Financial Advice - Looking for Perspectives & Ideas

[Ray03]

Hello everyone,

I'm looking for insights and ideas regarding my financial situation. Maybe someone here has something I haven't thought of.

So at the moment I am unemployed, lost my job in May 2020 when the film studio I worked for closed down due to Covid. Was On UIF till December which I'm super grateful for as it paid for my rent (Thank you to the person at the Labour Department that helped me).

During my 2.5 years working at the company I saved up R130 000. My goal is to build-up an expedition truck to live in full time and travel.
Till then I want to save up some more.
I will be turning 30 next month, I stay with my parents, my rent is R5000. I was going to go over to Ireland when my passport is ready but now they are in level 5 lockdown so it probably won't be this year seeing how much its affecting Ireland and the job market there.

I don't have any qualifications just matric. Something that has pretty much plagued me my whole life is not knowing what I want to do career wise so since I left school I've just had random work over the last decade. Been reading a lot of self help stuff which has improved my view on life and recently finished Think and Grow Rich by Napoleon Hill which was good. Busy reading The Richest Man in Babylon now which is also nice. I've also been reading insights from Bob Proctor.

Now the problem I'm having is that because I've done work that wasn't that great for so long I just don't want to work anymore. Recently the same job I used to have opened up at another film studio and the thought of doing it again made me die inside.

What I would like to gain perspective and ideas on is how best can I use the R130 000 to make it grow? Been thinking of being my own boss and starting something (dunno what) but because my money took so long to earn I am dreading spending it but at the same time if I hold too tightly and make poor decisions I will slowly lose it.

Ideas or words of wisdom?

 

[L-Dog]

Take R 36 000 and put it in a Tax Free Savings account before the end of the month (Buy an ETF, Easy Equities is a good place to start). Now in March put another R 36 000 in your tax free savings account. Now you have R 58 000 left to buy shares, bitcoins, a cheap car or just put it in a fixed deposit till you know what you want to do

 

[Ecco]

My 2 cents, i dont know if reading those book is going to help you much.

Some great words of wisdom is that if you find something you love doing, you never have to work a day in your life i.e. doing something you love as job is the best thing you could do (if money isnt always the key driver).

You dont mention what interests you etc, apart from wanting to travel. Maybe look at how other travel bloggers make a living. That said, travel is not the easiest thing to do these days.

Otherwise dont be scared of taking on different jobs until you find something you enjoy doing - it looks like you still able to do this, its not too late for you (you dont have kids etc)

 

[3WA]

R130k is not going to buy you financial freedom at age 30. So you still need a job. Can you invest the R130k long term, or are you spending it to support yourself?

If you really wanna make it on the R130k alone, open up a leveraged trading account and go crazy.

 

[Ancalagon]

You have some interesting points.

Advice from me:

Give up on the idea of ever finding a passion that will pay you money. Give up on the idea of finding something that inspires you, that will make you money. This nonsense is peddled to us by people who should know better.

You probably will never find something that you LOVE being paid to do, and that's okay. Just find something that meets your financial goals and your education/experience. People turn their noses up at the idea of just being paid to do a job, but honestly, that's all a job is. Don't overthink it. And don't listen to people who tell you that you need to "find your passion" or "find your inspiration". You don't. You just need the best paying job for the amount of stress you are willing to tolerate, and you need a plan to turn the cashflow from that job into long term financial stability.

So, first step is a job. R130k is just not enough money to retire on your investments. You can't hope to invest R130k such that you don't have to work and just have to manage your money. Get a job, at this point whatever you can, to stop yourself bleeding capital.

Moving to Ireland - not a bad idea, not practical right now. You need a job, any job, A) to keep yourself from getting too bored, B) to stop yourself wasting capital.

Start thinking about what you can do to upskill yourself to earn more money. A popular choice right now is some form of programming. That is probably what I'd get into. It is high paying, mostly lower stress. That higher salary will help your investments grow.

