Roberto's Blog

A brief history of money: What's your take?

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Let’s admit it. We can’t live without money. It’s just that important. But even though it may be old and crumpled paper vegging inside your wallet, it has a great history. Great as it may be, the history of money as it pertains to your understanding and perceptions is what's important.
 
Money is old. Very old. It’s been with us for a long time and almost every century it changes its look and value. The first ever money originated in Mesopotamia. There, money was made from seashells and beads. But then, it was used as a simple form of trading.
 

Why investing for the income tax rebate is backward thinking

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An income tax rebate is a popular tool used by governments to encourage people to invest in certain financial products or start businesses. There are good reasons for the rebates, but if you’re holding an investment or in business for the tax advantages, I’m afraid to say you’re doing it for the wrong reasons.   
 
Here are a few examples:
 
1. Pension funds enable one to place pre-tax money in an investment fund for retirement. In South Africa, pensioners can withdraw a specified lump sum from their funds at retirement without incurring any tax. The rest gets paid out on a monthly basis (known as an annuity) and incurs tax.
 

Paying off a mortgage early: Is it the right thing to do?

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Paying off a mortgage early may not be the best thing to do. One could rather invest the cash or use it to start a business. That’s one argument. Others believe that it could be one of your best investments.
 
Why pay off your mortgage early in the first place? There are two reasons.
 
1. The first and most important reason from a financial perspective is that you will save thousands of dollars on home loan repayments by paying a little extra into your mortgage every month.
 

How to purchase investment property - for free

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Ever wonder whether it’s possible to ‘purchase’ investment property without paying a cent, using the traditional banking route?
 
It is!
 
The reason why ‘purchase’ is in inverted commas is because you have to go through the normal buying process to transfer a property onto your name or the name of your company. But that doesn’t mean you have to pay to get the job done.
 
Nowadays, it’s very difficult to find a bank that will grant a 110% loan to value mortgage. Banks are reluctant to finance the full property price and pay additional fees such as transfer and registrations costs. If they do, they take on more risk.
 

The 5th law of money: Develop habits of highly successful people

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Wealth creation is a process. Forget about buying that ‘How to get rich overnight’ book. It just doesn’t happen, unless you strike it big in the casino. The process starts with an idea. Once it has been moulded into a workable business concept, an ‘action cycle’ follows, one of doing, learning and doing things better.   
 
All successful people had to start from somewhere, right? And I can bet you now most of them had no assurance of success. The point is you have to get your hands dirty, starting today.
 
Once you get going, change is inevitable. You will begin to approach life with a different hat on. Old thinking habits will be replaced by a new age mindset.
 
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