Another "Investing / shares" thread - please help

[Priapus]

having no debt for an extended period, clears your recent credit history and could make getting a loan difficult.

Also remember that a car is probably the worst investment you can do, so never 'spoil' yourself with a fancy car whilst you are trying to save

Agreed a car is the worst investment choice. I only plan to get a new car in around five years time. By then, I would have saved what I needed to and hopefully found a retirement plan to suit me.

 

[supersunbird]

Well, I don't plan to cancel the cell phone contract when it's up for renewal in 2014. However, once the car is paid off, I am keeping it for a little longer and then will sell it, and whatever I get from it, I will use as a deposit for the next car I would like.

So, having a constant debt is a good thing?

If I were to go off the grid (No debt what so ever) is that a bad thing?

Well, some kind of contracts that get registered on the credit bureaus systems are good, shows you pay what you owe, would be good when you need to access credit for you next car or like I said, home.

 

[Bundu]

Agreed a car is the worst investment choice. I only plan to get a new car in around five years time. By then, I would have saved what I needed to and hopefully found a retirement plan to suit me.

if you stay as motivated and ask around when in doubt, you'll be just fine in future - good luck!

 

[Priapus]

if you stay as motivated and ask around when in doubt, you'll be just fine in future - good luck!

Thanks and thanks to everyone who contributed to this thread. I really do appreciate it.

 

[SauRoNZA]

Well, I don't plan to cancel the cell phone contract when it's up for renewal in 2014. However, once the car is paid off, I am keeping it for a little longer and then will sell it, and whatever I get from it, I will use as a deposit for the next car I would like.

So, having a constant debt is a good thing?

If I were to go off the grid (No debt what so ever) is that a bad thing?

It's a good plan to hold onto a Credit Card...especially one with no annual costs like the Virgin cards.

You never know when you have a real emergency (and I mean a REAL one here) and need access to some cash quickly.

Use it for online purchases and immediately pay over the money into the card so it's always in a positive balance.

Same with a cellphone contract, it makes sense to have one for a great many reasons. The problem is choosing what you NEED not what you WANT and also one that you'll actually use.

I have a Talk 120 with 500+ minutes remaining every month because I don't use it. BUT my employer pays for it so I don't worry about it. If I paid for it myself I would probably go for a more Data less minutes option or even a Topup contract.

 

[Priapus]

Thanks for that.

I am thinking of rather putting money away each month, and build it up to around three times my salary or as close to. That can be my emergency fund.

I just want to avoid all credit as much as possible. I'm okay with cell phone contracts and the car until it's paid for.

 

[Priapus]

Well that's it. Officially my FNB CC and Game accounts have been closed. Feeling much better now I am out of those two debts!

 

[Freaksta]

Well that's it. Officially my FNB CC and Game accounts have been closed. Feeling much better now I am out of those two debts!

Congrats! Good luck on your saving plan!

 

[Bundu]

Well that's it. Officially my FNB CC and Game accounts have been closed. Feeling much better now I am out of those two debts!

great! does your salary payment go to FNB? Check your banking costs as well, because that is a dripping tap that steals your money - my TOTAL bank costs are R115/mnth, which includes a CC (which I regularly use, but is automatically paid off every mnth), cheque acct, all debit orders, all cash withdrawals at ATM and internet banking.

 

[Priapus]

Thanks guys!

Once I have my new replacement ID from home affairs, I will open a Capitec account to start saving.

I've been keeping an eye on my FNB banking costs. Normally around the R130 mark or so. But will review it in the new year.

 

[Freaksta]

great! does your salary payment go to FNB? Check your banking costs as well, because that is a dripping tap that steals your money - my TOTAL bank costs are R115/mnth, which includes a CC (which I regularly use, but is automatically paid off every mnth), cheque acct, all debit orders, all cash withdrawals at ATM and internet banking.

This is true, my fnb bank fees are R120 for my cheque card! I can most likely change over and save some money with capitec but I'm not certain with this and I'm happy paying this as I don't find it outrageous!

 

[Freaksta]

Thanks guys!

Once I have my new replacement ID from home affairs, I will open a Capitec account to start saving.

I've been keeping an eye on my FNB banking costs. Normally around the R130 mark or so. But will review it in the new year.

While I'm not saying saving isn't good, for me there is always a temptation with regards to cash balance sitting in a bank account. Investing in what ever it is, bonds, etf etc means the money is in a way tied up, it's out of sight and mind! Another problem is that although capitec does offer good interest rates, they are not beating inflation! If this is for a rainy day fund then I guess it is the best option!

Good luck once again!

 

[marco]

I cut up my CC 15 years ago and have been buying cash ever since but when I applied for a Cell Contract, I was told that due to no credit history, I have to pay in R1200.00 extra.
Last year I wanted to buy a plane ticket for my daughter to the UK but could not as they ONLY work with CC's. I had to get a pal with a CC to buy it and he had to be at the airport counter to show his CC.
When my other 2 daughters came to visit from the UK, they tried to rent a car but could not as they needed a CC. WTF.
Now we all have CC's and ONLY use them for the above and pay it asap.

 

[Priapus]

Well, I have never had to use a CC before in any case - also, I have lots of credit history. Three cars on finance over the years, a 6 year old MTN contract and accounts I did have, which are paid off now.

Capitec does offer good rates - and it doesn't beat inflation - but as you said, as a rainy day fund, it's fine.

 

[Priapus]

You can get a Virgin money CC, pay no fees and set your credit limit to R1000.

I don't see how that's going to get you in financial difficulty.

No fees hey?

And as low as 1K limit - hmmm, I think I must look into this.

 

[Freaksta]

No fees hey?

And as low as 1K limit - hmmm, I think I must look into this.

Yup, only fees are if you withdraw, go into the red, lose your card! I'm applying for one in the new year!

 

[RVQ]

I currently have a Cheque and Credit account with FNB and the only debt to my name is my home loan.

Every month my salary is deposited into my cheque account then I pay all my bills, estimate how much cash I might need for the month (fuel, food, parties...) and transfer the remaining amount into my home loan. Because I never know what's going to happen during the month I always over estimate what I need and end up with one or two grand extra before pay day.

Now I'm thinking of making use of that few weeks no interest on my Credit Card. Use it for daily expenses and pay it off as soon as my salary gets paid then transfer everything from my Cheque Account into my home loan.

What you guys think? Good or Bad idea?

 

[Bundu]

I currently have a Cheque and Credit account with FNB and the only debt to my name is my home loan.

Every month my salary is deposited into my cheque account then I pay all my bills, estimate how much cash I might need for the month (fuel, food, parties...) and transfer the remaining amount into my home loan. Because I never know what's going to happen during the month I always over estimate what I need and end up with one or two grand extra before pay day.

Now I'm thinking of making use of that few weeks no interest on my Credit Card. Use it for daily expenses and pay it off as soon as my salary gets paid then transfer everything from my Cheque Account into my home loan.

What you guys think? Good or Bad idea?

new options seems better - you could probably also get the bank to automatically transfer the outstanding debt to the credit card from your cheque acct on the last day payable - that's what I do

 

[WellSpent]

Start at the beginning: http://wellspent.co.za/journey-viewer/