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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

Payless to partake in BSE’s Flagship Tshipidi program

28th June 2022
PAYLESS

Newly established wholly indigenous citizen owned retail chain Payless Retail (PTY) Ltd is set to partake in the first session of Botswana Stock Exchange (BSE)’s Tshipidi Mentorship Program (TMP) on Monday June 29th.

The TMP aims to train and capacitate SMEs so they can operate as corporates and eventually list on the local bourse. According to local bourse, BSE, the program aims to provide practical training to potential issuers through a comprehensive and interactive program that covers the key themes necessary to position a company to list on the BSE.

Payless Retail is a newly established supermarket chain whose mission is to become a convenient one-stop shopping destination as it is one of the Botswana oldest retailing brands.  It started off as Corner Supermarket in January 1976, and to date boasts of nine stores in, among others, Gaborone, Mochudi, Molepolole and Tlokweng. Payless was recently acquired by Ellis Retail Group, which is led by businessman Elliot Moshoke.

The takeover catapulted Ellis Retail to the envious position of being the first wholly indigenous owned major retail chain. “We jumped at this opportunity because it gave us a chance to prove to Batswana that the retail business is open and lucrative.”

The objective is to create a proudly Botswana retail chain that fully supports our national Vision, economic development and citizen economic empowerment ambitions,” Moshoke told BusinessPost.

He further emphasized that Batswana are capable and able to run large scale businesses hence they need to accept invite foreign investors who will come in to support us not take the business.
“Our win as Payless in the Fast Moving Consumer goods (FMCG) industry is a win for Batswana. We need their support in this difficult and challenging journey.

As you are aware, Payless is the only retail chain in the hands of Batswana ba Sekei. We need to take advantage of this to generate employment and create small businesses in retail and Agri businesses,” he explained.

The retailer has also partnered with Botswana Investment & Trade Center (BITC) on their #PushaBW campaign with a view to initiating earnest engagement with local producers to iron out bottlenecks and ensure seamless trading.

“Local producers have to be part of the phenomenal growth of the Payless brand. This will in turn facilitate employment creation and economic growth. We did this because we have the utmost respect for local manufacturers and producers,” he mentioned.

Payless is currently restocking all of its stores; a development that Moshoke says is testament to the retailer’s commitment to growing the brand and ensuring continuity of business. He further revealed that renowned retail suppliers like PST and CA Sales have reignited their trust in Payless, opening their doors for Payless as they have faith in the retailer’s new owners.

The takeover has reportedly saved more than 200 jobs and gave a new lease of life to the previously fledging Payless brand. According to a press release from the management team, the Payless work forces are also extremely excited about what the future holds. The TMP is a comprehensive and interactive program that covers the key themes necessary to position a company to list on the BSE.

The program is administered by experts within the listing ecosystem and seeks to bring the potential issuers closer to the listings advisers, investors and leaders of already listed companies.  “As a strategic initiative, the BSE decided to set up this mentorship program in a bid to assist SMEs to strategize, corporatize and acclimatize in order to list to access equity finance and expand operations,” said the BSE.

The TMP will avail to SMEs practical insights, knowledge and feedback from institutional investors, increased awareness of the BSE listing requirements as well as an intimate network of advisors and CEOs of listed companies. After training, Payless will graduate with improve governance structures and better knowledge of articulating its business strategy. The retailer will also gain increased visibility through BSE marketing platforms.

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Business

BITC assisted companies rake in P2.96 billion in export earnings

21st June 2022
BITC-CEO-Keletsositse-Olebile

Despite Covid-19 interrupting trade worldwide, exporting companies in Botswana which benefited from the Botswana Investment and Trade Centre (BITC) services realised P2.96 billion in export earnings during the period from April 2020 to March 2021.

In the preceding financial year, the sale of locally manufactured products in foreign markets had registered export revenue of P2, 427 billion against a target of P3, 211 billion BITC, which celebrates 10 years since establishment, continues to carry out several initiatives targeted towards expanding the Botswana export base in line with Botswana’s desire to be an export led economy, underpinned by a robust export promotion programme in line with the National Export Strategy.

The main products exported were swamp cruiser boats, pvc tanks and pvc pipes, ignition wiring sets, semi-precious stones, veterinary medicines, hair braids, coal, textiles (towels and t-shirts) and automobile batteries. These goods were destined mainly for South Africa, Zimbabwe, Austria, Germany, and Namibia.

With Covid-19 still a problem, BITC continues to roll out targeted virtual trade promotion missions across the SADC region with a view to seeking long-lasting market opportunities for locally manufactured products.

Recently, the Centre facilitated participation for Botswana companies at the Eastern Cape Development Council (ECDC) Virtual Export Symposium, the Botswana-Zimbabwe Virtual Trade Mission, the Botswana-Zambia Virtual Trade Mission, Botswana-South Africa Virtual Buyer/Seller Mission as well as the Botswana-Namibia Virtual Trade Mission.

