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Rules of Money

It is generally agreed that it takes 21 continuous days of following a similar pattern of behaviour to develop a habit. Habits can be learned and unlearned. We were all born without habits. English Philosopher John Locke is widely acclaimed for the theory of the “tabula rasa.”

In essence the theory suggests that our current habits are results of behaviours that we have learned routinely over years and years.  What we are today and what we believe in was implanted in us by interaction with the society that we live in.


The important lesson is that our beliefs, spiritual being, our fears and habits have been learned yet we were born as “tabula rasa” that is a “white clean slate”. Our contact with the environment shaped and cultured us to believe, see and behave in a particular way.


This brief lesson in Psychology directly implies and verifies that what we are a total summation of our contact with environment. The habits that we have are therefore results of interaction with our surroundings. Inherently this suggests that our money habits, attitudes, perception have therefore been learnt from somewhere whether consciously or sub-consciously.


If it has been learned therefore it can be unlearned. It is only that now you will be aware of the learning process. It is not easy to unlearn but it is simple.


We can discover new patterns of behaviour to replace our old behaviour by practicing our desired behaviours over and over until they become new habits.  If you want to be successful you can look at the documented habits of self- made millionaires and practice them until they become yours.


The idea is not to pursue the money only but we have to develop the ability to be able to keep the money. The bad money habits are therefore replaceable. We can be born again in terms of our money habits. We have to identify our new desired habits to replace the old habits.


Have you wondered why a person who has won 1 million pula end up with zero pennies in a short while?  It is simply because they got the million pula but do not possess the money mind to be able to grow or at the least preserve it. The money will vanish as fast as it came. Money management consist of thumb of rules that cannot broken.


Right from the Richest Man in Babylon to Rich Dad Poor Dad the basic and fundamental rules of money are all the same, though expressed through individual creativity. It is these rules that we are going to share today. If you started working on these rules today you will be astonished as to how the universe re-organizes to commensurate your newly found self.  


Most entrepreneurs and investors work years and years to accumulate their wealth. In the process they undergo so many money lessons that by the time they get their first million their mastery of finances is phenomenal. They have acquired over their rise to the millionaire status, million dollar habits that teaches them the essentials of money management.


They are basically products of the University of Hard Knocks and because they know the pain of losing everything they walk the balancing act of being open minded while also being protective of what they have accumulated.


The point is, ordinarily no one will be able to rise from managing a few hundreds of pulas to now managing millions of pula. Mark the word ordinarily some people possess natural frugality skills and can remarkably manage the transformation.


If you win a lottery, you have acquired the money but not the money mind. Your habits are the same and you will loose it faster than you can imagine hence why people who win lotteries end up poor again most of the time.

Today I share with you the 7 MoneyMind rules


Rule 1-Budgeting
You cannot operate without your budget because the budget gives you a guide as to how you spend your money. You can notice patterns of your spending and adjust accordingly. This rule cannot be broken if you do you will never experience abundance.


Rule 2-Give 10% away
The first 10% of the money must go to church or charity. It must be given away. This is the first rule of MoneyMind. I cannot explain it because it is spiritual. The more you give the more money you seem to attract.


Rule 3-Pay yourself first
Pay yourself first and the sufficient amount to go towards your savings throughout your lifetime is 15%. We always pay expenses and debts before we save. The attitude towards savings should be that we pay ourselves first. After giving 10% to charity you need to save 15%.


Rule 4 –Pay your household expenses
To discharge your best effectively you need the peace of mind of having paid all basic household needs such as shelter, food, clothes, transport etc. Without this you cannot maintain a positive mindframe.

Rule 5-Insure yourself and properties
Insure yourself, properties and everything that you have including life cover that will go towards your estate. If you do not insure yourself or properties you can lose everything. Insurance is very vital and stop listening to people who say otherwise.


Rule 6-Pay off your debts
Pay off your debts and debt is any loan or borrowed finances that do not bring any income. Work on a plan to gradually reduce your debts. Engage honestly with your creditors. Avoid credit cards and hire purchase agreements. Save towards your goals.


