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HOW TO MAKE AND MASTER MONEY
 
a.k.a. THE MAD MONEY BOOK
by Craig Lock

     A commonsense guide to what every person should know about money: how to make the most of it and manage it.
Written by an ordinary "bloke" for
the 'average'* man or woman in the street, every Tom, Dick or Harry or Mary.

     * is there such as a thing as 'the average' or 'ordinary' person? Everybody I've met has been unique.

"A passion for anything will ensure success, for the desire of the end will point out the means" - William Hazlitt

"Money is like a sixth sense without which you cannot make use of the other five" - Somerset Maugham

     This work is dedicated to my beloved wife Marie. To her goes my heartfelt thanks for her great contribution,
enthusiasm and ongoing support over the last few years with this and other works. Her financial support especially
over the last year was instrumental in me finishing this manuscript so quickly; the writing and publication of this work
has been a joint challenge.

PREFACE

     This work is an adaptation of my small contribution to all peoples in the New South Africa: Money Management for
South Africans. Although it is written on the other side of the world in peaceful and tranquil New Zealand, my heart has
always been in 'the beloved country' of braaivleis (barbeques), sunshine and Chevrolet. I hope to return there some day in
the future. The principles mentioned in this work apply to all countries, although I have written the manuscript specifically
for the United Kingdom, New Zealand, Australia, the USA and Canada.

     I have written generally. I hope that after reading it, you the reader, might have a bit more insight into money and the
financial world (it is not nearly as mysterious as you may imagine).

     The advice contained in this work is general, based on commonsense basic principles throughout the world - you
probably know a lot of it anyway. Because it is only a general overview of money management for the "man or woman
-in-the-street", I have only scratched the surface on many subjects. For further detail and advice, I suggest that you
confirm any major investment decisions with the professionals, like accountants and lawyers, especially regarding
tax-implications. Well, I can not take responsibility for everything, can I!

This book is divided into three parts...
     Part One is for the everyman: Joe Soap, Joe Bloggs, Bruce Smith (a 'real' Kiwi).

     Part Two is for any person who aspires to a little bit more. How to lead a more comfortable life with a bit more money
and how to become wealthy (and who wouldn't?). It covers retirement planning and how to become financially independent.

     Part Three, covering investment is for the more sophisticated investor. I am hovering on the fringes of this group,
purely through my intense study of this subject and my working background with 23 years in the financial services
industry in South Africa, Australia and New Zealand.... though I don't have too many 'beans' in my own bank account.

     In short, this manuscript has been written for people who want to make the most of their money and thus prosper in
today's difficult, uncertain and rapidly changing world.

CONTENTS

PART ONE
CHAPTER ONE - INTRODUCTION:
You are a business, goals, plan, look for opportunities.

CHAPTER TWO - MAXIMIZING YOUR MONEY

CHAPTER THREE - ATTITUDE

CHAPTER FOUR - SOURCES OF INCOME: Earning, salary, wages, how to get a job.

CHAPTER FIVE - EXPENSES: hobbies and pursuits.

CHAPTER SIX - INSURANCE

CHAPTER SEVEN - SPENDING

CHAPTER EIGHT - BUYING, SELLING OR BUILDING YOUR OWN HOME.

CHAPTER NINE - BORROWING AND THE COST OF MONEY - let the borrower beware.

CHAPTER TEN - MONEY MANAGEMENT HINTS.

CHAPTER ELEVEN - HOW WE DID IT ON A "SHOESTRING".

CHAPTER TWELVE - HOW TO MAKE EXTRA MONEY: look for opportunities, business ventures,
earning money at home, hobbies and pursuits,
market yourself, knowledge.

CHAPTER THIRTEEN - THE CONCEPT OF SAVING: the traditional wealth cycle

CHAPTER FOURTEEN - THE CONCEPT OF INFLATION.

