1Tuesday 11 april 2017 Building Personal Wealth

InsIde Today

Face your debts, advises

financial plannerBUILDINGPERSONALWEALTH

We will be bringing your key to wealth as part of The Namibian every second Tuesday.Don’t miss the free service from the people’s paper.

P2

BEING in perpetual debt can be stressful, especially if you do not know how to get out of it.

‘My journey to becoming

debt-free’

In most developed countries, includ-ing those in Europe where banking institutions are more advanced, credit to students is quite easily accessible.

In Namibia, the government-owned Namibia Students Financial Assistance Fund (NSFAF) extends loans worth millions of dollars per year to tertiary students.

Bank loans are also available, although some students fail to repay the money as life has become either too expensive, or they do not have jobs, or simply do not want to pay.

NSFAF is planning to trace many students who owe the fund millions of dollars in unpaid loans.

But there is always a light at the end of the tunnel. When they plan well, they can actually pay off their debt and live a happy debt-free life.

At a recent women and finance conference held in Windhoek, education director at My Bnk in the United Kingdom (UK), Sharanjit Kaur Jaswal shared her story about how she became debt-free.

Jaswal was born in the UK to an Indian family, which migrated to the country in search of greener pastures.

She told the women how her par-ents worked very hard to send her to school.

As a teenager, her parents never allowed her to go out like her friends.

“My parents were very strict. I was not allowed to have pocket money. I was not allowed to have a part-time job as ‘it would disturb my studies’,” she said to an attentive audience.

She said she grew up in a family where money was never talked about.

After matriculating, Jaswal moved to London, where she enrolled at the London School of Economics at the age of 18.

“I left for London, where I had no one to account to. Big city, big lights; I could get home any time. I had a student loan, so life was good,” she explained.

According to her, the student loan

•NDAMANAKASHOLE

MOST banks today freely lend money to students at universities, knowing very well that they will one day graduate and get a job and pay back the money.

was a lot, and she went to buy a lot of things in the first week, including the clothes she was never allowed to wear back home.

I had already spent 600 pounds in the first couple of weeks, she added.

She said her parents refused to pay more since she had a student loan, and in the UK students are allowed interest-free overdrafts every year.

“After paying my rent, I was al-ready – 150 pounds,” she said, adding that at this time, classes had not even started yet.

“How am I not going to think that it is free money,” she said about her enjoying the student overdrafts.

In term two, she decided to open an-other bank account so that she could have another yearly overdraft as the other one was already exhausted. This allowed her to get another 1  500 pounds overdraft.

“I was 19, and I had a credit card, also of 500 pounds,” she added.

According to her, she was ‘finan-cially independent’.

Jaswal said she graduated with a debt of 15 000 pounds.

“By the time, my parents were saying now that I was through with school, I should go back home. I lied about having a job,” she said.

She moved in with her boyfriend, who told her that he owned the place

he lived in as he was into business. At the time, she also started volunteering at a local NGO.

After some time, the landlord came, and her boyfriend confessed that he did not own the place and had not paid rent because business had not been good.

“I told him it’s okay baby, every-thing will be fine. We are into this together,” she said.

She said he encouraged her to take more credit as she was more eligible than him because his credit record was not good.

“I took out more loans to finance his car; of course the car was in my name, but he drove it most of the time,” she noted.

After a while, she came to realise that the relationship was not healthy as her boyfriend never advised her to do anything or improve herself.

She ended the relationship, and her boyfriend kicked her out. She slept on a street bench until she moved into a local hostel.

At the time, her physical, mental and emotional health had deterio-rated.

From the day her mother told her she wanted to leave her father, Jaswal looked at life in a different perspective.

“That was an eye-opener. I knew I had to help my mother as she had nothing to fall back on. My father had taken care of her over the years, but she had nothing of her own,” she continued.

“It is so important to be independ-ent as a young girl,” she advised.

In a period of eight years, Jaswal devised a plan which enabled her to pay off all her debt.

“I do not owe anyone anything,” she said proudly.

