Are you in debt?

Oogie said:
How do you guys buy your cars cash??

We have alot of debt - 2 cars, PL - R25 000, 2 credit cards - R16 000, Store cards R3500. can prob think of more....

We took out the PL last year to pay of the c/c which we did however we were so stupid not to cut the cards and hence the c/c debt + PL.

We earn a "what I think is quite good" income but their always seems to be something that pops up that is not budgeted for. We also spend alot of money on a good medical scheme, policies and insurances but still - I just don't get how you don't have debt.

Please tell me your secrets...

P.S. what is average income here? (apoligies if a thread already exists)
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Well I just started working this year and my scholarships and stuff were just sitting in my account so that money along with some help (actually a lot of help from the folks) paid for the car in cash.

I've been asking guys to post their income but it seems they're shy. :o
 
Oogie said:
How do you guys buy your cars cash??

We have alot of debt - 2 cars, PL - R25 000, 2 credit cards - R16 000, Store cards R3500. can prob think of more....

We took out the PL last year to pay of the c/c which we did however we were so stupid not to cut the cards and hence the c/c debt + PL.

We earn a "what I think is quite good" income but their always seems to be something that pops up that is not budgeted for. We also spend alot of money on a good medical scheme, policies and insurances but still - I just don't get how you don't have debt.

Please tell me your secrets...

P.S. what is average income here? (apoligies if a thread already exists)
Click to expand...

Thing is, buy need to haves, and not like to haves...

Firstly clothing cards are not needed. Destroy them.

Purchase things, as far as possible, in cash. Clothing, food etc.
Medical aids: well, the policies you have, should cover what you need, not what it comes with...

Discovery is good at that... You get a gym card. Wow. So?
They also don't cover most things, unless you willing to pay...

With regards to car... Priorities.

Have no idea, how frugal one must be to buy in cash!!!
Little things like sweets. Coke. Pies. Ready-made food...

:)
 
2 houses, one's rented out long term; 2 cars, getting tax back on both. 2 credit cards, just plain stupidity!
 
Gees...50% savings. That's hectic bru. But I got to respect that.

One thing i have noticed is that majority(90%) of the Engineers that i work with drive cheap cars. Even though these guys are earning very good salaries.

Maybe a cheap car is not such a bad idea after all.
 
feo said:
I have a car which was purchased cash and just purchased a house (obviously NOT cash) so yeah my biggest expense is the house. I'm pretty young & still stay with my parents so yeah, at least I don't have to pay it off alone.
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;)

Good way.
 
Fern9do said:
Gees...50% savings. That's hectic bru. But I got to respect that.

One thing i have noticed is that majority(90%) of the Engineers that i work with drive cheap cars. Even though these guys are earning very good salaries.

Maybe a cheap car is not such a bad idea after all.
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Cheap car, demo model.

I was lucky. The Smart ForFour 1.5 I bought, I bought off my mother. Still cost me 95k, though...

:(

Sips fuel, so I don't regret it.

:)
 
I SO agree on buying a cheap car that will last and last and last. Bought my Renault cash end of 2002 FOR R98 000 and it still drives like a dream.

Makes a big difference to your cash flow.
 
PS: I became debt-free using the exchange rate. After only 18 months in London I could come back and buy my first bachelors apartment cash (OK, end of 2002 before property really started soaring).

Since then I've upgraded to a more convenient neighbourhood (no more commuting to clients' offices) and had to take out a home loan, because the new flat cost double the selling price of the old one. Have now settled all that debt, partly because I bought a small lock-up and go with little running costs and drive a small 1.2L car. Nothing flash. But paying off debt takes time and patience.
 
Barefoot Billionaire said:
I SO agree on buying a cheap car that will last and last and last. Bought my Renault cash end of 2002 FOR R98 000 and it still drives like a dream.

Makes a big difference to your cash flow.
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Yip.

And the sad thing is, that many people go and spend their first paycheck on a fancy car....

Common to see people driving nice cars, when they receive only about R6000 per month...

