Late New Years Resolutions

dyllindd

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Joined
Nov 9, 2012
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192
Good Morning Everyone,

As a bit of a late 2018 new year's resolution, I have decided to use this year to downscale on unnecessary expenses in order to start saving up for a deposit on a house.

I would love to hear what everyone else is doing in order to save money. Please share, there might be ideas we haven't heard yet.

My first step:

  • I paid off and closed my ABSA credit card today.
Next potential step: Cancel cellphone contract due for renewal in May 2018.

Let me know what you guys are doing to curb the credit crunch! Looking forward to everyone's feedback :)
 

Shaun108

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May 11, 2009
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8,232
I've stopped drinking and smoking. Saving ±R3000 per month. I've also sold my S500 and bought a Civic for daily use.

Planning to retire in a decade with all of that extra money saved.
 

dyllindd

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Joined
Nov 9, 2012
Messages
192
I've stopped drinking and smoking. Saving ±R3000 per month. I've also sold my S500 and bought a Civic for daily use.

Planning to retire in a decade with all of that extra money saved.
Hey Shaun, how did you feel after selling the S500. Im currently driving a CLK500 that I would like to sell as soon as I can break even between the trade in price and my settlement amount. Dealers offering far below with all types of excuses on why they can't offer a decent trade in price.

I am sitting on about a R25k shortfall on the car.
 

envo

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Jan 14, 2014
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If your accounts are with ABSA, I'd move to FNB and close them as well. You will save a ton in fees and heartache moving away from ABSA.

With FNB you can then work on your eBucks level. Level 5 gets you a 40% discount on virtual vouchers @ Checkers. I earn enough eBucks to buy enough vouchers to pay for my groceries in a month. That money I push into my bond (or, if you have other debt, into there, or if you have no debt, into savings)

If you have a car that you are still paying off, try to pay it off faster, then take that payment + your grocery money that you're saving and push that into savings. Etc.

Don't buy take-aways. Cooking at home is way healthier. Don't fall into the trap of expensive ingredients either, most diets/new diets recommend outrageously expensive items that can be very cheaply replaced with alternatives just as good. Eat the same thing every day if you can, or at least have a set menu. Mondays are spaghetti and meatballs for example, Saturdays are braai. etc. Cuts down on your spend on food like that too dramatically.

Budget. Take your monthly expenses and break it down to a daily expense number. You will then know what it "costs" you on a daily basis just to adult. Compare that to your daily "rate" for the salary you get paid. Look at market related prices to see if you might not be underpaid/undervalued at your current job/position.

Try to get to the point where you are saving the same amount of money you're spending in your rent.

So if you spend 9k in rent, get to a point where you are putting 9k in savings. That way when you get to the point where you have enough for a deposit, you are already in the mode of saving double what you might be paying in your bond, which comes in handy to push straight into your bond and pay off your house faster. EZPZ with some discipline.
 

envo

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RE: cancelling cellphone contract, don't.

You can renew the contract but opt-out of taking a new device. They will give you the same amount of minutes/sms/benefits for way less than you're currently paying.

For example, I was on an MTN 200 contract a few years back. I renewed the contract but didn't take a device (using my current phone). The price was something like R399, dropped down to R89. Same amount of minutes etc.

If you have DSTV, opt for purchasing an Android TV topup box instead. You can get Mobdra/TerrariumTV to stream any shows (live or recorded) and you will be saving R1000 easy on that.
 

Shaun108

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May 11, 2009
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Hey Shaun, how did you feel after selling the S500. Im currently driving a CLK500 that I would like to sell as soon as I can break even between the trade in price and my settlement amount. Dealers offering far below with all types of excuses on why they can't offer a decent trade in price.

I am sitting on about a R25k shortfall on the car.
I actually was in the same situation regarding the price. My brother advised me to list it privately and wait. It took around 3 months before I got a serious buyer and eventually the deal was concluded with me breaking even in regards to depreciation and age of the vehicle. I went to 3 Dealers and they all offered excuses as to why they cannot give me a decent price, ranging from demand to risk.
 

envo

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Hey Shaun, how did you feel after selling the S500. Im currently driving a CLK500 that I would like to sell as soon as I can break even between the trade in price and my settlement amount. Dealers offering far below with all types of excuses on why they can't offer a decent trade in price.

I am sitting on about a R25k shortfall on the car.
I would not sell this and pay it off entirely as soon as possible (re my other advice, instead of saving money, push it into ANY debt, this includes the car).

Selling your car when it breaks even for a trade-in just extends the interest you will pay on a new car going forward. Not worth it in the long run. I went from an Audi to a Kia Picanto (for reasons, and swore it will be the last time I did something like that). It's an adjustment, but was way lighter on my pocket and I paid it off and only pay for insurance now.

Which also reminds me, on a yearly basis when your insurance goes up, call them an negotiate a lower rate. Your car depreciates, so they should technically lower the rate, not increase it. If they can't, then shop for cheaper insurance with the same benefits you have now.
 

