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Get out of debt today

TEBOGO TOTENG
MoneyMind


Over 70% of the nation is in debt. I am also in debt but the question is are you on your way to recovery or are you getting deeper and deeper into debt? Debt is probably the greatest cause of human misery and a source of unhappiness. Debt has destroyed lives, families, countries and many companies have been liquidated because of financial insolvency.


These are quite simple facts that we all know but we however continue to plunge deeper and deeper into debt. If you are deep down in debt it is not the end of the world and in this article we are going to give you simple ways of re-earning your peace of mind by getting a grip on your debts.


It starts today because if you postpone your debt-repayment today, tomorrow they will still be there. You prolong the debt duration and during this whole process you live under stress and you will be under psycho-social distress. Your health will deteriorate and your productivity will plummet to low levels.


Your ability to love and socialize is reduced and you are simply not living the life that God desires for you. You lose your spirituality and faith and send more and more negative energy into the universe. The universe then returns more and more of the negative things into your life. Once you have lost control of your thoughts and you are in a negative emotional roller-coaster, you will never get out.


You will never get out until you stop the descendency into negativity and start facing your debts   with more positive thoughts and attitude. Easier said than done but you don’t have choice if you want to resurface from the pool of debt; either you swim or sink.


When I started my journey to financial freedom, I had the fortune of reading a book by a South African Author and Financial consultant Warren Ingram Becoming Your Own Financial Advisor who gives an interesting version about debt.


Warren advises that you need to get out of debt first before you can consider investing. You need to have a debt recovery plan. There is no reason to be ashamed of debt because debt in itself is a financial management lesson. If you have been deep down there you will never want to go back there.


It is a lesson that we have to learn in real life because it is not taught in school and majority of school graduates get deep into debt immediately when they get their first job. Most never re-emerge from the debts because as the years go by demand for money increases. They get into adulthood as slaves of debts and it becomes an acceptable way of life.


We fall so much into a debt conduit that anyone who says you can avoid debt will be ridiculed. Deep down even when we know it is the truth we just don’t have the grit to face our own selves.  One of the greatest fears of man is facing himself and acknowledging his wrongs.


You know the reason why when you say something to someone which is just the minimum truth and they react angrily and emotional? The reaction is not to you: the reaction is to their own fears. The fear of facing the truth and the fear of having to change is man’s most dreaded challenge.


The same truth hold true to getting of debt; you just have to face it, work on it,  until you start feeling that you are on your way out. When you start seeing the light, you become happier and positive, and then you start attracting circumstances and events that will accelerate your debt recovery.


Finally, the biggest reason why we get in debt is that we are not making enough money or we spend everything that we have. Debt is a sign of financial imprudence and we get in debt because we have never been taught the opposite “savings.”   


FIVE WAYS OF STARTING YOUR DEBT RECOVERY PLAN

Make a monthly budget
If you are to have a tab on your money drips, you need to have a monitoring tool which is your budget. Over 70% of adults do not have budget and that is where the problem starts. If you don’t have a budget you cannot manage your income. You cannot determine what is luxury or not or where the gap in your budget is. The budget will be the biggest starting to point to your recovery from debt. So many budget tools exists on the internet for free and start using one as soon as now.

2 .Discipline
Discipline is one of the important factors for achievement. The ability to be able to stick to a desired plan is inextricably linked to any accomplishment. Discipline distinguishes between successful people and unsuccessful people. Discipline will therefore largely determine whether you will get out of debt or get deeper into debt.

Debt recovery plan
After making the budget ensure that any extra income after leaving a small emergency funds are driven towards reducing your debts. Stick to the plan month after month until you reduce and ultimately eliminate your debt. If you do not have a plan of how to start contact Money Mind via a private message on Facebook. We will be happy at Money Mind to guide you free of charge.


Positive mind frame
I am sure you know many people who you are able to tell without asking if they have problems . Be positive about your debt recovery plan. Imagine and visualize your life without debts. Meditate, read motivational books and keep positive at all times. Hold your head high because you are doing something about your problem.

Exercise
When the mind is so much under pressure it translates into physical ills such as back pains, shoulder pains and other stress related symptoms. When you are in debt you are obviously under so much pressure that it strains the mind and the body. Exercise helps relieve the mind and the body; it is a natural happy drug and sustains you. You will be able to maintain acceptable productivity levels and keep the income flowing.

This is achievable; together towards happiness.

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P230 million Phikwe revival project kicks off

19th October 2020
industrial hub

Marcian Concepts have been contracted by Selibe Phikwe Economic Unit (SPEDU) in a P230 million project to raise the town from its ghost status.  The project is in the design and building phase of building an industrial hub for Phikwe; putting together an infrastructure in Bolelanoto and Senwelo industrial sites.

This project comes as a life-raft for Selibe Phikwe, a town which was turned into a ghost town when the area’s economic mainstay, BCL mine, closed four years ago.  In that catastrophe, 5000 people lost their livelihoods as the town’s life sunk into a gloomy horizon. Businesses were closed and some migrated to better places as industrial places and malls became almost empty.

However, SPEDU has now started plans to breathe life into the town. Information reaching this publication is that Marcian Concepts is now on the ground at Bolelanoto and Senwelo and works have commenced.  Marcian as a contractor already promises to hire Phikwe locals only, even subcontract only companies from the area as a way to empower the place’s economy.

