Money Management: liberate your life and your pocket

Isn’t it amazing that the youth spend hours trying to memorise Pythagoras’ theorem, but are never taught how to read and understand their first payslip? Or that by the time they leave school, they might be well-versed in Shakespeare, but know next to nothing about monthly budgeting? Accountant Nola Rae has set out to address these gaps in young people’s knowledge of money management with a new book, Money Wit.

Rae’s take on money management is simple: Almost everyone is intimidated by the thought of managing their own finances. But, given that money dictates our very existence, it’s inevitable that we understand how to manage it properly.

This was her thinking when penning Money Wit. This is not just another book about savvy money management. Rather, it’s a simple, easy-to-use-guide that takes the reader back to basics with the essentials you’ll wish you’d known when you were a teenager. Among other fundamental financial teachings, it covers the difference between saving and investing, and how to go about doing either of these. Why do you need to hang on to your retail slips? And what can your credit card statements tell you about your spending habits?

Rae explains that she chose to focus on these foundational concepts as many people go through life making poor money decisions. “While conducting research into corporate wellness (specifically financial wellness), it came to my attention that there is a huge need for debt counselling. My theory is this: if we can help people understand how money works right at the beginning of their working lives, maybe we’ll empower them with the skills to use their money more effectively. Let’s try to be proactive instead of reactive.”

Money Wit is not only a critical read for those with a first-time income, such as students receiving an allowance, or starter salary earners – it’s equally useful for older readers. After all, as Rae points out, it’s never too late to start developing smart financial habits.

Rae addresses her audience in a language that is simple, concise and easy to understand. This is vital, given that one of the reasons most people avoid thinking about money matters is because of the perceived complexity. “I believe that the current generation has not been taught how to manage money properly. These concepts are unfortunately not taught at schools and often parents’ personal finance methods, which they impart on their children, are not always relevant today, “she comments. As a result, most people make financial decisions based on a lack of understanding. There are so many well-known refrains regarding money management: if you don’t save, you won’t be able to retire. Debt is bad. It’s not a good idea to buy a new car. What will happen to your family if you don’t take out a life insurance policy? Stop buying cappuccinos – it’s a waste of money! While there are sound reasons for why this advice is given, we are never really told why, or shown how to make the right choices.”

The result is a handbook which makes sure that no one enters the world of earning and spending money – or saving and investing – blind.

To make sure her message is firmly entrenched, Rae is aiming to take Money Wit to schools and organisations, including corporates, throughout the country, hosting workshops where participants will be empowered with real skills.

Rae remains fascinated by the logic and power of personal finance. “I believe that understanding how to manage your money can empower you to achieve your own success,” Rae concludes – a sentiment readers of Money Wit are sure to share.

For more information about the book or to enquire about workshops, visit www.moneywit.co.za.

About Money Wit
Written by Nola Rae, founder of Capstan Financial Solutions and Money Wit Financial Wellness, Money Wit is a straight-talking read that strips away the intricacy (and boredom) of money management to make sure it is something within everyone’s grasp. Targeting students, graduates and first-time employees, Money Wit strives to break the traditionally held ideas about money management, enabling readers to make better financial choices given that money is part of our lives forever. Rooted in Rae’s conviction is her belief that understanding money can empower you to achieve your personal definition of success. For more information or to book a workshop, visit www.moneywit.co.za.