Frozen by debit orders to go through

PhreakBoy said:
Because in everything we do we get spoiled by instant satisfaction.

No more waiting for specific time to watch cartoons, just tune to cartoon network.
No more banking during bank hours, use internet banking.
No more waiting for season to eat certain fruits - they are around all year.

So, when we want a new toy, we don't want to save for three years and then buy it, we wnat to buy it now and pay it off for the next 5 years.
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I doesn't work thou, say you buy a new car now then within 6 months the novelty have worn off but your still paying for next 5 years. Then you buy something else on debt while your still paying the car.

I'm working on a new system at the moment. Since I don't have any debt I saved up a quite a bit of money and it goes into a 32 notice account. So if I want to buy a toy or whatever then I have to give 32 notice and as soon as the money is released and I still want it then I can buy it. Strange thing is I have become really stingy with spending that money as I really enjoy seeing it grow.
 
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TheGuy said:
I doesn't work thou, say you buy a new car now then within 6 months the novelty have worn off but your still paying for next 5 years. Then you buy something else on debt while your still paying the car.

I'm working on a new system at the moment. Since I don't have any debt I saved up a quite a bit of money and it goes into a 32 notice account. So if I want to buy a toy or whatever then I have to give 32 notice and as soon as the money is released and I still want it then I can buy it. Strange thing is I have become really stingy with spending that money as I really enjoy seeing it grow.
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As long as this doesnt affect your life enjoyment/satisfaction, then its a good idea

mass09 said:
We love the satisfaction of consumption, all we do is consume, consume, consume..
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You know, I have this friend who has been saving since she was 16. When we were 18-25, we would go out alot, do alot of cool activities, go on awesome holidays etc.
She declined alot of this, because she was worried about money.

Sure, she has a bit more saved than me now, but i have very little regret, I lived my youth to the fullest, loved every minute! I am certain she regrets not spending the money and enjoying life, especially when there is no responsibilites at all.

I dont enjoy the act of spending/cosuming, but i love going out with my friends, and this requires spending money.
When you are young, enjoy life, the amount of money you are gonna save when you are between 18 - 21 (in general) is very little in relation to the savings each month you put away when you are 25+.
 
blunomore said:
And that is not even a lot! :)

We have -

Bond
Vehicle payments
Internet
Cell phones
3 G
Printer rental
ISP
Insurance
Savings
Credit cards
Maintenance
and I am sure there is more I forgot about !
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Doesn't it make more financial sense to pay off credit card debts before saving ?
Essentially you could take your savings and pay off all your short term debts and then you can start saving...
 
tau1z said:
As long as this doesnt affect your life enjoyment/satisfaction, then its a good idea



You know, I have this friend who has been saving since she was 16. When we were 18-25, we would go out alot, do alot of cool activities, go on awesome holidays etc.
She declined alot of this, because she was worried about money.

Sure, she has a bit more saved than me now, but i have very little regret, I lived my youth to the fullest, loved every minute! I am certain she regrets not spending the money and enjoying life, especially when there is no responsibilites at all.

I dont enjoy the act of spending/cosuming, but i love going out with my friends, and this requires spending money.
When you are young, enjoy life, the amount of money you are gonna save when you are between 18 - 21 (in general) is very little in relation to the savings each month you put away when you are 25+.
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But the problem is not spending money you have it's spending money you don't have. What I'm saving up for now are bigger things like doing a diving course and then to go dive the great barrier reef.
 
JungleBoy said:
Doesn't it make more financial sense to pay off credit card debts before saving ?
Essentially you could take your savings and pay off all your short term debts and then you can start saving...
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i used to do this, but then halfway through the month i would start using my cards...
If i put into savings that i cant get to, and then some on cards, I know my cards dont look great...I have been burnt badly before with credit cards, and as soon as i am a few k down, i go into hibernation mode.
Sounds silly, but it works for me...
 