BITC has introduced an e-Exporting programme aimed at assisting Botswana exporters to conduct business on several recommended e-commerce platforms. Due to the advent of COVID-19, BITC is currently promoting e-trade among companies through the establishment of e-commerce platforms and is assisting local companies to embrace digitisation by adopting e-commerce platforms to reach export markets as well as assisting local e-commerce platform developers to scale up their online marketplaces.

During the 2019/2020 financial year, BITC embarked on several initiatives targeted at growing exports in the country; facilitation of participation of local companies in international trade platforms in order to enhance export sales of local products and services into external markets.

BITC also helped in capacity development of local companies to compete in global markets and the nurturing of export awareness and culture among local manufacturers in order to enhance their skills and knowledge of export processes; and in development and implementation of trade facilitation tools that look to improve the overall ease of doing business in Botswana.

As part of building export capacity in 2019/20, six (6) companies were selected to initiate a process to be Organic and Fair Trade Certified. These companies are; Blue Pride (Pty) Ltd, Motlopi Beverages, Moringa Technology Industries (Pty) Ltd, Sleek Foods, Maungo Craft and Divine Morula.

In 2019 seven companies which were enrolled in the Botswana Exporter Development Programme were capacitated with attaining BOBS ISO 9001: 2015 certification. Three (3) companies successfully attained BOBS ISO 9001:2015 certification. These were Lithoflex (Pty) Ltd, General Packaging Industries and Power Engineering.

BITC’s annual flagship exhibition, Global Expo Botswana (GEB) to create opportunities for trade and strategic synergies between local and international companies. The Global Expo Botswana) is a premier business to business exposition that attracts FDI, expansion of domestic investment, promotion of exports of locally produced goods and services and promotion of trade between Botswana and other countries.

Another tool used for export development by BITC is the Botswana Trade Portal, which has experienced some growth in terms of user acceptance and utilisation globally. The portal provides among others a catalogue of information on international, regional and bilateral trade agreements to which Botswana is a party, including the applicable Rules, Regulations and Requirements and the Opportunities for Botswana Businesses on a product by product basis.

The portal also provides information on; measures, legal documents, and forms and procedures needed by Botswana companies that intend on doing business abroad. BITC continues to assist both potential and existing local manufacturing and service entities to realise their export ambitions. This assistance is pursued through the ambit of the Botswana Exporter Development Programme (BEDP) and the Trade Promotion Programme.

BEDP was revised in 2020 in partnership with the United Nations Development Programme (UNDP) with a vision to developing a diversified export-based economy. The programme focuses mostly on capacitating companies to reach export readiness status.

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Business

Inflation up 2.3 percent in May

21st June 2022
Inflation

Prices for goods and services in this country continue to increase, with the latest figures from Statistics Botswana showing that in May 2022, inflation rate rose to 11.9 percent from 9.6 percent recorded in April 2022.

According to Statistics Botswana update released this week, the largest upward contributions to the annual inflation rate in May 2022 came from increase in the cost of transport (7.2 percent), housing, water, electricity, gas & other Fuels (1.4 percent), food & non-alcoholic beverages (1.1 percent) and miscellaneous goods & services (0.8 percent).

With regard to regional inflation rates between April and May 2022, the Rural Villages inflation rate went up by 2.5 percentage points, from 9.6 percent in April to 12.1 percent in May 2022, according to the government owned statistics entity.

In the monthly update the entity stated that the Urban Villages inflation rate stood at 11.8 percent in May 2022, a rise of 2.4 percentage points from the April rate of 9.4 percent, whereas the Cities & Towns inflation rate recorded an increase of 1.9 percentage points, from 9.9 percent in April to 11.8 percent in May.

Commenting on the national Consumer Price Index, the entity stated that it went up by 2.6 percent, from 120.1 in April to 123.2 in May 2022. Statisticians from the entity noted that the transport group index registered an increase of 7.3 percent, from 134.5 in April to 144.2 in May, mainly due to the rise in retail pump prices for petrol and diesel by P1.54 and P2.74 per litre respectively, which effected on the 13th of May 2022.

The food & non-alcoholic beverages group index rose by 2.6 percent, from 118.6 in April 2022 to 121.6 in May 2022 and this came as a result of increase in prices of oils & fats, vegetables, bread & cereal, mineral waters, soft drinks, fruits & vegetables juices, fish (Fresh, Chilled & Frozen) and meat (Fresh, Chilled & Frozen), according to the Statisticians.

The Statisticians said the furnishing, household equipment & routine maintenance group index rose by 1.0 percent, from 111.6 in April 2022 to 112.7 in May 2022 and this was attributed to a general increase in prices of household appliances, glassware, tableware & household utensils and goods & services for household maintenance.

The prices for clothing & footwear group index moved from 109.4 to 110.4, registering a rise of 0.9 percent during the period under review. Bank of Botswana has projected higher inflation in the short term, associated with the likelihood of further increases in domestic fuel prices in response to persistent high international oil prices and added that the possible increase in public service salaries could add also upward pressure to inflation in this country.

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