My feelings on money ::

I would say the saying “money is the root of all evil” is actually not that far off. I am sure a fairly large percentage of crimes committed are committed because of money. We have been programmed into think our happiness and our self worth can be measured in our bank balance and our possessions.

It’s a bit sad when you think about it – because, of course, there is a ring of truth in it. If I had no money and no possessions I would not be a happy camper, especially as I would be working right now and not sitting on my butt watching Wimbeldon! So you do want some money.

But is it a case of the more you have, the happier you are? Well, it’s certainly not guaranteed – many, many wealthy people have committed suicide – the latest being Robin Williams. Very sad, one of my favourite comedies is his Mrs Doubtfire. And although I do not make a habit of reading about the rich and the famous, I get the impression that at best, their lives are pretty much the same as us normal folks – but just with bigger houses, flashier cars and more OTT parties.

I think I became happier when I broke the money equals happiness line of reasoning. I remember doing it when I was deciding to retire early on what most would call, very little. Up and till then, I, like most people, ranked myself against my friends in the big Net Worth Cup. On the whole I did well in the assets stakes, but not so well in the salary bracket. TBF, that hasn’t, and probably won’t change for quite a while.

But retire early meant I was NEVER going to compete salary wise, unless of course, I became a famous author or artist.  Yes, you can wipe the coffee of the screen now. But you see, even when I say I am completely fine without having money, my brain still likes to work out how, if the planets aligned just so, I possible could become wealthy. Eish, us humans hey?

Anyway, I have stopped equating money equals happiness and self worth – and it’s great. Once you stop feeling that you need money to be happy, it’s like a hidden door opens up and you start to notice all the free things that bring a smile to your face. So when earlier in the day, I had my afternoon nap in a winter sun beam that was streaming through the bedroom window with my two dogs beside me, I truly did feel like the happiest man on earth.

For me, I also need to feel self worth to go with my happiness. And do you really need a large bank balance for you to feel self worth? Once again, once money is removed, lot’s of jobs can bring immense contentment and feelings of self worth. I am still proud of completing a tricky bike repair I did months ago. But it could also be finishing that online course, tackling a new recipe or painting the bathroom.

If I had more money, I would spend it – do not get me wrong – I can always find something to spend a couple of bucks on. Mainly on travel and experiences, but I could always find room for another motor bike, and a couple more toys for the workshop. But I do realise they are non essential wants – and already have tons of those – many of which are not really being used as is.

I have lost that need to buy items to show off to my friends and show the world my worth and importance – it would eat into my afternoon siesta time.

Getting rid of my car ::

This little debate has been raging in my head for quite some time, should I get rid of my little used, fairly new bakkie and invest some/all the proceeds?

A bakkie is a small truck here in South Africa – rated by it’s load capacity. They usually have around 500kg – 1 ton carrying capacity and are open at the back, but most people cover it with a fairly easy to remove fibreglass canopy. In Australia they are called utes and in Europe they prefer to use covered vans. A van, I guess, is better for security – a bakkie lets you carry awkward items when you remove the canopy.

Anyway, I bought my bakkie for work – and on credit. I had had my business for a while and doing a few km’s a week – my old bakkie had some serious structural problems – had just used it to carry tons of sand from my swimming pool. At the time, cash flow was great, but I did owe quite a bit to suppliers and was vat registered so it seemed like a good idea to use credit and make the bakkie an expense. This is the first and last time I ever buy a new vehicle and a vehicle on credit.

After a couple of test drives I ended up buying a Daihatsu Gran Max – I felt I was getting the most bakkie for my cash because even though it’s price and engine are on the smaller side, it has a very large (volume) carrying capacity as well as a full 1ton load and supposedly good petrol consumption with it’s small 1500cc engine. This was vs the small Ford Bantam and Opel Utility. At the time Ford was stopping the Bantam model (crazy IMO) and the Opel was a bit pricier and quite a bit smaller.

I did try out a pretty new Bantam – going for R104,000 – had around 5000km on but had a low profile canopy and this put me off as I could not see everything fitting in when I had a huge delivery. Pity as now the smaller bakkie might have been a better fit these days.

Having had a Gran Max for a few years now it has both good and bad aspects. Driving very carefully I only get 10L per 100kms/ 10kms per litre. Which is not great, was hoping for the claimed 7.5L/100kms. Then, because of the cab forward design, you sit very upright – fine for around town and actually nicer for getting in and out, but not so lekker for longer distances.