Nithan15

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If your accounts are with ABSA, I'd move to FNB and close them as well. You will save a ton in fees and heartache moving away from ABSA.

With FNB you can then work on your eBucks level. Level 5 gets you a 40% discount on virtual vouchers @ Checkers. I earn enough eBucks to buy enough vouchers to pay for my groceries in a month. That money I push into my bond (or, if you have other debt, into there, or if you have no debt, into savings)

If you have a car that you are still paying off, try to pay it off faster, then take that payment + your grocery money that you're saving and push that into savings. Etc.

Don't buy take-aways. Cooking at home is way healthier. Don't fall into the trap of expensive ingredients either, most diets/new diets recommend outrageously expensive items that can be very cheaply replaced with alternatives just as good. Eat the same thing every day if you can, or at least have a set menu. Mondays are spaghetti and meatballs for example, Saturdays are braai. etc. Cuts down on your spend on food like that too dramatically.

Budget. Take your monthly expenses and break it down to a daily expense number. You will then know what it "costs" you on a daily basis just to adult. Compare that to your daily "rate" for the salary you get paid. Look at market related prices to see if you might not be underpaid/undervalued at your current job/position.

Try to get to the point where you are saving the same amount of money you're spending in your rent.

So if you spend 9k in rent, get to a point where you are putting 9k in savings. That way when you get to the point where you have enough for a deposit, you are already in the mode of saving double what you might be paying in your bond, which comes in handy to push straight into your bond and pay off your house faster. EZPZ with some discipline.
Awesome advise here - someone give this man a bells.
 

dyllindd

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Nov 9, 2012
Messages
192
Hi Everyone,

Thank you so much for the responses.

@Envo, thank you for all of the valuable advice.

I have recently started working for FNB so I needed to take up an account with them in anyway for my salary deposit. I have at least moved the bulk of my stuff from ABSA to FNB. However I still earn more interest at ABSA on my depositor plus account than I would have with a similar saving account at FNB.

In terms of rent and cooking, I am lucky/depressing enough to still be living with my parents. So rent is minimal and no takeaways during the week. Only home cooked meals.

@Shaun and Envo, I have only had my car for 9 months and would have to pay a monthly installment of R4385 for another 9 months in order to break even on the finance agreement. So it would essentially save a bit more to trade the vehicle in now. (R25k vs approx R36k).

As my vehicle finance will be through Wesbank, I will get a staff interest rate which should help with regards to the total interest on the loan. Currently paying R1400pm for insurance as I am 24. I am ok with spending R4000k a month on a vehicle. The plan was to buy something like an old shape Ford Figo or Hyunday Elantra (Can't decide between hatch and sedan) and keep my installments the same thereby possibly paying the new car off in 2 - 3 years. It's just my current insurance premium and petrol costs that are killing me.

With regards to my phone contract, I am not very happy with Vodacom's service. When I tried to get the contract transferred from my parents' name to mine, Vodacom declined based on their opinion of my affordability. Currently paying R935pm for a Samsung Galaxy S7 edge.

Only choices I regret:

CLK 500 - I had a 2004 MB C180 prior to the CLK and I miss that car. Comfortable and much more economical. (Dreamed of owning a V8 since I was very young
Cellphone contract was taken with Gear VR goggles with increased the monthly contract price.
 

envo

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Like I said, don't f around with cars at this moment. you will (I speak from experience here) dig yourself a hole you can't get out of. R1400 premium on insurance for as young as you are, it doesn't matter what car you drive. My first car was a Corsa 1.4, I paid R1800 insurance on it monthly because I was 22 at that stage and my first car I owned myself. It sucks, but it's not the end of the world.

I'm also willing to bet you put foot with your CLK500 if you are complaining about petrol usage. Ease off the heavy foot and just drive normally and you'll be fine ;) (try to start a lift club to work and pick people up enroute to share petrol)

Why do you have savings if you have debt? I would use your depositor account savings and make a dent in that car so you can pay it off faster. By the time you're 29 you'd have a car you paid off and enough to start out on to buy your own house. There's no rush. But if you follow through and keep paying interest on a car you won't be paying off within 5 years from now, you'd actually not be saving much at all.

Here's a trick to save on your car insurance (don't tell them I told you)

You could put your dad on as the primary driver of the vehicle and you as a secondary. Since you live with them still, they'd allow it. You could just ask if its possible, and if they ask for a reason say you'd be travelling overseas for work for a while and your dad would be the primary. They'll take his ID number (If I remember correctly)

I dropped my premium by more than 50% doing that, and still drove my car #lifehack (went from R900 to R380)
 
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dyllindd

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Nov 9, 2012
Messages
192
Like I said, don't f around with cars at this moment. you will (I speak from experience here) dig yourself a hole you can't get out of. R1400 premium on insurance for as young as you are, it doesn't matter what car you drive. My first car was a Corsa 1.4, I paid R1800 insurance on it monthly because I was 22 at that stage and my first car I owned myself. It sucks, but it's not the end of the world.