 

[bro-da]

tl;dr - My advice: invest in yourself wisely by upskilling yourself

Friend of mine was in a similar situation as you 5 years ago. had a job tour guiding made really decent dollar tips and saved up a crap ton (even paid his flat off cash). I always tried to convince him to do something professional (since he had a degree) but he kept looking for his passion. he tried programming courses, started engineering a bit, started some finance course incl CFA, mobile app development etc.

Long story short he is 36 now and Tour guide money drying up due to covid. no other option and completed none of the above. If he just picked one thing and saw it to completion he would at least have been able to take care of himself even if he didnt love it. Dont let this be you in 6 years!

My advice: invest in yourself wisely.

do a lot of research up front (which is what you are doing now) on different choices what it costs to get into and potential salary expectations(bursary programmes and funding aid are more available than you would think). choose something that is broadly aligned to your aptitudes ie you might be able to afford becoming a realtor but if you hate talking to people its not going to end well.

also dont be afraid of the hard yards. I hated every minute of studying for the past 9 years AFTER a 5 year degree! hate reading and comprehending, hate summarising reams and reams of notes (i prefer numbers). but i am pretty much set now anywhere in the world.

some options to get you started (to be taken in the context of covid and some can also be done oversees):

Realtor
Any part time work while (office job is gold prize) doing a Unisa degree
Plumber/electrician (makes a lot of cash if you get it right)
IT (see others suggestions)
Work at a Gym

lastly if you ready Think and grow rich you'll know Napoleon Hill reinvented himself a couple times over his life. every failure brings with it the seed of an equal or greater opportunity - you just have to find it.

 

[Ray03]

Take R 36 000 and put it in a Tax Free Savings account before the end of the month (Buy an ETF, Easy Equities is a good place to start). Now in March put another R 36 000 in your tax free savings account. Now you have R 58 000 left to buy shares, bitcoins, a cheap car or just put it in a fixed deposit till you know what you want to do

Ah I forgot about the Tax Free Savings account. Will look into it. Thanks

 

[Ray03]

@bro-da
@Ancalagon

Regarding upskilling myself, I was thinking about Welding but I'm now unsure. A one week course at a place near me for MIG steel welding is R5000 but what worries me is that I won't be able to find work once I get the certificate. Most of the job postings want a couple years experience and some other welding qualifications. I even thought about learnership's but those usually run for 2 to 3 years and if I pull out I have to pay the difference, everything is so uncertain in this world now.

 

[Ancalagon]

If you're interested in hands-on work like welding, my suggestion would be to find someone who knows the business. Find an experienced welder or boiler maker, and ask him about his job and career. Get advice from someone who knows what they are doing.

They can tell you what the best way to get into the business is. Maybe they can put you in touch with someone that can give you an internship or something.

 

[Ray03]

If you're interested in hands-on work like welding, my suggestion would be to find someone who knows the business. Find an experienced welder or boiler maker, and ask him about his job and career. Get advice from someone who knows what they are doing.

They can tell you what the best way to get into the business is. Maybe they can put you in touch with someone that can give you an internship or something.

Hmm that's something I can try. Will give it a shot. Thanks

 

[Van87]

Contrary to others suggesting the Tax Free Savings account, I would not put any money there.

That would effect the lifetime total of money you can add there, and since you may need to withdraw it in the near future, you would have wasted the allocation, and also I'm assuming you will not be liable for tax in this season, there is literally no reason to put money there.

Instead maybe just get a 32 day Flexi account at FNB or something, sure it's going to earn minimum interest, but it's something. Also try other short term investments.

I'm no nerd on this stuff, from what I'm hearing Tax free is pointless, since you not really trying to avoid tax anyway

 

[Ray03]

Contrary to others suggesting the Tax Free Savings account, I would not put any money there.

That would effect the lifetime total of money you can add there, and since you may need to withdraw it in the near future, you would have wasted the allocation, and also I'm assuming you will not be liable for tax in this season, there is literally no reason to put money there.