The procurement method for the tender is Open Domestic bidding which means Joint Ventures with foreign companies is not allowed. According to Marcian Concepts General Manager, Andre Strydom, in an interview with this publication, the project will come with 150 to 200 jobs. The project is expected to take 15 months at a tune of P230 531 402. 76. Marcian will put together construction of roadworks, storm-water drains, water reticulation, street lighting and telecommunication infrastructure. This tender was flouted last year August, but was awarded in June this year. This project is seen as the beginning of Phikwe’s revival and investors will be targeted to the area after the town has worn the ghost city status for almost half a decade.

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IMF projects deeper recession for 2020, slow recovery for 2021

19th October 2020

The International Monetary Fund (IMF) has slashed its outlook the world economy projecting a significantly deeper recession and slower recovery than it anticipated just two months ago.

On Wednesday when delivering its World Economic Outlook report titled “A long difficult Ascent” the Washington Based global lender said it now expects global gross domestic product to shrink 4.9% this year, more than the 3% predicted in April.  For 2021, IMF experts have projected growth of 5.4%, down from 5.8%. “We are projecting a somewhat less severe though still deep recession in 2020, relative to our June forecast,” said Gita Gopinath Economic Counsellor and Director of Research.

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Botswana partly closed economy a further blow of 4.2 fall in revenue

19th October 2020

The struggle of humanity is now how to dribble past the ‘Great Pandemic’ in order to salvage a lean economic score. Botswana is already working on dwindling fiscal accounts, budget deficit, threatened foreign reserves and the GDP data that is screaming recession.

Latest data by think tank and renowned rating agency, Moody’s Investor Service, is that Botswana’s fiscal status is on the red and it is mostly because of its mineral-dependency garment and tourism-related taxation. Botswana decided to close borders as one of the containment measures of Covid-19; trade and travellers have been locked out of the country. Moody’s also acknowledges that closing borders by countries like Botswana results in the collapse of tourism which will also indirectly weigh on revenue through lower import duties, VAT receipts and other taxes.

Latest economic data shows that Gross Domestic Product (GDP) for the second quarter of 2020 with a decrease of 27 percent. One of the factors that led to contraction of the local economy is the suspension of air travel occasioned by COVID-19 containment measures impacted on the number of tourists entering through the country’s borders and hence affecting the output of the hotels and restaurants industry. This will also be weighed down by, according to Moody’s, emerging markets which will see government losing average revenue worth 2.1 percentage points (pps) of GDP in 2020, exceeding the 1.0 pps loss in advanced economies (AEs).

“Fiscal revenue in emerging markets is particularly vulnerable to this current crisis because of concentrated revenue structures and less sophisticated tax administrations than those in AEs. Oil exporters will see the largest falls but revenue volatility is a common feature of their credit profiles historically,” says Moody’s. The domino effects of containment measures could be seen cracking all sectors of the local economy as taxes from outside were locked out by the closure of borders hence dwindling tax revenue.

Moody’s has placed Botswana among oil importers, small, tourism-reliant economies which will see the largest fall in revenue. Botswana is in the top 10 of that pecking order where Moody’s pointed out recently that other resource-rich countries like Botswana (A2 negative) will also face a large drop in fiscal revenue.

This situation of countries’ revenue on the red is going to stay stubborn for a long run. Moody’s predicts that the spending pressures faced by governments across the globe are unlikely to ease in the short term, particularly because this crisis has emphasized the social role governments perform in areas like healthcare and labour markets.

For countries like Botswana, these spending pressures are generally exacerbated by a range of other factors like a higher interest burden, infrastructure deficiencies, weaker broader public sector, higher subsidies, lower incomes and more precarious employment. As a result, most of the burden for any fiscal consolidation is likely to fall on the revenue side, says Moody’s.

Moody’s then moves to the revenue spin of taxation. The rating agency looked at the likelihood and probability of sovereigns to raise up revenue by increasing tax to offset what was lost in mineral revenue and tourism-related tax revenue. Moody’s said the capacity to raise tax revenue distinguishes governments from other debt issuers.  “In theory, governments can change a given tax system as they wish, subject to the relevant legislative process and within the constraints of international law. In practice, however, there are material constraints,” says Moody’s.

‘‘The coronavirus crisis will lead to long-lasting revenue losses for emerging market sovereigns because their ability to implement and enforce effective revenue-raising measures in response will be an important credit driver over the next few years because of their sizeable spending pressures and the subdued recovery in the global economy we expect next year.’’

According to Moody’s, together with a rise in stimulus and healthcare spending related to the crisis, the think tank expects this drop in revenue will trigger a sizeable fiscal deterioration across emerging market sovereigns. Most countries, including Botswana, are under pressure of widening their tax bases, Moody’s says that this will be challenging. “Even if governments reversed or do not extend tax-easing measures implemented in 2020 to support the economy through the coronavirus shock, which would be politically challenging, this would only provide a modest boost to revenue, especially as these measures were relatively modest in most emerging markets,” says Moody’s.

Botswana has been seen internationally as a ‘tax ease’ country and its taxes are seen as lower when compared to its regional counterparts. This country’s name has also been mentioned in various international investigative journalism tax evasion reports. In recent years there was a division of opinions over whether this country can stretch its tax base. But like other sovereigns who have tried but struggled to increase or even maintain their tax intake before the crisis, Botswana will face additional challenges, according to Moody’s.

“Additional measures to reduce tax evasion and cutting tax expenditure should support the recovery in government revenue, albeit from low levels,” advised Moody’s. Botswana’s tax revenue to the percentage of the GDP was 27 percent in 2008, dropped to 23 percent in 2010 to 23 percent before rising to 27 percent again in 2012. In years 2013 and 2014 the percentage went to 25 percent before it took a slip to decline in respective years of 2015 up to now where it is at 19.8 percent.

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