TheGuy said:
But the problem is not spending money you have it's spending money you don't have. What I'm saving up for now are bigger things like doing a diving course and then to go dive the great barrier reef.
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yeah, i agree....and i think as you get a little older you start "luxury" spending more on big rewarding things than going to the pub with your mates.
If you are fortunate, you get to do both. I think if you keep nailing ur credit card to buy constant small things you dont really need....you are going to be a banks best friend
 
tau1z said:
i used to do this, but then halfway through the month i would start using my cards...
If i put into savings that i cant get to, and then some on cards, I know my cards dont look great...I have been burnt badly before with credit cards, and as soon as i am a few k down, i go into hibernation mode.
Sounds silly, but it works for me...
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Same with me I have a overdraft that's about a a third of my salary that I go into every month. It seems I work a lot better with money when I have a little debt.
 
TheGuy said:
Just be careful not to max your credit cards and stuff again while your paying the personal loan off. Lots of people do that.
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Got my confirmation this morning of my one credit card is now cancelled (was maxed out for two years!!!). Killed all my accounts except one credit card which still has a couple of K outstanding. Trust me, it was Temptation Island last week seeing a couple months salary in my bank account and using it for some nice to have things :)
 
blunomore said:
I am not pointing fingers at anyone (maybe at myself!) but I wonder why it is so hard for people to live within their budgets?

Not referring to emergencies and unexpected expenses here, but just on a normal basis.
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Well once you got kids every month is an emergency and unexpected expenses. The last 3 years I've been wacked with Doctors bills, study fees (UNISA), nappies, etc. Not nice when you owe your doc more than a months salary (thats what killed me the last 3 years as it happened every few months).
 
tau1z said:
yeah, i agree....and i think as you get a little older you start "luxury" spending more on big rewarding things than going to the pub with your mates.
If you are fortunate, you get to do both. I think if you keep nailing ur credit card to buy constant small things you dont really need....you are going to be a banks best friend
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What also happens is money you saved up you don't just want to use it for buying any old crap because you already worked for it you want to make it last.
 
cbrunsdonza said:
Got my confirmation this morning of my one credit card is now cancelled (was maxed out for two years!!!). Killed all my accounts except one credit card which still has a couple of K outstanding. Trust me, it was Temptation Island last week seeing a couple months salary in my bank account and using it for some nice to have things :)
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congrats dude, nothing beats the feeling of getting out of the blackhole of credit card debt.
Resist the urge :)
 
cbrunsdonza said:
Well once you got kids every month is an emergency and unexpected expenses. The last 3 years I've been wacked with Doctors bills, study fees (UNISA), nappies, etc. Not nice when you owe your doc more than a months salary (thats what killed me the last 3 years as it happened every few months).
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have you learned anything you can maybe share in how to deal with all this? I don't have kids at the moment so it's easy for me but I also fear once you have kids the wheels suddenly come off.
 
tau1z said:
congrats dude, nothing beats the feeling of getting out of the blackhole of credit card debt.
Resist the urge :)
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Its rather ironic that I'm replacing one debt with another but the difference is I have more control, smaller repayments and no revolving credit to access. I cannot explain the feeling of relief I have and cannot wait for that last payment in 4yrs time either.
 
My ex maxed out my cc and I maxed out my overdraft a few months ago. Only just managed to clear the CC last month, and if it wasn't Christmass I'd clear the overdraft this month. And then it's the long hard slog to dent the bond :(
 
TheGuy said:
have you learned anything you can maybe share in how to deal with all this? I don't have kids at the moment so it's easy for me but I also fear once you have kids the wheels suddenly come off.
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Anyone can give you advice on how to run your finances with kids, but the reality is that once they are there, its all pie-in-the-sky theory. My son has been hospitalised for his medical condition a couple of times - medical aids only pay so much.

I can tell you to save now but once little geek is there, your going to access that nest egg asap.
 
Am killing all my debts as I can (have a reducing overdraft, no credit cards, cut up all my shop cards etc).

Whenever I am starting to feel like I am getting somewhere something else goes wrong and I have to start the process again.

At least my work allows me to make interest free loans when needed.
 
TheGuy said:
have you learned anything you can maybe share in how to deal with all this? I don't have kids at the moment so it's easy for me but I also fear once you have kids the wheels suddenly come off.
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I learned 1 thing with my 2 year old daughter.
Open a small fixed term savings account (e.g. ABSA's targetsave 2008) and when it matures, open another account and leave the original one for an emergency.
You have to go to the bank to empty these accounts so that makes it less tempting.
 
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