Tuesday, 28 August 2012 - 20:00
Seven Cures for a Lean Purse
In my view, one of the most important books on personal financial planning is The Richest Man in Babylon, written by George Clason.
In this book two friends, who both earn a good income and are highly skilled in their respective trades, decide to ask their childhood friend Arkhad the secrets on his vast wealth. Despite the fact that Arkhad was neither more intelligent nor harder working than they were and given the fact that he did not inherit any money Arkhad was the richest man in Babylon and they were struggling to make ends meet. In this book Arkhad gives the reader the seven cures for a lean purse.
1. Start by purse fattening
“For every ten coins placed in their purse, take out for use but nine.” Most people have a steady source of income and the first step to a fat wallet is paying yourself (i.e. saving) R1 for every R10 earned.
2. Control thy expenditure
“What each of us calls our necessary expenses will always grow to equal our income unless we protest to the contrary”. People often tend to confuse necessary expenses with their desires. If you look around you will see people with varying levels of income yet very few of them have money left at the end of the month. From the domestic worker earning R 2 000 per month to the business owner earing R 100 000 per month our expenses always seem to grow faster than our income.
3. Make thy gold multiply
Once you have started paying yourself every month, you need to ensure that that money is put to work earning a real return. It is also important that any income earned is also reinvested. The compounding effect of “interest on interest” is what generates wealth.
4. Guard thy treasure from loss
Invest only where the principle is safe and were it may be reclaimed if needed. Always consult with wise men. Arkhad told his friends that his first investment had been with the baker who was going to buy precious jewels; needless to say he lost his whole investment.
5. Make thy dwelling an investment
Own thy own home. Why pay off someone else’s bond when you can pay off your own dwelling?
6. Insure a future income
You need to ensure that your family is looked after if you die “too soon”. You also need to ensure that you have an income if you are unable to work (disability) and you need to ensure that you have an income if you die “too late” (retirement).
7. Increase thy ability to earn
By increasing your earning potential through studies and hard work you will make the provision of your needs a lot easier.
Whilst the advice that is given here may appear to be far too simple, the fact of the matter is that if you implemented this advice you may not be the “richest person in Durban, Cape Town, or Johannesburg”, but you will not have a “Lean Purse”. Personal financial planning is all about being disciplined enough to do the ‘basics’, as discussed above, right.
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Tue, 28 Aug 2012
Shareholders are advised that the annual financial statements will be distributed to shareholders on or about the 28 August 2012 and contain no modifications to the reviewed results which were published on SENS on 24 April 2012.
Notice of the annual general meeting
Notice was given that the Astrapak annual general meeting of ordinary shareholders will be held at African Pride Melrose Arch Hotel on Friday 28 September 2012 at 09h00 to transact the business as stated in the annual gene. . .
World Markets (Spot Prices)
|JSE Top 40||17:00||31521.84||-128.00||-0.40%|
|JSE Indust 25||17:00||36027.87||-54.00||-0.15%|
|Rand / Dollar||19:58||8.4059||-0.0327||-0.39%|
|Rand / Pound||19:55||13.2678||-0.0272||-0.20%|
|Rand / Euro||19:55||10.5626||0.0147||0.14%|
|Rand / NZD||19:57||6.7618||-0.0622||-0.91%|
|Rand / AUD||19:55||8.7243||-0.0242||-0.28%|
|Yen / Dollar||19:58||78.4640||-0.3070||-0.39%|
|Euro / Dollar||19:55||0.7954||-0.0045||-0.56%|
|Dollar / Euro||19:58||1.2565||0.0069||0.55%|
|Pound / Dollar||19:55||0.6317||-0.0013||-0.21%|
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The JSE Today
* Includes all listed instruments on the JSE
|Index Name||RP||Move||% Move|
|Financial & Ind. 30||39,360.00||-65.00||-0.17%|
|Oil & Gas ||27,325.00||28.00||0.10%|
|Oil & Gas Producers ||14,692.00||15.00||0.10%|
|Basic Materials ||26,142.00||-274.00||-1.04%|
|Forestry & Paper ||13,811.00||35.00||0.26%|
|Industrial Metals ||28,217.00||-646.00||-2.24%|
|General Industrials ||98.00||.00||-0.14%|
|Consumer Goods ||36,644.00||92.00||0.25%|
|Automobiles & Parts ||6,680.00||-67.00||-1.01%|
|Health Care ||49,349.00||-291.00||-0.59%|
|Index Name||RP||Move||% Move|
|Food Producers ||65,252.00||-111.00||-0.17%|
|Personal Goods ||517.00||-3.00||-0.70%|
|Consumer Services ||75,113.00||185.00||0.25%|
|General Retailers ||64,003.00||583.00||0.92%|
|Travel & Leisure ||4,217.00||-1.00||-0.04%|
|Support Services ||2,088.00||-2.00||-0.10%|
|Non-life Insurance ||45,301.00||1148.00||2.60%|
|Life Insurance ||22,251.00||-18.00||-0.08%|
|General Financial ||2,456.00||-17.00||-0.72%|
|SHARIAH TOP40 ||3,071.00||-26||-0.86%|
|FTSE/JSE SHARIAH ALL||3,199.00||-25||-0.79%|
|FTSE JSE Fledgling ||5,566.00||-7||-0.13%|
|FTSE/JSE Alt X ||1,067.00||0||0.05%|
|SA LISTED PROPERTY ||500.00||0.76%|
|CAPPED PROPERTY ||397.00||0.70%|
|FTSE/JSE RAFI 40||7,301.00||-25||-0.34%|
|Capped Top 40||16,634.00||-70||-0.42%|
|Capped All Share||18,093.00||-65||-0.36%|
|JSE TABACO ||5,623.00||22||0.40%|
Click here for the Sharenet Index Summary page
Latest Consensus Changes**
|BIL||BHP BILLITON PLC||BUY||24/08/2012|
|AGL||ANGLO AMERICAN PLC||BUY||24/08/2012|
|NED||NEDBANK GROUP LTD||HOLD||24/08/2012|
|IPL||IMPERIAL HOLDINGS LTD||HOLD||23/08/2012||
|Expected||Company Name||Fin. Date|
|29/08/2012||GROWPNT||June 2012 (Final)|
|29/08/2012||ILIAD||June 2012 (Interim)|
|29/08/2012||ILIADA||June 2012 (Interim)|
|29/08/2012||M-R-HLD||June 2012 (Final)|
|29/08/2012||SANTAM||June 2012 (Interim)|
|MTN GROUP||08/08/2012||24/08/2012||03/09/2012||R 3.2100|
|ZURICH SA||01/08/2012||24/08/2012||03/09/2012||R 1.0000|
|ANP||Annuity Properties Ltd.||29/08/2012||Confirmed|
|MRPP||Mr Price Group Ltd.||30/08/2012||Confirmed|
|RDI||Rockwell Diamonds Inc||30/08/2012||Confirmed|
|TKGB||Telkom SA Ltd.||30/08/2012||Unconfirmed||
Stock Exchange News Service
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