Isn’t it fascinating how quickly we adapt? When the market first started its epic nose dive, we were all ready to jump with it. However, over the past month or so we’ve become so accustomed to a crisis environment that we can almost forget about our investment accounts.

The last lockdown challenge was initially scheduled for the last week of lockdown. The lockdown extension happened after I recorded the podcast. To be honest, I don’t have the emotional energy to engage with the extension at the moment. As a result, we’re looking at our investments this week.

Like our previous two challenges, we are using this time to go through our investments with a fine-tooth comb. Aside from padding your emergency fund, this challenge is not about taking action. It’s about reviewing the choices you made now that you can compare your portfolio before the crash to your portfolio after the crash. You’ve really earned your stripes this month. How did you do?

Win of the week: Nomusa

I bought a car in 2014 without a deposit. I never read the fine print or informed myself about the process. Never again! The car almost got repossessed when I was living hand to mouth. I am back on track now.

In process to get back my peace, I opted for a debt review. I soon discovered this was a rip off 3 months into the trap. There was no agreement with my creditor as they had agreed to do. She ended up cancelling this. We talk about debt review in our Debt series, which you can find at justonelap.com/debt

I have applied the snowball method to pay off debt and its working, I should be off the hook in December 2020. You pay the smallest amount first, add that to the second-smallest. Also find our article on the DIY debt repayment plan.

I opened a Tyme Bank account for an emergency fund. I want this amount to not just sit but grow —even if it’s just by 1%.

I looove rewards programmes., I know I need to heal from the financial trauma I suffered back in the years. I used to get R200 worth of UCount when it started, which I would be getting because I was using my credit card a lot, and I would then buy lunch and food from fresh stop and KFC when I ran out of money mid-month.

I have since stopped using the credit card (because I was handed over really, for non-payment). I am not planning to carry on with standard bank because their fees are ridiculous—R105 cheque card and let alone debits and all extras. I have since opened a Capitec account which is reasonable (R30-35) as I have moved some debits orders to them for insurance, funeral, tracker and the likes.

I have these reward programs

-Ucount

-Freshstop

-Clicks

-PnP smart shopper

-My School days

-ThankU

-All garage outlets reward trust me and use associated stores for others as I travel a lot. 

I have noted all further useful hints on credit cards like having a virgin money one because of fewer fees, but  my ucount rewards make me wanna go back and this time, use my credit to my benefit, deposit to spend in it, etc,

I know rewards are just there to keep us loyal and I am the culprit. Are they really worth it, do you and Chuckles even care about them? I also love the affiliation things and referring people on stash, easy equities and all?

Will this really buy me bubbles later? Sorry for the long email am just excited. 

Guillym 

With regards to people saving for their kids, time in the market is the best, right? So why put money into the market for your kids if you are going to take it out?

Rather save more for yourself now, and lower your saving rate when the kid comes to needing money age. 

As an example, my wife and I have disposable income that all goes into paying off the bond. When that is done in about 5 years, it will go into something else for us. 

When any monthly expense comes along (for Sadie) we can save less, rather than draw from savings, to cover school fees or whatnot.

If Sadie becomes more expsensive, we can give ourselves a raise.

We are super lucky to be able to put away more than 40%. We certainly don't take this for granted. This won't work for everyone, but I feel it's a better option than saving for children just to take it out of the market later.

Joy

I listened to your podcast about first investments. You recommended Ashburton 1200. Because this is a foreign product investing in foreign stocks, surely it is not tax free in the real sense of the word? 

I will still be paying taxes and fees into that product? Considering the 40+ years that I hope this account will be running the small 0.1% fees/taxes here and there do need to be considered in light of compounding. 

Is it not best to do TSFA into SA products and then discretionary into foreign like the Ashburton 1200? I hope to use my annual tax free donations allowance of R100,000 split between my two children so I would do R33,000 TFSA each and R17,000 discretionary each.