Rule 7-Invest
Invest in a business, stock or investments vehicle with returns that are better that inflation e.g. Metropolitan Life Botswana investment policies in the past ten years have offered an average of over 10% compounded annually.  

Cut out this article and remind yourself regularly about these rules. Habits are formed if you derail don’t despair you will eventually conquer you bad money habits and don on your new money habits.

This is achievable; together towards to our new money habits.

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Business

Gambling Authority tender dangles as a jittery lottery quandary

30th November 2020
SEFALANA MD: CHANDRA CHAUHAN

Lucrative and highly anticipated national lottery tender that saw several Batswana businessmen partnering to form a gambling consortium to pit against their South African counterparts, culminates into a big power gamble.

WeekendPost has had a chance to watch lottery showcase even before the anticipated and impending national lottery set-up launches. A lot has been a big gamble from the bidding process which is now set for the courts next year January following a marathon legal brawl involving the interest of the gambling fraternity in Botswana and South Africa.

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Business

The uncertainty of getting the next meal in Botswana

30th November 2020
uncertainty of getting the next meal

Households representing more than half of Botswana’s population-mostly residing in rural areas- do not know where their next meal will come from, but neither do they take into consideration the quality and/or quantity of the food they consume.

This is according to the latest Prevalence of Food Insecurity in Botswana report which was done for the 2018/19 period and represents the state of food insecurity data even to this time.
The Prevalence of Food Insecurity was released by Statistics Botswana and it released results with findings that the results show that at national level 50.8 percent of the population in Botswana was affected by moderate to severe food insecurity in 2018/19, while 22.2 percent of the population was affected by severe food insecurity only.

According to the report, this translates to 27 percent of the population being food secure that is to say having adequate access to food in both quality and quantity. According to Statistician General, Burton Mguni, when explaining how the food data was compiled, Food and Agriculture Organization of the United Nations (FAO), is custodian of the “Prevalence of Undernourishment (PoU)” and “Prevalence of moderate or severe food insecurity in the population based on the Food Insecurity Experience Scale (FIES)” SDG indicators, for leading FIES data analysis and the resultant capacity building.

“The FIES measures the extent of food insecurity at the household or individual level. The indicator provides internationally comparable estimates of the proportion of the population facing moderate to severe difficulties in accessing food. The FIES consists of eight brief questions regarding access to adequate food, and the questions are answered directly with a yes/no response. It (FIES) complements the existing food and nutrition security indicators such as Prevalence of Undernourishment.

According to the FIES, with increasing severity, the quantity of food consumed decreases as portion sizes are reduced and meals are skipped. At its most severe level, people are forced to go without eating for a day or more. The scale further reveals that the household’s experience of food insecurity may be characterized by uncertainty and anxiety regarding food access and compromising the quality of the diet and having a less balanced and more monotonous diet,” says Mguni.

The 50.8 percent of the population in Botswana which was affected by moderate to severe food insecurity are characterized as people experiencing moderate food insecurity and face uncertainties about their ability to obtain food. These people have been forced to compromise on the quality and/or quantity of the food they consume according to the report on food insecurity.

Those who experience severe food insecurity, the 22.2 percent of the population, are people who have typically run out of food and, at worst, gone a day (or days) without eating. According to the statistics, rural area population experienced moderate to severe food insecurity at 65 percent while urban villages were at 46.60 percent and cities/town were at 31.70 percent. Those experiencing the most extreme and severe insecurity were at rural areas making 33.10 percent while urban villages and towns were at 11.90 percent and 17.50 respectively.

According to a paper compiled by Sirak Bahta, Francis Wanyoike, Hikuepi Katjiuongua and Davis Marumo and published in December 2017, titled ‘Characterization of food security and consumption patterns among smallholder livestock farmers in Botswana,’ over 70 percent of Botswana’s population reside in rural areas, and majority (70%) relies on traditional/subsistence agriculture for their livelihoods.

The study set out to characterize the food security situation and food consumption patterns among livestock keepers in Botswana. “Despite the policy change, challenges still remain in ensuring that all persons and households have access to food at all times. For example, during an analysis of the impacts of rising international food prices for Botswana, BIDPA reported that food prices tended to be highest in the rural areas already disadvantaged by relatively low levels of income and high rates of unemployment,” said the study.