Basically vs the 1/2 tonners, it beats them as a work horse – you have pretty much twice the volume you can load as well as a bit more load weight – the 1/2 tonners used to only have 500kg load capacities, now they more like 750kg. But the 1/2 tonners are nicer to use as “cars” – more comfortable and better fuel economy.

When I knew I would be giving up the business, I increased the payments so that I finished paying it in 3 years vs the 5 that I took it over – so at least it is paid for. I also did get the vat back – so after paying around R140,000 – got R20,000 back. Not going to work out what I paid in finance costs – interest was around 11% – so a fair amount, paying it of early did help though.

But that brings us to now. And I rarely use it – maybe 3000km a year, generally doing errands around town. Maybe 500kms a year actually using some of it’s carrying capacity. At the most I could get R100K for it, but more than likely it would be R90K. Then, do I replace it with something cheaper? Or become a 1 car family and just buy a trailer? Or just hire a trailer when we need? Quite a few options.

Keeping it ::
Firstly, keeping it means I have a bakkie that I will have for many years – and having a bakkie is great. It’s nice having a second car and being a bakkie means going to the dump, taking the dogs to the beach and many other small tasks are all easy. It’s pretty new and paid for, should mean many years of pretty cheap motoring – I have only balance of third party at R60 p/m – but my bakkie is not covered for anything – only what I hit. I did think I would be doing the craft market thing – and this bakkie would be perfect.

Selling this bakkie and buying a cheaper one ::
Initially I thought this would be the way to go – could get a cheap bakkie for around R40 – R50K that should do the trick. But again, we sitting with a vehicle that rarely gets used, and there is still up keep on it. But having the R40 – R70K working would be nice.
Selling and buying/renting a trailer ::
I probably would buy a trailer straight off. Hiring for small jobs would be a pain and a second hand trailer costs around R5K. Would also look at a roof rack for long items. Pretty much could do everything we do now – there will though, be the inconvenience of car sharing. Although happy to walk/cycle – might be tempted to get a small bike/scooter for around town. Have also looked at electric bikes – might be an interesting project. The big upside here though, is the R80 – R90K invested – earning around R4,000 in dividends and R10K – R15K capital every year.

In summery ::

I like having it as a second car, and being a bakkie means I can do more with it. If looked after it will also last many years. But having that capital in the bank means some extra income and I can always buy a bakkie later if I do need one, although a trailer should cover most of our needs. So selling it does make sense, if I can get a good price for it. Also need to look at any tax implications.

27 June 2015 ::

So it’s Saturday morning, got up at 05H30 – for the last two years or so, I get up when I wake up – instead of snuggling down in the duvet. this means I am usually up between 05H00 and 06H30. I quite enjoy it, not sure why – I rarely do anything productive, just a bit of internet surfing and maybe a pc game but it does mean I am ready to do a bit of gym or the dishes by 07H30!

According to my time sheets I have not had a very productive week – only 35 units. Fair enough, did have a more relaxing week – no real projects done, but sorted out my nuts/bolts and screw corner finally, and the workshop office is taking shape. I did manage to get rid of quite a bit – thanks Gumtree!

I while ago I decided to take dividends for this coming September and invest them – and top that back up with BoB money, instead of waiting for the BoB money. Stupid, stupid move – market went down, last a couple of thousand, and still trying to get the money back – grrr. And of course, would have been putting in the “new” money into a corrected market and buy at a lower price. Live and learn hey?

Lately, I have started to get a bit of work done on Saturday mornings – I like to let the DW have control of the remote in the morning, so I can take back control for Saturday afternoon sport! Having problems with the speaker output on the one speaker on my old midi JVC system in the workshop. I might have to cut out a small hatch with the dremel to get at the connection. But it would be nice to get stereo back, then link up the old laptop to I can blast some decent music in the workshop.

Jurassic World

Went to Tygervalley Mall yesterday to watch this and grab dinner at Spur. This is the second movie we have watched this year, the last being Mad Max 3/4 weeks ago. BTW Mad Max was excellent! But wished we had caught up on the old ones before going.

The reason for this is because of a promotion that is being run using Pick ‘n Pays Smart Shopper card. Basically, for R30 worth of points you get a free movie ticket (non 3D) – which is not a bad deal – these days a movie costs around R50. You can also get a R50 off Spur voucher – also for around R30 worth of points.

So basically, movie – free, 2 x Spur Shnitzels and soft drinks, R140 – R160 with tip. Not bad for a few hours entertainment. I also managed to move some shop fittings that where in my way – did that before. Then met a guy after and he bought a shotput and some other bits after.

