Author Interview: Nico Kleynhans

I recently reviewed two books by Nico Kleynhans, HOW TO IMPLEMENT DEBT MANAGEMENT THAT WORKS and

HOW TO IMPLEMENT A BUDJET THAT WORKS

Nico Kleynhans

I found both books to be mightily impressive and essential reading for those of us that sometimes find it difficult to plot a path through life’s financial pitfalls.

I wanted to find out more about what inspired the books and some of the horror stories that bring them to life.

So I talked to the man himself, Nico Kleynhans, founder of Northwood Financial Services in Cape Town, South Africa.

First I concentrated on his Debt Management book.

In the first section of your book, you retell quite a few ‘horror’ stories. Are these designed to make the reader feel better? A bit like pointing out ‘There’s always someone worse off than you’?

To many folk, debt is an issue of shame. It is not discussed, so it becomes a dirty secret that drives families into silence. That makes getting help so much harder.

I believe how we relate to money is a result of many factors, including our childhood experiences, and how others deal with money in their lives.

Because of our political history, we face a new generation which has access to debt. This was not available to the parents, so we have no clear history to guide us. Over 50% of our population currently has some form of blacklisting against their name.

It strikes me that you start to put in place processes for the reader about a third of the way through the book. By this time, the reader’s probably shrieking out for you help. Is this a deliberate ploy?

I want the reader to be aware that the problem manifests itself after some years, the solution will not be instant as a behavioral change is called for.

When you do step in, it’s like you grab the reader’s hand and don’t let go until you’ve led him down the path to debt recovery. Is that how you see it?

Today we recognize that there are people who can fall into addictive gambling and their behaviour at the casino needs to be seen as a mental/psychological condition.

I believe that behaviorists will one day conclude that some consumers who are in constant debt, have a psychological disorder and need understanding. Some consumers are trapped in destructive behavior that requires counselling,

I do need to assure them that I am available to one on one support whenever they feel overwhelmed.

Does your advice fit comfortably in every country?

I would expect to find evidence of a destructive relationship with money in every country, although my concern in this book is for South Africa and the instability which debt entrapment leads to.

Do you find lenders more or less tolerant in these globally hard times?

When banks fell on hard times, caused by their greed, they turned to Governments for help. They used this help to boost their own coffers. I do not know what percentage, if any went on debt relief for consumers.

In your experience, do people often follow your advice to the letter?

No. They fall off the wagon, get back on again and then find a medium that makes life acceptable and allows some measure of control. I tell my readers they are allowed to fall off three times, and I will still smile.

Does any client still surprise you, or have you seen it all?

Since 1987, I have been listening to creative ways of working with money. By now there is no shock value, just an awareness of how tough it can be for those  who measure their humanity by their ability to spend.

It must be very satisfying knowing you’ve pulled people back from the brink?

Oh yes, I have clients who are multi millionaires, and have accumulated their wealth while on a fixed salary. One that comes to mind, started off at 65 with not even having food in her home. Her husband had spent everything she owned.

In one sentence, what would you advise a young adult who is about to assume financial responsibilities?

Give me 15% of your income for the next ten years, before you get used to spending all you earn, and I will show you how to retire early in comfort.

I then moved on to Nico’s book on Budgeting.

You open with the need to balance income and expenditure. Do you think some people plod on, blissfully unaware that they’re heading for problems?

One client came to me and complained that in spite of earning R1m per annum, he lived in rented property and in 25 years had saved nothing.

Another who was a Financial Officer at a company with a budget of R100m, was not even sure how much he earned every month.

How young should you be to start a budget ?

I think by the time you start getting pocket money, parents should start teaching about budgeting.

Which is more important, creating a budget or controlling it?

Creating a budget helps you identify wastage. Controlling it makes dreams come true.

Do you see people simply going through the motions, creating a budget, and then carrying on as normal?

Couples struggle the most. It appears that sex and money are two subjects not many couples talk about. Because of the link between money and power, often money becomes one of the  tools when couples fight.

Do people sometimes see a conflict between their real budget and their tax return?

I cannot recall too many comments linking these two concepts. I certainly get comments about tax and government wastage.

Do you seek feedback from budgeters, and are they generally successful with their budgets?

I offer to have up to three conversations on skype with readers. Those that use that offer are much more likely to get on target and stay there.

Is there evidence that, by applying your budget advice, they stave off the need to buy your other book on debt control? If there is, you’re shooting yourself in the foot, aren’t you?

My first two titles deal with fixing a problem.

Those who are basket cases, should start with debt management. They would find it hard to only use the Budget book.

I am going to produce at least four more books. These will focus on wealth creation. That is the next step after getting your debt under management. The quicker readers get to this point, the happier I will be.

I found it a pleasure to interview Nico and found his honest, sincere answers most refreshing. It’s comforting to know these two books are there, and I look forward very much to his next ones.