CHAPTER FIFTEEN - CHOOSING A LONG TERM SAVINGS PROGRAMME

PART TWO

CHAPTER ONE - THE PROFESSIONALS AND CHOOSING A FINANCIAL ADVISOR

CHAPTER TWO - PRESERVING YOUR MONEY ONCE YOU HAVE MADE IT

CHAPTER THREE - PLANNING FOR RETIREMENT

CHAPTER FOUR - YOUR TWILIGHT YEARS - SOME TIPS FOR RETIREMENT

CHAPTER FIVE - THE STEPS TO FINANCIAL INDEPENDENCE

PART THREE

CHAPTER ONE - INTRODUCTION TO INVESTMENT:
1. Introduction, the ravages of inflation.
2. Principles.
3. Investment tips and rules.
4. Types of investments:
fixed interest, property, shares.
5. The concept of risk speculation.

CHAPTER TWO - UNIT TRUSTS AND MUTUAL FUNDS

CHAPTER THREE - INVESTING IN PROPERTY

CHAPTER FOUR - INVESTING IN THE SHARE MARKET.
How the small investor can make money on the share market.
Rules for investors.

CHAPTER FIVE - AN INTRODUCTORY GUIDE TO BUYING AND SELLING SHARES.

CHAPTER SIX - THE WORST OF ALL.
The nitty-gritty of technical jargon and understanding financial statements.

CHAPTER SEVEN: THE LAST WORD: ABF 
(or 'absolutely bloody final')

_______________________

INTRODUCTION:

     I was born in Cape Town, South Africa. No doubt, all Capetonians (and many visitors too) will agree with Sir Frances
Drake's words when he called it "the fairest Cape in the entire circumference of the earth". And he had seen it all! No,
this is not a book on tourism promoting Cape Town; it's a serious subject this money business.

     My wife, Marie, a New Zealand nurse and I have never earned a great deal of money; however we have always
managed very well in traveling the world. Our close friends have been amazed at what we have achieved on a
"shoestring" ...so perhaps we have done some things right. We now have an idyllic lifestyle with our twin boys, Gareth
and Sean, aged ten, out of the rat race here in Gisborne, a beautiful sea-side resort on New Zealand's east coast of the
North Island. The beaches here are absolutely unspoilt and beautiful (it's always been one of my dreams to live at the
seaside - I just didn't know that I would travel to the other side of the world to do it). The peaceful, tranquil, stress-free life
here has been very conducive to writing this book and thinking about life in general.

     My father, Ray, a very successful life assurance man in South Africa (and very well known and respected), tried very
hard in my early days to teach me about money. He always preached the principles stated in this work. However, like
most young people do in the carefree days of youth, I disregarded his advice in my "happy-go-lucky" days. However, I
learnt later on in life, along with more responsibilities (mortgage, house, car, kids, work, dog, cat, station wagon,
lawn-mowing, etc.) that he had been right all along. It's really just commonsense, so I would like to pass on this
information to other people for what it's worth.

     I have been in the financial services industry (life assurance) in various positions for over twenty years. This must
make me sound boring, but at least it has been in three different countries: mainly South Africa, but also Australia and
New Zealand. It's quite a boring subject with many gray people. Fortunately I managed to seek out a lot of "the colorful
characters" in the industry, the ones who were different/"odd" who are also very good friends. Incidentally, I seem to get
on best with interesting and not "run-of the-mill" characters.

     Throughout my extensive readings and study on this incredibly boring subject, I have found nearly all the books I have
ever read about money very confusing for an ordinary "yobbo", like me. Usually they are written in technical language by
very serious "types" and only economics professors, accountants and insurance actuaries can understand the jargon.

     Incidentally, I agree with the election manifesto of the McGillicuddy Serious party in "Grate" Britain that all
accountants should be cemented in concrete bollards and used as traffic islands. The other simile I like is that actuaries
(they calculate life insurance rates) are "accountants without the personality". Sorry Dave... but I couldn't resist it! Yes,
you can crawl out from behind your desk in Brisbane, Australia now!