Instead maybe just get a 32 day Flexi account at FNB or something, sure it's going to earn minimum interest, but it's something. Also try other short term investments.

I'm no nerd on this stuff, from what I'm hearing Tax free is pointless, since you not really trying to avoid tax anyway

I bank with Capitec so I guess I can just put the bulk of my savings into a fixed term savings account. Can put 100k away and have the 30k in a standard savings.

 

[Van87]

Well yes, just be mindful of the term of the fixed deposit, only you know what you will need , and when you will need it, depending on your living expenses.

Or what you may be thinking of doing, or starting business wise.

All the best!

 

[mr_norris]

I bank with Capitec so I guess I can just put the bulk of my savings into a fixed term savings account. Can put 100k away and have the 30k in a standard savings.

If you don't want to lock your money away for months, you can always dump 100k into a Tymebank account (Goalsaves). After a few months you'll be bringing in 6% PA. If you don't mind locking your money away for at least a year, you'll be able to earn a bit more. I use https://www.ratecompare.co.za/ to easily check out the fixed deposit rates. The guy updates that every month I think.

As for decent rates on a normal savings account, I've yet to find something suitable.

I tried to reply many times to this thread last night, but tbh I didn't know what to say. Sounds like you are a bit lost, and I know that feeling all too well. Good luck!

 

[Ray03]

If you don't want to lock your money away for months, you can always dump 100k into a Tymebank account (Goalsaves). After a few months you'll be bringing in 6% PA. If you don't mind locking your money away for at least a year, you'll be able to earn a bit more. I use https://www.ratecompare.co.za/ to easily check out the fixed deposit rates. The guy updates that every month I think.

As for decent rates on a normal savings account, I've yet to find something suitable.

I tried to reply many times to this thread last night, but tbh I didn't know what to say. Sounds like you are a bit lost, and I know that feeling all too well. Good luck!

Wow thanks for the link and I'll check out Tymebank.

And regarding me being lost.... hahahaha its pretty much the story of my life

 

[mr_norris]

And regarding me being lost.... hahahaha its pretty much the story of my life

The feels man <3 at least you aren't alone

 

[Ray03]

Thank you to everyone that contributed to this thread, much appreciated.

 

[Barbarian Conan]

I just want to reiterate what others have said about finding your passion.

I watched a video somewhere about what BS "finding your passion" is when it comes to choosing your career. The example used is someone who is passionate about tax law. No-one grows up and is passionate about tax law. They study stuff that's not too offensive to them, work, and then through making a success of it they become passionate about it.

Every job will have parts that suck. Every job with decent compensation will have you struggling, doing things you don't like, and frustrating you. Either that, or it will bore you. Most likely you will alternate between feeling lost, frustrated and bored. I love my job and that's how it makes me feel. My wife loves her completely different job and experiences the same.

I know a couple of musicians. I know the guy who made his passion (music) his career, and I know the guy who got a 9-5 (or longer hours) day job and made music his hobby. All of these guys make music, all of them have bands in a way, but the guys who didn't make their passion their carreer has a lot more financial freedom.

As for emigration/overseas work, I only know a bit about Aus and NZ, and electricians, plumbers, boilermakers seem to be in demand. In SA though, you will probably not earn that well unless you start your own business.

As for R130K.... definitely not enough for a passive income.
Probably not enough to start a business, unless you want to start a food truck or food stand at a market?
So I agree that education is the way to go.

 

[Ray03]

@Barbarian Conan

For me its not so much about "finding my passion" but more doing work I actually WANT to do. I totally get that every job will have things I wont like.
It's been challenging for me as I have accumulated so much resistance to doing work because I have done things I didnt enjoy. There's a whole lot of other stuff that I will not mention here that does play a role but thats a different topic in a different section of the forum, probably mental health section.

But thank you for sharing your insights with me.

 

[Crayons]

Spend the nights drinking at an upmarket bar. Then land yourself an older divorcee.