Secure the Bag Workshop Recap
What an amazing night!
36 strong, beautiful and ambitious women joined us for our very first CLUBSHEIS.com workshop and it was eye opening and fruitful experience. The evening started with light drinks and snacks served at the Allan Gray Penthouse Lounge. The ladies connected with new friends while soaking in the beauty of the view from the top.
Building Your Millions – Sequential Wealth Framework
Vuyo Shimange from NMG Benefits started the SECURE THE BAG conversation by clearing up a few misconceptions that people have about wealth. Some truths were shared about the personal wealth trajectory and how people with 9-5’s can work towards the MILLIONNAIRE status without having to quit their jobs. Vuyo gave us examples of people he knows and workes with and how they have been able to structure their money to build their wealth and work towards early retirement without having to sacrifice their time or living standards.
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The Importance of Clarity
“Develop a personal Wealth Philosophy or gain CLARITY … Clarity on what works, clarity on where you are and more importantly, clarity on where you’re moving towards!” – Vuyo Shimange
The foundation of the conversation was set on clarity, clarity is the first step towards achieving your wealth goals. A brief explanation was given to the basics of personal finance and why covering your bases is important in building up your millions. Vuyo gave us a clear picture of what the average person’s wealth trajectory looks like and how we can work towards wealth and early retirement.
“The aim is to cover your risk and start saving for retirement so that once you retire, you can stop working and still receive money or income that will allow you to maintain the same living stardards, i.e live the good life after retirement. The problem is that many people aren’t putting enough money towards their retirment which means that they won’t be able to maintain a good standard of living after retirement. This then means that people won’t be able to retire comfortably let alone live a good life and become financially free” – Vuyo Shimange
Example: let’s assume that you need to save 8 Million Rand to retire and continue living a good life. Your spending happens, investment projections and income will determine the age that you will be able to comfortably retire.
There is still life after retirement. Your main priority should be covering your risk (life cover) and ensuring a good standard of living after retirement. Ideally, what people want to do is build enough wealth to have financial freedom and have the option to take early retirement and live their best lives without taking the financial strain. To do that, you need to get clear about the exact number that you need to retire, once you have that number, you need to create a plan to achieve that number by retirement.
The fun starts when you put yourself on the path to earning that number at a younger age, once you do that, then you open the doors to wealth and early retirement.
Equity of Everything
Equity is the gift that keeps on giving, if you want to make a substantial difference to your wealth trajectory then you need to find a way to have equity in income generating assets and businesses. Vuyo mentioned a number of options to make this happen, some of them include;
- Gaining equity in the company that you work for
- Acquiring equity in startups and other businesses
The joy of equity is that it gives you a good return for the money that you’ve invested without an equivalent or direct exchange of labour or working hours. Equity will continue to give you returns well after you’re retired or stopped working.
A Call to Be More Active In Our Investments
Lettie Mzwinila, got real about investments and the need for us to be more active in our them. She started the conversation by defining financial freedom and introduced us to a number of different investment vehicles. Lettie really fired up the room and inspired us to sit up and pay more attention to our money!
We learned more about the legend of Allan Gray, who he was and the impact that he made on the investment management industry. Lettie shared some eye-opening truths about investment management, what it is and how it works. She introduced us to the 3 role players in long-term wealth creation being:
- The Investment Manager: in charge of investing your money and getting returns on your investments
- Your Financial Manager: there to help you develop a wealth creation plan and find the best investment managers to help you act on this plan
- You: the person seeking wealth and financial freedom
Lettie helped us understand that our financial advisers have the duty to help us make sound financial decisions, have a sustainable income during retirement and leave a legacy behind when we move on to the next life.
“if you haven’t seen your financial person in the past 6 months, then you don’t have a financial adviser, you have a broker” – Lettie Mzinila
A broker is a person who buys and sellers goods and assets for others, an adviser is someone that will offer you sound financial advice, help you manage your money and connect you to the right parties to help you achieve your financial goals. If you don’t have an advisor then find one today.
Power of Investing Through Unit Trusts
“A unit trust is a type of investment that provides you with easy and affordable access to financial markets. Your money is combined with the money of other investors who have similar investment goals. Our investment managers use the pool of money to buy underlying investments to build a portfolio that is then split into equal portions called ‘units’. Units are allocated to you according to the amount of money you invest and the price of the units on the day you buy them.” – Allan Gray
Lettie opened our eyes to the power of investing in Unit Trusts. Through Allan Gray (with the help of an independent financial adviser), we can start investing in Unit Trusts with as little as R500 a month, alternatively, we can start with a single lump sum of R20 000 or more. The joy of Unit Trusts is that they give us easy access to our money at any time, we can make changes to our investment whenever we need to with no transaction fees and no penalties.
Making Money Through a Side Hustle
Our founder, Kopano Mocwane, wrapped up the workshop with an insightful look into online business and side hustles. We were shocked to find out how few of us had multiple streams of income. Kopano showed us how to find our unique talents and abilities and introduced us to different ways of turning those abilities into online businesses. The group was led through an interesting activity that gave us a taste of the joys of online business and how we could experience those joys for ourselves.
Kopano helps us realise the value of our time, knowledge and experience. As women, we often undervalue ourselves and our work, this results in us charging too little for our services. If we want to achieve the financial freedom that we want, then we need to start by adequality valuing our time and expertise. The fear of being rejected makes us want to price ourselves products and services below the current market price but we need to move away from that mentality and value our work correctly. We need to work on our self-confidence, reputation and credibility to build a strong case for the value of our time and expertise.
The Key to Starting an Online Business While Working
Kopano broke this down into 4 practical steps:
- Gain Self-Awareness: know what you are good at and use that to get into a business
- Map out your success: what does success mean to you, how much money do you want to make and how do you plan on making it
- Start Building: Build a home for your business and create systems that will do the online work for you so that you can focus on the important stuff
- Maintain: Market your business to the right people and never stop learning and improving your product
The night ended with more drinks, snacks and good conversations. It was a powerful night!
We all left the event with a workbook to help us work through each major topic and get us 10 steps closer to SECURING THE BAG! There was an air of hope and excitement as we left the Alan Gray offices in Rosebank, we’re looking forward to meeting more people and gaining more value at the next workshop.