Weekly Thoughts 22 April 2016

While travelling around Johannesburg last week, a route from one client appointment to another took me driving through Doornfontein, past Ellis Park, past Ponte City, through Hillbrow and into Braamfontein. Johannesburg clients will know the areas I’m talking about. I had in mind that these are dodgy areas, where one should keep your windows up and doors locked. A bit prejudiced I know.

There are a lot of old blocks of flats in these areas that now house people of lower income groups, its quite plain to see. But almost every single flat had a DSTV satellite dish attached to the outside. I reflected on the habits of priority spend amongst us humans. And it exists in every income group. Its just the cost of item that changes. To most of these folk I passed, many of whom probably don’t have a car, first line spending will largely be clothes, cell phone and DSTV. Savings won’t exist. Savings for whatever won’t exist. In higher income groups, it becomes housing, cars, other lifestyle assets, travel and so on. Often also at the expense of savings or debt repayments.

Habits are the same, its just the elements of the game that change. I know. I watch it, I see it, I also fight it.