“Someone would say I graduated from the London School of Eco-nomics, and I did not know how to manage money/debt. But my school taught me how to study and pass. I was never taught life skills, and I was never taught how to survive in the world,” she said.

Today, Jaswal trains people to look after their finances as a director of education at My Bnk in the UK.

Someone would say I graduated from the London School of Economics, and I did not know how to manage money/debt. But my school taught me how to study and pass. I was never taught life skills, and I was never taught how to survive in the world.

– Sharanjit Kaur Jaswal

Sharanjit Kaur Jaswal

2Tuesday 11 april 2017 Building Personal Wealth

tips on surviving debt

Don’t panicWhen people discover they have a financial problem it can

lead to a sense of panic. This is a perfectly natural response but unfortunately, can be detrimental to clear thinking and could cloud your judgement. Take a moment to compose yourself and try to find a sense of proportion before taking action.

Don’t bury your head in the sandCommunication is key and simply ignoring your credi-

tors will not help control your financial situation. In fact, it could be extremely damaging to your chances of finding a compromise. You should always open your mail and keep yourself abreast of what actions your creditors are threaten-ing to take against you.

Make sure you pay your priority debtsYou should always give priority to payments for food, rent

or mortgage, council tax and household utility bills. Payments to your unsecured debts, such as bank loans, overdrafts and credit cards are not as important because the consequences of missing these payments will be less severe.

Maximise your incomeLook to increase your income wherever you can. It may

sound like obvious advice, but if you can increase your income through overtime or extra hours, then you’ll have more money to meet your needs. It may even be possible to take on a second job in your spare time.

Check your entitlementsAgain, any way of increasing total income should be ex-

plored. You may be entitled to financial support or benefits that you’re unaware of, so it would be a good idea to check. You can explore this avenue easily by checking out the benefits calculator at the Turn 2 Us website.

Minimise your outgoingsTake a good long look at what you’re spending your money

on and see if there’s any non-essential expenses that you can reduce or cut from your budget altogether. Any savings you make will translate into surplus funds for your budget that will help you regain control of your finances.

Be careful about consolidatingAfter a certain point, consolidating your debt through a loan

may no longer offer you the best way to regain control of your debt repayments. It’s prudent to explore the none-borrowing options like an IVA before you commit yourself to further finance or another bank loan. IVA or Consolidation Loan?

Be realistic with creditorsIf you need to speak to your creditors regarding your fi-

nancial problems, remember to be realistic with any payment proposals you put forward. Try not to overpromise with offers of payment as failure to deliver can create tension both for yourself and your creditors.

•NDAMANAKASHOLE

BEING in perpetual debt can be stressful, especially if you do not know how to get out of it.

Face your debts, advises financial planner

It can be difficult deciding what to do first, es-pecially if you are constantly getting letters of demand, reminderes and calls from the companies you owe money.

Some people might consider taking out a loan to pay back what they owe, but this can worsen the problem when there might be a better solu-tion for you.

Financial experts always advise that there is no debt problem that is unsolvable.

Financial planner and managing member of Chase &Associates’ financial planning firm, Afra Schimming-Chase, says it is actually a good thing to face your debt and learn how to manage it.

She said this to a group of 150 women at a women and finance conference organised by the Financial Literacy Initiative on 31 March.

“If you have debt that keeps you switching off your phone and running away from creditors, it is not good,” she said.

“Learn to manage your debt,” she reiterated.She further told of a story of her maid who has

been ignoring several calls on her mobile phone.“Whenever that (+)277 number (South African

Whenever that (+)277 number (South African number) calls, she would ignore her phone. I asked her why, and she said she took some furniture on account, and has not been paying.

– Afra Schimming-Chase

number) calls, she would ignore her phone. I asked her why, and she said she took some furniture on account, and has not been paying,” Schimming-Chase said.

She advised people to consider creating wealth, but to see that as a process in doing so.

“How do I ensure that when I lose my job, I will be well taken care of?” she said, adding that people should always have funds for emergencies.

Schimming-Chase said as a personal rule, she does not lend people money. Instead, she built her self to teach others to make their money work for them, she said.

