Year one done and dusted ::

So, first year almost done and dusted! Time to take stock. Although I could always do with more, the money I have is sufficient bar any unforeseen emergency. That said, as I do know things crop up from time to time, I do hope to still be adding to my share accounts, even if very slightly. And although I do not have huge amounts of spare cash, there is enough for us to plan for a month long cruise – even if it does mean saving for 2 years!

Very happy with the dividend withdraw method – seriously, I would find it a lot more stressful if I had to time share sales as well as go through volatility in the market. That said, my little extra share account has a few of the shares I would like if dividends where not taken in account – although, not showing much growth! ah well.

Instead of taking money out of dividends and reinvesting will just let the money in the TFSA and small account grow and will reinvest the dividends from those accounts. So my stash is growing. Still have around R40K worth of stock to move so should have around R140K in the small accounts.

I would constantly like to make a bit of cash on the side. I could always do with a bit more, plus I think it gives me a bit of self worth – not sure why, but it does. I have thought of importing items from China for resale – not so sure about it now – but do enjoy buy/sell process with BOB.

I am not sticking with any of my hobbies – which is a pity. I am enjoying gardening – well, the vegetable part anyway. I still find the idea of a homestead very appealing and I think rewarding. Might grow items for sale, plants, herbs or vegetable would work.

Have been kept reasonably busy doing jobs around the house – and there is still tons to do. I have, to a certain degree, sorted out my workshop. It’s a lot more organised but I think it’s one of those jobs that is never done.

I am better at organising my time – and by pushing myself even a little bit, I just feel better and then enjoy my off hours more.

Health wise I am great – bar the touch of flu I have at the moment. I am loving my tennis and DH an myself might try a bit of mountain biking. We did an 18km a week or so back and although tiring, enjoyed it. Will try do a local weekly ride and eventually do a once a month “proper” ride. Nice to do something outdoors together.

Have sold my car – which was a great decision. Will eventually sell this car and get a small station wagon with a tow bar. That should take care of 99% of our motoring needs. No in a rush, have the money set aside so am just keeping a look out for a good one.

Do look at money slightly differently – and this is going to sound a bit weird – I enjoy spending my monthly amount – with no “buyers remorse” – I often spend money/think of spending and wonder if I was wasting it – now I have it and will spend it. THAT SAID, I really am more careful when I spend money – and really weigh up if I really need that object and if I cannot use something in place of it or make something. Instead of buying objects I do seem to spend more on outings.

Goals for the coming year.

Could loose a bit of weight – 95kg would be ideal – sitting at 112kg at the moment. In case someone stumble on this, it must be noted I am very tall and even at 112Kg’s I am not fat! The weight loss would be appreciated by my knees on the courts. So basically, eat a bit better, keep with the tennis, add in a bike ride hear and there and ether walk or cycle to the shops.

Get a lot further in the veg garden. Have the perfect place for it now, just need to carry on working at it. But on the right track.

Try not to watch so much TV and spend more time on getting a hobby or two up and running. Would be great to be able to sell and item that I made.

Write a book! I have had an idea for a kids book for years – maybe it’s time I put it to paper

Finish a course! Almost there with sketchup.

Keep on with the house – get the garden looking presentable and keep it that way. As with the car.

Live within budget and save for that holiday – should have around R12K when I write this again plus a bit in the joint holiday account. Should be enough to book.

Monday the 24th August :: The week ahead

So got a bit done last week – well, painted the hall way finished back gate. Unfortunately, have got a bit of flu – so not feeling brilliant. This means I haven’t played tennis or done my morning gym for a few days – really do feel it. Did take the dogs for their walk and will walk to the shops later weather permitting. Even though I took a few afternoons of, still did 50 plus units – used my mornings well including Saterday + did a fair amount of cooking.

We did a spot of shopping on Sunday – got some mason jars and am trying to “ferment” cabbage as a form of preserve. Did it yesterday afternoon so will have a taste Wednesday.

My father is only coming a month later – so have enough time to paint one of the spare rooms as well.

