2020 Savings Challenge

[Bandit 103]

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 103]

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 103]

I'll start:

 

Multiplier: 2

Rand value: R200

Total input for year: R31 200

 

[Spreadsheet Ranger 37]

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 103]

Excel sheet that does what?

[SaurusDNA 86]

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

[Platinum Wealth 21]

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

[Bandit 103]

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 86]

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 86]

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 103]

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 103]

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

[SaurusDNA 86]

Oh, that's also an idea!!!

 

[Spreadsheet Ranger 37]

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 103]

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 37]

I've started as well