     Economics has been defined as "commonsense made difficult by someone who didn't have the personality to be an
accountant...so that 99.9% of the population can't understand this 'intellectual gibberish'". Sorry accountants, you do a
good job; I am just jealous at your attention to detail- because I'm rather hopeless at it, but then women are much better
than men at details and many other practical issues. I think about the big picture, the grand vision, while my beloved wife
counts the number of bolts required for building a bridge (although she is a nurse). If I built the bridge, it would soon fall
down! You are seeing the first glimpses of my off-beat strange sense of humor, which you will come across throughout
in this manuscript.

     Enough rubbish - this is a serious subject! I will now try to get down to helping you understand money in simple
language that all the population can understand. The rest of the book will be serious with only occasional touches of
madness and absurdity. (On checking it I have found that I have written a bit more crazily than I intended.)

     It has been absorbing doing the research for this book here in Gisborne, New Zealand. It has an excellent public
library. It's a good place to learn about money, because there is a bit of old money around, while most of the town is
populated by "down-and-outs", like me. I suggest that you make an action list for yourself at the end of each chapter 
on the points that:
     a) interest you and are relevant to your personal situation,
     b) might be helpful that you can do, and
     c) are to be avoided. I hope you don't think this entire book is "bad to be avoided", like the movie 'crits' say.

     I do hope that the information is interesting and helpful. I have tried to put in dollops of humor to keep you awake.
If you start feeling sleepy reading this work, take a cold shower after every chapter or go out and get some exercise by
kicking the cat.
(sorry SPCA - I was only joking!)

    Every day we have to make decisions about money: whether to buy or not to buy, how to save if we have any spare
money and a multitude of other choices. Money management is something we have to learn from practical experience
in our daily living as we go along. We don't get taught the subject at school. Most people spend more time planning a
fortnight's holiday than learning how to manipulate their money.

     A lot of my learning has been from mistakes and errors of financial judgment. However, I have learnt a lot and I 
haven't made the same mistake twice too many times.

     I would like to see schools teach older children about the subject of money to prepare them for the real and "tough"
world out there (if a "little person" like me could have any influence in the weighty affairs of state).

     Never before has the need to provide for the future been greater than today (with the dismantling of 'the welfare state'
throughout the world. We have to take more and more responsibility (as well as control) for our financial futures. No
matter whether it is saving for a home of your own, or planning for retirement in these exciting but uncertain days. So
make this book your first investment for a secure future (a bit early to get in a plug isn't it?).

     We all know how money affects our lives in every conceivable way and that it directly determines our standards of
living. Handling money can be likened to driving a car: most of us do it automatically, without really understanding what
makes the wheels go round. In this manuscript I won't go into too much detail into the mechanics of money, but rather
how to make the most of it.

     My main motivation for writing this work is that I believe many people suffer unnecessary hardship, stress and misery
in their daily lives simply because they don't know how to manage their money to the best of their ability. Many people,
I believe, don't think sufficiently about how to make, save and invest money once they have made it. The reason is
probably that they haven't been told and have not had the time and inclination to acquire this knowledge. There are no
'magic secrets' in this manuscript - it's just commonsense principles. (I have not used that over-used word 'basic' yet).

     My other motivation is that I need to earn a living somehow since I voluntarily gave up my managerial position in life
assurance nine months ago. I have heard it said that many books on how to make money are written by people who
have never made any money themselves and are as poor as church mice. They hope to make their fortune from writing
a book (like HOW TO MAKE A MILLION!). I totally agree with that assertion!.

     Fortunately, here in quiet New Zealand, as a full-time writer, I have had the time and opportunity to put into words part
of what I have learnt in my more formal jobs in the financial services industry: some of the practical principles. I have
never earned nor had a lot of money, but my wife Marie and I have always managed very well on a small income
(especially these days living "on the smell of an oily rag"). 

     We have indulged ourselves in quite a bit of overseas travel (it's a very expensive business having a foreign wife, but
at least she does pay her way). The chapter near the end of the book tells a bit of our personal mixture of conventional & unconventional methods in getting where we have - a bit "hairy canary" at times, but very interesting. She says life with
me could never be dull! Marie is a quiet efficient New Zealander, so we have had frequent trips between South Africa and
New Zealand... as well as seeing friends in Australia - definitely not the usual PFP or "Pack For Perth" brigade they are
(a derogatory term for 'chicken runners' or South Africans leaving the uncertainty of that vibrant country).