I am also thinking that I should just enclose the whole vegetable are in shade netting vs individual boxes. It’s be a lot less hassle for weeding and picking + it will give a bit more height. Shouldn’t be two pricey – 38 x 38mm wood is going for R20 per 3m length. 50% shade netting is running at around R50 per m/ 3 m width. So will do the frame and then buy the shade netting when I have the money. This spot really will work well as a veg garden – the other day I picked a large bag of very healthy kale and spinach. I think sorting it out properly will be worth it. I think I will just buy the wood – but will not add the job to the list just yet as it’s not that important.

1. Kitchen outside side :: clean, sweep and organise.
2. Paint hall   Paint spare bedroom.
3. Paint lounge
4. Paint kitchen
5. New blind in kitchen
6. Veg garden :: keep and eye on it – weed, clean driveway.
7. Make netting covers for seedlings.
8. Make one box – help with the sorting
9. Washing line square :: clean, burn old bits, sort out
10. Parking area :: sort out the beds, weed, organise
11. Garden: edge, weed, mow, trim
12. Finish tiling  the stairs – grout.
13. Finish painting the back gate.  Complete painting the front house (started by my wife)
14. Workshop :: just put everything away and clean surfaces

Still sick – and weather is not looking great. Will aim to paint the spare room and finish the front of the house and clean workshop. That will be plenty.

My Friends and their money :: Friend three, Mr R

Mr R used to live in town – I met him because he had a little business selling advertising in a small, weekly, black and white pamphlet. I had just started my business and this was a cheap way to advertise. The pamphlet was dropped at a few shop around town and Mr R used to print it himself. The big job was folding them.

He’s got a good heart, Mr R – but we have drifted apart – we just do not have much in common these days. Over the last few years, I have found he contacts me when he needs something. Generally it’s information -but we have visited them (there now a Miss S) and it seemed he liked me as a drinking buddy. Maybe it was mutual – as said, we just cannot seem to get a conversation going.

Ever since I’ve know him, Mr R has struggled. Seriously living hand to mouth, but always just keeping his head above water. He’s a good bloke and many people have helped him financially – not handing him cash, but he’s been given/ allowed use of – three cars. And he got cheap rent for quite a while. He did, at some point, earn a pretty decent salary owning a house and a BMW at some point. When he has the money, you can see him really enjoying it and getting stuck into nice cars, latest tech and good food. Savings? That will be far down on the list with Mr R.

He really is a great salesman – one of the best I have met. And there is no reason why he should not be able to walk into a decent salesman job. His problem though, is that he want to be the boss, the mover and shaker  – the groot kanon (the big cannon). And of course, he is always chasing easy money. I think he see’s himself as the “big picture” guy – but he doesn’t have the patience to get a business going. But I am sure he could lead a sales team in an established business.

I remember with his pamphlet – it did get to a few pages and was making half decent money. I said he really needed to start distributing it better – dumping it at a few shops really did not help anyone. But of course, it was easy. But hiring another guy for a morning or two and then hitting the pavements – beside the exercise, would have helped alot.

My other idea (well, I had seen it done) was inserting free, small, text classified adds between the main adds. I know us males always look as classifieds – always looking for a bargain – and would get people looking out for, and wanting to read, the pamphlet.

Nether these ideas where implemented – he, unfortunately, always looked at his bottom line and how much he could make VS looking at what his paying advertisers would want. He had it running for a few years with some success – he handed it over to Miss S as soon as possible – then handed over the printing following his MO of getting other people to do the work – he’ll be the boss. Maybe it’s because I am terrified and I don’t not think I would be very good as a cold calling type salesman that I like the idea of offering a great product at a great price so you do not need to sell it to anyone – your customers will come to you.

I could have had more success with my last business if I had been a good salesman and visited a few establishments. But the business core was not about that – so I got away with not doing it. But I am well aware of my failings and at one point almost went into a venture with someone to take on that part.

Anyway, Mr R has been chasing a few ventures – with varying degrees of success. Luckily/ unluckily he is working with quite a rich bloke that I think supports him a bit. Miss S should have got a normal job years ago – but is very happy to potter around at home it seems – she did have a go at the pamphlet – but with the same outlook as Mr R – how can I get the most amount of money, with the least amount of outlay/work. Pity, as the fundamentals of the business is sound – but they are/where putting their time and effort into sales where I feel if they put it into product, sales would come naturally.

