Run on numbers: the power of mindset in personal finance and life

‘The Man who says he can, and the man who says he cannot. Both are correct. Source: Confucius, a Chinese philosopher whose teachings became integrated into Confucianism, which taught personal morality and correctness of social relationships.

1. We all accept that people’s circumstances and resources play a role. A person’s mindset plays a significant role in his/her life. Thus, what you believe is true leads you to act in one way or another, which eventually determines what happens in your life.

In South Africa, two out of three children do not grow up in the same household as their biological fathers. This phenomenon brings with it many disadvantages in growing up and in a person’s development. But no setback must be seen as permanent; it is just something that one can and must overcome. Every individual must ask him or herself where in the following hierarchy they find themselves. 

Ten percent:            I will not.

Twenty percent:        I do not know.

Thirty percent:           I wish I could.

Forty percent:           I want it.

Fifty percent:              I think I might.

Sixty percent:             I might. 

Seventy percent:        I think I can.

Eighty percent:              I can.

Ninety percent:              I did.

One hundred:                 I am.

2. A mindset is a set of beliefs that you have about yourself and how the world works. In general, your mindset is the foundation of your behaviour. An example of a set of values one can form his life around is the Freedom Charter adopted in Kliptown, on 26 June 1955.

“We, the People of South Africa, declare for all our country and the world to know: that South Africa belongs to all who live in it, black and white, and that no government can justly claim authority unless it is based on the will of all the people.

Every man and woman shall have the right to vote for and to stand as a candidate for all bodies which make laws.

All National Groups Shall have Equal Rights!

The People Shall Share in the Country's Wealth!

The Land Shall be Shared Among Those Who Work It!

All Shall be Equal Before the Law!

All Shall Enjoy Equal Human Rights!

There Shall be Work and Security!

The Doors of Learning and Culture Shall be Opened!

There Shall be Houses, Security, and Comfort!

There Shall be Peace and Friendship!

The above statement of intent is a good foundation from which we can work. But as is often said, the devil lies in the details. 

3. Personal Mindset.

Success is often seen as a product of external factors—hard work, opportunities, skills, and timing. Whether you are striving to excel in your career, maintain fulfilling relationships, improve your physical health, or accomplish personal goals, the way you think is a significant determinant of your outcome.

Mindset shapes how we approach challenges, setbacks, and opportunities. It affects motivation, persistence, and resilience. Setbacks challenge us emotionally, cognitively, and physically. Emotionally, they trigger self-doubt, fear, and frustration, leading to feelings of helplessness. Cognitively, setbacks often cause overthinking and stress, impairing decision-making. Cultural and social expectations make setbacks even harder. 

From time to time, we find wise words to encourage us on the road to success. One such phrase comes from South African legend golf player, Mr Gary Player, who stated: “The more I practice, the luckier I get”. In 1951, Dr. Jefferson brushed a comment aside, stating. “Everything is theoretically impossible until it’s done. President Mandela is often quoted as stating something similar.

When you face setbacks head-on, you develop resilience, strengthen your mental and physical health, and build the skills needed to excel as a leader. A negative mindset is easy to develop. In the imperfect world we inhabit, we all experience treatment that is hurtful or unfair from time to time. It is tempting to hold on to grievances over slights and even greater harms. However, doing so keeps you bathed in negative feelings; worse, it can keep us from getting what we really want in life and can achieve.

Hard work is the bedrock upon which success is built. It's the tireless effort and dedication we invest in our pursuits. Recently, we witnessed the Comrades marathon, one of the greatest marathons in the world. All along the route, one can hear the encouragement from spectators, “when the going gets tough, the tough get going”.

Unemployment is one of the significant trends that hamper the economic development of the country and the well-being of people. However, the embracement of an entrepreneurship career is mainly conditioned by the high rate of unemployment and the dissatisfaction of current employees. The notion of an entrepreneurial mindset is being referenced by the state of mind that changes the status of an individual into an entrepreneur.

Therefore, an individual becomes an entrepreneur thanks to their state of mind, which allows them to analyse the world and the opportunities and possibilities that it offers. Attributes such as the need for achievement, internal locus of control, calculated risk-taking, tolerance of ambiguity, creativity, need for autonomy, and self-confidence are connected to the entrepreneurial personality.

There is often conflict in our townships when locals descend on the foreign Spaza owners. Instead of a hatred towards foreigners, our local people should set up their spaza shops. The local people are more likely to support local operators than those immigrants from Pakistan and Malawi, and elsewhere.

These guys also start with close to nothing and grow their businesses over time. Start selling funeral policies, or other financial products, airtime, or offer internet connectivity to neighbours. Where there is a will, there is a way. 

* Kruger is an independent analyst.

PERSONAL FINANCE