[Advise] Best way to save

[TheBadMadMan]

So what's the best way to save and still have the money readily available?

I am currently with ABSA on a student account as they are dirt cheap, that will change when I am done with studies this year. Thinking of going to FNB. Capitec seems good as well but I am not sure how they are in terms of convenience. - Advice?

Only real dept I have a R13k for university (needs to be paid before graduation next year else apparently I wont graduate.).
Also I do give R2k to my mom every month (still live at home).

Have been saving +-R1k - 1.5K every month.

I want to get me a car or a bike (as I use public transport almost daily - it sucks), but my 1st priority now is to pay the uni so I can get my papers and all those good things.

Study full time, work full time. Although my work is part of my studies . So Only go to uni on Mondays. Income is fairly high for an intern with the future (after my intern period) looking positive at the company and more than likely a pay increase. Not taking any risks for now though as nothing is official without a signed contract.

Thanks


PS. I would say I am financially smart. I know what a need and a want is. I listen to "Total Money makeover" audiobook every once in a while to remind me not to be stupid and to hang in there. - I highly recommend this book to anyone.

 

[pwstraton]

In terms of having a savings account, Capitec is most likely your best choice. They have very small banking charges and good interest rates on your transactional savings account (compared to other banks). They also have other savings options. Convenience isn't too much of an issue - if you need to withdraw cash you'll be paying R7.00 if you draw from another ATM which is also minimal compared to the same service provided by other banks. Their internet banking allows you to do all the things you need from a bank, without the extra things like shares/insurance etc that is provided by some other banks.

Capitec is the only account that I actually don't lose money by banking with them (earn more interest than pay fees), although the transactions that I do with them are minimal.

I also have an account with FNB. The main difference is that with FNB you won't find any really great savings options at a savings rate of 1000 to 1500 per month, with the money still being readily accessible. Their fees are also relatively cheap when you take into consideration the amount of services they can offer you that are other than banking. If you think you'll use the extra things FNB provides, then I'd go for them. Although if you're looking to bank and save at the same time, without many bells and whistles, then I'd go for Capitec.

 

[supersunbird]

Some ideas:

Save an amount the day you get you salary, not what is left over at the end of the month.

Smallish fixed mount is saved where it can be accessed immediately in another account at same main transactional bank. Save additional money when that fixed smallish amount is reached in a different bank account where that money will take a day or 2 to transfer (this prevents impulse buys). In fact, I dont know there pin number of my additional acccounts debit card.

Then obviously one can save for the longer term in ETFs and Unit Trust with debit orders. Money takes a few days to access.

 

[KalMaverick]

How about FNB's Share saver?

What the opinion on that?

 

[TheBadMadMan]

In terms of having a savings account, Capitec is most likely your best choice. They have very small banking charges and good interest rates on your transactional savings account (compared to other banks). They also have other savings options. Convenience isn't too much of an issue - if you need to withdraw cash you'll be paying R7.00 if you draw from another ATM which is also minimal compared to the same service provided by other banks. Their internet banking allows you to do all the things you need from a bank, without the extra things like shares/insurance etc that is provided by some other banks.

Capitec is the only account that I actually don't lose money by banking with them (earn more interest than pay fees), although the transactions that I do with them are minimal.

I also have an account with FNB. The main difference is that with FNB you won't find any really great savings options at a savings rate of 1000 to 1500 per month, with the money still being readily accessible. Their fees are also relatively cheap when you take into consideration the amount of services they can offer you that are other than banking. If you think you'll use the extra things FNB provides, then I'd go for them. Although if you're looking to bank and save at the same time, without many bells and whistles, then I'd go for Capitec.

Thanks for the input. Will have a look at Capitec. Any particular account option(s) i should be looking at?

Some ideas:

Save an amount the day you get you salary, not what is left over at the end of the month.

Smallish fixed mount is saved where it can be accessed immediately in another account at same main transactional bank. Save additional money when that fixed smallish amount is reached in a different bank account where that money will take a day or 2 to transfer (this prevents impulse buys). In fact, I dont know there pin number of my additional acccounts debit card.

Then obviously one can save for the longer term in ETFs and Unit Trust with debit orders. Money takes a few days to access.

This is what I have been doing.

Currently I have a cheque account, Savings account and a Credit card at ABSA.

My salary goes into my cheque account.
Transfer what I intend to save pretty much immediately to my Savings account.
The Credit is only there for online purchases, I have credit of R200 (thats what they gave me back in the day when I first signed up as a student), but I just transfer what I intend to use on my Credit card and use it.

 

[KalMaverick]

Thanks for the input. Will have a look at Capitec. Any particular account option(s) i should be looking at?

Global One, they basically only have one account, although there is fixed-term options and flexi-save options, however both require you to have the main account.

I also bank with Capitec, awesome bank if you don't require all the other fluff that comes with other banks.

 

[Gtx Gaming]

How about FNB's Share saver?

What the opinion on that?

i also need try that , might start this month

 

[HavocXphere]

Automate it. Schedule a transfer for day after your salary hits that pulls 20% out. Then focus on making the month with the remaining 80%.

