FINANCIAL WORKSHOP

WORKBOOK

1
INTRODUCTION
Enkrates Financial Solutions has developed this financial workshop aimed to empower clients with a
better understanding of their spending habits as well as the ability to make sound financial decisions
and take full responsibility and accountability for their own financial position.

ENKRATES - Self Discipline and Control, is literally one in control of strength and thus one having
power to "hold oneself in" or to "master self". This virtue describes "lordship" or dominion over self.
The self-controlled individual exercises restraint over his own impulses, emotions, appetites and
desires.

Man has managed to control almost everything, except himself, his own desires!

OBJECTIVES OF THIS WORKSHOP:

 Increase knowledge and implementation thereof in regards to finances

 Relieve financial pressure through application of discipline, control and financial structures
 Educate clients regarding their own finances and achieving their goals
 Create cash flow
 Position money in its rightful place
 Determine and achieve realistic financial goals
 Develop stewardship through discipline and self control

In order to achieve the objectives, we have designed this workshop with the view to address the
following aspects:

MODULE 1 Finances and relationships

MODULE 2 Stewardship
MODULE 3 Practical Budgets
MODULE 4 Basic Financial Principles
MODULE 5 Basic Investment Principles

Our Principles are based on principles by Warren Buffet, Benjamin Graham, and other successful
principle based mentors. We are also regulated by the National Credit and Financial Services Board
Regulatory. We believe the biblical principles of “In Giving, We Receive”, “Owe Nobody Nothing,
Except Love!”

We strive to work with integrity. In our mind, Integrity is a combination of Knowledge and
Intention/Honesty. We know that advice with the best intentions/honesty but without knowledge is
not to the benefit of the client.

Advice with knowledge but lacking in good intensions/honesty has the same result. Integrity is a
combination of both aspects and we strive to practice and apply this at ALL time.

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 MODULE 1

FINANCES AND RELATIONSHIPS

BACKGROUND
MONEY CAN’T BUY YOU LOVE, BUT IT SURE CAN TEAR IT APART!

FACT: MORE RELATIONSHIPS GO SOUR AT TIMES OF FINANCIAL NEED THEN WHEN THE CASH IS FLOWING REASONABLY
FREELY.

FEW SPEAK ABOUT THE LINK BETWEEN FINANCES AND RELATIONSHIPS, AND YET IT REMAINS THE WORLDS #1 REASON WHY
MARRIAGES FAIL.

7 OUT OF 10 DIVORCES IN THE USA, BECAUSE OF FINANCES

To ignore the lack of funds and the management thereof places tremendous strain on relationships (spouse, children, family, colleagues,
God), health and thoughts.

Finances MUST be properly managed and controlled! ENKRATES!

FINANCES AND EMOTIONS

Money involves powerful emotions. One of the reasons finances affect family relationships so significantly is the close link between
money and feelings.

Exercise 1:

Think about the motivation behind your financial habits. Use the space below to write down some of your thoughts.

The way money is used can symbolize such feelings as anger, fear, guilt, or power struggles. It often symbolizes feelings of love or
rejection. Giving money or things it can buy may be seen as an expression of affection or conversely as a substitute for personal attention
and caring. On the other hand, withholding money or financial support may be used as punishment or perceived as rejection, lack of
empathy, or a manipulative use of power” (Hogan & Bauer)

Bernard E. Poduska (1993), “We seldom spend money just to obtain things. Rather, we spend money to experience the feelings associated
with the things.” For example, a husband may spend money on flowers for his wife to feel happy about caring for her and to make her feel
loved and appreciated. Or an individual may spend money on a new outfit to feel more confident and attractive.

Understanding of the relationship between money and emotions will help a family understand its financial problems or behaviours and
implement effective financial planning. For example, father acquired credit card debt because he spoilt his daughter with toys to make up
for missing her piano recital and relieve his own feelings of guilt. Wife goes on shopping sprees to get revenge because she feels the
husband is too controlling of the finances.

