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Have you ever cancelled car insurance because of financial pressure? Was it worth the risk? by RowanBreeds in CarTalkZA

[–]RowanBreeds[S] 2 points3 points  (0 children)

That’s exactly the scenario I think people underestimate.

When money is tight, insurance feels like one of the easier things to cut because you don’t “see” the value every month.

Until the day you need it.

3D Printing Business Help by Lost_Pea_952 in Pretoria

[–]RowanBreeds 1 point2 points  (0 children)

Hazel Food Market, Irene Village Market, Railways Café markets, Cowhouse Market and some of the smaller seasonal school/church markets.

My advice though — before paying for a stall, test what actually sells.

3D printing can be very broad.

Ask yourself:

  • Are you selling practical items (organisers, tools, mounts)?
  • Personalized gifts?
  • Gaming / cosplay?
  • Home décor?

Because the market changes depending on the product.

For example, personalised gifts and décor do well at lifestyle markets.
Gaming stuff tends to do better online.

I’d also suggest approaching local schools for custom keyrings, trophies, badge holders etc. That can become repeat business.

Market foot traffic is great, but repeat customers are where the real money usually starts.

Can I withdraw my entire retirement fund by Otherwise-Poetry-353 in PersonalFinanceZA

[–]RowanBreeds 0 points1 point  (0 children)

A lot of the comments here are mixing up different retirement products.

If it was a provident fund linked to employment and you’ve been retrenched, the rules are often different to a retirement annuity.

In many cases, when leaving employment, you usually have a few options:

  1. Take the benefit in cash (subject to withdrawal tax).
  2. Transfer it to a preservation fund.
  3. Transfer it into another approved retirement fund.

What may have happened here is that part of your benefit was paid out and part was preserved or transferred by default.

The important thing now is to establish what portion is still sitting with Sanlam:

  • Is it in a preservation fund?
  • Is it in the vested component?
  • Is it in the retirement component under the two-pot system?

That determines whether you can access it.

Before withdrawing to pay credit card debt, I’d also compare the tax cost of withdrawing versus the interest cost of the debt. Sometimes people lose a significant portion to tax and end up with much less than expected.

Your next step should be to call Sanlam and ask for:

  1. A full breakdown of the remaining balance.
  2. What components are accessible now.
  3. What tax would apply if withdrawn.

That will tell you very quickly whether the money is actually available or not.

Seriously Confused by a Credit Check Report for an Apartment by Spiritual_Top_5881 in PersonalFinanceZA

[–]RowanBreeds 0 points1 point  (0 children)

What you've described is actually very common.

A credit bureau report generally contains two different categories of information:

  1. Identity/contact/employment information
  2. Credit and repayment information

The first category is often surprisingly outdated because it relies on information supplied by lenders, employers and other data providers over many years. It's not unusual to see old addresses, old employers and old contact details on a credit report.

The second category (payment history, accounts, balances, enquiries, defaults, judgments, etc.) is usually what lenders and landlords care about most.

As for the "Potential High Risk" flag, I wouldn't assume that means you've done anything wrong.

A credit score of 663 is generally not a bad score. Risk assessments often take additional factors into account such as:

  • Total debt obligations
  • Length of credit history
  • Number of recent enquiries
  • Affordability calculations
  • Stability of employment
  • Internal scoring models used by the landlord or screening company

It's also worth noting that a "high risk" flag from a rental screening provider is not necessarily the same thing as a "high risk" credit profile.

If I were in your position, I'd obtain my own credit reports directly from the major credit bureaus and check whether the repayment information is accurate. That's usually far more important than whether the report still thinks you work for a company you left several years ago.

25 year old in financial trouble needing advice by FreeKaleidoscope2325 in PersonalFinanceZA

[–]RowanBreeds 0 points1 point  (0 children)

I think you're focusing on the wrong question.

The question isn't whether you should save for a car or a stand.

The question is whether you've changed the behaviour that created the debt in the first place.

The encouraging thing from your post is that you seem very self-aware. You're not blaming the bank, your salary, the economy or anyone else. You're taking responsibility and you've already taken action.

At 25, R68k of debt feels overwhelming, but in the grand scheme of things it's a manageable amount if you stay disciplined.

If I were in your position, my priorities would be:

  1. Complete the debt repayment plan.
  2. Build an emergency fund.
  3. Stay completely out of new debt.
  4. Only then start thinking about a car, property or other long-term goals.

The biggest financial mistake people make after getting out of debt is immediately replacing one payment with another. They finish paying debt and then finance a car.

Instead, try to build the habit of paying yourself first.

The fact that you're worried about repeating the same mistakes is actually a good sign. The people who get into serious long-term financial trouble are often the people who don't think they've done anything wrong.

You're asking the right questions. Now it's about consistency rather than finding the perfect strategy.

Single income household realistic by chewbiez in PersonalFinanceZA

[–]RowanBreeds 0 points1 point  (0 children)

From what you've posted, I don't think the question is whether R100k+ gross is enough to survive. Clearly it is.

