MyMoney Online

Your car won’t get you through retirement…

The car is enticing as there are many deals out there which put you in the driving seat at what seems to be an affordable instalment. However, beware of the total cost that you are in for.

The easiest way to rob yourself of wealth into the future is to spend too much of your hard earned cash on depreciating assets.

Many people are convinced that their vehicles are assets on the balances sheet when in fact the value diminishes at a far quicker rate than its liability over time.

Cars have no long term value and yet we get obsessed with buying them, spending fortunes just to be seen in them. The reality is that we soon lose the fuzzy feeling of driving a new car and yet have to contend with paying it off in the years to come.

From the time that you drive your brand new car off the show room and onto the street it is worth less. The value continues to depreciate year on year from then onwards. It gets even worse if at the end of your finance agreement you have a the proverbial balloon or residual to pay off. Don’t be fooled, the financial institution has collected the interest on the whole deal throughout the term and you then have to pay more interest when you refinance the balance owing. Listen to Paul chatting to Sam Cowen below...

So how should you approach buying a vehicle?

If you have set aside the must have provisions in your financial plan first and then ensure you have enough to comfortably get through the month for living expenses, then the remainder of your disposable income can be allocated to debt. In other words, the car you can really afford is the one which can be paid for after your savings have been allocated.

It’s a tough call for most. The car you drive defines you, right? However, if you haven’t set aside enough for your future you will have to redefine yourself in a very harsh way having to drastically scale down your lifestyle to get through.

The money you spend on cars in your life will not feed you in retirement. Only the money you saved and invested from them will.

Read more from Paul Roelofse at www.investforlife.co.za

Read More
3 best investments on the JSE right now

3 best investments on the JSE right now

Stock picks of the week, by Mergence Investment Managers Portfolio Manager Peter Takaendesa.

2 best investments on the JSE right now (and one from the USA)

2 best investments on the JSE right now (and one from the USA)

It’s Stock Pick Monday on Bruce Whitfield’s The Money Show. He interviews I-Capital Managing Director Lance Williams.

Women are better investors than men

Women are better investors than men

Warren Ingram explains why it is that women clearly outperform men.

Hottest shares you can buy right now (by Fairtree Capital)

Hottest shares you can buy right now (by Fairtree Capital)

The Money Show’s Bruce Whitfield interviews Portfolio Manager Jean-Pierre Verster.

Unsure where to invest? These are the best shares right now (by Anchor Capital)

Unsure where to invest? These are the best shares right now (by Anchor Capital)

Sumitra Nydoo (on The Money Show) interviews Anchor Capital Analyst Henry Biddlecombe.

How accurate (or off the mark) stock pickers on The Money Show have been in 2017

How accurate (or off the mark) stock pickers on The Money Show have been in 2017

Bruce Whitfield grills three stock pickers he interviewed in January on the performance of their picks for 2017.

Popular articles
5 reasons why South Africa granted Grace Mugabe diplomatic immunity

5 reasons why South Africa granted Grace Mugabe diplomatic immunity

 Simon Allison, Africa Editor at the Mail & Guardian explains the political considerations behind Mugabe's diplomatic immunity.

"ANN7 and  New Age sale is effectively a transaction between  Manyi and Guptas"

"ANN7 and New Age sale is effectively a transaction between Manyi and Guptas"

Phillip de Wet, Associate Editor at Mail & Guardian breaks down the sale of Gupta owned ANN7 TV Station and The New Age paper.

This is incredibly embarrassing for both countries - SAIIA Head of Governance

This is incredibly embarrassing for both countries - SAIIA Head of Governance

On Saturday international relations minister Maite Nkoane-Mashabane granted diplomatic immunity to Grace Mugabe.

Read and weep: 10 of the most expensive houses in South Africa

Read and weep: 10 of the most expensive houses in South Africa

These super luxury houses with enormous price tags will induce some serious house envy.

44 drivers arrested for drunk driving in WC traffic blitz

44 drivers arrested for drunk driving in WC traffic blitz

Western Cape provincial traffic chief, Kenny Africa gives traffic updates of what he described as a very hectic weekend in the WC.

Grace Mugabe immunity: SA between ‘rock & hard place’

Grace Mugabe immunity: SA between ‘rock & hard place’

Professor Christopher Landsberg has praised the International Relations and Cooperation Minister for her 'honest approach'.

[Watch] John Maytham shuts down victim shamer on air

[Watch] John Maytham shuts down victim shamer on air

A caller wanted to know what the alleged victim had done in order for Grace Mugabe to assault her.

Meet Bonang Mohale, BLSA's outspoken (‘don’t blame colonialism’) Chairperson

Meet Bonang Mohale, BLSA's outspoken (‘don’t blame colonialism’) Chairperson

The Money Show’s Bruce Whitfield interviews Business Leadership South Africa’s Mohale for his weekly “ShapeShifter” feature.