How To

How To, Uncategorized

Questions to ask before taking out debt, and is there such a thing as good debt?

Smart Debt or Bad Debt

Many people in South Africa finds themselves in debt: According to a study by the World Bank, 25 million South Africans are in debt. This includes both bad and good debt. According to the National Credit Regulator, 58% of South Africans are struggling to repay their debts. For the financially uneducated person, debt can become a trap.

However according to Billionaire investor Ray Dalio, the founder of Bridgewater Associated, the worlds largest hedge fund, advises people to make clever debt and avoid bad debt. We all know that borrowing money comes at a cost, and therefore the good purchased comes at a higher cost.

Dalio therefore suggests we ask ourselves one question: “Will the debt help you save or earn more money in the future?”

Here are the two types of debt that according to Ray Dalio are smart or good debt:

Debt that forces you to save money over time is another good debt, for example buying a house and paying off the mortgage. This is good because you are accumulating money into an asset you can later sell.

Debt that produces more cash flow than it costs is good, for example taking a loan to complete a degree that will increase your future income. Another example is buying an asset on credit that would replace a continuous and never ending expense. Examples of these are green technology such as solar panels and water recycling equipment. Also do not forget that ENJO also falls into this category. You can now convert your entire home to a chemical free home. This would be a smart move, because you will win in at least two ways:

  • Immediately stop 80-90% of all future expenses on chemicals by investing in ENJO.
  • An average home spends about R600-800 per month on cleaning consumables. On credit a full ENJO conversion of your home will work out about half of your current expenses over a two year period, and after that you will freely clean your home for at least another year before you might need to replace a fibre.

An investment in ENJO would therefore immediately put more money in your pocket, and save you money over your lifetime! Based on Ray Dalio’s criteria this would be a smart way to invest. Ask your ENJOpreneur about our credit options, and start using ENJO.

Here is how a full conversion to ENJO would typically save you money on a credit plan.

The table below compares the cash flow between a full conversion of your home to ENJO on a 24 month credit versus the current status quo of cleaning consumables which are a continuous and never ending expense. Take note that due to interest rate changes, the values could vary slightly.

Difference between ENJO and Normal Cleaning Consumables

Month and DescriptionENJOCleaning ConsumablesSAVING WITH ENJOACCUMULATED SAVINGS
Month 1R3 135.50R650.00(R2 485.50)(R2 485.50)
Month 2R350.00R650.00R300.00(R2 185.50)
Month 3R350.00R650.00R300.00(R1 885.50)
Month 4R350.00R650.00R300.00(R1 585.50)
Month 5R350.00R650.00R300.00(R1 285.50)
Month 6R350.00R650.00R300.00(R985.50)
Month 7R350.00R650.00R300.00(R685.50)
Month 8R350.00R650.00R300.00(R385.50)
Month 9R350.00R650.00R300.00(R85.50)
Month 10R350.00R650.00R300.00R214.50
Month 11R350.00R650.00R300.00R514.50
Month 12R350.00R650.00R300.00R814.50
Month 13R350.00R650.00R300.00R1 114.50
Month 14R350.00R650.00R300.00R1 414.50
Month 15R350.00R650.00R300.00R1 714.50
Month 16R350.00R650.00R300.00R2 014.50
Month 17R350.00R650.00R300.00R2 314.50
Month 18R350.00R650.00R300.00R2 614.50
Month 19R350.00R650.00R300.00R2 914.50
Month 20R350.00R650.00R300.00R3 214.50
Month 21R350.00R650.00R300.00R3 514.50
Month 22R350.00R650.00R300.00R3 814.50
Month 23R350.00R650.00R300.00R4 114.50
Month 24R350.00R650.00R300.00R4 414.50
Month 25R650.00R650.00R5 064.50
Month 26R650.00R650.00R5 714.50
Month 27R650.00R650.00R6 364.50
Month 28R650.00R650.00R7 014.50
Month 29R650.00R650.00R7 664.50
Month 30R650.00R650.00R8 314.50
Month 31R650.00R650.00R8 964.50
Month 32R650.00R650.00R9 614.50
Month 33R650.00R650.00R10 264.50
Month 34R650.00R650.00R10 914.50
Month 35R650.00R650.00R11 564.50
Month 36R650.00R650.00R12 214.50
Converting to ENJO is largely a fixed cost, making you save in the longer term. This table is based on purchasing ENJO using our credit plan. Take note that due to interest rate changes, the values might be slightly different. This table is conservative as it does not take into consideration the 8% inflationary increases in traditional cleaning consumables.

How smart is it really to convert to ENJO?

As you can see, in 24 months (2 years) you would have stopped your monthly expenses on cleaning consumables, saving every month thereafter. Over a three year period you could save a whopping R12 000 if you currently spend on average R650 per month on your current cleaning consumables in your home.

What do you think Ray Dalio would advice you to do?

Groom your Pet
How To

How to Groom your Pet

Why it is important to groom your pet?

Pet lovers already know that grooming your pet helps to maintain a certain level of cleanliness that is necessary to keep your pet good-looking and healthy. It is best to start training your pet to endure grooming whilst a puppy, including ear cleaning and nail clipping. However we will be focusing on brushing.

Brushing is beneficial for all kinds of dogs, and helps to remove dead hair, dirt and dandruff. Regular brushing helps to bring out the natural oils in inside the fur of your dog. These natural oils will then spread all over your puppy’s fur, which will give her fur a healthy sheen.

Another benefit of grooming your pet is that you have will find any abnormalities that might need attention before it worsens. This includes fleas, dry patches, ticks or issues with their skin, ears, eyes teeth and nails. When found at an early stage you can deal with these issues before it becomes a bigger problem.

Here is how you can groom your pet with ENJO

Use the rough “thorny” side of the Outdoor Duo Glove to remove excess fur or untangle matted fur. The dark grey side is used to remove smaller hairs or dust particles on the coat. Use dry unless there is significant dirt or mud on the coat.

ENJO tip: the Dust Glove is perfect for the sensitive areas on the dog such as around the eyes, snout, and ears.

Simply put, grooming helps to keep your pet in a happy and healthy state, and gives you and your pet time to bond and spend time together. So don’t delay, start grooming your puppy.

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