Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

how to get rich

Reply
Highlighted
Regular Contributor
Kwagga, fully agree. Wonder who would invest money in a specific share that is guaranteed to drop by say 30% on an annual basis. This is exactly what happens with cars. Many of my friends 'invest' in cars valued R250k and higher, but complain that they find it difficult to service the mortgage/pay it off quicker. Solution: buy car of R100k and invest R150k....after few years R150k+growth can be pumped directly in home loan...
0 Kudos
Reply
Highlighted
Contributor
@AP-very informative reply. I sit in the same situation and will also be turning 40 this year. The one thing that I always wonder is where do I sit relative to my peers who are driving fancy cars etc. If you had to make an educated guess, what would be a
0 Kudos
Reply
Highlighted
Regular Contributor
I would guess about R5M-R6M, but also not sure what is good...i think what is more important is the path and the potential to multiply...
0 Kudos
Reply
Highlighted
Contributor
I agree 100%. At this stage I believe it is Einstein's eighth wonder of compound interest that should kick-in. I can already see it from an investment I made 20 years ago.
0 Kudos
Reply
Highlighted
Super Contributor
compound interest is the most powerful thing.it works against you when you are in debt.it works with u when you have no debt.I was born into a poor working class family.for 25 years I worked for corporate and made other people rich but managed to eliminate all my debt by 43.for last 19 years I have been working for myself doing investments property shares cash in my personal capacity as a trustee of family trust and as founding member of cc>the compound interest is not working hard in my favour.I am blessed.
0 Kudos
Reply
Highlighted
Not applicable
I am nearing my 30's and look at my friends with a little envy driving nice cars and buying boats, taking expensive holidays and living in houses slightly above what they should be able to afford. I however still own my 1976 Datsun my dad gave me when I got my licence(Have the benefit of a company car though) and I live in the cheapest descent flat I could find an don't overspend on useless *****. It can be painful watching your friends with their fancy cars and gadgets knowing you can do the same if you really wanted to max out some cards as well. But taking advantage of the power of compounding returns over the next 50 years I feel the benefit I am creating by investing what I can will probably allow me to live way better later in life in comparison to my peers going through tough times servicing debts at that time. Don't get me wrong I still enjoy myself and have no intention of being the richest man in the graveyard, but with delayed gratification I might be able to get that Ferrari in 50 years instead of driving a descent car for the next 50 years.
0 Kudos
Reply
Highlighted
Super Contributor
The problem is clear as day... you need poorer friends!
0 Kudos
Reply
Highlighted
Super Contributor
Some good ideas - and worth noting. BTW. Don't use softwood in your wood burner - must be hardwood - and the secret is to run it slowly. "How much is enough?" was asked by a contributor - you have to add two words to that sentence for it to make any sense "how much is enough for you?". CARS are a waste of money - and what I see is that you can buy quality second hand cars for big discounts. So that is what I do. solar is a no brainer. But living on 90% whether you have R1.00 OR R1M is the answer. Truth is you have the best prospects of success if you develop a cohesive and not piecemeal plan - but that said - even a piecemeal plan is a good start. QED.
0 Kudos
Reply
Highlighted
Super Contributor
young man I can assure you that you are on the right path.i found that many of my friends at my age have severe stress as they face an uncertain financial future-no doubt that this stress will shorten their lives and take away a lot of contenetment.by the way I can afford the flash sports car now but actually I found I have no interest in getting one-bought a second hand landrover(bright yellow) instead and loving my new toy paid for in cash.stick to what you are doing and you and your family will be fine
0 Kudos
Reply
Highlighted
Occasional Contributor
Pay yourself first. The Richest Man in Babylon - George S Clason
0 Kudos
Reply
Highlighted
Occasional Contributor
Compounding is key. Which would you prefer. Option A - R1 000 000 cash or Option B - 1c doubled for thitry days. You keep the amount on day 30.
0 Kudos
Reply
Highlighted
Regular Contributor
Amazing, just did the sum....option B is by far the best. Good illustration of compounding effect!
0 Kudos
Reply
Highlighted
Frequent Contributor
Are you paying the monthly maintenance bills? :)
0 Kudos
Reply
Highlighted
Super Contributor
spousal maintenance not an issue in our case. In fact it tends to be frowned upon in our courts; the clean break principal is generally applied.
0 Kudos
Reply
Highlighted
Super Contributor
This is really a matter of "How to avoid poverty" and not "How to get rich." Even then - it presupposes a healthy enough cash flow in the first place and "the stars aligning" in the second. Absolutely - avoid unnecessary debt. Save - avoid buying rubbish (cars for example.) All the while remembering that life is about living though. Thrift cannot make you rich but profligacy can make you poor. Debt is neither good not bad. It's how you use it that will determine that!
0 Kudos
Reply
Highlighted
Super Contributor
how to get rich.....it's easy.....it's not. How to be well off , that's easy. Being able to sustain a lifestyle where one spend less than one earns does not make one rich, it makes one have peaceful sleep at night. One cannot stress the importance of starting to save from your very first pay packet, and the making that money work for you. The example I drummed into my kids was if brother A was saving R10000 a year at 8% and brother B woke up 10years later and stated saving R20000, B would never catch up to A due to the compounding effect of the interest on interest by that early start. You will never get rich by working for a boss, yes you may in the corporate world, by s*****ping your way to the top. I would think having ones own business/es is the route most billionaires have taken to achieve financial success. everyone wants to be rich, however not everyone is born with the intelligence, and entrepreneurial spirit and drive to achieve it. Am I rich?, my gardener thinks so, I think Christo Wiese is rich, however he thinks Bill Gates is rich.
0 Kudos
Reply
Highlighted
Super Contributor
I would like to respectfully put forward a view that all debt is bad.when I borrowed to buy a second hand car I realised I was making the dealership rich and the bank shareholders rich.when I borrowed to invest in the stockmarket in my late 20 s I realised I was gambling and making the bank shareholders money but it was a gamble I was prepared to take in order to become financially independent.when I borrowed to buy properties I realised I was again making bank shareholders money and I was taking a risk that my rental income would eventually exceed my bond expenses and over time pay back my capital while my property values hopefully grew at least in line with inflation.I personally hated with a passion owing money to other people who profiteered from my ideas and energy.By age 37 I was debt free.at age 43 I "retired" from the corporate world and started a small CC.I am blessed and feel so lucky not to have any debt.I am still working on becoming rich and feel confident about the future especially as I am debt free.
0 Kudos
Reply
Highlighted
Regular Contributor
Interesting perspectives. To add to the philosophic tone: "to be rich is to be 100% content with what you have". I've met people that has a lot more than I (richer), but who is not content and think they deserve more. The one person especially constantly accumulate more stuff (and more debt) and the irony is that he has to work harder, eat more in his free time (evenings, weekends, holidays) to support his debt. To no surprise he complaints that he is always tired, feels guilty as he do not have time for his family, etc. Question is: is he really rich?
0 Kudos
Reply
Highlighted
Super Contributor
0 Kudos
Reply
Highlighted
Super Contributor
You know you are rich when money is being made for you while you out playing golf.
0 Kudos
Reply