INDIVIDUAL ATTITUDES ABOUT MONEY

Exercise 2:

What things/ people/ situations have formed your attitude about money?

Money has a symbolic meaning to most people that has developed from their childhood. “One partner may have been socialized that
money was a scarce resource and the other partner socialized that money was relatively infinite resource. One or both partners may highly
value material goods, comfort, status, and convenience. Conversely, one or both partners may prioritize saving or giving generously to
causes they cherish.” (Hogan & Bauer)

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For example, a husband who saw his own parents struggle financially may be reluctant to spend money on luxuries like vacations or jet-
skis. Or a wife grew up in an affluent home may expect to own expensive items and brand names. Differences in values and the symbolic
meaning of money may be the cause of financial conflict between husband and wife.

Personality traits also have a significant affect on a person’s attitude toward money and financial management.

Exercise 5:

What is your personal, realistic goal for your finances?

FAMILY FINANCIAL PLAN

Exercise 6:

Tick the boxes that are relevant to you:

We have a set budget for our family

We follow the family budget

We formally discuss the budget to adapt it based on circumstances

We are honest about our spending

We all work towards the same financial goals

Our budget works out as planned

Bernard E. Poduska warns, “One of the quickest ways to destroy a marriage, or any other relationship, is to allow a love of things to
become a higher priority than the love of each other. Spouses (family members) should be considerate of each other as they manage
money and make decisions that are best for both partners.

Reconciliation may be the first step towards planning and managing family finances. With regards to family finances, it requires total
honesty about all debt/expenses or savings. It further requires that both parties recognize that we all need grace and forgiveness on a daily
basis and we are placed in positions to give grace and forgiveness.

ACTION PLAN
Think about the areas you filled in above. When you are comfortable to share, arrange a meeting with your partner to discuss the different
areas. Stay open minded and try to ‘get into their head’ about where they come from. You will probably learn something new about them!
Use the following guidelines in your conversation.

 ARRANGE AN APPOINTMENT WITH YOUR PARTNER

DATE: TIME:

VENUE:

 SEEK UNDERSTANDING
 SIT DOWN AND TALK ABOUT FINANCIAL GOALS AND VALUES
 CHANGE YOUR FINANCIAL BEHAVIOUR
 STAY POSITIVE AND BE HONEST

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 MODULE 3

PRACTICAL BUDGET

“Some couples go over their budget very carefully every month; others just go over them.” (Sally Poplin)

“A budget tells us what we can’t afford, but it does not keep us from buying it.” (William Feather)

Exercise 1:
What would you say is the purpose of a budget?

DEFINITION OF A BUDGET

A budget is a plan that outlines an organization's/individuals financial and operational goals. So a budget may be thought of as an action
plan; planning a budget helps a business/person allocate resources, evaluate performance, and formulate plans.

A budget is a description of a financial plan. It is a list of estimates of revenues to and expenditures by an agent for a stated period of time.
Normally a budget describes a period in the future not the past.

PURPOSE OF A BUDGET
 To enhance, not diminish, your personal life!
 Places you in a position to clearly understand your income and expenses.
 Places you in a position to manage your income and expenses.
o Now you can say “NO” to impulsive buying!
 Your income now determines your expenses, not your expenses your income
 Make sure that income and expenses match, both in amount and timing
 Serve as a indicator to:
o highlight potential cash-flow problems
o opportunities to better utilize income
 Measurement tool to evaluate:
o planned budget versus actual results
o progress is made towards specific goals
o highlight areas where changes should be made
 Gives you a sense of control and confidence
 Empowers you to make informed future financial decisions

SPENDING AND SAVING

 SPENDING
o If you buy things you don’t need, you will soon sell things you need
 SAVING
o Don’t save what is left after spending; spend what is left after saving

FOOD FOR THOUGHT

An average of 8 out of 10 people we consult (debt counselling perspective), have never seen or planned their own budget!

9 out of 10 who have planned their budget, do not use their budget to determine expenses.

Example of clients that lived the high life 2-3 years ago, now they are on debt counselling.

