On 2022-12-21 10:27:39 Need4Passion said:
It's that time of year again where expense are high with all the extra we want to do, holidays, presents, entertaining etc.

So I started getting my monthly utility bills and realized it's that time of year where I don't really need to pay these monthly expenses.

Here's what I do. During the year, I pay extra every month. Say roughly 10-20% or in my case, I just round up to the next 1K. What that does is have this surplus credit lying in the various monthly accounts so come December & January when spend is high and you could do with the extra cash, you don't need to worry about paying these as they've been paid in advance over the year and the money you don't have to pay those months is now extra and available for you to spend when you probably want to most.

Just something I've been doing for the last decade and it kinda makes me happy at the end of the year knowing there's a few less things to worry about and some extra cash to have a better festive season.

Remember though, you've been sacrificing all year for this benefit so make sure the spend is still worth it.

N4P

This is an amazing idea!!!

I'd just like to know who has any disposable income get this right, let alone receive a bonus / 13th cheque.

Many people I've spoken to over this year are on there knees, and barley making ends, meet.

I've written off some many "loans" to friends and family this year.
People are struggling.

On 2022-12-21 15:04:34 Russian Bridgitte said:
I have applied this Principle to my bonds paid. A few extra rands will ensure me less interest paid over time as well as shorten my bonds repayment period.

And I too pay extra into my utility bill all the time...love the stress free feeling of not owing in periods when earnings are not strong but, continue paying irrespective. Just knowing there is that possible sabbatical to payment works wonders.

RB.

I do the same. My aim is to debt free soon.

N4P

I only ever had car and house debt. Never an overdraft, never credit card debt, never any store credit cards.
When i got married, my wife had like Edgars, Woolies etc cards. Paid them off, and told her to never open such cards again. I dont care what freebies you might get on these cards, i don't want them.
Apart from a house and a car, if you cannot pay cash, you cant afford it. Dont buy it. If you buy on credit, you will now repay with interest. If you could not afford to buy cash in the first place, how will you be able to afford it with interest? This is a logic I have never understood. Yet millions of people fall for it.
If you cannot buy cash, save for it and then buy cash.

In my late thirties i was debt free. Fully paid house and car. From then on, i started saving what my bond and car payment would have been most months, only now and then using the money for big item holidays. You will be amazed what portfolio you build in 10-15 years when those "previous monthly instalments" are channeled into good investments.

Even today you can open my wallet. There is just one credit card in it. Which i fully settle at the end of each month, thus paying no interest.

I wish I had been told to save 5-10% of my salary into a savings from a young age,

On 2022-12-21 16:24:24 Vrik said:
I only ever had car and house debt. Never an overdraft, never credit card debt, never any store credit cards.
When i got married, my wife had like Edgars, Woolies etc cards. Paid them off, and told her to never open such cards again. I dont care what freebies you might get on these cards, i don't want them.
Apart from a house and a car, if you cannot pay cash, you cant afford it. Dont buy it. If you buy on credit, you will now repay with interest. If you could not afford to buy cash in the first place, how will you be able to afford it with interest? This is a logic I have never understood. Yet millions of people fall for it.
If you cannot buy cash, save for it and then buy cash.

In my late thirties i was debt free. Fully paid house and car. From then on, i started saving what my bond and car payment would have been most months, only now and then using the money for big item holidays. You will be amazed what portfolio you build in 10-15 years when those "previous monthly instalments" are channeled into good investments.

Even today you can open my wallet. There is just one credit card in it. Which i fully settle at the end of each month, thus paying no interest.

Same same here man including the wife and the one credit card paid off every month.

I just got a couple houses and cars so it added another couple years to be debt free I guess but hey, got here eventually.

N4P

Also only one credit card paid off monthly
Not long ago I had an accident and wrote my car off then used the whole insurance payout as a deposit on a new car. That made the monthly repayments affordable and ensure settling debt within a short period.
To those getting a 13th check, try and do the following:
My 13th check - even tax is deducted during the year so it is bigger
Since I am single (lucky?), no wife/kids want to go on holiday/Xmas gifts etc.