Money Heroes
In this episode, we're unpacking debt. Many are familiar with bad debt, but did you know there’s also good debt? Join us as we share expert advice on how you can use your debt to help you advance your financial success.
Andre Roberts, owner of health and safety firm John Ratcliffe, shares insight on how you can grow your business while managing debt. Then Mike da Silva, owner of The Fort private gym in Johannesburg, shares two pieces of advice for avoiding debt, while running a smaller business.
First up, Momentum’s Stanley Gabriel gives us the good, bad, and ugly of debt management.
Using debt to your advantage
“As with everything, knowledge is power,” explains Stanley Gabriel, CEO of Momentum Investo. He says the more you know about debt – good and bad – the better you can leverage it to advance your trajectory to financial success.
So, what exactly is good and bad debt?
· Good debt refers to debt that appreciates and increases in value over time – this can be seen in business or education investments, and property ownership
· Bad debt, however, starts to decrease or depreciate shortly after you take out the investment – car ownership, for example.
Gabriel implores those dealing with debt to note interest rates and invest realistically.
Watch the full video to hear Gabriel’s advice on how best to manage or navigate your debt – good and bad – and use it to your advantage.
Using debt to your advantage
“As with everything, knowledge is power,” explains Stanley Gabriel, CEO of Momentum Investo. He says the more you know about debt – good and bad – the better you can leverage it to advance your trajectory to financial success.
So, what exactly is good and bad debt?
· Good debt refers to debt that appreciates and increases in value over time – this can be seen in business or education investments, and property ownership
· Bad debt, however, starts to decrease or depreciate shortly after you take out the investment – car ownership, for example.
Gabriel implores those dealing with debt to note interest rates and invest realistically.
Watch the full video to hear Gabriel’s advice on how best to manage or navigate your debt – good and bad – and use it to your advantage.
Avoiding troubling debt
CEO of Galileo Capital, Theo Vorster, shares his take on debt and when to know you are in serious trouble.
"Debt is not your money, debt is somebody else’s money, and you have to give it back to them," Vorster explains. “You have to return that money with interest, you have to give that person more money than you use,” he adds.
Vorster unpacks that you’ll know you’re in serious debt trouble when you’re using one form of debt to pay off another type of debt – like moving money between credit cards.
To help you stay out of troubling debt you should:
Plan your budget
Sit down and evaluate your budget and financial ability to pay off your debt, based on how much is coming in and leaving your accounts.
Pause before you purchase
When you want to buy something that’s out of your budget, Vorster recommends taking 48 hours before you make the purchase.
Remember debt is borrowed money
Keep in mind that debt is accrued by loaned or borrowed money that you must pay back with increasing interest rates over time. Keep a rational mindset when it comes to your ability to meet these rates over time.
Avoiding troubling debt
CEO of Galileo Capital, Theo Vorster, shares his take on debt and when to know you are in serious trouble.
"Debt is not your money, debt is somebody else’s money, and you have to give it back to them," Vorster explains. “You have to return that money with interest, you have to give that person more money than you use,” he adds.
Vorster unpacks that you’ll know you’re in serious debt trouble when you’re using one form of debt to pay off another type of debt – like moving money between credit cards.
To help you stay out of troubling debt you should:
Plan your budget
Sit down and evaluate your budget and financial ability to pay off your debt, based on how much is coming in and leaving your accounts.
Pause before you purchase
When you want to buy something that’s out of your budget, Vorster recommends taking 48 hours before you make the purchase.
Remember debt is borrowed money
Keep in mind that debt is accrued by loaned or borrowed money that you must pay back with increasing interest rates over time. Keep a rational mindset when it comes to your ability to meet these rates over time.
Success Stories: Andre Roberts
Businesses must be particularly careful with their spending and investments to ensure that they still grow and turn a profit.
Andre Roberts, owner of health and safety company John Ratcliffe, shares insight on how you can grow your business while keeping your debt low and healthy.
Watch the video to hear more from Roberts’ on how to navigate these expenses – and when to use credit or avoid it in business.
Success Stories: Mike da Silva
For smaller or privately-owned businesses, debt can also be a juggling act.
Owner of The Fort private gym in Johannesburg, Mike da Silva, shares how their privately owned gym with just seven coaches on staff, navigates growing their business while avoiding bad debt.
Da Silva unpacks his two top tips to get out of debt. Watch the video to see him explore how he decreases debt and increases profit for his business.
Financial success is as unique as a fingerprint. That’s the beauty of defining your own aspirations and ambitions. Getting to where you dream of takes grit, determination and most importantly, honesty.
With two tough years of living through the pandemic and an increasing cost of living, it will take great introspection to be honest about where we find ourselves and seek help when we need it, especially from an expert.
The right advice can propel you forward. Our financial advisers have a vested interest in you: what do you value? What are your goals? This deep discovery sets the foundation for a relationship that will bear fruits of success.
Ready to begin your journey?
Financial success is as unique as a fingerprint. That’s the beauty of defining your own aspirations and ambitions. With two tough years of living through the pandemic and an increasing cost of living, it will take great introspection to be honest about where we find ourselves and seek help when we need it, especially from an expert.
The right advice can propel you forward.
Ready to begin your journey?
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