People tend to view budgets as complicated, difficult and time consuming, should not be the case.

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Most of us believe that we are OK, “we are making ends meet without a budget”.

Unfortunately, most of us are one salary slip away from being bankrupt!

No one is exempt/immune against events that can financially cripple us!

Warren Buffet lost $10 billion during the financial meltdown.

PREPARING A PERSONAL BUDGET

STEP 1
Determine short and long term goals:

a) Short term
i) buying a new vehicle
ii) buying new tyres or major vehicle service
iii) medical costs (dentist, operations, spectacles, etc)
iv) house renovations, holiday, etc.
b) Long term
i) retirement
ii) tertiary studies
iii) weddings
iv) debt free live!!
v) etc?

Budget should make provision for short and long term goals

Exercise 2:
List your short- and long term goals:

Short term Long term

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.

STEP 2
Understand possible events that could financially cripple you

 Death of a partner  LIFECOVER

o Sufficient to cover debt and loss of income
o Unselfish act of love!
o Will happen to us all!
 Retrenchment  INCOME PROTECTION/PROPER INVESTMENT
 Physical/Mental disability  DISABILITY COVER/INCOME PROTECTION
 Medical costs/Severe illness  SEVERE ILLNESS COVER
o Medical aids are becoming more reluctant to pay for the best severe illness treatment
o Will pay for minimal effective treatment
o Example: breast cancer/severe motor accidents
 Over-indebtedness  DEBT COUNSELLING
 House and household cover  SHORT TERM INSURANCE????

Income must determine the amount of money that can be paid towards the above.

Therefore it is important to prioritize before allocating money to all the above.

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Exercise 3:
Prioritise allocation for above events.

Short term Long term

1. 1.

2. 2.

3. 3.

4. 4.

STEP 3
Prioritize obligations and expenses

 Obligations
o Mortgage, vehicle finance, personal loans, credit cards, overdraft
 Fixed versus Variable expenses
o Variable expenses
 Groceries (stewardship contribution – poor), entertainment,
recreation, birthday parties, school excursions, donations,
telephone bills, gifts, bank costs, etc
o Fixed expenses
 School fees, insurance, housekeeping, garden service, rates
and taxes, pocket money, contingency, investment, church,
etc.

MANAGING YOUR BUDGET

 Diarise time to manage your budget
 Develop a method of managing variable costs on a daily basis
o Groceries, etc,
 envelope system
 credit or consumers card
 receipt management (envelope)
 other examples
o Bank costs
 debit cards and cheques
 develop a strategy to reduce bank costs!!!!
 Develop a reward system to motivate future budget management

Exercise 4:
What strategy can you implement in order to manage your budget?

Exercise 5:
What reward system can you implement that will help you manage your budget effectively?

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FIXED COSTS AMOUNT VARIABLE COSTS AMOUNT
Mortgage Groceries
Vehicle finance Bank costs
Insurance Water & electricity
Telephone bill Stewardship - poor
Cell phone bill School excursions*
Rates & taxes Gifts*
Housekeeping Entertainment*
School fees Recreation*
Investment Offerings*
Contingency
Tithing
Medical aid
Pocket money
Garden Services

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 MODULE 4

BASIC FINANCIAL PRINCIPLES AND VALUES

INSPIRATION FROM WARREN BUFFET

 HARD WORK
o All hard work bring a profit, but mere talks create only poverty
 LAZINESS
o A sleeping lobster is carried away by the water current
 EARNINGS
o Never depend on a single source of income (at least make your investment get you a second earning)

BASIC FINANCIAL PRINCIPLES

1. DEBT FREE
 The only man, who sticks closer to you in adversity than a friend, is a creditor.
 As long as we owe people money, they have control over us.
 God has never intended for one human being to be controlled by another.
 As long as we owe people/institutions money, they have control over us.
 Work to a debt free plan (discipline + management +budget/plan).

2. CASH FLOW
 CASH FLOW IS KING!!!!
o Property and long term investments?
o Vehicle and Mortgage payments
 Primary aim = debt free. Without compromising cash flow!