These two are older than us – and seriously, I cannot see him changing his MO any time soon – which is going to be a huge problem down the line. He will always be chasing the “big score” to get him back to where he was instead of getting a proper job and using his free time for a bit of extra cash. But who knows? Maybe he will hit that big score – will be happy if he does. He is a good bloke and I wish him well.

not handing him money us such,

Monday 17 August :: The Week Ahead

So got the car sold last week and money transferred into the stock account. Have bought a few of the shares, will try for the rest this week. Weather was miserable most of last week so did a few indoor jobs – most of the BoB gear has been sorted out – pity the Post Office is not functioning. And of course, did the MTB ride.

Spoke to to my wife about motorising the back garage door and back gate instead of building a car port at the front. My reasoning is the car would be better protected in the garage than under a carport. It would me slightly more of a hassle getting in and out. But she likes the idea. We had a quote done a year ago – just under R10,000.

Looked in Gumtree and we could pick up two motors for around R4000 which I would then install. She gave me the blank stare. Got into argument. pfff. All technical jobs I have started, I have finished. Swimming pool/ big job on the bike. In fast the last big job we had done by “professionals” the solar geyser – the pump blew after a year. I don’t think it would be that hard to install ether – its a cog and a track. There own website looks good for the technical side including programming the remote – and they have an office in CT. BUT I was thinking later on – I would be just saving my wife money. The deal being R15K me, R15K her, and what we need from the sale of her car – she keeps the rest. Looks like we will get the car for between R30 – R35K – so if I did a home job for R5 – she could get between R5 and R15K back. But of course, what grids me, is it’s ANYTIME I mention a job she blanks me. I think, like her mom, jobs would only get done when the object in question was about to fall down. And NEVER do it yourself – always hire someone. Drives me mad. Earlier in the day she asked if WE were going to paint the front wall – we meaning ME. I’m still pissed from the last time I sanded and painted her front door and she could be bothered to say thank you. So I said no because of that. Brought up some issues – which then came out later with me doing the gates. Seriously, how can a person be so ungrateful?

Anyway – my father and friend is staying the night in around 3 weeks. So good excuse to get some more painting and sprucing up done. So will change the list to a three week list and try work around the house and get everything a bit tidier and more orderly. Bit of a spring clean.

1. Kitchen outside side :: clean, sweep and organise.
2. Paint hall
3. Paint lounge
4. Paint kitchen
5. New blind in kitchen
6. Veg garden :: keep and eye on it – weed, clean driveway.
7. Make netting covers for seedlings.
8. Make one box – help with the sorting
9. Washing line square :: clean, burn old bits, sort out
10. Parking area :: sort out the beds, weed, organise
11. Garden: edge, weed, mow, trim
12. Finish tiling  the stars – grout.
13. Finish painting the back gate.
14. Workshop :: just put everything away and clean surfaces

So it’s a decent list to get done in 3 weeks – all over the house – more cleaning and sorting than projects – besides the painting. So aiming for a good 60 units for the next 3 weeks.

The South African Post Office :: On it’s way out?

Went to post something on Thursday – turns out no post has moved in or out of the Post Office since last Thursday. Reason? They have no money for petrol, Country wide. Seriously, everything the ANC touches turns to crap.

I have used the Post Office for years and have normally found the service to be fine. Out of 500 – 600 parcels have only one go totally missing – had  a few very late due to strikes – but got there in the end. The guys at my post office are friendly – but you can see they are not happy being there, they do the bare minimum and you can see they have zero loyalty to the SAPO.

They do make me laugh, because they show ZERO initiative. Often running out of things. There is a form I need to fill in – small, 4 would fit on an A4 if you photocopied it. So instead of making a master copy with 4 and keeping it safe, and making sure you always have these forms available. They will need to run around and try find a form to then make a copy. Forward planning, this is not beeg in Afrika.

