USE YOUR BUYING POWER TO CREATE WEALTH

BY SK Moropa:
Wealth creation is one of the most challenge to South African youth, therefore, transformation it has to take place by programing our youth with a software that can automatically liberate them from bad debt to good debt.Using your buying power to create wealth, it does not require a degree in economics, diploma in accounting or rather bachelor of business science. Everyone can be his or her financial advisor and manipulate wealth creation strategies to work for them. This can be done by using credit to invest and building businesses that can generate wealth while benefiting from them.Let me give you a scenario that has been tested its worth reading and sharing it. A friend when he got a job, he decided to get himself a car, but he did not rush into making a decision of buying. He was not even worried when his colleagues went on to buy sport cars and other luxurious machines. He knew that his salary might be looking good but, when time goes on things might get expensive and fail to subsidize himself. He asked for few opinions about buying a car, and I said “friend, go for an investment car”. He looked amused by the idea and asked,“what is an investment car?”, anyone who is not familiar with investments can think that investments cars are expensive and cannot be afforded by anyone but only that few business gurus.In a nutshell, he went for a single cap bakkie which he uses it to work and also for his logistic business. He pay R5000.00for the bakkie including insurance per month, whereas it creates him more than R5000.00 every month. Sometimes it does fluctuates below R5000.00but not all the time.So one can compare from these two employees, the other one is paying R5000.00 for a car installment every month but the car does not create any income, therefore it clearly shows that, he or she is trapped in a bad debt.A friend is using the car for personal use and also for business while it creates wealth for him because he is investing a certain percentage from the profits.So this is one typical scenario that clearly shows, that using your buying power to create wealth is possible. For every financial decision you are about to take, make sure that you require opinions from financial advisors and also consult different books which can give you financial literacy to avoid being in a debt trap that can lead you to being blacklisted. Do not buy luxury using your own money but you can buy your luxury using your profits.