2020 Savings Challenge

[Bandit]

Thanks to @Njabulo Nsibande who created this how-to thread: 

 

The basic idea is this:

• Every month has a number: January = 1, February = 2, March = 3 .... December = 12
• You decide on a multiplier number, let's say: 2
• You decide on a base amount of money: R100
• Every month you take the month's number and multiply it by the multiplier and the base Rand amount. The result you save into a savings account.

 

Example 1:

 

Multiplier: 1

Base Rand amount: R50

• Jan (1) x multiplier (1) x base amount (R50) = 1 x 1 x R50 = 1 x R50 = R50
• Feb (2) x multiplier (1) x base amount (R50) = 2 x 1 x R50 = 2 x R50 = R100
• Dec (12) x multiplier (1) x base amount (R50) = 12 x 1 x R50 = 12 x R50 = R600

 

Example 2:

 

Multiplier: 2

Base Rand amount: R100

• Jan (1) x multiplier (2) x base amount (R100) = 1 x 2 x R100 = 2 x R100 = R200
• Feb (2) x multiplier (2) x base amount (R100) = 2 x 2 x R100 = 4 x R100 = R400
• Dec (12) x multiplier (2) x base amount (R100) = 12 x 2 x R100 = 24 x R100 = R2400

 

 

Let's use this thread to track our progress for 2020 and see if we can meet our targets. Maybe those who want to participate can tell us and if you feel comfortable the amounts you have chosen.

 

 

 

[Bandit]

To work out your projected savings before interest (in other words the amount you'll put away):

 

Multiplier x Rand Amount x 78 = ?

 

1 x R100 x 78 = R7 800 after 12 months

2 x R100 x 78 = R15 600 after 12 months

3 x R200 x 78 = R46 800 after 12 months (hello, this is good chunk of money) 

[Bandit]

I'll start:

 

Multiplier: 2

Rand value: R200

Total input for year: R31 200

 

[Spreadsheet Ranger]

I'm in I think I will do the multiplier 2 as well with base value of R200

So also aiming for R31 200

 

Is someone going to write us a excel sheet?

[Bandit]

Excel sheet that does what?

[SaurusDNA]

I'm trying to improve the formula a little. The difference between the first and last months is just too big.

[Platinum Wealth]

You could flip it and start with the 12 assigned to January that way your contributions gets less throughout the year.

[Bandit]

Don't mess with the formula. It's meant to be difficult close to the end else what are we doing here? It is designed to foster a culture of saving. If you are fortunate enough to have your financial affairs in order you'll be saving a flat amount every month. There's not reason to change anything.

 

Commit some values, even if it is "play" money and play the game.

[SaurusDNA]

Yes, I'm doing my monthly R2750 to TFIA and then a flat monthly rate to non-TFIA ETFs and shares.

 

But I'll play the game then with something small. Thinking of buying NFGOVI as the savings tool rather than a bank account, since it's returning around 10% in yields at the moment.

[SaurusDNA]

Okay - since the minimum purchase of NFGOVI is R250, I'm going to start with a bigger base and have a smaller multiplier.

 

Base: R250

Multiplier: 0.5

Total for year: R9750

 

 

Edited November 28, 2019 by SaurusDNA

[Bandit]

16 minutes ago, SaurusDNA said:

But I'll play the game then with something small. Thinking of buying NFGOVI as the savings tool rather than a bank account, since it's returning around 10% in yields at the moment.

 

That's not a bad idea actually: shares. I may rethink my entry

 

If you use the Easy Equities platform you'll be able to buy for less (partial shares).

[Bandit]

Which one of you is going to do this with crypto? Come on...

[SaurusDNA]

Oh, that's also an idea!!!

 

[Spreadsheet Ranger]

On 11/28/2019 at 10:03 AM, Bandit said:

Excel sheet that does what?

 

Was thinking, it can show you the exact amount you need to pay this month and it allows you to "mark" that the payment have been made. Some way to just manage the process.

[Bandit]

Since I may not get a chance tomorrow (and the fact that the JSE will be closed), I started my challenge today. I've set the bar a bit high so that it is a challenge and will try source the funds from my salary and other income every month and not use other savings for it (else what is the point):

 

R400 x month cash via TymeBank

R400 x month equities via EasyEquities

[Spreadsheet Ranger]

I've started as well

[Platinum Wealth]

I fell off the bandwagon a bit, buying a house.

 

January 2021 I will be back for the finance challenge.

[SaurusDNA]

Well, I started the year with a savings challenge too - I started with R10 in week 1, R20 in week 2, R30 in week 3 etc. straight into a Tyme bank account that I opened for that purpose. Was getting 9% earlier this year, now 6%. Still going strong - haven't missed a weekly payment yet.

 

Edited October 5, 2020 by SaurusDNA

[Bandit]

Wife is still going strong, but it's getting difficult now as we are approaching the end of the year

 

The low interest rate killed it for me, sorry

[Spreadsheet Ranger]

How did the interest rates killed it? (What magic am I missing)

[Bandit]

On 10/15/2020 at 11:20 AM, Spreadsheet Ranger said:

How did the interest rates killed it? (What magic am I missing)

 

Interest rates in the interest bearing are so low that it wasn't worth it for me.

Market crash killed it for the investment version of it. Just a kark year

[LentilSoup]

Still better than spending it on Starbucks?

[Spreadsheet Ranger]

On 10/16/2020 at 1:13 PM, Bandit said:

Interest rates in the interest bearing are so low that it wasn't worth it for me.

 

Okey, I get that bit, but where did you put the money or are you just spending it on everyday stuff now instead?

 

I am going to approach this as a 50% Black Friday fund in case a big ticket item like a bed or Fridge or something is on special. 

[Bandit]

On 10/20/2020 at 5:11 PM, Spreadsheet Ranger said:

Okey, I get that bit, but where did you put the money or are you just spending it on everyday stuff now instead?

 

 

Investing it still. But it made no sense to continue with it. Next year again