32 year old earns R70k monthly, is worth R2 million after saving & investing.

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Sly21C

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July marks National Saving month.

This evening Warren Ingram, Financial Advisor at Galileo Capital brought a guest named Julia along with him.

Julia was on the show to tell us how she managed to save successfully.

She began investing in 2007 with a lump sum of R60 000 and invested with Satrix.

After investing for a few years she saw the benefits and never looked back.
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https://soundcloud.com/primediabroadcasting/julia-saving

https://www.facebook.com/brucebusiness

So a 32 year old woman earns about R840 000 a year now, which is about R70 000 a month gross. She saves a third of her gross salary. She drives an Opel Corsa. That's the part I love most, she only drives an Opel Corsa but earns close to a million. She started investing in 2007 and has a nest egg of close to R2 million. From the podcast it sounds as if she doesn't have kids. She has a boyfriend though, sorry guys :D

The podcast is about 12 minutes long. The interview was on 702 Talk Radio's Bruce Whitfield's show called the Money Show. Listen to it, be inspired and let's talk about our saving habits.
 
The third she saves (invests) is what I pay every month just in school fees :( Kids are expensive.

My first one is finished end of next year. Got big plans to start pumping cash away as my kids leave school (second finishes end 2015). I get so jealous of people that have managed to put away good cash at a young age. Got some catching up to do.
 
Mike Smit said:
The third she saves (invests) is what I pay every month just in school fees :( Kids are expensive.

My first one is finished end of next year. Got big plans to start pumping cash away as my kids leave school (second finishes end 2015). I get so jealous of people that have managed to put away good cash at a young age. Got some catching up to do.
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That's what you get for sending your kids to private school just for bragging rights :p
 
It's pretty easy to save a third if you get paid an assload. R43000 a month still to spend. If you only get paid like R20k a month, things are a bit different. I'm sure Bill Gates or the Guptas save more than a third of their incomes too...
 
There is one warning sign to this whole article.Yes equities are the best investment but dont expect the same return from the last 10 years in the next 10 years.Just saying
 
TJ99 said:
It's pretty easy to save a third if you get paid an assload. R43000 a month still to spend. If you only get paid like R20k a month, things are a bit different. I'm sure Bill Gates or the Guptas save more than a third of their incomes too...
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+1. 70k is a lot to be earning for a 32 year old. Perhaps she is an actuary?
 
TJ99 said:
It's pretty easy to save a third if you get paid an assload. R43000 a month still to spend. If you only get paid like R20k a month, things are a bit different. I'm sure Bill Gates or the Guptas save more than a third of their incomes too...
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Not really. The rule for most people is: expenses will rise to meet income. R1000 says a guy who doesn't save a third of R20k will not save a third of R70k, and will have the same argument about how easy it is to save a third if you earn R140k.
 
TJ99 said:
It's pretty easy to save a third if you get paid an assload. R43000 a month still to spend. If you only get paid like R20k a month, things are a bit different. I'm sure Bill Gates or the Guptas save more than a third of their incomes too...
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It's not that insane. I save just under 40% of my salary, not taking into account my pension fund. Oh and I don't earn that much less than she does taking into account my side business plus salary.

I can afford to drive a sexy new car but I drive a 6 year old Hyundai Tucson. I live in a 2 bedroom face brick townhouse in a good but not sexy area.

I have always believed that stuff doesn't make you happy so I buy the least amount of crap.

When I used to be a full time financial planner I saw bad client spending behavior all the time. We as South Africans tend to buy stuff on credit until we feel we have the lifestyle we deserve and only then look at savings. The concept of delayed gratification seems a foreign one.
 
Frikkenator said:
Not really. The rule for most people is: expenses will rise to meet income. R1000 says a guy who doesn't save a third of R20k will not save a third of R70k, and will have the same argument about how easy it is to save a third if you earn R140k.
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Only if you have poor discipline.

Shayd said:
It's not that insane. I save just under 40% of my salary, not taking into account my pension fund. Oh and I don't earn that much less than she does taking into account my side business plus salary.

I can afford to drive a sexy new car but I drive a 6 year old Hyundai Tucson. I live in a 2 bedroom face brick townhouse in a good but not sexy area.

I have always believed that stuff doesn't make you happy so I buy the least amount of crap.

When I used to be a full time financial planner I saw bad client spending behavior all the time. We as South Africans tend to buy stuff on credit until we feel we have the lifestyle we deserve and only then look at savings. The concept of delayed gratification seems a foreign one.
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So you're agreeing then... Sure stuff doesn't make you happy, but you do need a place to stay, food to eat etc. and you need a certain minimum amount for those things. Once you're over that it becomes easier to save, depending of course on having the proper discipline.

Edit: According to the story, she would have started in 2007 with R60k. When she was 24. Your average 24 year old has never even seen that amount of money. She also says she had already paid off her student loans... If she's making that much money now and she's not a prostitute or drug dealer she should barely have been finished studying at that age, or actually still busy with masters. So she either had rich parents, a rich boyfriend or inherited some money, or a combination of those.
 
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People who obsess about money are the real problem with the world today.

Be thankful for your health first.
 
StrontiumDog said:
+1. 70k is a lot to be earning for a 32 year old. Perhaps she is an actuary?
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A friend's boss earns a bit more than that, and he's early 30's. He's a senior developer at a local software development house.
If you're good in your job, work for a company that values your expertise and you're in the right industry [of course] then 70k isn't that hard to reach.
 
TJ99 said:
Only if you have poor discipline.



So you're agreeing then... Sure stuff doesn't make you happy, but you do need a place to stay, food to eat etc. and you need a certain minimum amount for those things. Once you're over that it becomes easier to save, depending of course on having the proper discipline.

Edit: According to the story, she would have started in 2007 with R60k. When she was 24. Your average 24 year old has never even seen that amount of money. She also says she had already paid off her student loans... If she's making that much money now and she's not a prostitute or drug dealer she should barely have been finished studying at that age, or actually still busy with masters. So she either had rich parents, a rich boyfriend or inherited some money, or a combination of those.
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I can agree that your basic needs need to be met before saving can occur. The kicker comes in when people redefine basic needs to mean Woolworths food a townhouse in Sandton and a new car every three years.
 
Frikkenator said:
Not really. The rule for most people is: expenses will rise to meet income. R1000 says a guy who doesn't save a third of R20k will not save a third of R70k, and will have the same argument about how easy it is to save a third if you earn R140k.
Click to expand...

It also works the other way around. A boost in salary helps pay off whatever debt you have faster and then you can start saving for real. A year ago I was hardly saving anything at all. New job and a few increases later, I'm saving R15k a month. Paid off the car and have no other expenses apart from rent, food, petrol.
 
SaiyanZ said:
It also works the other way around. A boost in salary helps pay off whatever debt you have faster and then you can start saving for real. A year ago I was hardly saving anything at all. New job and a few increases later, I'm saving R15k a month. Paid off the car and have no other expenses apart from rent, food, petrol.
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And that is the smart thing to do. Yet, most people don't do that. They increase living standards instead of tackling debt. I have a friend that buys a new car every time he gets a new job.

This triggers an interesting question. How many myBBers have two jobs? Not dual income. One person. Two jobs
 
creeper said:
And that is the smart thing to do. Yet, most people don't do that. They increase living standards instead of tackling debt. I have a friend that buys a new car every time he gets a new job.

This triggers an interesting question. How many myBBers have two jobs? Not dual income. One person. Two jobs
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I have 3 contracts on the go with a potential 4th coming. Does that count?
 
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