1st Job, Need savings advice

[Ashrubbery]

Hi everyone,

So I have just started my first job and need some advice on how to get the most out of my money. Im working full time but my company does not offer any pension plan. My expenses are quite low and I already have a means of transportation fully paid for. In essence I will be able to save 6000 - 10,000 rand a month depending on whether im working in country or not.

I have taken medical aid in account.

I was thinking of opening up an Allan Gray unit trust account, either a stable fund (2 year plan) or balanced fund (3+ years) and setting up a debit order. Im not that interested in a retirement annuity fund since im planning on working abroad full time some time in the future.

I know there is a minimum of R500 per month, but is it easy to add more in certain months or must one agree on a fixed rate per month and keep to it? I dont want to go overboard with this since I am just starting out, but I do want to set aside some money that is gaining some decent interest (since I dont have a pension plan). I will also set aside some money per month and keep it in a Capitec account (4.4% interest) as a quick access cushion.

Do you think Allan Gray is a good/easy choice?

Any thoughts/ advice?

Thanks for your help!

 

[Hendrix]

AG is the easiest choice by a mile, their platform is brilliant.
You can make lump sum deposits at anytime you want, simply create a lump sum collection on their platform and in 3 days the money has been debited from your account.

Once you on their platform everything is electronic, you don't need to fill in forms and mail/fax them, you can do it ALL online.

 

[D3x!]

wtf kind of first job do you earn enough to save more than 10k a month, kids these days :/

 

[Iamnotageek]

wtf kind of first job do you earn enough to save more than 10k a month, kids these days :/

I was thinking the exact same thing.

 

[Creag]

I would strongly recommend that you look for a reputable financial adviser if that is the sort of sums you will be saving / investing. I would also be a little concerned of using just one platform for your investing. If possible try to use at least 2 platforms. 3 is better though. All your eggs in one basket is not a good idea.

 

[D3x!]

I was thinking the exact same thing.

with a paid off car and studies to boot

 

[hawker]

wtf kind of first job do you earn enough to save more than 10k a month, kids these days :/

Dentist maybe? One of my friends is earning +-41k a month (before tax) doing denistry and it's her first year of community service after graduating.

 

[The_Right_Honourable_Brit]

wtf kind of first job do you earn enough to save more than 10k a month, kids these days :/

Management consulting or investment banking.

 

[D3x!]

Dentist maybe? One of my friends is earning +-41k a month (before tax) doing denistry and it's her first year of community service after graduating.

dafuq

 

[The_Right_Honourable_Brit]

Dentist maybe? One of my friends is earning +-41k a month (before tax) doing denistry and it's her first year of community service after graduating.

I think you should double check that number.

Doctors (who generally earn more than dentists) earn between R20k-R25k/month interning.

 

[R13...]

I think you should double check that number.

Doctors (who generally earn more than dentists) earn between R20k-R25k/month interning.

He says she is doing community service which is post intern. Still top salary for a trainee

 

[satanboy]

wtf kind of first job do you earn enough to save more than 10k a month, kids these days :/

Drug dealer?

 

[Hendrix]

I would strongly recommend that you look for a reputable financial adviser if that is the sort of sums you will be saving / investing. I would also be a little concerned of using just one platform for your investing. If possible try to use at least 2 platforms. 3 is better though. All your eggs in one basket is not a good idea.

Um, not really, you can actually invest with many other Asset Managers using AG's platform, not just AG's funds

 

[VG008]

wtf kind of first job do you earn enough to save more than 10k a month, kids these days :/

Its not that common saving 10K for your first professional job. I started off with 16K and saved around ±8K. This was four years ago.

 

[Gunner182]

I think you should double check that number.

Doctors (who generally earn more than dentists) earn between R20k-R25k/month interning.

Indeed I call bs on those figures. A dentist? Doctors I know earn between R25K and R30K a month interning.

But I would still like to know what job the op has. I'm still young enough to switch professions.

 

[VG008]

Some basic rules I've learn't over the years; For professional advise you should consider a reputable financial adviser as McT said.

1. Manage and track your money

You need to understand your income and expenses. Your salary should increase quite significantly over the next few years, you need to ensure that you don't blow it all on stupid things.

Managing your money can be boring, but there are tools/software to assist you. Import your bank transactions and the tool will categorise the transactions and show you where your money is going.

Personally I use a tool called YNAB (You Need A Budget), but there are free and/or local alternatives.

Nedbank (free): https://myfinanciallife.nedsecure.co.za
MoneySmart (free) : https://moneysmart.co.za
Expenza (free): http://www.expenza.co.za
22Seven (Paid): https://www.22seven.com/

2. Build an emergency fund

An emergency fund is usually 3-6 months of your monthly expenses. The funds should be accessible quickly incase **** hits the fan. Don't see this as an investment.

Placed these funds in an interest bearing account so your funds can "try" to keep up with inflation. The account can be with a bank (Capitec offers around 4-5%) or a money market account. AG offers this too.

Note, the funds must be accessible in the short term (24hours?). Don't apply for fixed deposit accounts.

3. Investments

Start building up your investment portfolio. Consider fees, they can easily break your investment.
EFTs and Unit trusts are an attractive investment vehicle; you should consider investing in these. EFTs are usually a low cost investment which can be brought through Satrix, most banks, and EFT SA (www.eftsa.co.za).

Again, don't put all your eggs in one basket.

If you are unsure of which EFTs/Unit Trusts to invest in, consult an independent financial adviser.

 

[Masataka]

AG is a great place to start, but it is worth looking at alternatives for a couple small investments (diversify).

Also, don't go near Liberty and their salesmen (they call them financial advisers for some reason). Their online facilities are also extremely terrible.

 

[VG008]

Once you on their platform everything is electronic, you don't need to fill in forms and mail/fax them, you can do it ALL online.

If only Satrix could get with the times.

 

[Mr Feesh]

I think you should double check that number.

Doctors (who generally earn more than dentists) earn between R20k-R25k/month interning.

girl friend is a surgeon in a public hospital.
The interns there get payed 40k per month

 

[Hendrix]

If only Satrix could get with the times.

Yep, sadly most AM's are sorely lacking in this dept.