FROM DEBT

TO
DEBT FREE
BY
SAMKELISIWE
NGUBANE
Acknowledgements

I would like to Thank Maya Fisher French for opening the first door to financial freedom, and for seeing
potential in me, To Steve Williamson my financial advisor from ABSA for his guidance, to liezl Squier
for always believing in me, To City Press and ABSA for journeying with me and changing lives of
ordinary citizens.

My Parents Mr. and Mrs. Ngubane for their prayers and undying support.

My Siblings Sindi, Khaye and Nosipho for always celebrating all my wins and for being there for me
when the going gets tough.

My family – Mamncane Thembi & Babo Mncane Bheki & the whole Ngubane, Kotelani and Tobo
family

My nieces and nephews - Mpatho, Sazi, Khwezi, Khula, Nhlanzeko, Thato and Zukhanye – you make
my life, your light shines in my life.

My Church – Bab Mfundisi Mkhwanazi, Bab and Mam’ Mfundisi Mthembu - AFM – PFC and African
Gospel church – Your prayers are evident in my life

My Friends – Platinum villa (Pearl, Nokubonga & Nokulunga), Lungi, Bafana, Thobile, Hlo, Zama,
Philani, DUT friends – thank you for being my biggest cheerleaders

My Colleagues – special thanks to Robert, Lucy, Mafemani, Ishmael, Bab. Ndlovu, Matimu and
Stevenson (who has now taken a role of being my driver - LOL) thank you for always being there for
me and for always willing to assist me

My Adopted family – The Matukane’s (Jabu & Shiluva) and all my friends in Giyani

My ex-colleagues – Thank you for always routing for me

My employer – Special thanks to Anthony, Dr Anderson and Dr. Tirhani for always supporting me

My mentees – Thank for trusting me enough to walk with you this journey to financial freedom

I also appreciate all the love and the support from people from all walks of life.

A special thank you to my editors – Bafana Mtshali, Maya Fisher- French and Nokulunga Gasa.- this
book is very close to my heart, I needed as many people as I can to look at it and make sure that its
perfect, thank you for sacrificing your time and for assisting me give birth to this dream.
My Story

Growing up in a world where a person’s success is measured by the number of things, they ‘own’,
many of us go out to get these things without understanding the long-term implications in terms of
finances and our livelihood.

Most of the time, the first thing financial institutions offer young people are products that will give
you a “feeling of achievement”, “instant gratification”, “qualification to a certain class”. All this
without offering proper financial education to better one’s life and help create financial growth.

Many young people are entangled in frustrations and depression, they go from one debt to another
simply trying to survive. I am very familiar with this journey as I found myself in a situation where I
had said yes to all the offers I was given by the banks. I spiralled into debt and was not coping. I was
stressed and depressed.

Not getting any financial education from a young age made me vulnerable to all the offers I would get
from financial institutions. No one offered to teach me about different investments or savings, but I
was always offered loans. It made me think that I could afford the ‘new’ lifestyle I was living as I have
been a student and money to me was a dream.

Instead of that habit stopping, it escalated. When I got a new job with a better salary, I was offered
more loans. One day I just found myself deep in debt, I was not being able to meet my monthly
repayments and was not coping. It just felt like I wasn’t get paid enough kanti the money I was getting
was more than enough, I just needed to be taught on how to handle my finances. I needed discipline!!!

Things got worse when I got retrenched. I was in and out of jobs that offered me half of what I used
to earn and now the life style I was used to become too much. Since I work in finance, it hindered me
from getting jobs because no one wanted to hire a finance person who has a bad credit record.

Since I come from a middle-class background with both parents now being pensioners, I now needed
to take care of things and make sure that the family had enough to get through the month. My parents
are old, and their health is now fragile so doctors’ visits, operations and medications are all part of my
expenditure and there is extended family that will ask for help occasionally. Life on its own has It’s
demands and is expensive. Transport, petrol, rent, food, electricity, schooling (The financial burden of
studying with NSFAS) and groceries...Everything was now playing catch up while still trying to manage
life and all its demands.

It is only when we find ourselves in a debt spiral that we start looking for a way out. We want
information and help on how to improve our finances, yet often such information it not always readily
available. At this point the very same financial institutions who gave you the credit are the first ones
to remind you that you’re a “working poor” - yes you work, yes you get a salary but you’re actually
one salary away from being “poor” and losing everything.

As a young adult I was faced with difficult financial decisions that I was not ready for. I had no
understanding of how money works. I was not aware about risks of borrowing or the long-term effects
of all my decisions.

I now had to find other ways, I needed help, and no one was willing to assist. I started googling and I
only came across two programmes. One was an online course and the other was the ABSA/ City Press
money make over that I was very lucky to have been selected for.
My biggest dream was to be debt free more than anything that’s what I wanted. Looking at my salary,
one would think I could afford to do a lot of things for myself, but I couldn’t because I still had debts
that I needed to settle, being in debt affected me emotionally and physically.

