Saving/Investing

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colin87

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Hi all

I want to start saving/investing some money. I'm not nearly on the level most of you are :)

I have about R30k savings at the moment, and want to put around R2k away every month. What are my options?

I currently bank with FNB and in terms of Interest rates, they are not to good. I'm not too bothered of not having access to money, so fixed deposits are fine, but on most I cannot add money on a monthly basis. I know trusts etc are other options, but I know little to none about them.

Maybe you have some links I can read (or older threads)? Or some other advice I could use.

Thanks
 
Yip, your intentions and your time horizon are vital bits of information in even starting to advise on investing. Then you would also need to consider your personal tax rate.
 
supersunbird said:
The first thing to ask is what is your target/plan with these savings?
Click to expand...

Just to give some options:
- Rainy day fund (should be reasonably accessible/experts recommend 3 months of salary - but few achieve)
- Retirement or additional discresionary retirement money (shouldn't be too accessible)
- Savings for a specific goal (car or home deposit)
 
Good thread - I have been thinking about doing the same thing for some time now.

I had an FNB Flexi Fixed deposit and that worked well. But I did not manage to save that much. (Was only putting away small amounts, which was my first mistake )
 
Will have a read tonight at home, thanks for the links.

Rainy day fund is fine, that I can keep in any type of account.

I want to put some money away which is not easily accessible, but also get better returns than keeping it in savings or any other transactional account.

Because I'm 25, most say to invest high risk, but having car debt, being in a long term relationship with a girl I'm planning to marry, High Risk is not really an option at this stage.

In terms on retirement, I've been paying Providend fund since Day 1 at my first job. Once I get my March increase, I will have a look at doing something else long term as well, like another Retirement fund etc
 
colin87 said:
Will have a read tonight at home, thanks for the links.

Rainy day fund is fine, that I can keep in any type of account.

I want to put some money away which is not easily accessible, but also get better returns than keeping it in savings or any other transactional account.

Because I'm 25, most say to invest high risk, but having car debt, being in a long term relationship with a girl I'm planning to marry, High Risk is not really an option at this stage.

In terms on retirement, I've been paying Providend fund since Day 1 at my first job. Once I get my March increase, I will have a look at doing something else long term as well, like another Retirement fund etc
Click to expand...

getting rid of your debt (most expensive 1st) is also a good investment and tax free
 
Bundu said:
getting rid of your debt (most expensive 1st) is also a good investment and tax free
Click to expand...

It's easier to get rid of the cheapest, first though.

For example, my most expensive debt if my car. It would be much easier for me to get rid of a lower debt, like a Game account.

My car will take years to pay off - Game may only be a few months?
 
No, what I mean by expensive, is not highest value, but highest interest rate, and yes, that would probably be crap like credit card, Game etc
 
Ah, totally get you now. I moved my Game account to my FNB CC as it dropped the Game interest rate (21%) to FNB's interest rate (9%).
 
colin87 said:
Because I'm 25, most say to invest high risk, but having car debt, being in a long term relationship with a girl I'm planning to marry, High Risk is not really an option at this stage.
Click to expand...

The term of your investment is far more important in assessing your risk appetite than your age.

And those things you mention should not influence your portfolio choice unless they influence your investment time horizon.
 
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