According to the paper, about 9 percent of households were found to be food insecure and this category of households included 6 percent of households that ranked poorly and 3 percent that were on the borderline according to the World Food Programme’s (WFP) definition of food security.

Media reports state that the World Bank has warned that disruption to production and supply chains could ‘spark a food security crisis’ in Africa, forecasting a fall in farm production of up to 7 percent, if there are restrictions to trade, and a 25 percent decline in food imports.

Food security in Botswana or food production was also attacked by the locust pandemic which swept out this country’s vegetation and plants. The locust is said to have contributed to 25 percent loss in production.

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Business

Solid demand for diamonds towards the ‘gift’ season

30th November 2020
Diamonds

Global lockdown have been a thorn in diamonds having shiny sales, but a lot of optimism shows with the easing of Covid-19 restrictions, the precious stones will be bought with high volumes towards festive season. The diamond market is however warned of the resurgence of Covid-19 in key markets presents ongoing risks amid the presence and optimist about the new Covid-29 vaccines.

The latest findings published as De Beers Group’s latest Diamond Insight ‘Flash’ Report, which looks at the impact of the pandemic on relationships and engagements, has revealed that in the US that more couples than ever are buying diamond engagement rings. Bridal sales is mostly the primary source of diamond jewellery demand in recent months, De Beers said.

According to De Beers, interviews with independent jewellers around the US revealed that the rate of couples getting engaged has increased compared with the period when Covid-19 first had an impact in the US in the spring.

“In addition, despite challenging economic times, consumers were spending more than ever on diamond engagement rings – often upgrading in colour, cut and clarity, rather than size. Several jewellers speculated that with consumers spending less on elaborate weddings and/or honeymoons in the current environment, they had more to spend on choosing the perfect ring,” said De Beers.

According to De Beers, a national survey of 360 US women in serious relationships, undertaken in late October in collaboration with engagement and wedding website, The Knot. This survey is said to have found that the majority of respondents (54%) were thinking more about their engagement ring than the wedding itself (32%) or the honeymoon (15%), supporting jewellers’ hypothesis that engagement ring sales were benefiting from reduced wedding and travel budgets in light of Covid-19 restrictions.

When it came to researching engagement rings, online was by far the predominant channel for gaining ideas/inspiration at 86% of consumers surveyed, with 85% saying they had saved examples of styles they liked, according to De Beers. According to the survey, only a uarter of respondents said they had looked in-store at a physical location for design inspiration.

“For many couples, the pandemic has brought them even closer together, in some instances speeding up the path to engagement after forming a deeper connection while experiencing lockdown and its associated ups and downs as a partnership. Engagement rings are taking on even greater symbolism in this environment, with retailers reporting couples are prepared to invest more than usual, particularly due to budget reductions in other areas,” De Beers CEO Cleaver said.

According to De Beers Group, its Diamond Insight Flash Report series is focused on understanding the US consumer perspective in light of Covid-19 and monitoring how it evolves as the crisis evolves. Also, the company said, it is augmenting its existing research programme with additional consumer, retailer and supply chain touch-basis to understand the pain points and the opportunities for stakeholders across the diamond pipeline.

Demand for diamonds is as hard and resilient as the precious stone itself. De Beers pocketed US$ 450 million in its recently held ninth rough diamond sales cycle, and the company says it is more flexible approach to rough diamond sales during the ninth sales cycle of 2020, with the Sight event extended beyond its normal week-long duration.

“Steady demand for De Beers Group’s rough diamonds continued in the ninth sales cycle of the year, reflecting stable consumer demand for diamond jewellery at the retail level in the US and China, and expectations for reasonable demand to continue throughout the holiday season. However, the resurgence of Covid-19 infections in several consumer markets presents ongoing risks,” said De Beers CEO Bruce Cleaver recently.

High expectations are on diamonds being a sentimental gift for holiday season or as the most fetished gift. However the ninth cycle was lower than the eighth which registered US$ 467 million. For the last year period which corresponds with the current one, De Beers managed to raise US$ 400.

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