinary people have about persevering is staying the course no matter what. This is true only if the reason for pursuing your goal is still valid. Most successful people became successful doing something different from what they initially intended to do (i.e. Steve Jobs started with computers, went into the animation and really made his comeback with the iPod). This is normal because the world is always changing and they know a lot more now than when they started. Successful people know that if their reasons for doing what they are doing changes, there is no point to continue. If you wanted a house in Sandton and after doing the maths you realized you will pull too much financial burden, it would be wise to check in an area within your budget limit that way you still get a house but with less or no financial worries.

3. High Self-Esteem – Extraordinary people believe they deserve their success and know that they can do anything they set their mind to. They understand that a mistake is something that they do and not who they are. They also monitor the warning signs of low self-esteem to ensure they always keep a positive self-image of themselves. They realize that self-esteem is a state of mind and choosing to have high self-esteem is much more useful than choosing to have low self-esteem. Hence i alway advise people to build inner esteem and not material base esteems as this easily wears off with time. There is nothing external that can give you 100%  confidence than yourself. Accumulating material things, in order to get a status that boosts esteem always ends badly.

4. Action Oriented – We all know of people who have potential or talk a big game but accomplishes nothing. Those who spend all their time thinking about doing something will never succeed. Successful people are doers and not talkers. They don’t wait for conditions to be perfect before they take action. They just go for it, observe the feedback and then modify their next action accordingly. Those who don’t achieve much with their lives tend to use “would”, “should” and “could” a lot. Those who do get what they want are too busy achieving their next goal to explain themselves. If you suffer from procrastination, I encourage you to check out some practical ways to stop procrastinating.

5. Great Company – As I experience and observe more and more of life, I’ve come to realize that you really can learn a lot about someone by the company that they keep. Test this by looking at people you know and the people they hang out with. You can go as far as to test the idea that a person’s salary is usually the average of the five people they hang out with the most.

This happens because people with similar beliefs tend to get along and stick together. If a group averages R65,000/year and someone in the group believes that they can make R65,000/hour, the other people in the group will think that is ridiculous. Yet in the group where everyone makes R65,000/hour, the person making R65,000/year will probably second guess his/her own beliefs concerning earning ability.

What does that mean for you?

Surround yourself with people living the life you want to live and adopt their beliefs and habits.

Lastly, if you want to make decisions that are financially linked or you see yourself in a situation that only the help of a financial institution can assist. Please get the help of a financial adviser (external) before you take the decision and do a lot of comparism of repayment insterest and the repayment term. In my next article i will be talking about enjoying the holidays without regrests.

I am the Co-founder of NativityConcepts,SA , acting Brands Manager for Maphorisa initiatives, Shareholder of empowerprojects, Psychologist at Lovefoundation, Mentoring partner for Mzanidirectories. A business mind, a playful soul and a fan of life. I love to share my experiences and feelings in a practical way, hence i ended up with a hobby for writing.

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Business

Direct selling providing more opportunities for more women

Metrosmag,SA

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Johannesburg, 16 August 2017 – Figures just released indicate that unlike many other sectors in the economy direct selling is growing, providing more micro-entrepreneurial and income generating opportunities for women.
Currently some 1 333 223 South Africans benefit from direct selling and have the opportunity to build their own small business, of which 72% are women.
Despite the flagging economy, direct sales in 2016 were 18 percent up on 2015, totalling nearly R12.9 billion
According to Cornelle van Graan, chairperson of South Africa’s Direct Selling Association (DSASA), direct selling attracts female entrepreneurs because it offers opportunity, flexible working hours, training and the ability to work from home.
The number of women who make a full-time living from direct selling has grown by almost 30% with the majority operating in the health and wellness, personal care or household good sectors.
Van Graan says that the sector also provides opportunities for women who have an existing full-time job, but want to supplement their income.
“Direct selling is also a good way for stay-at-home mothers to make a living, while being actively involved in the lives of their children. Getting started is generally easy, low cost and low risk.”
“Mothers usually have an existing network of other moms, giving them excellent access to a market with similar needs and interests. Their personal relationships and endorsement gives buyers confidence, so these women can be very effective sales people.”
About three-quarters of all direct sales people in South Africa are involved part-time.
Besides flexibility and access, part of the appeal of direct selling may be that money can be earned immediately the sale is made. There’s no waiting until the end of the month or the next payment cycle.
Van Graan says while motivation can vary from paying for a child’s education to saving for a dream holiday, most women get involved in direct sales to provide for their families.
There are 34 direct selling companies who are members of the DSASA. There are more than a million independent business owners associated with DSASA member companies. They make sales totalling nearly R13 billion a year. Everything from financial services to beauty products and skin care, from fragrances and fashion accessories to nutrition and health supplements, from dinner services and a host of other tableware and kitchenware to household cleaning supplies are sold.
What you need to know about direct selling:
If you are thinking of becoming a direct seller here’s what you need to consider to help decide what direction you want to pursue.
1. Product selection
The direct selling industry offers a range of products within sectors such as health, beauty, homeware, financial and investment products, nutritional supplements and weight-loss management. Although it is preferable to choose products which you are familiar with or interested in, you will receive training on all products being offered by the DSA member company that you choose to join. Believing in your product is vital to effectively market and sell your product, as well as personal fulfilment.
2. Choosing which company
Visit www.dsasa.co.za for a full list of member companies and scroll down and identify the companies offering the type of product or service of interest to you or the business opportunity that appeals to you. Attend a demonstration or visit the website of the company to help decide which company you feel best suits your needs and ideals.
3. Research appealing companies
Read through all their marketing collateral and agreements to get a good understanding of the stability and history of business and of your responsibilities.
4. Investigate the start-up costs
All DSASA member companies are obliged to keep start-up costs low. Your initial investment will typically cover a sales kit with all company information, product samples and training materials. Avoid companies expecting a large investment or who push overzealous inventories, you should be allowed to grow at your own pace and affordability.
5. Study the return policy
All DSASA member companies are obligated to buy back any unsold, re-saleable product inventory, promotional materials, sales aids and kits purchased within the previous 12 months at the selling price less an administration fee of up to 10% of the selling price.
6. Fully understand the compensation
Check the member companies’ compensation plans as they all differ. Make sure you understand details of earnings and the overall business model.
Ends.