     In this work I won't give you any 'secrets'; there are no magic rules to follow ...but simple commonsense principles.
Haven't I used those words before? "Yessir, but
I just keep repeating them for emphasis. Hopefully, it will sink in! (Note I
am certainly not insinuating that you have a thick skull). It's not as difficult as many people think. I will attempt to explain
in simple terms how to become financially free, although as yet, Marie and I have not attained that status. Years later I
am still a poor struggling author waiting for that big break at this stage of my life, having given up the 'security' of a well
paid job in the corporate world.

     Being financially free or financially independent means different things to different people. I suppose for me and most
others it means SECURITY and having CHOICE - FREEDOM in the way you want to live your life, free from financial
worries. We have chosen a lifestyle out of the rat race in tranquil NZ at a seaside resort, so that I can write. It has meant
immense financial sacrifices ... but at least I feel far happier and much more creative than working in the formal
employment sector.

     However, it is far easier if you have MONEY. You then have the ability to do things that most people only dream
about. Travel and so on. By understanding the concept of money and ways to make it, I really believe that many more
people can become financially successful. We all know that money doesn't give you happiness; if you are unhappy,
no-one wants the added burden of poverty. If you are going to be unhappy, you might as well have a bit of money to go
with it! However, money does give you FREEDOM and CHOICE: to do the things that interest you and give you pleasure
(hobbies, travel, buy luxuries, etc), freedom to share your money with those near and dear to you, like friends and family,
giving to charitable causes, as well as determining how you want to live your life.

     I do not believe in making money for it's own sake - so it's not simply a matter of greed. It is about building wealth, 
so that you, your family (and perhaps friends) can have a more satisfying lifestyle. I will try to show you that you do not
need "to be part of the rat race" to succeed financially. Success will come from your attitudes and values. The reason
why?: Becoming financially independent is a matter of attitude; it depends on what you think is enough money and
no-one else. Accumulating wealth is a slow, steady process and not a "get rich quick" scheme. Success ultimately
comes from within you. Success has been defined as 'the progressive and steady realization of worthwhile personal
goals'.

     Unfortunately we can't do without money. Also, the older we get, the more we normally need. You get used to a
certain standard of living and comfort. When I think of my young days when we went on holiday really 'roughing it', I
wouldn't dream of doing it now. We go through various stages in life, in all of which we require money - sometimes
more and sometimes less. Unfortunately life works like that: when you are young,
"footloose and fancy-free", you think
that your money will come in far more useful than when you are old (to do all those exciting things and have adventures);
but as you get older you need far more capital (cities) than you thought. In this work we will look at those various life
stages we go through, together with our major financial responsibilities.

The main areas that affect us over our lives include:
          # buying a home
          # choosing a mortgage bond
          # medical cover
          # children's education
          # budgeting
          # planning for lifestyle goals (e.g.. a new home, car, holiday, business)
          # replacement of consumer items, like car, furniture, washing machine
          # retirement planning
          # investment planning
          # estate planning for very wealthy people (I don't know if the UK has estate duty. NZ has done away with it)
          # professional services (such as: legal, financial)

     Of these, retirement planning is probably the most important priority; because we have to spend a significant portion
of our life when we don't have any income coming in.

     Well done, in making it to the end of the first chapter!

CHAPTER TWO - HOW TO MAXIMIZE YOUR MONEY

"Whatever you have, spend less" - Samuel Johnson.

     Every day we make decisions about money, which have an effect on our standard of living. Sometimes they are only
small ones, not related to the above-mentioned areas of life. Daily you have to make financial decisions on which items
to spend your money. You are in effect the managing director of your family's business. Spend more than you get in,
your company (business) will soon go broke. Consequently, you have to ensure that you live within your means and
balance the household books (weekly or monthly depending on pay-day)...otherwise you will get into financial difficulties.