I am surprised the ANC hasn’t bailed them out a) it’s not that large an amount they need and b) this is an actual service used by the poor. The ANC would rather spend billions on useless fighter jets, parties for themselves and just waste the countries money. Oh well.

Have taken the Post Office off as an option with BoB – just PostNet now. Chalk and cheese walking into a PostNet vs a Post Office. But it cost quite a bit more sending stuff via PostNet, so I expect fewer but larger sales. I think the last strike might have been the final nail in the coffin – it was a long strike, quite a few months. Clever, clever workers – even if I did agree with them (guys were part time for years -illegal to do if you a private business of course) – I would still rather be part time than not have a job. But burn and destroy is often the africa way.

The other day a fire truck was burnt and one of the fireman stone (not killed) why? Because some guys where protesting about the power cuts (which happens across SA – we all get a taste). How does burning a fire truck help in any f@#$$# way? There are so many backwards idiots in this country it’s actually frighting – because you then cannot predict what a sane person would do.

But well done the ANC – I am sure you are putting a few small businesses out of business. You really are a bunch of fools – what pisses me off the most though, is that you proving the apartheid leaders right, you cannot run the country. Your only concerns when getting into office, it seems, is how much you can take for yourself and your friends. Pathetic. And your supporters are just hoping for a few scraps. Maybe Africa should just be run by chiefs – it seems that is what most of the population wants.

888 challenge ::

So the sale went through – slightly less than I initially asked – R92K, but did not have to do service, RWC or full inspection – saved around R4000 :: so came in at R96K, which was great, had been planning to advertise the car for R95 (book value was R83) – so it all worked out. Slightly sad to see the back of my “wheels” – probably the only new vehicle I will ever own – but money wise, I know a great decision.

Will eventually change the family car, a hatchback, to a small station wagon –  will then put om a tow bar. I am undersided about whether to get a trailer or just to hire when needed. The station wagon will probably be able to carry most loads I need. But I am a guy, I need to be able to carry EVERTHING at a moments notice! Can get a licenced trailer for around R5000 – unlicensed for around R2000. Definitely going to wait and see – think the station wagon + roof rack + hire trailer when needed might be the best option.

I was going to transfer just R90K – round number and all, but figured there could be up to R2K worth of costs, so just do the lot. So the money should show up tomorrow.

So I’ve settled on REITS as discussed in this post. I will not go over that again. I know just need to choose my shares. I have a 9 candidates and have drawn a list, listing their P/E, D/Y, where they are in 52 week trading range, Buy/Sell recommendations, Performance over 5 years, Price and lastly, the hardest, what’s their chance for growth.

This suits the smaller, newer players – doing something that will enhance value – where as the same project with the bigger guys barely moves the share price. Looking for some uniqueness, or a bit of X Factor. I will need this to get the 8% growth – the DY and DY growth are fairly easy to do.

So far, The shares that are in are:

Fairvest :: Buying in depressed areas, fixing up, then increasing yield
Accelerate :: Concentrated in Fourways, good growth prospects
Safari :: Townships and interesting development in Namibia.
Tower :: Small, doing interesting things (solar) in WC and moving into Croatia

Then others I am interested in :
Delta :: Goverment
Delta Inter :: Africa Focused (not REIT)
Investec ::
Rebosis ::
Texton :: Some overseas assets, Christo Wiese partner

So I think 20K in Safari, Fairvest, Texton and Accelerate – with 10K into Tower. Changed my mind – do have tower already, so have bought Delta Africa – not a REIT, but 10% plus div/yield so will take the small hit on tax. I was going to just “swap” – but have been able to buy 11K of DLI.

BTW just saw the share price of Sirus – a held it for 4 months, selling it at the end of March – up 25% since then, GRRRRRR.

Monday 10 August :: The week ahead

Had an ok week – but took Monday of and went to watch a movie, buy the battery and managed to sell my old climbing harness. Always good to get a couple of things done when heading to CT.

Tuesday was spent taking the car for inspections and getting ready to sell it.