:rolleyes:
 
I think most people are in debit, but I must say that mine is almost done then Ill be debit free too
 
Fern9do said:
The thing is i'm not tempted. I had a Markhams card for two years without buying anything with it. I've got a R6000 credit card but i've only used R800 of it thus far.
The only reason why i bought things on the cards was to get a good credit history. I'm earning just over 10K a month but got turned down when trying to take out a R150 p/m vodacom contract because i don't have a good credit record. They basically dont care how much you earn or how much you have in the bank if you dont have any debt they wont help you out(Buying a car/house etc)

So it may be all well and good saying " i'm debt free" but if you're young you're screwing yourself because you will not get finance if you want to buy a car or a house.

Once i have a car and a house i will get rid of the credit and clothes cards but for now i need them.

Do you have a car and/or house Identity?
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This is something I did not face (As well as 2 or 3 of my friends I have spoken to, but with varying situations), I have never had a cell phone contract (was with the company), never had a credit card or any credit you are referring to, yet I got a bond of R600 000 at around June/July this year. (After NCA)

The kind of credit you mention is also not such a good idea, rather save up for a decent deposit on an asset, and the bank will value that more than a credit record.
 
I wrote my car off in 2005 and moved back home for a year, while recovering, so saved a lot of money.. Bought a small Peugot 206 for R88K cash.. Downgraded from a Golf 1.9Tdi.. Wasn't great in the beginning but not having a monthly car payment is great..

TMoose, we do rent at the moment.. Hoping to buy next year and then yes we will have debt too..

Ogie, I also find unexpected things crop up every month and it actually really gets me down sometimes, but then I just look at my investment account/savings account and I feel better.. Saving is hard to start doing, but once you get going it becomes so easy..

I honestly believe, besides a house, that if you do not have the cash you CAN NOT afford it! Do not live above your means..
 
TMoose said:
I'm curious. A lot of people here say they are debt free. Where do you guys live? Did you inherit property or do you rent?
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I live in a middle class neighbourhood and we own the house. No inheritance at all...parentals still alive.

You have to live as though you don't have money...ie stop buying pre-cooked meals, lunches etc. Make your own...buy a car that does its job. The moment you drive it off the showroom floor it has depreciated. A car is not an investment.
 
iDenTiTy said:
Yip.

And the sad thing is, that many people go and spend their first paycheck on a fancy car....

Common to see people driving nice cars, when they receive only about R6000 per month...

:rolleyes:
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Absolutely...the car is nothing more than a reliable mode of transport. Rather spend the extra cash on the bond or put it in savings.
 
Fern9do said:
Im 23 and got a R8000 student loan that i'm paying off. The interest is killing me:(

Thinking of buying a nice car but after reading some comments here i'm thinking twice...

Got a absa credit card that i owe about R500 on and some clothing cards that i owe about R2500 on.

The only reason i made the debt was to get a credit record before buying a car. I hate this system.
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Consider the student loan an investment...if you didn't study further what would your income be in relation to the potential income you're going to receive after doing your 4 yr degree? Pretty big I'd say. That student loan would have paid for itself within the first few years of earning a salary as a qualified person.

eg matric = R5 000 - R20 000 pm
engineer = R40 000 pm -> unlimited
 
Natasha H said:
I wrote my car off in 2005 and moved back home for a year, while recovering, so saved a lot of money.. Bought a small Peugot 206 for R88K cash.. Downgraded from a Golf 1.9Tdi.. Wasn't great in the beginning but not having a monthly car payment is great..

TMoose, we do rent at the moment.. Hoping to buy next year and then yes we will have debt too..

Ogie, I also find unexpected things crop up every month and it actually really gets me down sometimes, but then I just look at my investment account/savings account and I feel better.. Saving is hard to start doing, but once you get going it becomes so easy..

I honestly believe, besides a house, that if you do not have the cash you CAN NOT afford it! Do not live above your means..
Click to expand...

Saving is very hard in the begging, but as Natasha H says, once you have something to show, or something measurable to look at (The positive balance in your saving/investment account), it is very easy to continue saving.
 
Oh, Im not technically in debt, unless I quit my job or get fired. Then I gotta pay back that 40k for that 2 week SAP course =(

Will rather keep working here for the next year and a half instead ^_~ Then I owe nothing
 
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