     The more money you are able to save each week or month, the higher will be your ultimate standard of living;
although being a miser will not bring happiness. You have to strike a balance in your life between saving and enjoyment
(= spending). After all, who wants to get to a comfortable retirement after a lifetime of frugality and no memories? We all
know that "penny-pinchers" and "Scrooges" are often the most unhappy people in the world and that it's always better to
give than to receive. Is it really or only for saints?

     As I have already mentioned, your household finances are run just like a business. At the end of each month, how
much of what you earn stays in your own pocket? You will probably find, like most people, that you are paying everyone
else but yourself: the butcher, baker, candlestick maker and other accounts, like paying off the car repairs and windows
broken by the kids (happened last week).

Ask yourself the question: How much of what I earn stays in my own pocket?

     You are the most important person in the world; at least, I think so! So what is the point of working all your life and
having nothing much to show for it? The most precious commodities in the world are MONEY and TIME; they are both
very limited. Although I don't have much of the former, I have had the time and opportunity (+ most importantly, desire
and motivation) to write this manuscript.

     Incidentally, I also think imagination and creativity are also vitally important, but don't have much to do with this
subject. (If you want to know more, read my latest wacky book STEPS TO SUCCESS, PROSPERITY AND
HAPPINESS. (Plug plug!) Perhaps those subjects will have to wait for another day. Get back on track, 'sonny boy'!

     Just like the skilful businessman, the more skilful and knowledgeable you are, the more money you can save from
your pay-packet There are two ways you can do this: you can simply increase your income (not so easy is it?) or you
can cut down on your spending. You may not realize it, but you are not necessarily confined to working for a boss for
forty hours (or quite a bit more these days) a week for the rest of your life. If you can generate enough income from
investment to maintain your lifestyle by producing an income flow, you will be free to choose whether to work OR NOT.

     Dream on; it can be achieved with quite a bit of effort and sacrifice. You are responsible for your destiny and have
more control than you may think. I hope to achieve that status one day sitting on a beach on a tropical isle having
grapes popped in my mouth by a local beauty. Dream on 'sonny boy'!

     Like the astute businessman, you should save some of your income to reinvest, thereby generating more income in
the future. MONEY is the key, because you are buying later independence. Invest as much as you possibly can,
especially in the early years (because of the magic of compounding interest accumulating substantial capital over time).
Later on I'll explain how interest works. Like in any successful business, sacrifices have to be made; so that you are
obliged to forego more immediate pleasures. I sound like a psychologist, but they would use the fancy term 'deferred
gratification', otherwise use some highfalutin (nice word, hey!) explanation.

How much money is enough?

     As I have already mentioned (first signs of encroaching senility!), a balance is critical. Scrimping and saving like a
miser will not bring happiness and fun in life. The key to financial success is moderation - economize through
eliminating wastage.

THE TEN MOST COMMON MISTAKES PEOPLE MAKE IN MANAGING THEIR MONEY:

I believe this is the reason why so many people have a needless struggle with their finances.
      1. poor debt management through excessive borrowing - not being able to live "within your means".
      2. failure to monitor their financial position.
      3. lack of motivation (desire) to take action.
      4. lack of foresight in looking ahead.
      5. failure to set financial plans for the future. Most important. Most people don't plan to fail, but fail to plan.
      6. lack of knowledge. Financial ignorance can prove expensive.
      7. inadequate protection against unforeseen events (life and general insurance), such as death, disability and
          physical losses.
      8. procrastination in taking remedial action. And most importantly,
      9. lack of discipline in saving habits.
     10. poor investments: you either pay too much tax on them or inflation eats into your return, or both...so that your
money actually goes backwards. Even worse, you could lose all your money if the company to whom you gave your
money goes 'broke'.

KNOWLEDGE:

     From the above we can see that some basic financial knowledge is vital for all people to survive in the financial jungle
that is today's world. Gaining financial knowledge takes time, effort and discipline. You are the manager of your finances,
so make a PLAN to reach your financial GOALS.
Then implement it. ACTION is the key word.