“The external forces will always be there. Today it is the economy, tomorrow it is (US president Donald ) Trump, and next week it is your husband,” she said, adding that people need to manage their finances well.

According to balance.com, everyone with even a small debt must manage that debt well.

“If you just have a small debt, you have to keep up your payments, and make sure it does not get out of control. On the other hand, when you are too much into debt, you have to put more effort into paying them off, while juggling payments on the debts you are not paying now,” it said.

Here are some useful tips adopted from the same site on better managing your debt:

Know who and how much you owe; pay your bills on time each month; create a monthly bill payment calendar; make at least the minimum payment; decide which debts to pay off first; pay off collections and charge-offs; use an emergency fund to fall back on; and use a monthly budget to plan your expenses.

LENDING ... A man stands in front of Pika cash loans offices in Windhoek in this photo taken in January 2017.

Photo: Garwin Beukes

Afra Schimming-Chase

Top 8

3Tuesday 11 april 2017 Building Personal Wealth

It is also a fact that most men feel intimidated by women’s financial positions in cases where a woman earns more than they do.

But respecting your partner’s fi-nancial position or decision is key, advises Anna Mostetschnig, head of financial systems’ development at GIZ Namibia.

She was speaking on the topic ‘Money and Relationships’ at a re-cent women and finance conference

Respect your partner’s financial decision

held in Windhoek.“If you have a stingy partner, re-

spect that. Always respect your part-ner’s financial situation,” she said.

Other tips Mostetschnig gave on money and relationships are that as partners, married or not, you need to talk about money.

“Keep each other informed of the developments in your financial lives. It may be difficult, but train yourselves to do that,” she said.

•NDAMANAKASHOLE

IT IS a fact that couples cannot have a great relationship until they communicate and agree about money.

Anna Mostetschnig

She added that people in relation-ships need to make budgets together, share ownership of household fi-nances, and be open and transparent.

“Let us teach our daughters to be fi-nancially independent,” she advised.

She also urged women to teach their sons to respect financially independent women.

Mostetschnig said money and re-lationships are very sensitive issues which have the potential “to blow up things”.

“The truth is, every relationship has financial issues. It is very nor-mal. You just have to work on those issues,” she said.

Also on money and relationships, Nadja Geiger, a brand manager at Red Bull Namibia, said most people advise couples that for marriage, everyone has to put in 50/50.

“But I have got a different version. A marriage can only work if it’s a 100/100,” she stated.

First Lady Monica Geingos said marriage is a form of wealth man-agement.

“I am not saying go and marry a rich man, and I am also not say-ing go and marry a security guard. But what I am saying is when you marry, if you can avoid marrying in community of property, please do,” she said.

She disclosed that she is married out of community of property.

“If you are going to marry in com-munity of property, please negotiate on the house. Be very careful,” she said.

She further gave as an example of abuse a woman who just stays at home and indulges in extravagancies such as buying Brazilian hair and trinkets, while the man goes out there to work for the money.

“Be very careful around marriage and finance,” she advised.

Meanwhile, financial planner and managing member of Chase &Asso-ciates, Afra Schimming-Chase, said: “When it comes to your money, you are always single.”

4Tuesday 11 april 2017 Building Personal Wealth

ways to succeed without a college degree

1. Acquire knowledge through self-explorationHave you heard of the School of Google? Today, you can virtually learn anything you want from doing a simple Google search or spending time reading. There are a variety of ways you can gain knowledge without going to college. Read up on industry journals, blogs, books and magazines. Start contributing to industry blogs and engaging in online forums. You can also take free classes from websites like Harvard Open Courses, Udemy, Coursera and Open Yale Courses.

2. Gain experience and build your portfolioYour knowledge isn’t going to do you any good if you don’t apply it to your career. Invest your time in gaining as much experience as possible, and build an outstanding portfolio.To gain experience, think outside of the box. Don’t limit yourself to working odd jobs or volunteering your time. It’s important to get your feet wet in opportunities that will take you to the next step of your career. There are endless ways to gain valuable experience. Consider launching a kick-starter campaign to raise funding for one of your creative projects or an educational endeavour. Schedule job shadows with industry professionals and attend conferences in your chosen field. You could even start a small business venture that could help you gain experience and build clientele. Whatever you choose, make sure your experience adds value and accom-plishments to your portfolio.

