[Advise] Best way to save

[diabolus]

The best way for me was to get one of those Unit Trust type of investment accounts . I had one at Old Mutual. It was one that you put in a fixed amount per month and you can get the money out with 30 days notice. So it's not "instantly" available, but available enough that if the crap hits the fan i can get it. This is what made all the difference in the world for me, if i dump things in a savings account, the temptation remains to clear your credit card debt or buy that new TV whenever the moment arise. The whole admin process to get the money out of my old mutual account and the delay usually had me think twice about using that money for non-essential or lack-of-discipline type of expenses.

In the end , my old mutual account grew over a period of 5 years and i could put down a sizable deposit to buy a house. I knew that had i had an easiER accessable savings account i would not have had that money after 5 years. That is however just me and my lack of discipline ,other people might be better, but if you are prone to similar acts, look into something that is not as readily available.

Also the interest rates on the short/medium term investment accounts are always better than a savings account.

 

[SauRoNZA]

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.

And the cost of the account? How much do you need to invest just to afford having the account?

 

[CamiKaze]

And the cost of the account? How much do you need to invest just to afford having the account?

It's free

 

[SauRoNZA]

It's free

Nothing in life is free.

Let me guess, it's only free if you have some other crazy overpriced account with them?

*****

Okay I see now you need a minimum R5000 to make the investment.

That's a ridiculous low interest rate in that case.


Rather take the higher risk Satrix options for a potentially much better return.

 

[CamiKaze]

Rather take the higher risk Satrix options for a potentially much better return.

I have been trying to understand Satrix but it is all greek to me. People talk about risk, etc.
I need to know what's klapping when it comes to that.

 

[Merrick]

I have been trying to understand Satrix but it is all greek to me. People talk about risk, etc.
I need to know what's klapping when it comes to that.

Satrix is an ETF (Exchange traded fund), and it mirrors a certain Index (there are different ones) Top 40/Divi/Resi etc. It basically tracks and replicates the performance of those or the one you chose. Yes there is risk involved and it would be classified as an Aggressive investment (High risk) as your portfolio depends on what the market does. It should be viewed as a long term investment 10 years or more, so that you can recover should the market goes down.

It does not require you to do anything really, and it is different to online share trading where you actively have to buy and sell and manage your portfolio there.

Hope this helped.

M