PLAN:

     Identify a wealth target to aim for. Put it down in writing and share it with your spouse (not a spastic mouse as I call
my dear 'wif') and close friends. Please don't sue me any civil rights groups for the protection of minorities. I'm very
"un-PC", in case you haven't guessed by now. I know there are lots of you out there in the U.K and New Zealand. I am
a minority, who believes in the Power of One (an excellent book by Bryce Courtenay).

     What's that got to do with money? Absolutely nothing ...so back to money.

     The higher the rate of return on your investments, the quicker you will reach your savings target. Also the more you
can save, the quicker financial independence will be achieved. This also applies to short-term goals, like saving for a 
new car, an overseas trip, a chocolate bar, etc.

     PLAN and set financial GOALS, like for your children's education fund. "If you fail to plan, you plan to fail" (said
that one already, but I'll keep it in... because I like it!). Keep financial records of your spending patterns (incomings
and outgoings) and monitor your progress on an ongoing basis.

     Continually look for opportunities to make additional income. (See my free report - 101 WAYS). A business idea or
second job will enable you to reach your financial goals far sooner than normal. It may even be out of desperation to
'keep the wolf from the door'. I'm hopeless at keeping records, but I do have ideas (many good, but some strange ones)
running through my head at odd times, as I'm a bit impulsive. It drives my dear wife even crazier than she usually is.
She deserves a Nobel prize for putting up with me!

     We should not value money for it's own sake, but rather to achieve the financial goals which we value. Money should
always be a means to an end, rather than an end in itself. We have to strike a balance, which isn't always easy. We all
realize that financial security is important, including the vital provision for our retirement years.

     We should also be planning for our children's future needs, educational and other. This is so hard to do these days,
isn't it, when we are only just getting by! No, not getting, but scraping living off food parcels or at the dump! Then we all
have our own personal goals/dreams for the future, like overseas travel or starting up a business of our own, sending the
kids to university, or perhaps owning a beach house. Marie and I have dropped out of the corporate rat race; I write
books, while she works as a nursing sister to support me until my books provide an income. One thing is for sure: all
plans require a substantial amount of MONEY.

GOALS let us think about where we are going in our lives.

     Because we all have different skills and abilities (and desires), not all of our goals may be achievable. Therefore,
recognize and capitalize on your talents and accept your limitations. Everyone has far more strengths than weaknesses
incidentally (I really believe that!), although when they write them down they usually underestimate themselves - most
people write down more personal weaknesses than strengths. Be aware of your strengths and talents. Enough self
help/belief rubbish...we must move on.

     Women have a particularly difficult time/role, in sometimes having to balance family and work. Walking this tightrope
can be emotionally draining and stressful for them, the 'dear creatures'. The role of women is especially difficult in Africa,
where the women's movement is only now gaining momentum and there are so many traditional attitudes towards them
in a very male-dominated society, like South Africa. 

     No wonder I am the way I am! What's this got to do with money? Women's favorite pastime, shopping = money.....
BIG MONEY. Get back on track "dumbo" before you are appointed spokesperson for the women's libbers/feminists.
Hardly likely!

Some general hints in managing your financial affairs: Do not engage in other affairs, you naughty "bugger".
      1. Do it now - don't procrastinate.
      2. Accept that time is valuable and limited.
      3. Seek out information about financial matters. Read the newspapers.
      4. Plan ahead carefully and leave nothing to chance.

HOW TO DO IT

     Before you know where you are going and how you are going to get there, you need to look at where you are now.
How is your financial health? Pretty sick, like me on 'palliative care'. So the first step is to make up an inventory of your
current assets and liabilities. You will then know if you are, in fact, in credit or debit ...or perhaps a casket case on the
way to the morgue (only joking!). This will give you an idea of your financial strength: your current wealth or net worth.