3. HARD WORK
 “He who has a slack hand becomes poor, but the hand of the diligent makes rich.” (Proverbs 10:4)

 “The soul of a lazy man desires nothing; but the soul of the diligent shall be made rich.” (Proverbs 13:4)
 “The desire of the lazy man kills him, for his hands refuse to labor. He covets greedily all day long, but the righteous
gives and does not spare.” (Proverbs 21:25-26)
 “Depend on the rabbit’s foot if you will, but remember, it didn’t work for the rabbit.” (R.E Shay)

4. HONESTY
 “Wealth gained by dishonesty will be diminished, but he who gathers by labour will increase.” (Proverbs 13:11)
 “If you tell the truth, you won’t have to remember anything.” (Mark Twain)
 “He who lies for you, will lie against you.” (Bosnian Proverb)
 “No man has a good enough memory to make a successful lair.” (Abraham Lincoln)

5. TIDINESS
 “He who is slothful in his work is a brother to him who is a great destroyer.” (Proverbs 18:9)
 “Be careless in your dress if you must, but keep a tidy soul.” (Mark Twain)

6. BRIBES
 “You shall not pervert justice; you shall not show partiality, nor take a bribe, for a bribe blinds the eyes of the wise and
twists the words of the righteous.” (Deut 16:19)
 Every shadow, no matter how deep it is, is threatened by the morning light.
 Unfortunately people use this kind of tactic as daily business strategy.
 We all have been, or will be exposed to bribes at some stage.

7. GREED
 “Earth provides enough to satisfy every man’s need, not every man’s greed.” (Gandhi)
 “The man who has won millions at the cost of his conscience is a failure.” (BC Forbes)
 A man’s life does not consist in the abundance of his possessions.
 Definition: Consuming desire to have more.
 Could it be the reason for the current economic meltdown?

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8. INTEREST
 “You shall not charge interest to your brother – interest on money or food or anything that is lent out at interest. To a
foreigner you may charge interest, but to your brother you shall not charge interest, that the Lord your God may bless
you in all to which you set your hand in the land which you are entering to posses.” (Deut 23:19-20)

9. TRUST
 “He who trusts in his riches will fall, but the righteous will flourish like foliage.” (Spr 11:28)
 Trust is not always the best foundation on which to base a financial decision;
 sale of shares
 new business venture
 Handle business transactions properly!

10. TRUSTWORTHY
 “The only way to make a man trustworthy is to trust him.” (Henry L. Stimpson)
 We have to be trustworthy in:
o payment of our monthly commitments – pay on time
o payment of debt

11. SURETY
 Two types of surety:
 Others
 Self (business)
 “My son, if you become surety for your friend, you have shaken hands in the pledge for a stranger, you are snared by
the words of your mouth; you are taken by the words of your mouth.” (Proverbs 6:1-2)
 “He who is surety for a stranger will suffer, but one who hates being surety is secure.” (Proverbs 11:15)
 “Do not be one who shakes hands an pledge, one of those who is surety for debts; if you have nothing with which to
pay, why should he take away your bed from under you?” (Proverbs 22:26-27)
 Webster’s dictionary - definition:
 “a prisoner who is held by one party to ensure that another party will meet specific terms”
 Webster’s dictionary – synonym:
 “hostage”

12. GENEROSITY
 “The generous soul will be made rich, and he who waters will also be watered himself. The people will curse him who
withholds grain, but blessings will be on the head of him who sells it.” (Proverbs 11:25-26)
 “He who has a generous eye will be blessed, for he gives of his bread to the poor.” (Proverbs 22:9)
 “Never look down on anyone, unless you are helping him.” (Jesse Jackson)
 “If you haven’t any charity in your heart, you have the worst kind of heart trouble.” (Bob Hope)
 “It’s nice to be important, but it is more important to be nice.” (Unknown)
 “If you want others to be happy, practice compassion. If you want to be happy, practice compassion.” (Dalai Lama)
 Don’t be yourself, be someone a little nicer.” (Mignon McLaughlin)

