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2020 Savings Challenge

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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.

 

 

 

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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) 

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I'll start:

 

Multiplier: 2

Rand value: R200

Total input for year: R31 200

 

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

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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.

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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.

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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 by SaurusDNA

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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).

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


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