Lastly we went into Game and bought some paint. They are far cheaper than anyone around here – R160 5l white ceiling paint / R200 decent, tinted, silk wall PVA. So can now start on the guest bathroom. Will move from room to room – but the whole house needs a bit of paint.

So a great afternoon. In the morning I had visited an auction at a bankrupt ex motorbike shop. The guy that had owned it was a friendly guy – chatted to him a couple of times. Once left my bike with him to quote on the sump plug and front forks – he just was not interested – even though I did say I expected it to cost a few thousand. Eventually did the sump myself, but have not done the forks – will need to sort them out some time.

Anyway, have never seen so much junk assembled in one place – real crap. That said, guys in the States or UK would have all of this “junk” listed and up on Gumtree/Bidorbuy – instead he was paying monthly to keep it. Anyway, he had been there for quite a while so must have been making money somehow. Anyway, I left before it started – could see myself coming away with crap that I do not need – I have that problem 🙂 Sometimes another man’s junk is, err, junk.

As to Jurassic World – we had watched all three on consecutive nights starting from Sunday. I have always been a fan of the franchise – even the third one. I just think they are well made – but sure, they do follow a formula – as did this one. I see the rating on IMDB has come down a bit to 7.5 – was on around 8.5 which after watching thought was a bit high. 7.5 seems about right – worth watching, but probably not that memorable. It is amazing that the animatronics/ CGI whatever – is as good on the first was as it is now, just shows how amazing the first was was.

Project :: Container Storage

Made this last week – decided a shelf to hold all my bit’s and pieces would go a long way toward sorting out the garage. Well, this holds 49 2l ice cream containers – that’s quite a few! have around 20 so far, so plan on getting through a fair amount of ice cream this summer – hope they have it on special like last summer!

Made labels on the PC, laminated them, then stuck them on using hot glue. Sometimes I feel the need to be an organisational dork!

Weekly Update ::

Yesterday jumped on the bike and went for a picnic in Yzerfontein. I really enjoy the ride that way and finishing of at the sea is always great. We had made bacon and egg rolls – wrapped them in tin foil so although not hot, where at least warm.  Although the day was sunny, there was a chilly breeze – so did not hang around long.

I know seagulls are not most peoples favorite birds – but the sure do have character!

Bit stiff today as my tennis partner called and requested my presence on the tennis court. Had a great game – since changing my grip I am really hitting the ball better and not stuffing up nearly as much. Weather has not been great for tennis and most of the other players seem to hibernate in winter – not sure why. I play tennis because I enjoy it and need the exercise, these reasons do not go away in winter!

Made a new record on my time sheet 59 unit! Great stuff, I also feel great – getting lot’s of things done, and enjoying it. This week want to a get a few more hours into the back garden did not do much there last week. Also need to try do 3 lessons on Sketchup – have ignored my lesson lately.

Also, think it’s time to assemble my thicknesser and take of the rip saw blade and price a new one. Have a couple of light that could also go up – and fix the speaker/link to an old laptop to play MP3’s – need some Jazz in the workshop!

Friday 19 June :: Jazz in Darling

Last night we went to see the Mike Rossi Project in Darling. They are a jazz band and although I have seen them around, for whatever reason I did not like their name – so never made the effort to go see them.

Well, just another mistake in my long list – they really are great.

It was a charity event – getting kids off the street and playing music with the SAJE (South African Jazz Society) – and was held at Pieter Dirk Uys’s theatre – Evita se Perron – a lovely, intimate spot. Not only that, but after changing chairs, had lovely comfortable seating – for ma always an issue. A cat popped on my lap during the second session – stayed for most of the session – kept my lap warm and got a good cuddle in return.

It really was a great night. You can see the all the members of the band love their music and where having a fantastic time – as was the audience. We once went to the crypt, under St Georges that had a audience that chatted throughout the show – made it pretty horrible for the rest and the band. But not here, everyone came for the music.

Their was also a female singer that sang quite a few songs – really enjoyed her singing – Nomfundo  Xaluva. She really did add to the night – great voice. But we really enjoyed the night, think we will remember it for quite a while and will hopefully catch Mike Rossi again in the near future.  Need to really get some jazz playing  around the house – might re-purpose Nicki’s old laptop for music in the workshop.

And will definitely be going again next year.

Batteries :: Let’s get frugal

We needed a small 9v battery for our kitchen scale and a few AA’s. Now we seem to use AA’s quite a bit, with camera’s being the main culprits and, as I know they are getting pricey, decided to look out for rechargeable batteries – we have a charger.