I remember when Maya was interviewing me for MMO, she asked me why I wanted to be part of the
competition. In my answer one of the things that I mentioned was that I wanted to help people and I
want people to learn from my mistakes and not do what I have done – hence even after the
competition – I always told myself that I need to do more.

Help is not only limited to getting someone to assist you financially – help can be in a form of books
like this one 😊 – educate yourself by reading, asking questions from relevant people. Trust me, you
do not have to go through what I went through, being financially smart is possible.

Financial education has a potential to help a person prosper. In-depth knowledge on financial literacy
is important, it helps a person understand how money works and how it can work for them.

When you have control over your finances, you find that it also influences other areas of your life as
well. – This is now my living mantra that I got from Steve.

My own journey of using financial education to overcome my financial challenges has helped me gain
confidence, improved health, gave me courage to make tough decisions on money, and the ability to
prioritise and plan.

The Samke I was before Money Makeover did not have freedom, I did not understand how I could
make money work for me, I was often confused with short-term plans that were based on borrowing
money to survive.

I have learnt discipline and prioritizing. I also learnt which questions to ask before taking up credit
and what is it that I need to be on the lookout for.

I learnt how to set boundaries with family and friends. I had to teach myself to have a backbone and
stick to every decision that I make.

These are all the things that I wanted to do but I always found it hard to do them.

I now have made big changes in terms of my finances, I now have savings and different investments,
now my money is working for me. I made so much progress in just a short space of time.

No one gave me a bail out – I had to do the work myself.

I am not a financial adviser, I am just merely sharing my experience and the things that helped me get
rid of debt and start saving.

Okay ke enough about me – here are some tips for you

STEP BY STEP TIPS TO GUIDE YOU TOWARDS FINANCIAL FREEDOM
First things first – YOU need to BE HONEST WITH YOURSELF. You know your finances better
than anyone. Taking care of your finances should never feel like a drag but a way of life- a
lifestyle - Saving and being financially smart should never feel like a burden but it must come
natural to you. Starting something new has never been easy but it’s doable. The first month is
always the hardest kodwa as soon as you get the hang of it... it’s gets easier and the process
is very rewarding. Most importantly, don’t be too hard on yourself... one step at a time. This
is a gradual process- target one thing at a time – because if you do all at once, you will get
overwhelmed and you’ll feel like you are not making any progress. Being debt free is
amazing... ulala ubuthongo bengane ngoba very little is stressing you. We all know how not
having money can have a negative effect on you. Patience is key. An example is that as much
as I wanted to get myself a car, I realised that settling all my debts first should be my main
priority so that when I take up car finance, I won’t feel like I am suffocating financially. It’s
important not to make hasty financial decisions. Give yourself time to plan and think about it.

It is important that you STUDY YOUR BANK STATEMENT – study it!! I remember the day Steve
and I met for the first time. I was very nervous, I felt so exposed and very embarrassed but
through his help, he made me to be comfortable enough to be able to face my ‘demons’. Your
bank statement will give you an indication of how you spend your money.

Always try to AVOID USING CASH – with cash it is hard to track your spending.

With everything you do that involves money, there must be a plan. The plan is you having a
budget. A BUDGET IS VERY IMPORTANT – IT KEEPS YOU DISCIPLINED.

My budget looks like this

Gross Salary

- Less: All my deductions

= Net salary

- Less: 15 % savings and investments (RA, emergency funds, short and long terms savings)
- Policies (life cover, funeral cover, medical aid)

= Net salary after savings and policies

- Less: Fixed expenses- Long term +12months (Car, Bond, Rent, groceries, debt repayments, cell
phone)

= Net salary after expenses

- Less: Expenses -12 Months (hair, dstv, Netflix, gym, leisure)

= Net salary after all expenses and deductions

The way that I have set up my budget is that all my savings, investments and policies have to
go off first – there should never be a choice or an option – treat them as one of your
deductions – the money that you should really consider as yours is money that you have left
after your savings have gone off.

I would advise that you SAVE 15% OF YOUR SALARY – you can choose how you calculate from
your gross or net – if you calculate from your gross – also include your pension deduction as
part of the 15%. It helps setting a debit order and making sure that all your deductions go off
on the day you get paid. We are all different and we enjoy doing different things – in your
budget it is very important that you make provision for your hobbies as well – while saving
you should never feel guilty for doing the things that you love, what’s important is that you
stick to your budget.

With taking care of your finances the most important thing is that you are SAVING WHILE
CONTINUING TO LIVE. On a monthly basis - give yourself an allowance to treat yourself on
things that you like - hair, food, movies whatever it is— once you exhaust your allowance then
hlala ekhaya. The day before every payday the money you are left in your bank account
shouldn’t be too different from the money that is on your budget – if you are left with a
negative balance on your budget – it is important to now relook your budget and see where
you can cut off. Cut down on all the other things you really don’t have to have.

