Simpler Banking & Savings
I'm one of those idiots who, when everyone said, "Put your money away, get a savings account", smiled broadly and said, "I don't need one, things will always be fine." Yup, pretty stupid.
Things didn't go well last year and I'm still recovering. So I decided to get a savings account.
I wanted the best out there. And not just to save but to save with the goal of putting enough away to invest. You see, you won't get rich saving money. You'll get rich by investing money. But saving money is a pretty important milestone that comes before investing. And so began my search for a decent savings account.
I eventually found Capitec. They're not one of the big four and all the better they aren't! Their focus seems to be on extremely simplistic banking for the lower-income bracket. No fancy features and lucratively named accounts -- just a Global One account where you can stick your money and be sure to find it again next month! Super! :D
They also offer 10% interest (per annum) on amounts under R10k. That's more than any of the other banks will offer without holding onto your money for 3 months or more. Sure there are some other options (from Sanlam and others) but the "bank" bit Capitec Bank gave me warm, mushy feelings, so I went with them.
Their setup isn't fancy and anal like the four big banks. Nope, you basically have 4-5 people opening accounts and 1-2 cashiers, accepting deposits.
The process is so simple too...
There's one catch / extra feature
If you want Internet Banking, you have to pay R125 for a special security device. If you can't afford that / don't want to buy it, you don't get Internet Banking. That can actually be a good thing as it stops you from messing with money you put away (by transferring it into other accounts). So, as long as you keep your card in a safe place at home, your money is actually VERY likely (99.999%) to stay where you put it. GREAT news :)
Pay yourself first
Now, the first rule you'll learn from Robert Kiyosaki, Tony Robbins, Suze Orman and others is that you should PAY YOURSELF FIRST! This means that you rather let your bills wait and pay something (say 10%) of all the money you make into your savings account LONG before you pay rent, electricity, etc. The psychology behind it is simple. If you pay yourself first, you WILL find a way to get the money for your creditors. If you pay them first, you just may neglect to save, which is pretty stupid. (ie: Like old me! :P)
So set up a stop-payment in one of your other accounts and make sure you put some money away each month before paying anyone else. You'll amass a small fortune and, one day, maybe even have enough to invest as a Forex Trader :D
It's not how much you make...
And remember, it's not how much you MAKE but how much you KEEP and how much you GROW what you KEEP that counts. I make double to triple of what most people my age make in a month. I also spend about triple to quadruple what most people my age spend in a month, so it doesn't count ;)
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Things didn't go well last year and I'm still recovering. So I decided to get a savings account.
I wanted the best out there. And not just to save but to save with the goal of putting enough away to invest. You see, you won't get rich saving money. You'll get rich by investing money. But saving money is a pretty important milestone that comes before investing. And so began my search for a decent savings account.
I eventually found Capitec. They're not one of the big four and all the better they aren't! Their focus seems to be on extremely simplistic banking for the lower-income bracket. No fancy features and lucratively named accounts -- just a Global One account where you can stick your money and be sure to find it again next month! Super! :D
They also offer 10% interest (per annum) on amounts under R10k. That's more than any of the other banks will offer without holding onto your money for 3 months or more. Sure there are some other options (from Sanlam and others) but the "bank" bit Capitec Bank gave me warm, mushy feelings, so I went with them.
Their setup isn't fancy and anal like the four big banks. Nope, you basically have 4-5 people opening accounts and 1-2 cashiers, accepting deposits.
The process is so simple too...
- Pitch up.
- Have your ID, proof of residence and at least R10 to deposit.
- Sit down with a consultant for 15 minutes, sign 2 forms and have your picture taken.
- Collect card.
- Desposit funds and walk out.
There's one catch / extra feature
If you want Internet Banking, you have to pay R125 for a special security device. If you can't afford that / don't want to buy it, you don't get Internet Banking. That can actually be a good thing as it stops you from messing with money you put away (by transferring it into other accounts). So, as long as you keep your card in a safe place at home, your money is actually VERY likely (99.999%) to stay where you put it. GREAT news :)
Pay yourself first
Now, the first rule you'll learn from Robert Kiyosaki, Tony Robbins, Suze Orman and others is that you should PAY YOURSELF FIRST! This means that you rather let your bills wait and pay something (say 10%) of all the money you make into your savings account LONG before you pay rent, electricity, etc. The psychology behind it is simple. If you pay yourself first, you WILL find a way to get the money for your creditors. If you pay them first, you just may neglect to save, which is pretty stupid. (ie: Like old me! :P)
So set up a stop-payment in one of your other accounts and make sure you put some money away each month before paying anyone else. You'll amass a small fortune and, one day, maybe even have enough to invest as a Forex Trader :D
It's not how much you make...
And remember, it's not how much you MAKE but how much you KEEP and how much you GROW what you KEEP that counts. I make double to triple of what most people my age make in a month. I also spend about triple to quadruple what most people my age spend in a month, so it doesn't count ;)
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Tags: saving, investing, capitec, robert kiyosaki, suze orman, tony robbins
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