Don't Clutter

I think that in all aspects of life we should avoid clutter. The trap we all fall in is that when things are going well, we buy stuff we don't need and it ends up standing in some corner gathering dust.

Now look around you and tally the things you never use. In my case it is half my wardrobe, my Jet-ski, half the stuff in my kitchen, tables, chairs, Hi-Fi etc. If I should put a monetary value on it, it must be worth R50 000. Let's say you fare better and the value of unused items in your house adds up to R10 000.

If you bought the stuff on average 5 years ago instead of keeping the money in the bank, earning interest at 6%, you have already lost R3 382. If you keep the stuff for another 10 years before throwing it away, you will lose another R10 583. This is called opportunity cost.

Now if you fall into the trap of buying expensive items like Flats, holiday stands, weekend motorbikes, boats etc, your opportunity cost might just be running into the tens of thousands!

At the end of the day what I am saying is that only buy the things you need and not the things you just want. Buy investments you understand and not just because everybody is doing it.

When times are tough and you want to sell that flat, boat, Harley etc, nobody wants to buy it!

And Remember, if it doesn't make you money, it loses you money!

It is wonderful to journey through life with a light load, emotionally and physically.