     You would probably have done this if you recently applied for a personal loan or housing bond (mortgage) from your
bank. Your friendly bank manager (who is by nature, a very conservative soul) would have required it. Hopefully, your
financial assets will exceed your liabilities; otherwise you will be going backwards. You may not have known that you
have been traveling in reverse for a while. So now is a good time to find out. We have just found out we are living on less
than our income; but we still save! Our kids still have shoes and we don't rely on food parcels yet! I really don't know how
we do it - fair dinkum (nice Aussie expression)!

See example below:

STATEMENT OF NET WORTH AS AT...
Assets Liabilities
house outstanding mortgage bond
car bills to pay
furniture
bank account
fixed deposits
shares
other

TOTAL ASSETS TOTAL LIABILITIES

NET WORTH = Total assets - Total liabilities

     Keep track of your position on a year by year basis. By doing this you will see what you are really worth, as well as
your increase in wealth over a certain period.
Do a BUDGET or a cash flow statement immediately. The following
example shows what items to include:

INCOME

EXPENSES

Salary (after tax)

Household expenses

Interest received

Rates

Other income

Car expenses

Shares (profit received)

Food

Rent received

Clothing

Misc.

Other expenses

Interest paid

     TOTAL INCOME                         TOTAL EXPENSES

     CASH SURPLUS = total income - total expenses. If this figure is negative, you are in deficit and you have a problem.
Seek help fast before your financial position deteriorates further. Hopefully, you will have a surplus ...so you can breathe
a sigh of relief. See the example of a budget included.

TOTAL INCOME $..................................................MINUS TOTAL OUTGOINGS $....................................................

ANSWER $..........................................................

IF THE ANSWER IS MINUS(-), REVISE YOUR SPENDING
OR
INCREASE YOUR INCOME.

IF THE ANSWER IS PLUS(+), SAVE IT!!!!!

WHATEVER YOU DO,
DECIDE ON A PLAN
AND
STICK TO IT !!!

     At the start of each year, set yourself a minimum desired savings percentage and monitor your progress on an
ongoing basis to see how close you get to achieving it. The New Year is always a great time to resolve to do things
differently isn't it... but then how many of us actually carry through what we set out to do? A New Year's resolution
is nothing more than a wish.

     Only if an aim of yours is written down, is it a GOAL. The table below shows ideal amounts to be setting aside
to achieve financial security for you and your family.

Savings as a percentage of salary:
     Above 60%: excellent - you should become financially independent quite quickly.
        40-60%: very good.
        20-40%: good.
      below 20%: look for improvement.
      below 10%: if you continue this pattern, you are likely to live in poverty (in a plastic bag in a septic tank), or having
to borrow from relatives to stay above the breadline. You may even go bankrupt.

     South Africa is very different to other Western countries in that the onus is largely on yourself to provide for old age.
Even though they are rapidly changing as I write this, Australia, New Zealand and the United Kingdom have well
developed social security systems. Though welfare benefits are being reduced because of their unsustainability after
years of recession. So prepare and PLAN FOR THE FUTURE.

CHAPTER THREE: ATTITUDE

     It has often been said that it is one's attitude to life which determines our destiny. It's not what happens to you, but
how you take it that counts. Similarly, success is apparently 80% dependent on one's attitude and only 20 per cent on
skill and knowledge. 

     A positive outlook on life greatly increases your chances of happiness, as well as your chances of financial success.
I firmly believe that success and prosperity is very much a state of mind. It's the striving and persistence along the
journey which provides a great deal of satisfaction. However, it takes a great deal of EFFORT and COMMITMENT
("stickability"), together with a tough human spirit to survive the journey of life intact...with all its ups and downs.

Here are some general hints and observations coming from my personal experiences:

     1. Opportunities are everywhere, but you have to look closely for them and seize them quickly when you hit on them.
Then move speedily into ACTION.

     2. Know and recognize your strengths and your weaknesses. What are you good at and what needs improving? Are
there any weaknesses which you can eliminate?
Focus on your strengths, but build on your weaknesses.

     3. Try to turn negatives into a positive - in all areas of your life. I truly believe that every experience, no matter how
bad or traumatic it may have been, has some beneficial outcome.

