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Cape Town – You have to feel for OneRandMan, the Cape Town architect missioning around with R1 coins. He’s had to lug his money around for the full month of July and try and function as a normal bloke. He had a job, a girlfriend and a pretty good life. But you can’t have it all, it would seem.
Watch the latest episode:
“Life is getting a little crazy for OneRandMan. With all of his debit orders and credit repayments taken care of, he is left with little money to spend on life’s tempting extras. And the consequences are hitting home. Hard.”
The OneRandMan experiment has changed the way the 32-year-old views his life and he has started paying attention to the detail behind his spending. For the first time ever, he is taking note of the price of items in the supermarket.
But now that all major expenses are paid, he’s shocked that there is so little left to live off for the rest of the month. Normally he’d carry on spending liberally and slip into overdraft on his credit card - but this month looks very different as he only has his own hard cash to live off.
A trip to the supermarket gave some deep insight into OneRandMan’s previous attitude towards money and spending. He used to “round everything down, so R8.99 was R8 and R24.99 was R20”.
“I didn’t really take note of the price of things. So now that I am taking more care; I really can’t compare prices because I just don’t know them. I’m basically starting from scratch here.”
Johan van der Merwe, CEO of Sanlam Investments and a person whose own journey with building wealth began many years ago and led to a successful career in investments, said it was very encouraging to see OneRandMan’s thinking on money beginning to change.
“His shift from plastic to coins has brought home the message that every single thing we do costs money,” he said. “My money philosophy – which was passed down to me by my mother – is to only spend what you have. With the exception of using credit to work for you – for instance when buying a property or another appreciating asset – it is never a good idea to get into debt.”
OneRandMan's journey is a social experiment by Sanlam where an ordinary South African lives entirely on R1 coins for the month of July. The aim is to discover how far removed we have grown from our hard cash. The project is linked to National Savings Month, an annual event designed to highlight the importance of saving for the long-term financial health of South Africa and its people.
Instant gratification
Van der Merwe said that instant gratification is the main driver behind the culture of debt in South Africa today. “With some careful planning, investing and saving, it is very possible to achieve your goals. But just with a little bit more patience.”
He said there were many examples of people from humble beginnings who had succeeded financially due to hard work and a solid financial philosophy. The wealthsmith who had most inspired Van der Merwe was billionaire, philanthropist and conservationist Anton Rupert.
“Anton came from very humble beginnings, but he built his global empire on hard work, integrity and honesty and he always made sure to give back to society and to the environment,” he said. “I think there are lessons we can all learn from his story and other similar ones.”
Start investing
Going forward, Van der Merwe said the most important “money move” OneRandMan should make is to start investing. “There is no single ‘right’ way to go about investing – direct or through a qualified financial professional who work with him on his complete financial picture to decide the best investment plan – but it is critical that he starts investing, and starts now. Hopefully he will realise that his money can work much harder for him.”
Savings advice from the experts:
- Fin24.
Watch the latest episode:
“Life is getting a little crazy for OneRandMan. With all of his debit orders and credit repayments taken care of, he is left with little money to spend on life’s tempting extras. And the consequences are hitting home. Hard.”
The OneRandMan experiment has changed the way the 32-year-old views his life and he has started paying attention to the detail behind his spending. For the first time ever, he is taking note of the price of items in the supermarket.
But now that all major expenses are paid, he’s shocked that there is so little left to live off for the rest of the month. Normally he’d carry on spending liberally and slip into overdraft on his credit card - but this month looks very different as he only has his own hard cash to live off.
A trip to the supermarket gave some deep insight into OneRandMan’s previous attitude towards money and spending. He used to “round everything down, so R8.99 was R8 and R24.99 was R20”.
“I didn’t really take note of the price of things. So now that I am taking more care; I really can’t compare prices because I just don’t know them. I’m basically starting from scratch here.”
Love how @persfinza made me look like a handsome old man for their retirement article. #OneRandMan pic.twitter.com/tB2mQBUjnL
— OneRandMan (@OneRandMan) July 26, 2014Johan van der Merwe, CEO of Sanlam Investments and a person whose own journey with building wealth began many years ago and led to a successful career in investments, said it was very encouraging to see OneRandMan’s thinking on money beginning to change.
“His shift from plastic to coins has brought home the message that every single thing we do costs money,” he said. “My money philosophy – which was passed down to me by my mother – is to only spend what you have. With the exception of using credit to work for you – for instance when buying a property or another appreciating asset – it is never a good idea to get into debt.”
OneRandMan's journey is a social experiment by Sanlam where an ordinary South African lives entirely on R1 coins for the month of July. The aim is to discover how far removed we have grown from our hard cash. The project is linked to National Savings Month, an annual event designed to highlight the importance of saving for the long-term financial health of South Africa and its people.
Instant gratification
Van der Merwe said that instant gratification is the main driver behind the culture of debt in South Africa today. “With some careful planning, investing and saving, it is very possible to achieve your goals. But just with a little bit more patience.”
He said there were many examples of people from humble beginnings who had succeeded financially due to hard work and a solid financial philosophy. The wealthsmith who had most inspired Van der Merwe was billionaire, philanthropist and conservationist Anton Rupert.
“Anton came from very humble beginnings, but he built his global empire on hard work, integrity and honesty and he always made sure to give back to society and to the environment,” he said. “I think there are lessons we can all learn from his story and other similar ones.”
Start investing
Going forward, Van der Merwe said the most important “money move” OneRandMan should make is to start investing. “There is no single ‘right’ way to go about investing – direct or through a qualified financial professional who work with him on his complete financial picture to decide the best investment plan – but it is critical that he starts investing, and starts now. Hopefully he will realise that his money can work much harder for him.”
Savings advice from the experts:
- Fin24.
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