Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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The best investment you can make is not some secret share that is about to explode, it is much more simple. The best investment you can make, particularly in these times, is to pay off your debts or to reduce them as much as you can. World stock markets are not moving up that much at the moment, and in fact they are quite turbulent, and so it is not a situation where you could borrow money and then make 28% on the Stock Exchange as you could have last year. The best investment is settling or reducing your debts now while interest rates are low.
Whether it takes 12 months or 18 months, sooner or later interest rates are going to start going up and everybody who has a home mortgage or vehicle finance is going to discover at that time they have to pay more. That is why the secret is now, whenever you have a little bit of extra money, and you can always make sure that you do, that you reduce those debts. Even paying an extra R1 000,00 a month into your bond or your car will have very positive benefits in the long run and will certainly assist you if you ever run into any sort of financial drama. One should always try and have at least one month’s salary, if not two months’ salary in cash in a call account, but as long as you owe other people or companies money, the best possible investment you can make is paying off those debts and the best way to do that is to commit to a monthly amount each month and then try in some months, such as when you receive your bonus, to put a little more in. If you only ever live for today, you can only have yourself to blame if one day you don’t have enough money for tomorrow.
Posted by Michael de Broglio on Monday 10-Nov-14
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Comments
Marzelle said:
on Thursday 20-Nov-14 11:58 AM
I wish there was no such thing as debt, its a long process to pay off your debts and start fresh,
And its not always easy to save and put money away every month
Nikita said:
on Friday 14-Nov-14 07:55 AM
Its very sad to see how many people get stuck in the web of credit debt. Unfortunately due to the poverty in our country most people are forced to even buy groceries on credit.
Cindy said:
on Wednesday 12-Nov-14 03:38 PM
I believe if you cannot afford something in cash, you should not buy it.
Caron said:
on Wednesday 12-Nov-14 03:30 PM
On average, paying an extra R500.00 into your bond will decrease your bond payoff by 2 (two) years.
Safia said:
on Tuesday 11-Nov-14 01:42 PM
One can save o a lot on food if you cook soups/stews etc and by eliminating stupid purchases( like make up you will never use, or a skirt you will never wear) and put this money into bond.
it is comforting to know you have a house fully paid off, it is your own roof over your head and nobody will be able to chase you out of your house.
Lizanne said:
on Tuesday 11-Nov-14 10:29 AM
I also say, if you do have cash then do not buy whatever it is that you want or need. That is where the trouble starts. I do not have any clothing accounts, and furniture accounts, est. I do not believe in them. If i cannot buy it cash i do not buy it at all. I also agree with paying off your debts or making them less.
Lizanne said:
on Tuesday 11-Nov-14 10:29 AM
I also say, if you do have cash then do not buy whatever it is that you want or need. That is where the trouble starts. I do not have any clothing accounts, and furniture accounts, est. I do not believe in them. If i cannot buy it cash i do not buy it at all. I also agree with paying off your debts or making them less.
Lucretia said:
on Tuesday 11-Nov-14 09:11 AM
Thanks, definitely advice I will take. I have just bought a new home and want to kill it before I retire so yes putting in extra cash is definitely the way I would like to go. Have not really had a bond before, on my own, so taking on a bond at 44 is a little scary.
Lourien said:
on Tuesday 11-Nov-14 08:52 AM
Debt is always a problem and a concern, we need to have debt to make debt but if there is an economic crises all the interest rates go up and we end up paying more for our debt than we should have. I am trying to pay a little extra to reduce the debt and always try to pay it off quick, but every month there will always be other things that needs to be paid first and the debt stays there... Its really difficult to get out...
Alexis said:
on Tuesday 11-Nov-14 08:27 AM
Debt is the worst thing one can get into, try your best to get rid of it as soon as possible. I agree with a lot of the comments, if you cannot buy it cash, then you cannot buy it at all. Rather save up
Helen said:
on Monday 10-Nov-14 03:48 PM
Today banks are earning very good moneys on all of us and I will agree to try to drop this amount of interest we pay back to rather invest moneys in to the Bond or Car, loan end etc. Very good topic to think of, just extremely difficult to find this extra to invest, with all the prices going up and quality going down.
david said:
on Monday 10-Nov-14 03:20 PM
every singe month all my extra money goes into the bond. if i am able to make a double payment every month, the house will be paid off in 5 years, and not the 25 which the loan is for.
Elektra said:
on Monday 10-Nov-14 02:10 PM
If I can't buy it cash, I don't buy it at all. Lucky that at this point in my life I have no debt, but at that same note my rent is paying off someone else's property. I agree with your Blog and the advise is use full to others, that the time now is great to pay off as much of your debt as possible as the interest rates are low.
Sorea said:
on Monday 10-Nov-14 11:19 AM
While your debt cost you less, you should try your best to pay as much of it as you can. That way, when your debt becomes more expensive, you won't struggle so much with the payments. This is not always an easy option, but even just a little bit extra now will one day mean a whole lot.
Brumilde said:
on Monday 10-Nov-14 11:18 AM
Very interesting to read. Ive heard of people that have their salaries paid into their bond and they take what they need to survive the month. Brings your rates down allot
Liesl said:
on Monday 10-Nov-14 09:29 AM
This blog has great advice. I've heard too many times of people who lived above their means and ended up being in so much financial trouble that they sunk fast with no option of a short-term plan to lift themselves up again.
Marisa said:
on Monday 10-Nov-14 09:10 AM
Luckily I have no debt on my name.. sometimes I wish I had so it could make life easier but when i get to the point where i want to make debt it gets rejected so The Big Man Upstairs is looking out for me as I see it.
Jade said:
on Monday 10-Nov-14 08:51 AM
I am adamant that one must live safely within ones means. This also requires that you have taken the interest rates into consideration. I do agree that you should put yourself into a position where you can pay an extra R1 000,00 a month into your bond or car. At this point I am incredibly fortunate that I do not have any debt, but this can perhaps be attributed to the fact that I do not have the means as of yet to buy property, & I do not buy anything on credit, in fact I am holding off obtaining a credit card for as long as possible.
I completely agree with Bianca, if you cannot afford something in cash, you should not buy it.
Bianca R said:
on Monday 10-Nov-14 08:30 AM
If you are in debt the best way to deal is to pay it off as quickly as possible and not incur any further debt in the process of paying off your debt. I often hear stories about people who pay off debt with debt, this is simply just putting you into more trouble. My parents have always taught me that if you cannot afford something in cash, you cannot afford it period and then you should save up to eventually buy it cash.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
