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In Hindsight
Wise money lessons I wish I could tell my younger self

Kim’s advice to David


Kim Potgieter

Kim Potgieter

March 30, 2023

Like many entrepreneurs and business owners I’ve helped over the years, David has learnt a valuable lesson. You simply cannot put all your money into one basket. So often, people invest all their money back into the business and truly believe it to be the best investment vehicle for their future – but if something goes wrong, you could lose everything.

I have four tips for David:

Firstly, David has to visualise what he wants his life to look like if it turns out well.
Once you’re clear on what you want to achieve, it becomes easier to put action steps in place to realise your vision. With a clear strategy, David may decide to consolidate his business interests and focus only on the opportunities that facilitate business and personal success instead of getting distracted by a wide range of prospects.

Parallel income streams
Remember that money is an enabler, and you have to get your money to work for you in various baskets – your business is only one basket. The power of compound interest is the magic on which investments run, and it’s not too late to start, even at age 50.

Retirement savings
David may not be thinking about ever retiring, but there will be a time when he wants to start living on his own terms with enough money saved to make it happen. Starting your retirement savings in midlife may mean working for longer and saving more, but it’s an essential money basket.

Servicing debt
Most people cannot afford to service all their debt at once. David now has to allocate his money to four different baskets: some towards living and investments, some towards paying off debt and the balance back into his business.

Be consistent
Many entrepreneurs and business owners are big thinkers and often view the returns on savings and investments as inadequate and disappointing. While these funds are not the most attractive with the biggest returns, you absolutely need a reliable and consistent saving strategy. James Clear, author of Atomic Habits taught us that smaller, easier habits applied consistently have more power to succeed than big audacious goals that are just too hard to keep up regularly.

If you can save a little over the long term and challenge yourself to see each day as an opportunity to save, you will be 37% better off at the end of each year.

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