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Money mistakes to avoid for growing your financial wealth

Money mistakes to avoid for growing your financial wealth

By Surihe Gaomas-Guchu

Standard Bank’s PR and Communication’s Manager

Having control over your finances and being able to grow your wealth annually can be liberating, however, if you keep making mistakes that bleed your pocket that can be hard to do.

As most people were mapping out their 2018 New Year’s resolutions, I am certain they were also mapping out their financial resolutions for the year.

Unfortunately, they are now finding that they have not been able to live up to those resolutions as we halfway through the year already.

Owing to this, advice on how to handle ones money can never get old, especially when people keep making the same financial mistakes.

It is not too late to catch-up to your financial goals, granted that you immediately eliminate the most common mistakes that people make when it comes to how they handle their finances.

Here are some of the mistakes that people make and how to avoid them:

1. Not having a financial goal:

It is impossible to create lasting wealth without having clear financial goals of what you want and how you plan to get there. Making a mental note of your financial goals is not enough, you need to write them down and commit yourself to it.

2. Depending on only one source of income:

Your salary may not be enough to help you build lasting wealth. You can make that salary start working actively for you by using a chunk of it to make investments that will create dependable streams of income flows for you e.g. start a small business or invest in mutual funds.

3. No Retirement Savings Account:

This is the year you should fix this mistake. You’re never too young to start saving for your retirement and the earlier you start saving, the better your quality of living when you retire.

4. Spending without a budget:

If sticking to your budget is not one of your New Year resolutions, you need to make it one. A budget is an itemized estimate of your expected income and expenses over a given period of time. The main reason to budget is to help you keep your finances under control by keeping track of how much money you are spending and where it is going.

5. Investing without researching:

Cardinal rule – before you make any investment of any sort, do your research first. Do not depend solely on the sales messaging. Go out of your way to do your own research and get proof that the investment you are about to make is likely to be profitable.

6. Failing to Set an Aside Emergency Fund

It is shocking to know that most people have no emergency savings despite the importance and urgency of having one.

A rainy-day fund is crucial in a one’s life – regardless of status and age – as it gives you peace of mind in any circumstance. When a rainy day comes, you have a breathing space for unforeseen expenses and you won’t have to succumb to debts.


 

About The Author

Guest Contributor

A Guest Contributor is any of a number of experts who contribute articles and columns under their own respective names. They are regarded as authorities in their disciplines, and their work is usually published with limited editing only. They may also contribute to other publications. - Ed.

Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.