     4. Most importantly, have an open mind: listen to other's advice, but make your own decisions without looking back.
Read educational journals and magazines. Doing all of the above will ensure that you develop a right attitude. This,
together with an appropriate plan of attack, will enable you to reach your financial goals.

***************************************

Some more thoughts as I reflect on life...

     What is your passion? Try to apply it in your work. If your work doesn't have it or give you any, channel it into
something else - it is sure to be worthwhile. I should have been a social worker and not an insurance man; that's my
altruistic side helping others coming out. (Nice long word that, altruistic!). That's what all the careers advisers said, but
instead of being a social worker (a bit effeminate in macho South Africa), I remained a 'square peg in a round hole' in the
corporate world. 

     However, my great passion is sport, so perhaps my writing may help others a little by sharing information and also
allow me to watch sport, especially in South Africa. I also like to share my life experiences to help others in distress or
lacking direction. Look whose talking! Hopefully I can mould my work permanently around my family and my passions.

     DREAM BIG and have confidence in yourself, that you will eventually achieve your goals. You are as good as
the next person, so don't knock yourself or compare yourself to others. Don't be susceptible to the negative influences of
others (SNIOP for short). Friends and acquaintances will always say that you are crazy and that it can't be done ...until
you have actually done it. Once you have proved them wrong they often say they were only joking - they knew all along
you would do it! Liars!

     Whatever you do, PERSIST. Alexander Graham Bell and Thomas Edison failed far more times than they ever
succeeded before inventing the telephone and the electric light bulb. Abraham Lincoln had been declared bankrupt three
times after a very unspectacular career before he became one of the best Presidents that America has ever produced.
Ray Kroc had been an unsuccessful salesman before founding McDonalds (not selling croc meat!), one of the business
world's greatest ever success stories.

     In my first book, HOW TO SURVIVE THE NINETIES, I have written quite a bit about attitude in some depth. I think I
am most motivated by the desire for personal growth, as well as helping and encouraging others. To daily be a better
person in the world by growing and helping make the world a little bit better. Just a 'touch'! Usually altruistic people like
this don't have much money. Everybody's different, so just be you. Enough waffling...

SUMMARY:
     It is vitally important to have clearly defined goals.

     Have determination, persistence and drive. Develop all of these qualities together with your plan and you will be on
the path to success. In one word, you need COMMITMENT.

A = Attitude

B = Belief

C = Commitment

D = Desire, Determination, Discipline

E = Energy

     Fear stops many people from attempting things and reaching their personal goals. Try to overcome a fear of failure.
This is what stops most people from achieving their dreams. The thing which many people fear is FEAR itself. It's natural
to be scared venturing out into the unknown (like leaving a secure job to start up a business). I love the quotation: "be
bold and unseen forces come to your aid". I was very apprehensive coming over here to New Zealand without a job, but
things worked out very well for us in the end.

Also read Susan Jeffer's good book 'FEEL THE FEAR AND DO IT ANYWAY'.

     Have PERSISTENCE and don't give up - NEVER. View your mistakes as a learning experience. We move forward
from our errors of judgment. The only people who don't make mistakes are those who have never done anything. I have
made plenty of them, but I still view the future with confidence. Anyway, nine out of ten things that you fear most will
never happen and the tenth is not as bad as you thought. Even the turtle has to "stick it's neck out" to make progress.
It's the same with managing your money and your financial situation in general.

     Imagine achieving success (financial as well as other) through visualization. This is the technique many sportsmen
utilize to achieve positive results (this isn't American motivational 'claptrap'). The mind has an amazing power all of it's
own. All of us have the potential to achieve virtually anything in life that we set our mind to... if we desire it strongly
enough.

Do not fear failure...ever.
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You've just enjoyed chapters 1 through 3 of Craig Lock's Book How to Make and Master Money.
There is much, much more to this interesting book.

Has Craig Lock succeeded in his "rise" from riches to rags (or vice versa) and made his million?
Or is he living in a plastic bag in a septic tank?
Find Out! Click Here and buy the rest of this E-book!

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