3. Learn in-demand skillsJust because you aren’t in school doesn’t mean you can pick up in-demand skills. In fact, the majority of employers desire candidates who have a strong set of soft skills. According to CareerBuilder, the most popular soft skills employers look for in candidates include a strong work ethic, dependability, a positive attitude and the ability to work under pressure. The best way to master these soft skills is through experience. As you begin to develop soft skills, record any accomplish-ments that illustrate these skills: For example, to demonstrate your strong work ethic, explain to an employer about times you’ve gone above and beyond of what was expected from you or a time where you took on extra responsibilities. These accomplishment stories show employers your ability to suc-ceed in the workplace.

4. Build a team of amazing mentorsOne of the secrets to building a successful career is to as-semble a team of mentors who will help you along your journey. Connect with people who are in the position in which you want to be, learn their secrets and follow their wisdom.As you search for mentors, think about the role you want each individual to play in your career. Do you need a mentor who has a decade of industry experience? Do you need a mentor who was once in your shoes? Asking these questions will help you identify the type of guidance you’ll need.

ROLE MODEL ... Nadja Geiger of Redbull Namibia talks about pur-suing a career without a tertiary qualification at a recent women and finance con-ference in Wind-hoek.

Photo: Ndama Nakashole

But Nadja Geiger, has a differ-ent success story to tell.

Geiger told about 150 wom-en at a recent women and finance conference in Wind-hoek how she succeeded in her career without a university qualification.

The conference was organ-ised by the Financial Literacy Initiative, a national platform created to enhance financial education in the country as part of its 5th anniversary celebrations.

Geiger is a brand manager at Red Bull Namibia and said, she never believed in tertiary qualifications as the basis for a successful career. She started working at the young age of 16.

“Back then we did not have institutions like the University of Namibia School of Medi-cine and others. So people left after high school to South Africa and Germany mostly. When everyone was leaving the country to further their studies, Nadja decided to stay back in her beloved Namibia,” she said.

She said she did her work with so much passion that she made sure she became irreplaceable.

“I was irreplaceable. Not

that when I leave they will not be able to get anyone to do my work. I mean be irreplaceable that when you leave there will be a loss/losses,” she said.

She further advised that one needs to be very transparent on what they do even when they are pursuing a career without tertiary qualifications.

“At 19, I had about 20 people working under me,” she said adding that she also had to be serious when it came to her work so that people would not disrespect her as that could affect the job.

“I love what I was doing and still doing. I represent a brand,” she said.

She further said that Na-mibia is a very sparsely popu-lated country and that someone without a qualification should stand a chance to succeed at something.

“You have a chance to stand out. You have a chance to make a difference. Because leader-ship starts with one person making a difference,” she said.

“Everybody wants to make money. But you should make sure you make it by doing what you love doing. Do not go study something at university because you want to make a lot

of money in that career. “Grow yourself by doing

something you are passionate about. Do not go and study something because it is going to look good on your business card,” she advised.

She further said when you are out there in the industry you must not think they are too smart or have arrived because “there is always something in which you come second.

“Qualification or not, in Namibia there are very few women who cannot do what you do,” she said.

Women should not ask for compliments in what they are doing, she added.

“You do not need validation for what you do,” she said.

Geiger came along with 18-year-old Adelheid Mbandi, who matriculated last year and is taking a gap year to see what she would really want to pursue next year.

The teenager spoke confi-dently of how important it is to even do research on oppor-tunities available before one chooses a career.

“Encourage young women to exhaust opportunities in their lives,” she told the con-ference.

Succeeding without a university degree

•NDAMANAKASHOLE

WE now live in a world where having a university degree is seen as a starter, or at least a must have for a good career and a good salary.

4