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Online Share Trading

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how to get rich

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Valued Contributor
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56 REPLIES 56
Super Contributor
Most don't earn enough to get by - let alone "save!"
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Valued Contributor
I not convinced it about how much you earn, it about how much you spend .. whatever you earn likely somebody out there earns 20% less ..
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Super Contributor
Most people need to cut down on spending habits before they can actually save. First step is to know exactly what you spend money on. Most people don't even know that.
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Super Contributor
Sure; and beneath a certain minimum level - they are all sinking slowly into oblivion. This is the Mr. Micawber philosophy. The real question, I think, is what is "wealth?" It is in most ways a relative term. That said though, there is a certain standard of living (ala UN) below which we can all agree that poverty rules.
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Valued Contributor
sure, there are some people who simple earn to little .. they are not here or reading my blog ..
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Super Contributor
1. do i really need it right now? and how will i pay for it? start there. the latter can always be answered easily with our abundant loans and debt and hopefully cash.
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Super Contributor
Yes they are - inflation will see to that. They are would-be savers today. Tomorrow they are in the queue at the soup kitchen.
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Super Contributor
its easy. Here is what a friend of mine has done for goodness knows how long and despite not being outrageously wealthy enjoys a great standard of living. Most people save the residue of income after expenses each month. Result =predictable= failure. He sits down and with his family decides what they are going to spend in the year ahead. Then looks at his income measures up the two, recalibrates etc and gets on with it - and surprise, surprise he is usually looking at living on 90% of his income. So he invests and saves the rest. Of course there are unexpected expenditures which affect us all and in a particular year he might save less than budgeted for. BTW expenditure includes everything - provision for the future etc. etc. - not just electricity and school fees and whatever for the month. I call it the 90% rule. It works.
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Contributor
4 years ago, I was very lucky to get a big jump in salary, 40%, (a modest salary even now) I still live the same lifestyle, and with the salary increases, I now save/invest 50% of my salary. Paid my house too Â… (As Simon says, a few more bottles of wine) Â… This was not an easy thing to do! It hurts when your braai has holes in it, garden could be better, etc., but... everythingÂ’s paid!!
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Super Contributor
Fix the braai and the garden :its all about return on life - not return on investment.( But well done for exercising discipline and working to a plan.)
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Super Contributor
Don't save too much. You will only end up with the best tombstone in the graveyard.
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Super Contributor
100 % agreed. I have seen with my clients how they save and save and then when they pass on, the kids go mad with all the savings. I tell my kids.... Dad is going SKIing, they then say ...but dad you don't ski ? No kids, SKIing stands for...SPENDING the KIDS INHERITANCE !
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Regular Contributor
My wife and i made a decision when we've got married to live 'below' our standard of living. Best decision ever, we actually are able to enjoy life more because we can afford things now and are not constraint by excessive debt making the bank or someone else rich (our debt actually service us...). I've just turned 40, my house is paid, I own other property, I have a healthy share portfolio, loads of financial flexibility, etc.. The way I've done it is roughly as follows: (1) Time that i did not own a house, I've slowly accumulated a decent deposit, which gave me negotiating power for obtaining low interest rate when I've bought my house (in 2010) (1) Always bought second hand economical cars and stayed away from expensive cars as this is 'money down the drain' (2) Business travel miles @ AA rate is re-invested in share portfolio, which is quickly accumulating towards my next replacement car... (3) Extra money (Tax claims, bonuses, etc.) put back in home loan/shares. Saving in installment is re-invested in shares (4) Installed solar geyser, etc. Savings in bill are re-invested in shares. This and other economically green ideas also helped to reduce the impact of inflation ensuring that my 'buying power' remains healthy. (5) When I need cash for purchasing next car, i will simply use my own reserves BUT pay myself back with interest...(in stead of paying the bank interest i will pay myself the equivalent amount) (6) Risk mgt: increase insurance excess - saving in installment re-invested, but accessible if needed (past 5 years since i've done this , this was never needed, but it is there if i do need it) (7) Optimised tax (note not avoiding tax) - use pay tax consultant each year to identify opportunities to leverage tax benefits (all done above board), etc. Tax claims re-invested. (8) etc. etc. Simply be wise with ones money and listen to advise from people like Simon and others At the end of the day i have spare money to take on higher investment risks, enjoy hobbies & holidays, etc. Yes i do earn a good salary, but it is not excessive. Many of my colleagues are earning the same or even more than I (and with their spouses working) are struggling financially as a result of making wrong financial decisions, being wasteful, not prepared to make sacrifices, live way above their standard of living, etc. Hope this is insightful/useful to some.
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Super Contributor
What would you say is your average saving on your electricity consumption bill per month ie. what is your payback period on the solar installation. No issues with hail damage on the tubes?
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Super Contributor
great to see examples of people actually saving, when all you see around your is people making more debt to keep up standards. good for you guys
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Regular Contributor
My electricity bill on average is about R750/month. We are family of 4, swimming pool, etc. My actual total electricity consumption reduced by 40%, but also running pool pump more efficiently (4.5 hrs in summer & 30m in winter). In 2010 my electricity bill was over a thousand rand per month, so savings must be decent taking into account that we had substantial price hikes since then! In 2010 I've calculated the payback to be 4-5 years; with price hikes it must have been much shorter. The tubes can withstand large hale storms. Hale storms up to now has not damaged the tubes yet. Also it will be unlikely that you will loose all your tubes in a severe storm. (Also note that I've installed one of those close combustion fireplaces and use wood that i get for next to nothing and often free as there are often trees cut down in J/burg) When they convert our electricity to pre-paid I expect to see my bill being reduced to less than R500/month....
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Super Contributor
May sound like the ridiculous and sublime but I had a pizza oven installed some years ago. I am tempted to buy a chain saw and cut the chopped off logs lying around into pieces and rather cook on that than the electric stove plate.
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Super Contributor
I was married for 21 years. We were always in debt. I divorced 13 years ago and have saved money every year since.
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Super Contributor
Best investment advice I can give is -Stay away from new cars or expensive second hand cars. It must be the single biggest destroyer of wealth in SA today. Billions of rand are lost on a monthly basis in car value depreciation. You can't completely avoid value loss, but you can limit it to a minimum. It's crucial in your twenties and thirties that you start with a dedicated saving/investment plan and not fall into the pitfall of buying a new car every few years. Fight car marketing campaigns that just love to box us and categorize us so they can tell us exactly what we need based on our sex and age. It's done by very good BS spin doctors.
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