10 Money lessons from the past 10 Years

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.