PRIORITISE GETTING RID OF DEBT as fast as you can. If you feel like you are paying too much
contact your creditors and try to negotiate payment plans that will work for you. It is better
to pay something then not paying at all.

With debts - I find that the SNOWBALL METHOD IS THE MOST EFFECTIVE ONE- TARGET ONE
DEBT AT A TIME - start with the smallest one, going up - when you finish paying that one...
double your Instalments for the next one — it helps you finish your debts quicker.

It’s very important that when you work on your finances you DON’T TAKE UP NEW DEBTS!
DO NOT DO IT! as this will delay you.

Debt consolidation or debt review should be your very last option. As much as this gives you
relief kodwa it delays you kakhulu and those reduced monthly payments really don’t make
much of a difference.

IF YOU FEEL OVERBURDENED BY FAMILY - DO NOT STRETCH YOURSELF too much trying to
be a hero. It will not work. do what you can. In addition, with friends — you do not have to be
anyone’s blesser bakithi- if you can; you can. If you cannot, be honest with yourself. Learn
how to say no to yourself and people around you.

CREDIT CARDS, OVERDRAFTS AND LOANS ARE EMERGENCY FUNDS – they should be treated
as such - they are not meant to be used on a monthly basis.

SAY NO TO GET RICH QUICK SCAMS – they never ever work – trust me they never do- I have
been there and it is always temporary – in fact they leave you more broke then you were.
There is good debt- good debt adds value and benefits your life for the better e.g car finance,
home loan, business loan.

No amount of money can give your discipline- even if you were to get double your salary today
if there’s no education, plan or budget, come month end you’ll still feel stressed as you did.

My journey to financial freedom taught me how to set boundaries with family and friends. I had to
teach myself to have a backbone and stick to every decision that I make, I am happy that my family
did adjust to this change, with friends some still try even today but I am happy that my ‘no’ has been
a no. Part of taking care of your finances comes with you having to make tough decisions but they are
all necessary.

What’s amazing is that in the process you’ll gain life skills that will carry you for the rest of your life.

If you are left with a surplus on your account day before you get paid, top up on your savings or
transfer it to one of your debts.

Have goal driven savings - I learnt that saving with a goal in mind is much more effective because you
won’t be tempted to use your savings money just for anything, since you won’t be saving for the sake
of saving. it keeps you motivated knowing ukuthi you’re saving for something specific - save for that
holiday or car or house.

When you reach that goal reward yourself!!!

One cool thing I also learnt is that it is very motivating to name all your savings accounts because they
keep you motivated. Rename your accounts... if you’re saving towards a specific car, name that
account ngayo... e.g Mercedes... this holds you accountable ngoba you’ll feel guilty if you dip into
those savings.

Try to get yourself into the habit of saving for something before you acquire it– if you want a car start
paying that car instalment to your savings for a good 3-4 months so that when you get it – you are
now used to living without that money.

Track your spending – check your bank statement regularly – download an app that helps you see
where you spend your money on.

When doing groceries make a list- buy all your groceries at once, so that you won’t find yourself doing
unplanned groceries mid-month – it will also save money if you look out for specials too.

Things like toiletries I would advise that you buy them in bulk (those 3 for 2 specials really really help)
this will help you skip a month or two without buying any toiletries and you won’t even pay for some
products.

Compare prices and make sure that you shop where you get points or cash back... Mina there has
been times whereby I wouldn’t have to pay for my toiletries or groceries... thanks to cash back and
points ☺️

With clothes - a lot of shops now allow you to lay bye... when you see that jacket you like - lay bye
it☺️

Try to avoid buying your monthly essentials on credit. If you can save for it then you don’t have to
borrow.
Once you commit to the process – the change will be very evident – evident in your bank account,
savings and investment portfolios and credit report – also in your life in general.

With proper financial education and planning, you do not have to rely on loans to get by.

Discipline, discipline and more discipline – that is all you need.

CONCLUDING REMARKS…

We can be better financial literate citizens if we all work together – as individuals, financial
institutions and government departments. We must break the chain – we cannot be a generation
that will rely on our children when we retire. As soon as you have your finances in order, it is
important to start planning for your retirement, truth is - your provident/pension won’t be enough
but that’s another topic we will discuss some other time.

Dialogues needs to take place, where we will discuss the problems, what caused them and how can
people be assisted.

Financial education is something that we shy from, not a lot of people can speak openly about this
topic. A lot of SMME’s that had a potential of doing well failed because of lack of financial education,
if you can’t take care of your personal finances, you can never be able to take care of the finances of
your business.

