Hyping the cost of hiking to work
Andrew Human is CEO of the Loeries Company, best known for its annual awards for excellence in the advertising industry — and the raucous party that follows. Just how creative is Human with his own financial affairs, asks Brendan Peacock
Do you manage your own financial affairs, and would you say you’re good at handling money?
I’m definitely no financial whiz. I’m very conservative when it comes to money, so I don’t speculate or make high-risk investments, but in the same way I manage my budget well and don’t overspend.
Is there extra pressure on you to handle your personal money wisely as a CEO?
I guess it could be said that if I can’t handle my personal finances then I shouldn’t really be trusted with making decisions with other people’s money.
How difficult is it to manage your finances if you’re kept very busy by your day job?
I keep to a very regular personal budget, and that makes things simple.
How do you get through any
rough times — do you borrow?
I keep finance facilities available to be used if necessary, but I have always avoided debt as a first choice.
What did your childhood experience teach you about handling money?
My childhood was very divorced from money and finances. I spent my time riding bicycles, skateboards and motorcycles.
Perhaps as a consequence I became an engineer and never really had a big focus on or interest in money.
What was the best money advice you were ever given?
Pay your salary every month into your bond as soon as you get paid. This has a huge impact on reducing your debt.
Do you save or invest? If so, how?
My primary focus is on avoiding debt. This is, in effect, a saving of the interest you would be paying and which is higher than you can earn on many investments.
I use my credit card to make payments and earn points, but pay off the full balance every month. I use any surplus funds I have to pay off debt and everything over and above that goes into a retirement annuity, which gets a significant tax deduction from the South African Revenue Service.
What’s the best thing you’ve ever bought or spent money on? And the worst?
Property and property. The first house I bought was in Bezuidenhout Valley, Johannesburg, and the market collapsed almost immediately. I sold it for much less than I paid for it. My current property, on the other hand, has almost doubled in value since I bought it four years ago.
Have you ever taken on any work and thought “Never again”?
I’ve definitely found myself in situations where, in hindsight, I would rather have avoided them. But even a negative experience offers learning, and if it can help me avoid making the same mistake next time, then at least it brought some value.
Has your cost of living changed over the past few years?
I wouldn’t say dramatically. I’m fortunate that I live close to work and often walk to work. This has limited my transport costs — walking costs the same now as it did 10 years ago.
I do have two young boys, so their school fees are the largest additional cost for me.
What advice could you give to someone considering a career in advertising in South Africa?
Figure out where you want to be in 10 years and focus on getting there. Be ambitious, be strong and always be honest.