We’ve all met the popular party guy. He’s well dressed, has a day job, side hustles as a DJ, attracts crowds and always carries a wad of cash. He spends freely and tells whomever will listen that money is there to be spent and make life enjoyable. 

Nobody questions if the party guy has paid his home loan and if payments for his fancy ride are up to date. If they did, they would probably see their idol in a new light, says John Manyike, head of Financial Education at Old Mutual.

“Appearances are deceptive. Some people love impressing others. They brag about what they have, always drive the right car and party in the right clubs,” he says. 

But sooner or later, everything crumbles and they find themselves on the Old Mutual-sponsored reality TV show, Khuzeka, which airs on DStv Channel 157 Moja Love, to admit their mistakes. By this stage the star has faded and the friends who were happy to sip upmarket cocktails at their expense have vanished.

“Take the case of DJ Mthembane, who was, until recently, investing in his lifestyle. Things were going well until his girlfriend, who shared the mortgage with him, discovered he wasn’t paying his share. The house was repossessed.

“Reality [for the cash-strapped DJ] meant supporting a sick mother, not having life or funeral insurance and no money for financial emergencies. Most of his income was used to entertain friends to project an image of success. His bad credit record was also guaranteed to clip his high-flying lifestyle for many years.”

He was paying the penalty for investing in a lifestyle rather than in his life, says Manyike. 

“Successful people seek a balance. They realise there is life after the party, and it takes forming and sticking to a budget, saving and living a life of investment and not a life of expenditure and flaunting textile.”  

Such people also find saving easy, because they have an emotional link with the process. This means they open savings and investment accounts, because they have clear objectives and understand that investing is the biggest fashion statement. They can picture the house they’ll buy when the deposit has been saved, that holiday they will enjoy with their family, or their child’s university education. 

The good news is that realising you’ve made mistakes and seeking advice are the first steps towards recovery and a strong financial future, says Manyike. 

“It takes a brave person to appear on a show like Khuzeka and admit they are not the person they appeared to be. However, with understanding and support, things can change rapidly.”

Watch a preview of the episode below: 

Manyike says it’s best to start at the beginning: 

• Know what you earn and what your bank balance is. Strangely enough, free spenders often don’t know their financial positions.
• Know where your money is going. If you can’t outline where your money went last month, it’s time to get a notebook and write down what you spent. After a month, you’ll probably be shocked and look to change. 
• Get a budget together, stick to it and start to build a personal financial plan.

“Lifestyles fade. Investing in yourself means that enjoyment may be delayed, but also that it will be much sweeter when it does arrive later.” 

To learn some financial lessons and equip yourself with the tools to financial freedom, watch Khuzeka on DStv channel 157 Moja Love every Sunday at 7.30pm. 

This article was paid for by Old Mutual.