I'm also willing to bet you put foot with your CLK500 if you are complaining about petrol usage. Ease off the heavy foot and just drive normally and you'll be fine ;) (try to start a lift club to work and pick people up enroute to share petrol)

Why do you have savings if you have debt? I would use your depositor account savings and make a dent in that car so you can pay it off faster. By the time you're 29 you'd have a car you paid off and enough to start out on to buy your own house. There's no rush. But if you follow through and keep paying interest on a car you won't be paying off within 5 years from now, you'd actually not be saving much at all.

Here's a trick to save on your car insurance (don't tell them I told you)

You could put your dad on as the primary driver of the vehicle and you as a secondary. Since you live with them still, they'd allow it. You could just ask if its possible, and if they ask for a reason say you'd be travelling overseas for work for a while and your dad would be the primary. They'll take his ID number (If I remember correctly)

I dropped my premium by more than 50% doing that, and still drove my car #lifehack (went from R900 to R380)
Thanks @Envo, much appreciated.
 

mr_norris

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Jun 12, 2007
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2,224
With FNB you can then work on your eBucks level. Level 5 gets you a 40% discount on virtual vouchers @ Checkers.
They've stopped that :( I've been keeping an eye out on the eBucks thread to see if this has changed. I think we can kiss discounted Checkers vouchers goodbye.

Back on topic, some things I've done:

- I went from a contract phone to prepaid, keeping the phone I bought on contract, then replacing it with a flagship that I bought cash, and then replacing that with a midrange phone. Didn't save so much on the flagship phone, but I am saving a ton with prepaid + budget phone.
- Paid off my car, and kept it
- Paid off any other debt I had. I've always been careful with debt, so I don't think there was much to do here.

Next up is:

- Refining my grocery shopping and other spending habits. Right now this is my biggest expense.
- Getting better and / or cheaper insurance

Edit: Only saw this after I posted...

Here's a trick to save on your car insurance (don't tell them I told you)

You could put your dad on as the primary driver of the vehicle and you as a secondary. Since you live with them still, they'd allow it. You could just ask if its possible, and if they ask for a reason say you'd be travelling overseas for work for a while and your dad would be the primary. They'll take his ID number (If I remember correctly)

I dropped my premium by more than 50% doing that, and still drove my car #lifehack (went from R900 to R380)
Be careful with this. Yes you will save, but I know of people who did the same, and insurance caught on when it came time to payout after cars were written off. The one guy was only paid out the sum of the insurance premiums over the years, and not the value the car was insured for. Huge risk if you ask me.
 
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Venomous

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Be careful with this. Yes you will save, but I know of people who did the same, and insurance caught on when it came time to payout after cars were written off. The one guy was only paid out the sum of the insurance premiums over the years, and not the value the car was insured for. Huge risk if you ask me.
You are right that is a HUGE risk.

That guy is lucky. Most insurance companies will not pay out if they find that to be true.

OP it costs a little more now. Insurance risk drops at 25 and again after 27, or so I was told.
 

tin4444

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May 28, 2011
Messages
168
With FNB you can then work on your eBucks level. Level 5 gets you a 40% discount on virtual vouchers @ Checkers. I earn enough eBucks to buy enough vouchers to pay for my groceries in a month. That money I push into my bond (or, if you have other debt, into there, or if you have no debt, into savings).
Checkers is no longer offering the 40% with ebucks for the last week or so. Hopefully it comes back at a later stage but at the moment it is not available.
 

dyllindd

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Messages
192
You are right that is a HUGE risk.

That guy is lucky. Most insurance companies will not pay out if they find that to be true.

OP it costs a little more now. Insurance risk drops at 25 and again after 27, or so I was told.
To be honest, I have always put myself up as the regular driver with all my cars I've had. Would still keep on doing it as not being honest with something like that tends to bite you in the @ss later on.

If I were to sell the car I would replace it with something ridiculously cheap. R100k max. The plan is to buy something for which the total loan including interest does not exceed my current vehicle's R165k cash settlement.

Have been on insurance since I was 18 so I would pay about half of my current premium on a Ford Figo 1.4 Trend. (Got a quote on the figures).

I currently drive 18km's a day in Sandton peak hour traffic to work and back and a tank never lasts more than 1 to 1.5 weeks. Also don't use my car on the weekends.
 

thechamp

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Feb 26, 2011
Messages
21,530
To try and get back into savings mode, there was a time when month end would find me still in the positive on my account and I could afford to save decent lump sums, a sudden change of fortune and a couple unplanned expenses, I am back to living on overdraft again and can hardly afford to save even R500 per month, I have stagnated, things aren't getting worse as such as my credit card is still looking good and I have no debts but they aren't getting better which is very frustrating if you were one time on a roll and suddenly coming to a screeching halt like that.

Hope things get better in the next six months.
 
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