I could not believe the prices. A normal alkaline 9v was around R60 – R70. Most places did not have rechargeable batteries – the one place that did, R120 for 2 x AA. My wife was visiting another shop later on in the day – so besides looking there, asked her to try the Chinese shop next door. No luck on the AA’s but got a 9v for R10.

Next stop Bidorbuy. So much cheaper – from one guy bought 3 x 4AA’s and 2 x 4 AAA’s – with postage all came to R219 – The batteries both cost R26 per 4 pack. They look decent at 3800mah and 2600mah – but even if they half that and only last 5 charges it would be worth it.

And this was a good time to check on something – should I store the batteries in the fridge, it never made sense to me? Simple answer NO – found here.

Will, if I remember, update this in 6 or so months.

One for my hoarding nature ::

Yesterday, while helping a friend move his desk into my garage to store for a couple of months – a very cute pit bull ran up to say hi.  As I knew he was my opposite neighbors, I put him back over their rather low wall. Well, in seconds he was out again – and I’ll cut a long story short by saying that he spent the next three hours in my workshop – could not risk him being run over or stolen. He also made it clear that he would rather have company for the afternoon.

So tackled quite few mundane task, one of which was dismantle an old metal directors chair. Drilling out rivets for half and hour – between playing with the dog. And at them time I seriously asked myself – am I just wasting my time?

Just before lunch today I had half an hour to fill and I was staring at some bar ends. I decided I just had enough time to put them up in our room for our towels and went to rummage around and find some poles that would fit. Fancy that, the poles from yesterdays chair fitted quite nicely.

Many items are just junk, until you find a use for it.

Oh, and I finally met those neighbors.

Saving :: It’s tough to start

A lot of guys I know just cannot seem to save. Hopefully, some have a forced pension scheme at work and have a mortgage – but I know for a fact, many do not. Not only that, some are fairly heavy in debt.

What on earth are these guys going to live on when they retired? We talking guys my age – so 25 years to “normal” retirement. You get the feeling that these guys know that a problem is looming, but they just do not want to face it head on. Many of the older guys I know have some sort of guaranteed pension – where companies more generous in the past? Or is it the I WANT IT NOW brigade are just not interested?

One problem (or at least it affected me) was that the words saving and investments are used interchangeably – and they should not, they are two totally different concepts. You SAVE to buy a car, a cell phone, deposit for a house and to pay for your education. But the idea is, at some point, you going to SPEND your SAVINGS.

INVESTING is different. You NEVER spend your CAPITAL – but you can SPEND what it produces – dividends, profits and interest. I once read that you should treat each rand as a little worker. Send them out to WORK – and check up on them sometimes to make sure they working 24/7, 365 days a year. Funnily enough – eventually they multiply and work so hard, you can STOP working!

I have always been a great saver – just the thought of working for a whole month and spending it ALL seems like such a waste – I mean, what’s the point? BUT with all my savings, I did not invest – I would have been quite well off if I had, unfortunately.

What would have been great is if I split my savings into savings and investments – 50/50. If I had children I would emphasis this and split their pocket money, with half going into a TFSA  – probably Easy Equities TFSA account – then you can let them choose ETF’s. And half into their Capitec accounts – yes, I bank with Capitec – by far the best bank IMO.

I think some of my friends just get disheartened by the figures involved.  When a Mid priced house cost’s a million and retiring is a couple of million – I guess saving that R500 p/m is like pissing in the wind. But you HAVE to start. So what if it’s R200 p/m, think of it as 200 little workers – next month you will add another 200 little workers and your previous workers would have made another 2.5 workers.

And at the end of that year, you would have put in R2400 you would have produced another 204 willing workers (at 15% – which is what I aim for in equities). Now if you just stopped (which of course you not!) those 2604 workers will make another 418 workers, all by themselves that year. Isn’t compound interest great!

BTW – if you where 40 and started just saving R200 p/m and did not increase it, after the 25 years you would have R657 000 and if you increase it by 10% yearly you would end up with R1.3mill. Off course, remember that at the same time inflation is devaluing your money as well. But the point is, START TODAY – even with a tiny amount.

And remember, you INVESTING not saving, so I would pick equities or listed property – ether individual stocks but ETF’s are generally the better way to go. Leave savings accounts for savings.

But put in your own figures – here is a link to a compound interest calculator.

It’s hard to start – seriously, for everyone – the amounts always seem so insignificant – but give it time. After getting some capital growth maybe some dividends – soon you’ll be putting of that new cell phone purchase and opting to add 3000 new workers to your army.

BTW some might say 15% is a bit high – but a common ETF like the SATRIX INDI or FINI have been hitting around 20% per year for many years.