Cassper Nyovest talks financial freedom
Cora Fernandez, chief executive at Sanlam Investments.
What sounds better; being rich or being wealthy and do you know the difference? “Wealth is a personal interpretation - it depends on where you start. The benefactor of generational wealth accumulation would have a different view of wealth compared to those who build it from scratch. Wealth is about accomplishing the financial and personal goals you set for yourself – it’s about having a fulfilled life. Being rich on the other hand is only based on how much money you have,” says Cora Fernandez, Chief Executive at Sanlam Investment, institutional business.
Cassper Nyovest, South Africa’s biggest rapper and co-partner in Sanlam’s #ConspicuousSaving collaboration, is considered a financial icon and is often affectionately known as Mr CEO. Through all his business decisions, he has one goal in mind – to build a legacy directly linked to building wealth.
He looks up to entrepreneurs like his grandfather and Jay-Z, who built their wealth from nothing. He also understands that his current career has an expiration date and in order to leave a legacy, he needs to make wise financial decisions now.
In July, he worked with Sanlam to start a new dialogue about savings and to do this he shared some of his saving secrets on social media. The country’s enthusiastic reaction surprised him and made him want to share more.
Nyovest shares five #ConspicuousSaving lessons he learned:
1. I understand the power of social media (it’s what helped me #FillUpTheDome) so I understand its influence on society. However, don’t ever try to live up to the pressure of your social feeds. Don’t allow yourself to end up in debt for the sake of looking rich or trying to earn their respect by spending money you don’t have. I think people should live within their means and go at their own pace.
2. I was saving before this collaboration and I will continue to save. Use your money wisely (saving is always a good idea). We do a lot to impress others but you should never spend your money faster than you can earn it.
3. When I posted about me shopping at Mr Price, I was shocked that my fans were surprised and they thought I couldn’t/ didn’t/ shouldn’t shop there. I never thought of myself as above it and my fan’s reaction made me think about how they perceive me and what I do. It made me think about how what I do affects others decision to try to keep up – which often makes them spend to impress. After July I might go back to the “flashy” posts I posted before National Savings Month but I will consider how they impact my fans. The message will be different. We should all think about what message our posts are sending.
4. Saving brings you wealth that gives you financial freedom.
5. Work hard!
“From the #ConspicuousSaving campaign I learnt that you can never know enough when it comes to using money. I have realised there is a lot more to learn. You can always get wiser about your spending,” Nyovest said.
Saving is hard! It goes against the psychological messages of extreme consumption we are exposed to every day. “Our relationship with money is imprinted when we are young. First it comes from how people you look up to treat surplus money. The second effect comes later in life, when you suddenly find yourself in a financial disaster and you need to reflect on why and how you got into this situation. Often our consumption consumes us. So analyse the decisions you make and look at what financial behavioural traits you need to change,” suggests Fernandez.
The first step to financial freedom is to pay off your debt. Nyovest’s grandparents owned wholesalers (Spaza shops) and worked hard to never be in debt – something Nyovest continues to strive for. Once you’re conscious of the financial freedom you are after, you need to follow three easy steps: set realistic goals, start as early as you can (even it’s just something small), and invest wisely. The more South Africans follow these steps the more sustainable our economy will become and grow.
“We need to have dinner table conversations about how to reward ourselves. Saving is the ultimate reward as it results in the financial freedom that we all long for. So let’s start rewarding ourselves and set ourselves on the path to live our best lives possible,” says Fernandez.
