Thanks for dropping by Safe Investing South Africa. I am on a journey to build wealth my way. For any questions or comments, feel free to contact me.

11 Nov 2014


I actually enjoy responding to emails and comments. It feels like I am having a two way conversation. Anonymous just posted a follow up comment on dealing with debt, buying a home and investing in property. Here goes:
I think that (making solid relationships) is a skill that has stood you in good stead.

Ok, so I'm a 29 year old married man with 2 kids and a little knowledge on personal finance. I feel like I'm too far in debt that even buying home for my family is but a dream. Any advice as to how I can go about making this a reality as my wife earns R13000 and I earn on commission which is normally between R17000 and R25000. I am very curious about the property industry and would one day like to look at buying, fixing and selling. Would you say that I would need to first pay off my bond before treading into that sphere of property investment and so forth?

I'm sorry, I know I'm asking so many questions now, but all this is coming to mind. Could you perhaps suggest any books or material that I could use to expand my knowledge on?
Thanks for your email Anon. let me briefly unpack your data:
Age 29; Married; 2 kids; renting (assumption); lots of debt; Income is R30,000-R38000 per month
Assuming that your wife is the same age as yourself, you are very young. All you need is to start where you are and start building up. You have to take tough decisions to build your wealth and the legacy to leave for your children. Where it starts is dealing with your debt. It doesnt matter how big it is, you can do it. You will need to be on the same page as your wife to fight this together. I will suggest a few posts for you to look at.

1. Starting Out
This post might discourage you a bit because it states what I think you should have done to start with. If you havent read it already, do so. Knowing what you missed helps make you more cautious as you move forward. The post is a letter I recently wrote to my sister who is starting out.
Building Wealth- the beginning...

2. Getting Out of Debt
Most people think this is too difficult. It is not as difficult as most imagine it to be. Read this and create your own strategy on how you will kill your own debt. R30,000 in income is not small money. It can go very far. Whatever strategy you use, stick to it. A number of people who dont get to the top give up too early. Consistency is what matters.
Dealing with Debt...

3. Building your Savings
You will always have to start with paying yourself. You are more important than any of the retailers you are enriching when you buy stuff. Your debt has to take priority. Paying your debt is paying yourself because that is buying your freedom. Refuse to be a slave to those you owe. Paying debt is the first step in building wealth.
Buying your Freedom...

4. If you buy a House
Buying a house is not necessary, but when you do, fight to pay it up so that you own 100 percent of your home. Rather buy a smaller house in a nice area with good schools. If you have a car, work on paying it up too. Not even a bank deserves to be owed by you. This will take years to finalise but you have the time. Remember to keep saving a little whilst you are paying off your assets.
Paying your Home Quicker...

5. Investing in Property
Be ready and prepared when you start investing in property or any other investment vehicle. I would remove small debt like personal loans, credit card debt and store account debt before I embark on investing. Savings in the money market account and probably an ETF may suffice until you are debt free. The debt you can live with is a homeloan. Nothing else is worth owing on. Keep your car as long as you can.
Property Investment...

6. Mistakes to Avoid
It would be wise to avoid some of the mistakes that others make when investing in property.
Common Mistakes by Property Investors...

7. Books I have Read
I have read a lot of books on investing and building wealth. I will make a list of all the books that pointed me to the right direction and make a seperate post. This post is already too long. I will take them out in my study and make notes on each of them. That may require a bit of time.

I enjoyed giving my two cents piece of layman advice. All the best going forward.


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