10 Money lessons from the past 10 Years
Geo Botha • April 3, 2025
March this year marked exactly 10 years since I joined Bovest back in 2015. After completing my B.com and honours degree, I first gained experience in the corporate world in Sandton, Johannesburg, before I joined our independent wealth management firm. Throughout the last 10 years I had the opportunity to work with people from all walks of life and from every interaction I learned something. Some inspired me and others deterred me.
It’s a difficult task to summarise them, but here are 10 money lessons I’ve learned over the past 10 years:
- Money will not solve all your problems.
- On one specific morning I arrived at work at around 7am. The cleaning lady, who was whistling and singing greeted me politely while mopping the floor and going around her business. 30 minutes later we had a meeting with one of our wealthiest clients who was completely stressed out and upset about something his business partner did. The vast contract of the two people’s Net worth and state of mind was a reminder that money will not solve all your problem, neither will money alone make you happy.
- Having money does not make you a better person.
- I see it often, people who have a large amount of wealth, who has a prominent position at work or runs a successful company might often has an aura of importance around them. They will think their opinion carries more weight and that somehow the universal laws do not apply to them as strictly as the ‘normal’ person.
- Money is NOT the root of all evil
- In contrast to the above 2 points, I see many wealthy people doing incredible noble things with their money. They provide food for the less fortunate, put children through college, create job opportunities for others 7 make the world a better place in various other ways. Without money this will not be possible.
- Having ambition does not make you materialistic.
- Talking about money, wanting to increase your income, or working hard to get promoted does not make you materialistic or egocentric. As humans we need to grow and aspire to be better that we were yesterday. It gives us purpose and direction. Money is on of the topics most often discussed in the Bible and making the best of your God-given talents is something we all should work towards. Don’t think small, because it makes others feel uncomfortable, we only have one shot in life.
- Tax planning plays a much bigger roles in investments than you think.
- I don’t know one single person who is happy to pay more taxes than he or she should, yet we often overlook the opportunities where we can minimise our tax payable. Paying less income tax is important, but for most parts out of our control, it’s saving tax on the growth and payouts of our investment where the big opportunities hide.
- Simple habits almost always guarantee success.
- Successful people are very good at focussing on their field of expertise, where they make their money and then outsourcing the rest. They don’t overcomplicate their finances, by trying to pick every hot stock or coin that is trending. They realise that automating their finances is incredibly powerful and treat their monthly investments like an expense, it automatically gets deducted from their bank account and they don’t need to waste their decision-making power on it.
- Compound interest cannot be overstated enough.
- We have all heard wonderful quotes about the power of compound interest and how your money can work for you. Yet most of us still lack the discipline and patience to allow it to work wonders in our portfolios. In every meeting I have with people close to retirement, who have given time the attention, they are in awe of how their money has grown in the latter part of their investment journey.
- We all are part of the ‘Money Game’ whether you want to play or not.
- If you bought something in the last 2 days, you are part of the economy, the money game. Money does not need to rule your every though, but ignorance is not bliss. Thinking that it’s noble to never talk about money or to think you don’t need money, will have serious consequences. In contrast, having a lot of money doesn’t mean you are winning at the game of money: If money is more important than your relationships, you’re not winning. If money influences your ethics, you are not winning. If your health is suffering in your pursuit of chasing money, you are not winning. Take control over your financial situation and not the other way around.
- Be aware of the ‘Lifestyle Creep’
- Sometimes also called the “bracket creep” Throughout life you are bound to gradually earn more as the years go by, however the silent killer, less talked about side of the equation is the growth of our expenses. This often happens in small increments and without us realising it: You buy slightly more expensive gifts for your children, you drink more expensive wine, you go out to restaurants more often or you upgrade your brand of make-up or gadgets are home. While none of these are bad in principle, it is worth paying attention to them and invest, before you spend on you ‘Nice to haves’
- Enjoy your money.
- This is probably the most simple and important lesson, but one that’s not easy to obtain. It’s only once you’ve mastered many other aspects of money and your mindset around finances that you can really enjoy your money in a guilt free manner that’s not guided by outside influences.
Know yourself, know what will bring you joy, work hard, give to others and enjoy your money.
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Most of us spend years working out how to grow our wealth, and far less time asking what could put it at risk. We plan as though good health, stable markets and steady momentum will always hold. But wealth can look secure right up until the thing you never planned for happens. Think of how quickly things can change. A pandemic upends your industry. Technology makes your role obsolete. A market slump tempts you into an emotional decision that undoes years of discipline. Each of these begs a simple question: what happens to your wealth-building machine if one of its assumptions fails? Wealth protection vs income protection The two are closely linked, but they are not the same thing. Cover such as disability or severe illness insurance protects your earning power. Wealth protection looks at what that income has built, and what happens to it if you’re no longer around to manage it. 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Trusts can help structure your assets during your lifetime and beneficiaries may typically include minor children. It is important to note that trusts come with their owns costs, tax treatment and administration, so they work best when set up for a clear purpose, guided by professional advice. Estate planning Ensures that your estate has enough cash to settle what it owes without forcing a sale of your assets. Four questions to test your wealth protection plan Use the following questions as an initial reality check to see where your wealth protection plan stands, and where the gaps might be: Would your family have adequate financial support if something happened to you? Bond repayments, school fees and medical aid contributions keep coming whatever happens to your income. Check that your life, disability and severe illness cover is measured against your actual debts, your dependents and how long they would need support, and that it hasn’t gone stale since your circumstances changed. Are your beneficiaries up to date? Marriages, divorces, births and deaths all change who should benefit. Still, often nominations on policies and retirement funds are often set once and forgotten. When nominations and your will contradict each other, the result can be delays, disputes and money reaching the wrong person. Retirement fund trustees must also consider all your dependents, so your nomination guides them rather than binding them. Is your will valid, accessible, and structured correctly? A will must meet certain formalities, including the signatures of the testator and two competent witnesses. If the requirements aren't met, the will may not be accepted as valid, which could affect how the estate is distributed. It is also important that the executor can locate the original will. Where minor children are beneficiaries, a will can provide for a testamentary trust to hold their inheritance rather than it being paid into the Guardian's Fund. Will your estate have enough cash when you pass away? Before anything is distributed, an estate must pay executor's and Master's Office fees, debts, funeral costs, capital gains tax and, where applicable, estate duty. When wealth is tied up in property or a business, the executor may have to sell at the wrong time and the wrong price. Compare your liquid assets against likely costs and plan for any shortfall. Protecting your wealth: What’s next? If the four questions above exposed a gap, that’s a great place to start. Gaps are far easier to close while life is calm than having to rely on someone to sort things out on your behalf. Of course, you don’t need to fix everything at once. Start with the question that made you hesitate. Think of it as the foundation under everything else you’re building. Nobody admires it from the outside, but every decision about growing your wealth rests on it. "The key to successful wealth creation is knowledge. Only those who first learn to increase their income and then invest their surplus effectively as capital achieve long-term financial success.” — Riaan Botha, author of Welvaartskeppers There is no single miracle solution that guarantees success, but the principles behind it can be learned. Meet the South Africans who did it on Welvaartskeppers. One conversation has the power to change a life At Bovest, we believe money is ultimately a tool for buying something far more valuable: time. A sound financial plan gives you the structure, clarity and peace of mind to spend that time on the life you are building rather than worrying about it. Ready to build your life vision? Share your details and we’ll be in touch , no obligation. This article is general information and does not constitute financial, legal or tax advice. Speak to a qualified adviser about your own circumstances.