13. HUMILITY
 “Better to be of a humble spirit with the lowly, than to divide spoil with the proud.” (Proverbs 16:19)

 “A man’s pride will bring him low, but the humble spirit will retain honor.” (Proverbs 29:23)
 “Humility does not mean thinking less of yourself than of other people, nor does it mean having a low opinion of your
own gifts. It means freedom from thinking about yourself at al.” (William Temple)
 “Swallow your pride occasionally, it's non-fattening!” (Unknown)
 “What kills a skunk is the publicity it gives itself.” (Abraham Lincoln)
 “Too many people overvalue what they are not and undervalue what they are.” (Malcolm S. Forbes)

14. BE DECISIVE
 “But let your ‘Yes’ be ‘Yes,’ and your ‘No,’ be ‘No.’ For whatever is more than these is from the evil one.” (Matt 5:37)
 “It's not hard to make decisions when you know what your values are.” (Roy Disney)
 “When one bases his life on principle, 99 percent of his decisions are already made.” (Unknown)
 “Decisions become easier when your will to please God outweighs your will to please the world.” (Anso Coetzer)

15. TAXES
 “Be wary of strong drink. It can make you shoot at tax collectors... and miss.” (Robert Heinlein)
 “If the Lord loveth a cheerful giver, how he must hate the taxpayer!” (John Andrew Holmes)
 “Taxes, after all, are due that we pay for the privileges of membership in an organized society.” (Franklin D. Roosevelt)

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  “Render therefore to Ceaser the things that are Ceaser’s, and to God the things that are God’s.” (Luk 20:25)
 Right thing to do!

16. FAILURE
 One can learn much from failure or “hard knocks”
 One cannot always depend on past successes to guarantee future success, but one can
always learn from lessons drawn from failure.
 “FAILURE IS AN EVENT, NEVER A PERSON!” (William D. Brown)
 “The greatest risk in life, is not taking a risk at all.” (Leo Buscaglia)
 “I have not failed. I've just found 10,000 ways that won't work.” (Thomas Edison)
 “I don't know the key to success, but the key to failure is trying to please everybody.” (Bill
Cosby)
 “Try again. Fail again. Fail better.” (Samuel Beckett)

17. INCREASE FINANCIAL UNDERSTANDING/KNOWLEDGE

 “A rich man is one with knowledge, happiness and his health.” (Lonnie Lynn)
 “A fool and his money are soon departed.” (Proverbs of Solomon)
 “Diversification is a protection against ignorance; it makes little sense for those who know what they are doing.”
(Warren Buffet)
 “When wisdom enters your heart, and knowledge is pleasant to your soul, discretion will preserve you; understanding
will keep you.” (Proverbs 2:10-11)
 “Yes. If you cry out to discernment and lift up your voice for understanding, if you seek her as silver, and search for
her as for hidden treasures. Then you will understand the fear of the Lord, and find knowledge of God.” (Proverbs 2:3-
7)
 “Get wisdom! Ger understanding! Do not forget, nor turn away from the words of my mouth. Do not forsake her,
and she will preserve you; love her, and she will keep you. Wisdom is the principal thing; therefore get wisdom.
And in all your getting, get understanding. Exalt her, and she will promote you; she will bring you honour, when you
embrace her. She will place on your head an ornament of grace; a crown of glory she will deliver to you.” (Proverbs
4:5-9)

18. ENJOY LIFE

 ”So I commended enjoyment, because man has nothing better under the sun than to eat, drink and be merry; for this
will remain with him in his labor all the days of his life which God gives him under the sun.” (Ecclesiastes 8:15)
 “Whatever your hand finds to do, do it with your might; for there is no work or device or knowledge or wisdom in the
grave where you are going.” (Ecclesiastes 9:10)
 “The purpose of life is a life with a purpose.” (Robert Byrne)
 “The miracle is not to fly in the air or walk on water, but to walk on the earth.” (Chinese Proverb)
 “When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left, and
could say, “I used up everything you gave me.”” (Erma Bombeck)

