Tuesday, 15 July 2014 - 20:00
Seed Weekly - A Penny Saved is a Penny Earned
Seeing that July is national Savings Month it prompted me to re visit my personal finances just to access whether I am still on par with reaching my financial goals and specifically asking questions in the line of “Am I saving enough?”
As a nation, South Africans do not have a culture of saving and seeing that only 4% of South African households earn more than R 40 000 per month* one may argue that we live from hand to mouth and are just too poor to save.
I think the key here is to develop the habit of saving money automatically. When saving automatically you don’t spend time each month focusing on it and it becomes easier.
Below are some tips of my own that assist me to be disciplined in my approach to saving money:
• Have a plan and definite GOALS
Whether it is for retirement or something simple, like saving for travelling or your children’s education, it is important to have a goal to save towards. Add a Rand value to it and write it down and always refer back to it for motivation and reference.
• Start off by saving 10% of your monthly income
I recently read the famous book “The Richest Man in Babylon” by John S Clason (I highly recommend it) and his “First law of Gold” is that if you save one tenth of your earnings consistently you will have enough to provide you with income in the future. Saving anything more is obviously even more advantageous but 10% is a good starting point.
• Start early
The time value of money and compounded returns play a massive role here. A simple example in the graph below shows 5 different people each saving R 1 000 per month up to age 65. Returns assumed at 12% and also assuming no withdrawals during the period invested.
R 12m when saving for 40 years compared to just under R 1m when saving for 20 years speaks for itself. More notably and underlining the importance of starting early is the fact that by starting only 5 years earlier the 25 year old accumulates R 5.5m more than the 30 year old when both reach 65.
• Cutting down on spending / Penny Pinching
An easy way to increase saving is obviously to spend less. Assessing my bank statement at the end of a month and highlighting areas where I can improve in the next month helps with having extra money to save. Again I would challenge myself with goals and it can be as simple as to rather rent a movie and watching it at home compared to going out to the movies or playing one less round of golf per month.
• Guard from loss/invest smart
It is important to invest your savings in a product that beats inflation and doesn’t lose any capital over your investment period. There’s nothing worse than losing your hard earned savings by being invested in for example a money market fund which would not guarantee inflation beating returns. It is always wise to consult your financial advisor to make sure you invest your savings in an appropriate investment vehicle.
By sticking to the above basic tips I have developed the habit of saving on a constant basis and as long as I follow them my savings can only go in one direction – upwards.
Happy savings month,
021 914 4966
Interesting money saving tips here
Tue, 15 Jul 2014
Britain's top shares fell on
Tuesday, held back by housebuilders on concern UK interest rates
will soon rise, and big falls from Imperial. . .
U.S. stocks edged lower on
Tuesday, pulling back from modest gains on weakness in small-cap
and momentum names after U.S. Federal Reserve Chair. . .
Social media, biotechnology
and small-cap names fell in morning trading on Tuesday, cutting
gains in other equity indexes, after Federal Reserve chair Janet
Yellen. . .
U.S. stocks opened higher on
Tuesday, boosted after earnings from JPMorgan and
Goldman Sachs, though investors were looking ahead to
testimony from U.S. Federal. . .
World Markets (Spot Prices)
|JSE Top 40||17:00||46627.33||193.67||0.42%|
|JSE Indust 25||17:00||59866.80||265.76||0.45%|
|Rand / Dollar||19:59||10.6875||0.0145||0.14%|
|Rand / Pound||19:55||18.2921||0.0847||0.47%|
|Rand / Euro||19:55||14.4985||-0.0412||-0.28%|
|Rand / NZD||19:59||9.3692||-0.0302||-0.32%|
|Rand / AUD||19:55||10.0124||-0.0181||-0.18%|
|Yen / Dollar||19:59||101.6740||0.1260||0.12%|
|Euro / Dollar||19:57||0.7370||0.0021||0.29%|
|Dollar / Euro||19:58||1.3568||-0.0053||-0.39%|
|Pound / Dollar||19:55||0.5829||-0.0022||-0.38%|
Click here for the Sharenet Spot Price page
The JSE Today
* Includes all listed instruments on the JSE
|Index Name||RP||Move||% Move|
|Financial & Ind. 30||63,680.19||216.28||0.34%|
|Oil & Gas ||46,918.98||127.13||0.27%|
|Oil & Gas Producers ||25,227.47||68.36||0.27%|
|Basic Materials ||31,117.03||173.22||0.56%|
|Forestry & Paper ||32,995.38||178.33||0.54%|
|Industrial Metals ||18,792.84||-90.99||-0.48%|
|General Industrials ||148.28||1.69||1.15%|
|Consumer Goods ||63,027.10||24.58||0.04%|
|Automobiles & Parts ||8,752.13||147.19||1.71%|
|Health Care ||85,560.01||1861.54||2.22%|
|Index Name||RP||Move||% Move|
|Food Producers ||79,580.05||722.28||0.92%|
|Personal Goods ||1,093.35||-2.79||-0.25%|
|Consumer Services ||12,576.85||118.32||0.95%|
|General Retailers ||67,974.81||460.16||0.68%|
|Travel & Leisure ||5,709.87||-25.88||-0.45%|
|Support Services ||2,874.03||32.13||1.13%|
|Non-life Insurance ||51,554.86||127.61||0.25%|
|Life Insurance ||36,143.45||14.88||0.04%|
|General Financial ||3,880.62||6.34||0.16%|
|SHARIAH TOP40 ||4,374.83||19||0.44%|
|FTSE/JSE SHARIAH ALL||4,498.36||19||0.42%|
|FTSE JSE Fledgling ||6,910.30||33||0.48%|
|FTSE/JSE Alt X ||1,231.31||-6||-0.44%|
|SA LISTED PROPERTY ||510.37||-0.20%|
|CAPPED PROPERTY ||448.08||-0.32%|
|FTSE/JSE RAFI 40||10,234.32||36||0.35%|
|Capped Top 40||24,681.13||101||0.41%|
|Capped All Share||26,194.38||98||0.38%|
|JSE TABACO ||8,279.41||-129||-1.54%|
Click here for the Sharenet Index Summary page
Latest Consensus Changes**
|EXX||EXXARO RESOURCES LIMITED||HOLD||11/07/2014|
|AGL||ANGLO AMERICAN PLC||HOLD||11/07/2014||
|Expected||Company Name||Fin. Date|
|17/07/2014||HWANGE||December 2013 (Final)|
|17/07/2014||HWANGE-A||December 2013 (Final)|
|21/07/2014||AMPLATS||June 2014 (Interim)|
|21/07/2014||ANGLOPLATCCP||June 2014 (Interim)|
|22/07/2014||ELLIES||April 2014 (Final)|
|ILV||Illovo Sugar Ltd.||16/07/2014||Confirmed|
|VOD||Vodacom Group Ltd.||17/07/2014||Confirmed|
|BK1P||BK One Ltd.||18/07/2014||Unconfirmed|
|BK1O||BK One Ltd.||18/07/2014||Unconfirmed||
Stock Exchange News Service
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