The Blue Roof

 Many people make the mistake to think that financial planning or estate planning is about death and retirement. Nothing could be further from the truth! Your estate is everything you earn, own and how you use it, grow it and dispose of it for future generations.

 In other words, estate planning involves your life TODAY.

 That is why, once we have looked at the ultimate event, death, and how we have to plan for it, then we start planning for ourselves while we live.

 Once more we will consider the threats to our wealth, and then we are going to start building our wealth.

 We need to find answers to the following what-if questions:

 What if I become disabled, for what-ever reason, and cannot do my job?

What if I am diagnosed with a major sickness, such as cancer, and cannot work for a few weeks or even months and have to pay expensive medical treatment?

 What if I am downsized at work, or the company goes belly-up?

 What if I am in a major car accident and I don’t have transport and perhaps have to pay for the other guy’s car too?

 The first 3 questions can be covered with insurance, and I really do think that more people should consider some form of income protection to protect themselves financially against adverse events, such as disability and sickness. Most policy salesman would gladly help you with these.

 The question about downsizing is very important. Firstly it affects the affordability of all your other plans and things you put in place to protect yourself. But you cannot really buy insurance against it. The only insurance are the things that you do to stay marketable in the job market and the things you put in place to be less dependent on a salary. But please don’t ignore it, since this could be your biggest wealth and the shortest route to financial freedom!

 Lastly, don’t try to save on short term insurance. This is what I do for a living, and I see many people who want to save R1 only to pay THOUSANDS when there is a claim. It is simply not worth doing it.

 Obviously we are looking at protecting ourselves against unforeseen mishaps. It might never happen, therefore we must do it as cheaply as possible. But, if it should happen, we must have the best possible. Starting a new life in a wheelchair, and fighting against poverty and with a bad service provider, I don’t know if there can be anything worse!

 I know, it is not nice to consider all these things, and I know it is grudge payments, but plan thoroughly, and trust me, if you do what I suggest, you will not need more policies every year.

Through the years I have been involved with a couple of Network Marketing opportunities. The first was Golden Products. Although I could see that I could make money and the product is excellent – I just never got going. Then there was Herbalife, Network 21, Money Skills for Life (the only one where I left because I had a problem with the company) and then Sportron. I made money with Sportron. For the first time. Then I spoke to a friend in Herbalife and saw that I could make more money with Herbalife and left Sportron. Just to lose my income with Sportron and make no money at all.

Why is that? Actually, it is amazingly simple – I have a natural interest in alternative medicine or natural medicine. Reading and studying the Sportron products and attending training sessions was the same as attending an investment seminar! It was stimulating. And since I was hooked on the Sportron Health products, I could easily sell their other products. But I don’t get excited about dish washing liquid or dieting.

From this experience I coined this piece of wisdom: It is a very good opportunity to make money, but is it MY opportunity?

Financially I really battled as a Financial Advisor. At first I could not understand it. Then on analysis I discovered: I am not seeing too few people. It is just that when I see people, I give excellent advice that I am never paid for. I advise people to invest in properties (for which I am not paid) and discourage them to invest in endowment policies, for which I would be paid. Interest and conviction. I am glad to say, though, that yesterday somebody from that past called me to make an appointment. I immediately said I cannot give advice legally any more. And he said: “I just want to talk to you. I told my wife I am going to find you, because you made the most sense of everybody that I ever spoke to.” It was nice to hear.

The lesson is this: if you want to make money, find something that interests you and find a way to make money with that.

My financial life made a 360 degree turn about when I got involved with property and short term insurance. Property because it is a passion. Short term insurance because I am passionate about helping people and try to do the best possible job. And since I love what I am doing, it does not feel like work. And I don’t sell anything! I just help people to become financially independent and I help people to protect themselves as best as possible against unforeseen mishaps.

So to summarise: before you get involved with any business, ask about your experience, the money involved (both costs and income potential) and be very honest with yourself: are you interested enough? Even if the income potential with Sportron were less than with Herbalife, R100 is still a lot more than nothing!

You see, it is not interest in income that will motivate you to work, it is interest in the product and the business!