19. LESSONS FROM THE BUSINESS SECTOR

 The most important aspect of starting a new business is a Business Plan.
 Business plan defines the following:
o how my business will survive
o who my opposition is, and their effect on my business
o cash flow projections
o etc, etc.
 Without a business plan, a business has no direction, no checks and balances, nothing to measure the progress
of the business against.
 Management Statements, indicates if the business plan is still on track.
 Management Statements enables the business owner to identify potential cash flow issues, expansions
possibilities, etc, etc.
 Statistics have shown that companies that have well prepared Business Plans and Management statements, have
got more than double the chances of surviving than companies who do not have a Business Plan and
Management statements.
 From a personal finance perspective, our business plan is our Budget.
 Budget’ s purpose and function discussed in Module 3
 Our management statements are our bank statements.
 We need to study our bank statements monthly in order to confirm if our budget is still on track.
 PLAN YOUR LIFE!!!

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20. SUCCESS
 Webster’s dictionary ~ that which comes after, hence, consequence, issue, or result of an endeavour or
undertaking, whether good or bad, the outcome or effort.
 Success can be good or bad!
 Success can be achieved to the detriment of others!
 Success requires planning, it to be defined, hard work and constant evaluation of your motives.
 “God gives every bird its food, but he does not throw it into its nest.” (J.G. Holland)
 Opportunity is missed by most people because it is dressed in overalls and looks like work.” (Thomas Edison)
 If success is not defined, you will never know if you have reached it?
 Success needs to be defined, not just in material value, but also in time and relationship values.
 Material success without quality relationships and time equals a lonely and desperate life.
 Define your house, cars, monthly income on retirement, relationships, time and hobbies.
 “Beware of the temptation that success brings. There is grave danger in getting what we want.” (Philip Yancey)
 There is no failure more disastrous than the success that leaves God out!

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 MODULE 5

BASIC INVESTMENT PRINCIPLES AND VALUES

BACKGROUND
 Complicated process, which involves the optimal method of “putting away”
 Need to keep it basic and simple!
 Focus on principles - not companies or services.
 Investing is for a specific purpose.
 Most people do not retire early or comfortably
 Investing is a process, not a product

Patience is a vital part of investing. No investment is for short term. Tine is required to make investments grow, always!

BASIC PRINCIPLES OF INVESTING THAT SHOULD BE APPLIED

 Goal of investment:
o Retirement
o Studies
o Wedding, etc.

 Transparency of cost structure

o Fees have a big influence on the investments ability to grow
o Fees must be transparent at all times
o Upfront fees on investments must always be questioned!
o Always ask your investment broker to disclose fee upfront-, and yearly fees
o Insist on quarterly statements, where the costs are displayed

 Risk of investment
o Risk happens when the worst conditions prevail
o Never take more risk than what you can afford
o Get a clear understanding of the risks involved
o Risks has to be properly explained before any consideration of investment
o Fixed long term investments has the added risk of potential legislation influences

 Win-Win situation with advisor

o Question? – Does my advisor take the pain and the gain of the good times?
o Cannot be emphasized enough!!
o Advisor has to be accountable for advice!!

 Flexibility of investment
o Is your investment available at short notice?
o Are there any penalties involved in accessing your funds?
o Can your investment be altered during the investment period?

 Ownership
o Usually our money is invested in funds we don’t understand?
o Most of us do not know where our money is invested?
o Ownership and Stewardship (Module 2)
o Understand where exactly money is invested, i.e.;
 Companies, Shares, Bonds, etc.
o Ownership of investment, helps make investment tangible and create greater interest

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8 MONEY SECRETS FROM WARREN BUFFET
1. Rich Is a State Of Mind
“I always knew I was going to be rich. I don’t think I ever doubted it for a minute.”

The difference between being poor and being rich is really just a state of mind.

Poor people think thoughts of poverty and lack, rich people think thoughts of abundance and prosperity.