Where you put the money - tbh doesn't really matter. All the banks over pretty bleak rates on interest bearing investments. So rather focus on the "putting money away" part as per above than the "earning interest" part. Capitec seems decent enough for you current purposes.

How is your moms financial situation? I was in a similar position (requiring study loans)...in the end my dad decided to front me the money rather than involve a bank and interest etc. Depends on family dynamics though...I'm fortunate in that my dad trusts me to not screw him over.

 

[TheBadMadMan]

Automate it. Schedule a transfer for day after your salary hits that pulls 20% out. Then focus on making the month with the remaining 80%.

Where you put the money - tbh doesn't really matter. All the banks over pretty bleak rates on interest bearing investments. So rather focus on the "putting money away" part as per above than the "earning interest" part. Capitec seems decent enough for you current purposes.

How is your moms financial situation? I was in a similar position (requiring study loans)...in the end my dad decided to front me the money rather than involve a bank and interest etc. Depends on family dynamics though...I'm fortunate in that my dad trusts me to not screw him over.

I didn't take any kind of loan for my study fees. I worked a part time job to pay for my studies. And every year I paid for it in full. The beauty of it was my December and January salary alone could pay for my studies each year (I was a sales guy ). My salary during the year (which was much lower as I worked less) went towards other university things such as books and other expenses and some fun things .

Single mother, so she pretty much relies on my contribution and I am happy to be able to give it to her, it's the least I can do. So that's a fixed amount that I see as "not mine in the first place", so it doesn't bother me.

Capitec does look like a decent option for what I need though, will look into it.

 

[HavocXphere]

....

Fair enough. I don't quite feel I'm suitably experienced to give practical advice to someone in that position, so all I can say is good luck & you sound like you've got it under control.

Oh and if you can cover a full years of study with 2 months of student work then maybe salesman is a good idea for you?

 

[Voicy]

Spend what you don't save instead of saving what you don't spend.

 

[TheBadMadMan]

Fair enough. I don't quite feel I'm suitably experienced to give practical advice to someone in that position, so all I can say is good luck & you sound like you've got it under control.

Oh and if you can cover a full years of study with 2 months of student work then maybe salesman is a good idea for you?

I would like to think I have it under control, but how do they say in Afrikaans, "Slim kry sy baas", haha so I'll much rather be cautious than be like "I got this" then find myself in the deep few years down the line.

I worked in a retail store that sells Incredible things at not so incredible prices lol. My uni bill for each year was +-R18k. Not as expensive as say UCT, CTI or Stellenbosch (that would have killed me in dept lol) But I got what I needed and some valuable communication skills and client "reading" skills.

I am currently in Wireless networking, will eventually want to tie my Technical knowledge/experience with my Sales abilities/experience. But hey I'm going OT lol.

Spend what you don't save instead of saving what you don't spend.

Indeed. Some wise words.

 

[CamiKaze]

I opened a Nedbank JustInvest Account. interest rates for 5k - 10k is 3.75%.

I am not too clued up on these things but im giving this a try.

 

[Freaksta]

I opened a Nedbank JustInvest Account. interest rates for 5k - 10k is 3.75%.

I am not too clued up on these things but im giving this a try.

Unfortunatly inflation is quite a bit higher than that I think it's currently somewhere around 6% so u are in fact losing between 2 and 3% each year with that interest rate.

 

[patrick]

If you havea student loan why bother savings. Pay off your loan early, even if it's a very low interest loan, it'll feel great to get out of debt, then you can concentrate on saving/investing.

 

[KalMaverick]

I opened a Nedbank JustInvest Account. interest rates for 5k - 10k is 3.75%.

I am not too clued up on these things but im giving this a try.

As opposed to Capitec's interest which is around 5% or something? Probably works out cheaper too.

Under 10k is 5%
Over 10k is 4.25%

 

[minty203]

You are an incredible guy actually. studying and working and paying your own way. as was said already seems you have it under control bro.

regarding the bank account you choose, there are packages available where if you keep a minimum balance in your account you dont pay any bank fees. also look at the rewards programmes many banks offer. even if the amounts seem insignificant, its money you didnt have.

peace.

 

[CamiKaze]

JustInvest Structure

Money market deposit account
Balance Nominal p.a.
< R5 000 0.00%
R5 000 - R9 999 3.50%
R10 000 - R19 999 4.00%
R20 000 - R49 999 4.50%
R50 000 - R99 999 4.50%
R100 000 - R249 999 4.60%
R250 000 - R499 999 4.65%
R500 000 + 4.75%


I am putting R5,500 into this account every year. As I said, I am not clued up on these things but I needed a place to start.
Kind of saving for a wedding, and some people are of the opinion that if you open another bank account and dump money into it, then you are saving.

I am of the opinion of opening an account and dumping money into it where I can gain some interest.

Sorry to hijack the thread but...can someone point those that are not-in-the-know, in the right direction?

 

[smallearth]

Take a good look at residential property as can have a fairly high return, and if you play it right your tenants will pay off the bond leaving you with an appreciating asset. Not without risks though. Watch out for scammers who offer unusually high returns on residential property schemes.

 

[smallearth]

Avoid dumping money in bank accounts, your money will very likely not grow as fast as inflation.