How To Become Financially Fit and Wealthy
The author of Financially Fit and Wealthy shares her top investment and wealth-building hacks and secrets.
Player: Ronel Jooste
Company: FinanciallyFiT Group
Ronel Jooste has three passions: Entrepreneurship, financial wellness and physical health. With her new book, Financially Fit and Wealthy, Ronel combines these passions to create a guide that takes readers on a financial journey to achieve financial fitness and create wealth.
Entrepreneur chatted to Ronel about the truth about becoming financially fit and how we can all focus on building our long-term wealth.
Q. What do you wish you had known about money in your twenties and why?
I set a very solid financial foundation for myself during my twenties, but knowing what I know now I would have started businesses and grown my property portfolio in my twenties already.
During my twenties I only focused on growing my salary and my investment income.
I only realised in my thirties that you cannot build proper wealth by only earning a salary and investment income, because the growth on that hardly beats your personal inflation rate.
It was only in my thirties, once I had started my businesses, that I realised the value of creating multiple sources of income, specifically passive income.
Q. What is the single best piece of advice around wealth-building that you've received?
My parents had a "cash is king' mindset. They didn't believe in debt. This meant that we learnt early on that we had to wait to buy new cars for example. Until we could buy it cash, we couldn't have it.
When I had to apply for a bond to buy my first home, I was terrified of having debt and did everything in my power to repay my bond as quickly as possible.
Six years later I had repaid my bond, and the result was that I was debt-free in my early thirties, which helped me tremendously.
It certainly gave me the freedom to start building wealth. Looking at my parents, who are retired today and enjoying life to the fullest because they don't need to worry about money, has certainly inspired me to continue living with a "cash is king' mindset as well.
Q. What learning has been fundamental to how you view wealth and wealth-building?
Educate yourself about finances and be financially independent. The more knowledge you have about finances, the more informed and effective financial decisions you can make.
Your financial wellbeing is your responsibility. No partner, financial advisor or bank will ever take better care of you than yourself.
Q. Is there a link between wealth mentality and successful financial management?
Absolutely, and it boils down to good discipline, perseverance, self-belief and a positive mindset. If you set financial goals for yourself, believe you can achieve those and take action to realise them, you will certainly achieve your aims.
When you think positively and surround yourself with positive, successful people, you will attract positive things into your life.
But, and this is the most important part, you cannot only "think' and "believe' and expect money to miraculously appear in your bank account. You need to take action to make things happen. You need to constantly work on managing your finances and growing your wealth portfolio.
Q. What mistakes have you seen people make when it comes to personal investing and wealth building?
People lose a lot of money falling for scams and "get rich quick' schemes. If something sounds too good to be true, stay away. If getting rich was that easy, the majority of the population wouldn't be poor. Equip yourself with financial knowledge and make informed financial decisions.
Q. What is your money mantra?
"If you can't afford to pay cash for it, don't buy it.' No matter how idyllic that Caribbean cruise looks or how good that special deal seems to be, don't do it. Instead, set it as your goal, save up for it and book it once you can pay for it in cash. You want to return from that trip with lifelong memories, not with a mountain of debt.
Q. What lessons would you teach your kids from a young age?
To start managing their finances effectively from an early age. The way you manage your finances in your twenties directly contributes to how you are going to experience life in your thirties, forties and fifties.
Q. Outside of unit trusts and stocks, what investment vehicles are you interested in and why?
Personally, I like investing in properties and businesses. I believe both can give you the type of returns that you will never earn from unit trusts and stocks. I'm referring to consistent good returns over the longer term.
Properties and businesses, if set-up correctly, can provide you with consistent passive income streams; also during retirement, which is a significant add-on to any income from a standard retirement annuity or pension fund-type of savings plan.
Q. How are you sharing these lessons and advice with others?
I'm passionate about financial education and recently published my book Financially Fit and Wealthy, which takes my readers on a step-by-step journey towards improving your financial fitness.
No matter where you are on your own financial journey, you will obtain guidance to help you build a more secure financial future for yourself and your family.
I explain financial concepts by way of linking them to concepts and processes you would follow to achieve physical fitness and health, which makes it unique, more fun to read and easy to understand and apply in your personal situation.
Ronel's book, Financially Fit and Wealthy is available in hard copy and e-book format and can be ordered at www.roneljooste.com
Related: How To Become Financially Free