Does it grow on trees?
A 30-year mortgage – which used to be 20 years – brings 60% more interest. MONEY LESSONS WE CAN LEARN FROM NATURE
Driving through our country is one of the best ways to appreciate the vastness and complexities of South Africa. Driving, cycling and walking also give you the opportunity to appreciate the variety of fauna and flora we enjoy yet so rarely talk about.
Lessons that we can learn from nature
I had the privilege of planting several trees in my lifetime. It is hugely exciting, but I’m always surprised how much time goes into the initial rooting of the plant during the first months/ years compared to the growth that happens above ground level. While observing the trees that I’ve planted, I wonder if we appreciate the following enough:
The benefits of trees planted many years ago, with now well-developed root systems.
The time and energy it took a tree to become well-rooted.
The same applies for true wealth to take root. Like trees, our finances are best protected from the next storm with a well-developed root system (preferably on rock not sand or mud). In forests, falling trees often damage or even destroy neighbouring trees, often seedlings of the same species. This is also true for families. If you are a “forest tree” in the vicinity
of others, spend enough time to root your finances in the right manner (before starting to grow in size and prominence).
Wealth rooting
During the early years of wealth planning, most growth takes place underground. It seems unimpressive and dull, without much sign of progress. This is an essential growth process. The bigger the root system, the greater height or growth would be possible above ground level.
Start financial rooting:
Have a professional legal will drawn up and keep it up to date. Later, this document forms the foundation of any potential wealth legacy. The risk of being uprooted or the accompanying
cost from a poorly developed wealth “root system” is massive.
Start saving and create an emergency fund worth one month’s net earnings.
The eventual objective is an emergency fund with three to six months’ net earnings.
Without an emergency fund covering unforeseen expenses, you are unlikely to get out of debt completely.
Live within your means and save yourself a lot of pain. All debt is uncomfortable during high interest rates. Many of us know the feeling of “the borrower is a slave to the lender”.
Repay your debt, starting with the highest interest rate debts. Use saved repayments to tackle the next debt item until you are FREE!
Does money grow on trees?
Innovative, modern consumer payment schemes cost us millions in interest/fees. This prevents early age essential “wealth root” development, e.g.:
30-year mortgages (used to be 20 years) brings 60% more interest).
Five- or six-year motor finance plans, ending with a balloon payment (used to be straight, over three years).
Credit cards finance luxuries. In my view, the explosion in credit is the reason why most people will never be financially free. Beware of lifestyle pressures. Modern lifestyle pressures make it difficult to focus on early “financial root” development.