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Veolia signs landmark B-BBEE deal with Ceracue

Metrosmag,SA

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“Veolia was looking for a local development partner with strong project experience in the water treatment markets,” explains Gunter Rencken, Managing Director, Veolia Water Technologies South Africa. “In Ceracure, with whom we’ve had a less formalised working partnership for about four years, Veolia has a hands-on, active B-BBEE partner with a thorough understanding of our core business and the water treatment market.”

This close alignment in corporate vision lays the basis for a synergistic approach to increased business development in both South Africa and Africa. “With this partnership in place, Veolia can confidently amplify business development avenues and enhance our project reach in the municipal and industrial markets,” Rencken continues.

“In addition to demonstrating Veolia’s seriousness to transformation and social development, it also means we’ll be able to supply water treatment solutions encompassing a broader scope of works,” explains Langa Nxumalo, Managing Director, Ceracure. “Together, we can advance our technical and business capabilities, offering a superior and integrated solution for water treatment projects. This ‘one plus one is equal to three’ strategy will allow better project execution in line with clients requirements, all thanks to a good balance sheet and technical experience by Veolia.”

The partnership will also see Veolia South Africa taking an active approach to expanding Ceracure’s business capabilities. “We are assisting Ceracure with achieving a higher CIDB grading, and have planned for a structured transfer of technology and skills of Veolia’s water treatment expertise to Ceracure,” Rencken explains.

Veolia’s shareholding arrangement with Ceracure represents an important pillar of the company’s new vision that is enhancing the water solutions specialist’s delivery of highly efficient, low-footprint water treatment technologies in South Africa and Africa. Alongside the B-BBEE deal are a range of recent organisational and technological innovations that have streamlined the company’s manufacturing, distribution and service networks across the region. Veolia South Africa is now positioned as a key technology and manufacturing hub for Veolia’s new range of standard engineered products and systems as well the company’s range of Hydrex™ speciality chemicals.

“We are excited to welcome Ceracure on board, and look forward to a fruitful synergy with them as we continue to tackle Africa’s water treatment challenges,” Rencken concludes.

Veolia group is the global leader in optimized resource management. With over 163 000 employees worldwide, the Group designs and provides water, waste and energy management solutions that contribute to the sustainable development of communities and industries. Through its three complementary business activities, Veolia helps to develop access to resources, preserve available resources, and to replenish them.In 2016, the Veolia group supplied 100 million people with drinking water and 61 million people with wastewater service, produced 54 million megawatt hours of energy and converted 31 million metric tons of waste into new materials and energy. Veolia Environnement (listed on Paris Euronext: VIE) recorded consolidated revenue of €24.39 billion in 2016.

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Arduino Education Kit for young students aids technology learning

Metrosmag,SA

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Johannesburg, South Africa – RS Components (RS), the trading brand of Electrocomponents plc (LSE:ECM), the global distributor for engineers, has announced the availability of the Arduino CTC 101 Education Kit, which is a complete e-learning platform enabling young students to learn the fundamentals of electronics, programming and mechatronics. The CTC 101 kit has been designed for teachers and other instructors working in education and is specially tailored for the 13 to 17 age group at secondary schools. Each kit includes enough electronic components for a class of 24 students and a teacher.

Today, Arduino is one of the most popular open-source electronics platforms. Initiated in 2005, the Arduino project targeted the development of low-cost and easy-to-use hardware and software that could be used by non-engineers or simply anyone new to electronics that was interested in creating digital electronic projects.

Building upon this foundation, the Arduino Education programme was set up to empower educators with the necessary hardware and software tools to create a more hands-on and innovative learning experience. As a major element of the initiative, the CTC, or Creative Technologies in the Classroom, is Arduino’s one-of-a-kind STEAM (Science, Technology, Engineering, Arts and Mathematics) programme for upper secondary education.

The CTC enables the introduction of students to the fundamentals of programming, electronics and mechatronics through a series of well-documented projects and easy-to-assemble experiments. Training for the programme is available online and through a combination of recorded lectures, support materials and Q&A forums, via Arduino.

Specifically, the CTC 101 kit supports programming and mechatronics with five themed modules and offers more than 25 hands-on experiments. All the parts in the kit are completely reusable, thereby enabling experiments to be reconfigured in endless combinations and further developed for more advanced students and projects.

Each CTC 101 kit includes enough electronic components for a class of 24 students and a teacher. It includes: six Genuino 101 programmable microcontroller boards; six Arduino Education Shields; a set of sensors and actuators; component modules; breadboards; a wide selection of electronic components, connectors and wires; plus other elements such as servo motors, USB cable, wheels and bearings, batteries and power modules.

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