Constantly, we are usually faced with the decision of whether to save or spend? This decision has always been a difficult one but, sadly most people make the choice to spend now and figure it out later. The choices we make today, do affect tomorrow whether we want to accept this reality or not. “Legacy” equals long lasting wealth and “balling” is merely a facade of a life that you really can’t afford.
In 2017 I was faced with two choices as a young man who had just received an annual salary increase. I had to choose between buying a brand-new BMW or continue driving my fuel-efficient Toyota Corolla. At this point I was tired of being called an Uber driver and it was time for me to “Ball Out”. According to vehicle financing I could afford this car but in actual reality I couldn’t afford it. Thank God, for my parents who knocked some sense into me and spoke to me about investing in property. Instead of buying that brand-new “BMW M140i” I took the route of investing into property.
To illustrate the difference between “Legacy” and “Balling” let’s use the example of the choice I had to make between buying a brand-new car and looking good amongst my peers or investing in lasting wealth. A brand-new “BMW M140i” in 2017 was valued at R652 802 and in July 2019 the same model is going for about R549 000 consequently, losing about 16% in value. The property I purchased in 2017 for R980 000 in July 2019 the property was valued at R1 200 000 which in contrast to the BMW 16% loss in value, is a 22% increase in value.
If we were to simply extrapolate these growth rates per year to 2022, the graphs below will show that there’s more wealth created when investing in property.
I still drive my fuel-efficient Toyota Corolla and people still think I’m an Uber driver but it’s okay I know where I’m going. With “Legacy” you buy expensive cars from excess money and use your capital for wealth. With “Balling” unfortunately, you spend your capital on expensive cars and fail to realise your dreams because you’re indebted to a lifestyle you cannot afford.
The point is you should care about tomorrow today!
As a business owner you feel so passionate about your business. You have invested your heart and soul into this business, and you feel that this business is your ticket to “the good life”. No one understands your business more than you do and I fully understand you!! In this article I’m just going to highlight a different perspective as to how we can view business and create wealth for ourselves.
Oft times we are faced with the daunting task of investing money. Some quickly presume in order to make money you’ve got to buy stocks which are primarily on the stock exchange. Buying stocks has become an easy task with many banks offering solutions linked to your personal accounts