How I spend my currency … with Alan Knott-Craig Jnr

The entrepreneur and author tells Currency about the problem with property, why marriage makes financial sense – and that one super-extravagant purchase ...
3 mins read

A pioneer of South African tech, Alan Knott-Craig Jnr led Mxit to its peak and now aims to revolutionise internet access with fibertime. But beyond the boardroom, what does this tech titan invest in? And how does he personally navigate stocks and cents?

What key financial principles do you prioritise in your personal life and why?

Try maintain a modest lifestyle. The higher your monthly overheads, the more fragile you are to unpleasant financial surprises, and the less able you are to take advantage of opportunities that cross your path.

How do you balance your personal financial goals with the financial demands of running a business?

I’m lucky. It’s all the same. If my business does well, my personal side is okay. If it doesn’t go well, my personal side is not okay. So I 100% focus on the business and let the rest take care of itself.

If you were not in your current role, what company would you work for in a heartbeat?

That’s a good question! Probably Starlink. It has a grand dream, it’s helping lots of people, it has endless access to capital … That would be a lot of fun. But I don’t think it would hire me; I’m not smart enough to pass the entrance tests. Which is why I’m an entrepreneur.

What advice would you give to young professionals about building wealth and managing their finances?

1) Keep your lifestyle simple. Low overheads are the most effective way of building wealth. 2) Get married. A shared household (and double income) will give you more financial freedom. Unless you marry the wrong person. In which case get divorced quickly and try again. 3) Focus. Most people don’t know how to manage a portfolio. Hand your savings to a pro and focus on your business or career.

What is your retirement plan?

I plan never to retire. Imagine being forced to sit at home and play golf from age 65! I plan to work till I’m 100, and hopefully I have enough savings to get me there. When you do the maths, you need a lot of money to maintain a decent lifestyle till you’re 100. My worst-case scenario is that one of my daughters looks after me. Which is why I give them so much love. I might need them to show me love in my old age.

If money could talk, what would it say about your spending habits?

“Big spender.” I love spending money. I’m good at it. Which is why I’ve always had to make money. But I don’t buy flash clothes or cars or jewellery. I spend money on travel and books, and I have infinite appetite.

What’s the most extravagant purchase you’ve ever made, and do you still think it was worth it?

I once bought a drawing by a famous artist. I was at a book launch in an art gallery, and this drawing spoke to me. I took it to the till and then almost had a heart attack when they told me the price. I don’t regret it – that drawing is on my wall and still talks to me. But I haven’t done it again.

If you could give your younger self one piece of financial advice, what would it be – and would you actually listen?

Give all your savings to an investment professional. I thought I could do everything; I was wrong. I’m a good entrepreneur, I’m a bad investor. If I’d just given all my savings over the years to a pro, I’d have been less stressed and more wealthy.

What’s a financial trend that you think is totally overrated, and why?

Buying residential property as an investment. Everyone loves it (the big argument always being you can gear property), but it’s hard work. And there are lots of hidden costs. The end yield is seldom worth the effort, especially when compared to the returns you can make on the JSE without anyone phoning you on a Sunday to fix the geyser.

What legacy do you hope to leave in terms of financial literacy and empowerment for future generations?

My mission in life is to connect everyone to affordable, fast internet. Hopefully I can make a small dent in that goal, and in so doing let people learn about the world of finance and savings via the internet.

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Nelisiwe Shomang

Neli is a seasoned digital editor and content manager with 15 years in media, specialising in business news and social media strategy. She is passionate about making finance fashionable, and crafting compelling content and strategies to elevate brands and engage audiences. She worked as Financial Mail digital editor, Business Day social media manager and senior Fin24 content producer.

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