Your beliefs are going to determine the way you perceive wealth, the decisions you make and the way you act towards it.

2. Success Is More Than About Your Bank Balance

When asked by CNBC what is the secret to success, Buffett replied “If people get to my age and they have the people love them that they
want to have love them, they’re successful.

It doesn’t make any difference if they’ve got a thousand dollars in the bank or a billion dollars in the bank…

Success is really doing what you love and doing it well. It’s as simple as that.

I’ve never met anyone doing that who doesn’t feel like a success. And I’ve met plenty of people who have not achieved that and whose lives
are miserable.”

3. Spend Less Than You Earn

“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than
energy devoted to patching leaks.”

You can’t possibly get ahead financially if you’re spending more than your pay check.

Buffett is famous for living a simple and frugal lifestyle. He is lives in the same house he bought back in 1958 for $31,500. He drove a 2001
Lincoln Town Car for years which he bought second hand. Buffett has a net worth in excess of $52 billion and yet lives off an annual salary
of $100,000.

The relative percentage of his spending based on his overall net worth is minuscule.

4. Avoid Consumer Debt

The sooner we realize that consumerism is a social plague that has been propagated by billion dollar marketing machines to keep you
shackled to your job, the sooner we can stop spending money on useless stuff.

It is a fool’s game to spend today so that you can work tomorrow to pay it off.

It is a losing proposition because one day your working days are going to be over but the debt is still going to be hanging over your head.

Clever marketing has convinced our society that to be happy you have to have more, be more and do more. Buffett abhors consumer debt
instead choosing to use debt wisely by leveraging it in investments.

5. You Are Who You Associate With

“It’s better to hang out with people better than you. Pick out associates whose behaviour is better than yours and you’ll drift in
that direction.”

If you want to succeed financially you need to associate with people who are most conducive to encouraging and cheering on your
financial journey.

If the people you associate with see money as evil, object to capitalism and find wealth a foreign concept then your financial health and
well being is going to be influenced by their views.

Whether we like it or not we are all influenced to some extent by the people we spend our primary time with.

If you aspire to achieve financial security then you need to find a mastermind of people in your life whom you can all encourage and
help each other. (Purpose Stewardship groups should fulfil.)

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6. Gambling Is a Fools Game
“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”

While we are young and naive we choose to take risks with our money that are dumb and stupid.

Trying to hit a home run with your money every time is a losing proposition with long term consequences.

To chase investments that offer a high rate of return you must also assume that it also comes with a higher rate of risk. Bill Gates once
quipped “Warren’s and my betting has always been confined to $1 bets” when talking about them paying poker together. If two billionaires
take risk management this seriously, it’s time we average punters did the same thing.

7. Give Back To the Community

“Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they
are simply jerks with a billion dollars.”

They say that to have more you need to give more.

A contradiction in terms, maybe, but it’s a simple truth that is as enduring as time.

“It is more blessed to give than to receive -Acts 20:35”.

Buffett has announced in 2006 that he was giving away over $30 billion to the Bill and Melinda Gates Foundation making it at the time of
writing the largest charitable donation in history.

He also contributes large sums to his children’s charitable foundations.

8. Generosity and Abundance Goes Hand In Hand

“Even though Benjamin Graham [Buffett's mentor] had everything he needed in life, he still wanted to give something back by teaching, so
just as we got it from somebody else, we don’t want it to stop with us. We want to pass it along too.”

“What benefit will it be to you if you gain the whole world but lose your own soul?” – Mark 8:36.

The path to wealth isn’t a solo endeavour. How sad would life be if you come to the end of your life and there is no one to share it with. So
as you journey on your path to financial abundance remember that there will be many people who generously helped you on your journey
so it is only fitting to pay it forward when the opportunity arises.

Generosity with your time, with your money, with your resources are great virtues to have.

The greatest ally to building a strong friendship is to help others achieve what they want from life.

“You only have to do a very few things right in your life so long as you don’t do too many things wrong.”

END

This document and its contents remains the copyright and property of Enkrates Trust