THE CAPPUCCINO CHALLENGE
I want to encourage you to form good financial habits.
A habit is something that you repeat regularly, until it becomes a routine, or a way of life. With this in mind, I want to encourage you to form an important financial habit of investing for your future.
THE CAPPUCCINO CHALLENGE
A cappuccino at your local coffee bar costs you around R30, with a generous tip included. I want to challenge you to take up the CAPPUCCINO CHALLENGE of saving R30 per day.
If you practice this simple habit daily, and repeat it, it will become a routine – a way of life, that can help you build up a small fortune over time. You may even be able to buy your own coffee shop or coffee plantation sometime in the future if you take up this challenge.
Why not take up the cappuccino challenge and form a good financial habit of investing R30 each day.
South Africans are extremely lax when it comes to saving and investing. Not only are South Africans poor savers, but many are also getting deeper into debt, and as debt levels climb, it becomes more difficult to start saving.
So we have to ask ourselves, why don’t people save?
Many people will tell you that the reason they do not save is because they do not earn enough. I disagree! You need to form good habits. If you cannot save 10c in every R1, how will you be able to save R1 000 in every R10 000 that you earn? Many people do not save due a bad financial habit of not making saving a priority.
But let us drill deeper. Why don’t people save?
- Lack of budgeting
- To many debts – many cannot afford to save
- I believe it all boils down to discipline, and creating a mindset of saving.
Saving must become a habit. We need to start creating a habit of saving instead of a habit of debt.
Jim Rohn made a powerful statement. He said “the difference that separates the rich from the poor basically comes down to the order that they put money into savings”.
Jim Rohn’s view is that …
- Rich people SAVE & INVEST FIRST and spend what is left over (This way they always build wealth first)
- Poor people generally SPEND FIRST and save what is left over. (The problem here is that there is never anything left over so they end up not saving)
Today, I challenge you to form a good financial habit of saving before you spend! There is a proverb that says “The wise man saves for the future but the foolish man spends whatever he gets.” Be wise with your money and build up your savings and investments.
I challenge you to re-examine your priorities. You can break the cash strapped cycle. You can turn your financial situation around no matter how messed up your cash flow is.
Albert Einstein said that the definition of insanity is “doing the same thing the same way over and over again and expecting different results”.
If you keep doing the same thing the same way, you will NOT see any positive change.
BUT today, you choose to discard old bad habits of poor money management, and you can develop a good habit of INVESTING. The decision to manage your money wisely can become the BUILDING BLOCKS TO WEALTH. If you will change, everything will change for you!
Start building wealth!
If you have a bad habit of spending all you have, you may have some short term pleasure, but if you don’t save you will have long term pain. On the other end if you start a good financial habit of saving, you may have a little short term pain, but I promise you, it will lead to long term rewards.
You can choose to drift aimlessly along from one payday to the next, but then you will never reach your goals or make your dreams a reality. It is time to dream big dreams and to plan to reach these dreams.
You need to set goals. You need to dare to dream. You also need to formulate a plan. Above all, you need to stick to the plan.
If you are looking to build up your savings and investments, give us a call. We can sit down and help you re-evaluate your needs and objectives, and we can help you construct a plan that can put you on the road to achieving your goals and dreams.
THE CAPPUCCINO (R30 PER DAY) CHALLENGE:
Now, I want to encourage you to start a new good financial habit of saving at least R30 PER DAY…
R30 is equivalent to a cappuccino at your favorite coffee bar, with a generous tip included.
If you start saving R30 per day and put your savings into a balanced unit trust fund, you should generate growth of at least 10% p.a. over time.
If you invested R900 p.m. (R30 per day x 30 days), at 10% p.a., and if you increase your saving by 6% p.a. (in line with inflation) your capital would grow as follows:
| After | You would have over |
|---|---|
| 5 years | R80 000 |
| 10 years | R198 000 |
| 15 years | R238 000 |
| 20 years | R1 045 000 |
| 25 years | R1 943 000 |
| 30 years | R3 476 000 |
| 35 years | R6 063 000 |
| 40 years | R10 387 000 |
… by investing just R30 per day you can start BUILDING TOWARDS A BRIGHTER FUTURE.
So, start forming good financial habits Why not start putting R30 per day into an investment. Automate it by setting up a debit order. This well help you to form a good habit. Let it become a routine… a way of life!
There is an old Proverb that says “he who gathers money little by little makes it grow.”
Start small. Save before you spend. Why not take up THE CAPPUCCINO CHALLENGE and start investing R30 per day.
Start an INVESTMENT PLAN and start building WEALTH. Determine how much you will put aside on a regular basis in order to reach your goals. Make a decision to build saving into your budget. Stick to your plan and MAKE SAVINGS A HABIT.
Why not start investing, by setting aside at least R30 per day?
You can set yourself up for a brighter financial future, by building SAVINGS & INVESTMENTS into your budget.
So next time you sit down for coffee at your favorite hangout, think twice, and first take up the Cappuccino Challenge! Happy investing.
Kind regards Clinton