Yeah me as well, but put it this way, either you can have discipline, or you can force yourself to have discipline by setting up an automated payment to take that money that would have gone for the car to a savings account, like one where you have a 32 or 3 month notice period etc
OP: Double check with your car financier/lender whether your interest is simple or compounded. AFAIK they're all simple. What this means is that no matter how much extra you put in, you'll still pay the same total interest, the only thing that will change is how soon it'll be paid off. If it's compounded on the other hand, then yes, it will save you by paying extra.
EDIT: Never mind, just did some browsing, it's compound too.
As for investment. The first and foremost one I'd recommend is someone who can effectively teach you self-control because of this:
As for Capitec, the reason for their relatively high interest rates on < R10k is exactly that, to attract the low-income crowd. If they kept it 6% at sums > R100k they'd have very weak margins and will be playing with the prospects of a net-loss fiscal year. Giving 6% for the < R10k means that a relatively small amount of money will they actually have to pay back 6% on, unlike the big amounts.i know if i pay of my car I'll just adjust my living standard and will never force myself in saving....
Last edited by UnUnOctium; 18-04-2012 at 09:27 PM.
[QUOTE=Hamster;8093804]Doubt it. You have one Global Account with them to which you can link up to 5 (iirc) fixed deposit accounts.
Can have up to 4 linked savings accounts under your one card, I have 4 savings accounts with them just keep each one at R9999.00 and on the 1st of every month in the morning I move the interest to another account. On average each account brings in like R40-R50 per month and costs R1.50 to EFT to another account.
I like it cos it's a decent enough amount of money to have liquid in case of emergencies.
OP, if you have a lump sum to invest, forget bank interest. You WILL loose money over time taking inflation into consideration.
Go to www.imaraspreid.co.za and register. Send your FICA docs to them. It's a pain I know, but you will get over it. Deposit your money into your account. You will be registered on the JSE and will get interest more than any bank while you not investing.
Now it is easy as you can invest even with your cell phone. Or call your broker. Ask for advice etc. You will be allocated a broker that you will get to know personally.
Just do this. You will not be sorry. You can have a Managed Account that does well over 30% or pick your own shares.
I was with a Managed Account but now do my own and 60% PA is my average and expect to do better this year.
I had a look at the site, and to be honest, I have absolutely no idea whats going on there, my broker (from SASFIN) is coming to see me on Wednesday, maybe he can inform/help me with this!!, the whole JSE with its Bulls and Bears scares the hell out of me, I’ll rather leave this for someone that actually knows what’s he is doing
Ya hey I used to feel that way about markets & investments But I have a desire to know what's going on & understand these high risk high returns playing fields so i have started just last year to educate myself with the basics. Hope one day I'll be as sharp as most guys in this forum & use that knowledge to my advantage. Take it one step at a time
IF you are not going to go high risk then definitely pay off your car.
Then just set up a debit order to pay in to a call account, make it equal to the value of your car payment. This will force you to keep saving.
Once you have another lump sum, put that in to a more permanent investment, but just keep out of debt !
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