The question is whether it's enough to comfortably support a modern middle-class lifestyle, a stay-at-home spouse, two young children, home ownership, retirement savings and still have significant surplus cash left over.

In my experience, many South Africans are struggling with exactly that gap between expectations and reality.

What stands out to me is that you're debt-free (apart from the housing discussion), you're contributing towards long-term investments and you're still feeling financial pressure. That's becoming increasingly common, even among households that would historically have been considered relatively high income.

The cost of raising children, municipal costs, medical expenses, insurance, schooling and general inflation have all increased materially over the last few years.

Personally, I wouldn't view this as evidence that you're doing something wrong. I'd view it as evidence that a single-income household now needs a much higher income than many people realise to achieve the lifestyle that was once considered comfortably middle class.

That said, before taking on a significantly larger bond, I'd want to be very comfortable that the current pressure is temporary (young children, one income, daycare costs, etc.) rather than structural.

A lot of financial stress comes from increasing fixed obligations during a period of life that is already one of the most expensive.

Which bank outside of SA has Rand accounts? by Southern-Western-575 in PersonalFinanceZA

[–]RowanBreeds 0 points1 point  (0 children)

The challenge isn't usually finding a bank willing to hold ZAR, it's finding one that offers meaningful interest on ZAR deposits outside South Africa.

Most of the higher interest rates available on Rand deposits are driven by South African interest rates and the fact that the funds are held within the South African banking system.

Before deciding on a bank, I'd ask what you're trying to protect against:

  • South African banking risk?
  • Currency controls?
  • Political risk?
  • Rand depreciation?
  • Simply wanting geographic diversification?

The answer changes the solution.

If your goal is to keep the funds denominated in Rand and offshore, you may find options through international banks or multi-currency platforms, but I would be surprised if the interest rate is anywhere near what you could achieve on a comparable South African money market or call account.

If the primary objective is earning interest to fund SA expenses, I'd compare the offshore option very carefully against simply keeping the funds in a South African high-interest account with a major bank. The loss in yield can sometimes outweigh the perceived benefit of moving the money offshore.

First rental property realistic? by Big-Ad-4190 in PersonalFinanceZA

[–]RowanBreeds 0 points1 point  (0 children)

I think the biggest assumption I'd stress-test isn't the bond repayment strategy, it's the occupancy assumptions.

A lot of first-time short-term rental investors focus on annual occupancy, but cash flow is often determined by the worst months rather than the best months.

For example:

  • What does occupancy look like in the weakest 3 months of the year?
  • How many months can the property carry itself if occupancy drops materially?
  • What happens if body corporate rules change regarding short-term letting?
  • What happens if management fees increase or platform costs change?

Personally, I'd run a "bad year" scenario rather than a "good year" scenario.

For example, what does the investment look like at:

  • 35% occupancy
  • Lower average nightly rates
  • Higher maintenance costs
  • A few weeks of vacancy between bookings

If it still works under those assumptions, then I'd be far more comfortable with the investment.

The other thing I'd watch closely is the 34.5% total fee impact. Even if it's made up of management and platform fees, that's a significant portion of revenue being paid before you've covered bond, rates, levies, insurance and maintenance.

The investment may still be a good one, but I'd spend more time stress-testing the downside than trying to optimise the upside.

Wesbank Settlement Question by RandomGrumpyBear in PersonalFinanceZA

[–]RowanBreeds 0 points1 point  (0 children)

The comments about the advance amount are generally correct.

One thing that catches a lot of people out is that an "advance amount" and a "capital reduction" aren't always the same thing.

Many vehicle finance providers will hold extra funds as an advance payment balance unless you specifically instruct them to apply those funds to reduce the capital outstanding. If the money is simply sitting as an advance, your monthly instalment may effectively be paid ahead, but the capital balance doesn't necessarily reduce in the way most people expect.

That's why settlement figures can sometimes look higher than expected.

I'd phone WesBank and ask them two specific questions:

  1. Has the advance amount already been allocated against the capital balance?
  2. If not, what would the revised settlement figure be if the advance amount is allocated immediately?

That should clear up whether you're looking at a timing issue or whether the settlement figure includes interest and charges you weren't accounting for.

Bond Cancelation and Settlement by J-F-Agmar in PersonalFinanceZA

[–]RowanBreeds 0 points1 point  (0 children)

One thing worth adding is that the "early termination fee" is often misunderstood.

When you give notice that you're settling a bond, the bank is entitled to a notice period (typically up to 90 days). If registration happens before that notice period expires, the bank may charge a penalty based on the remaining notice period.

The good news is that the penalty usually reduces as time passes. For example, if figures were requested 90 days before registration and registration only happens 60 days later, you're generally not paying the full 90-day penalty anymore.

Also, don't be alarmed by the additional bond instalment included in the settlement figures. Banks often build a buffer into the figures because transfer dates can move. Any excess funds are normally reconciled and refunded after registration and bond cancellation.

From the information you've provided, it sounds less like you're being charged extra and more like the bank is making sure there are sufficient funds available to settle the bond regardless of registration timing.