The last time I was taught or given some talk on finances I was in grade 9. Ten years later all that
information was no longer relevant to me because it did not speak to my urgent needs at the time.

It is always good to start young and gain good financial habits than finding yourself in a position where
you must unlearn bad habits.

I believe that at every level - be it at school, university and in the workplace - effort should be made
to continuously educate people on financial management. I do believe that a lot of us would have
made better financial decisions if there was that consistent and continuous voice.

Financial education should be specific, targeted and tailor made to speak to an individual in a manner
they can understand and relate to, this based on their location, needs and circumstances.

Financial education should be easily available and accessible. In-depth knowledge on financial literacy
is important to understand how money works and how it can work for you.

As a country, we require strategic partnership in financial education. Department of Education has a

role to play in creating curriculums that are about financial education. Financial institutions need to
focus more on teaching people about responsible saving and lending. Treasury has a role in the
development of programs that promote understanding of finances and making sure that Information
is relevant, accessible and continuous.

Financial education should move away from being seen simply as corporate social initiatives but
should be more focused on initiatives that are driven by a long-term sense of responsibility and
investment.

Then, as individuals we have a role to be change agents. We must ensure that we spread the message
to those we come in close contact to. All our efforts must be intentional. Share your knowledge and
experience!!
To think that today there are people that I am mentoring warms my heart.

We are in a crisis and all of this has a ripple effect that comes down to households, ultimately to an
individual who must make the best financial choices while faced with such challenges.

My own journey of using financial education to overcome my financial challenges has given me
courage to make tough decisions on money, the ability to prioritise, and skills on planning and
allocation of money.

The Samke I was before I started taking care of my finances did not have freedom, I did not understand
how I could make money work for me, I was often confused with short-term plans that were based on
borrowing money to survive.

As a person I have changed, I really feel like my life is balanced and I can see where I am going because
my finances are in order.

My goal has always been to be financially stable by the age of 30, fortunately I put in the work and I
was able to reach my goal sooner and be debt free and financially stable at the age of 27. I am now
focused on wealth creation and not servicing debts.

I hope sharing my personal experience has been helpful, educating, inspiring and most importantly I
hope it has encouraged you to start working on your finance.

Please share this book

Let us continue with the conversation

Instagram: Chit_Chat_With_Samke

Facebook: Chit_chat_with_Samke

Email: samkengubane22@[Link]

Youtube: Samkelisiwe Ngubane

I am going to try to be as prompt as I can. I am still new to this, but I will commit to posting at least
one video a week and I will have a Q&A once a month and I am also working on collaborating with a
few people, to make sure that you get as much information as you can.

See you on the socials 😊 😊😊

My profile

Samkelisiwe Ngubane is 27 years old and winner of the City Press Money Makeover competition
sponsored by ABSA. The competition is aimed at helping ordinary South Africans better their finances
by providing financial literacy and teaching contestants how they can achieve financial freedom. As
part of the competition Samke was paired with a financial adviser who worked with her to create a
budget and set up a debt repayment plan. Within six months, Samke transformed her finances from
being over-indebted to debt-free – having settled R45 000 of debt and saved up to R26 000 in her
emergency fund. Her story is testament to the fact that with good financial education and support, a
young person has the power to change their financial circumstances rather than waiting for some
‘miracle’ to achieve financial freedom.

Samkelisiwe is a professional with a passion for education, finance, economics and accounting.
Starting off as a Junior Auditor at Seed Accounting Services and a Financial Controller for Tirhani Group
Holdings, she is now currently working for the Nyukani Education Centre, a subsidiary of Tirhani Group
Holdings as Head of Finance and Human Resources and serving as an EXCO member.

Samkelisiwe holds a National Diploma in Accounting (DUT) and a Bachelor of Technology Degree in
Taxation (DUT).

With her past life experiences, education, training and acquired skills (ABSA/City Press competition),
Samkelisiwe wishes to make a difference and a contribution in addressing issues of education,
financial literacy and in creating awareness not only limited to her circle but on a bigger wide scale
that has awareness on global trends, national limitations (inequality, unemployment) and on personal
mastery (in managing rising personal debt crisis & discipline).

Samkelisiwe wishes to capture the youth in trying to assist them to acquire skills that will enable them
to bridge the gap of experience and learn from other people’s mistakes.

She was also profiled on an international documentary By Russia TV (Rossia 1) on MMM pyramid
scheme 2019.

She was a panelist at the Child and Youth Finance International Global Summit hosted by the Banking
Association of South Africa – a first to take place in Africa – talking under the topic “Financial inclusion
and education for youth girls and women” – delegates had a dialogue, and were challenged to think
globally and come up with strategies that will be practical in making the lives of young women and
girls better.

In July 2019, Samkelisiwe was interviewed on ENCA about her journey to financial freedom.

In August 2019, she was honoured by ABSA for Women’s month.