But did get the battery boxed and another coat on the back gate. Just want to finish off a few jobs and spruce up the garden and spend a little time getting the veg garden sorted – spring is coming. Just took the bike out for a quick ride – stopped on the way to Hopefield – and had a little picnic. Think I might paint the hallway next week – so would like the list to be shorter, plus garden needs a little work and lastly need to go through all old stock on BoB and check and adjust. It’s been a year, so can lower some prices and clear. 50 units this week!

1) Box battery and bits
2) Finish Car Sale have to see if it goes now
3) Choose shares 888
4) One coat anti rust back gate
5) Paint back gate
6) Sort out front bed – pull up gravel/ relay plastic
7) Load to dump – raining/bakkie about to be sold, might not make it! ahh well, burn!
8) Grout front
9) finish tiling pool
10)New veg frames
11) Mirror frame
12)Pelmet
13)router table – fence
14) Plant veggies
15) Mow and edge
16) Clean pool
17) dig over new 3 sisters bed.
18) Bob :: Costumes – photo and sell
19) Bob:: equipment
20) Bob: shoes
21) Bob: clothing
22) Place add for web server space/ rework inverter add

Holidays and holiday cash ::

A couple of days ago my wife asked me if we could meet up with her cousin and family in October in Durban for a 5 day holiday. I agreed. We haven’t had a holiday for a while and although I have been to Durban quite a few times – the last time I went was around 20 years ago. My wife has never been. My nephew (also our god child) should now be ok playing tennis, so will be nice to knock a few balls. I actually got him started in tennis – giving him his first racquet and spending a few hours with him on the courts – so very interested in his development. Good kid as well. As a family they are quite fun – so should be good.

Holiday will cost around R10000 – so R5000 each. Checked out driving, but it’s 1600km away and airfare is around R2200. Petrol at R14L and 320L = R4480 – so will fly. Hopefully get accommodation @ R500 per night. And then another R500 per day for food/ spending. No sure where we staying yet, but doubt there would be courts – hopefully can find some courts somewhere.

Good thing we have R5000 in the holiday account. Many moons ago, when I was making websites with my wife, I decided to become a reseller – basically buying a chunk of web space and then being able to divided it up and sell it. Has worked very well – been with the same people for years and the give me the same deal – about R2000 for 2 years. Keeps going up because it’s in dollars, but they have never raised the price, it’s a good deal. Basically, two customers pretty much pay for the whole thing.

We split the money – my wife keeps track and every once and for years she took it off the monthly bills – but a year ago I told her to keep it in a separate account which we would use for holidays. I also leave any cash that I get doing odd web jobs for her in there. Any way, that has grow to R5000 – not bad, pays for half the trip and I do even think of the money as earned.

I was sort of hoping to save up for a cruise – we’ve never been on one but I think we would enjoy it – doing very little while stuffing myself really appeals to me, 🙂 So when we where discussing this holiday, went and took a look at what we could get cruise wise. The biggest saving of course, is that there is no flying, catch the ship in Cape Town and off you go. So for around R10,000 we could take a 4 day trip up to Walvis Bay. Nice.

But what I really want to do, is take the 21 day trip, when the ship returns to Europe. It’s always a great price as they seem to struggle to fill the ship on it’s return journey.  The 2017 trip costs around R15,000 and then need a return flight, maybe a couple of nights in Venice and some spending money. So R30K each would easily do it – and would be an amazing holiday.

My wife also turns 40 that year- another good excuse. Basically, we need to start saving R1000 per month from now till then – cruise starts in May 2017. We also have this years Durban holiday which need a couple more thousand. That will come from Aug, Sep and Oct’s R1000.  From then on, all will go to the cruise – 19 months – R19,000 – plus interest, call it R20,000.

The rest will come from the holiday account – but I want to try get R20,000 in there. I am planning to try sell more space by advertising on Gumtree and the local Facebook page. Try get another 10 – 15 “renters” @ R30 p/m will bring in around R7K over the 19 months.

Of course R1000 is quite a big chunk of change when you only living off R6000 p/m. But confident it can be done – and might be quite easy when I think of the extra cash my car sale will bring in. Basically getting R90K for it – @ 8% R7200 per year extra. And I could live off R5000 per month fairly easily – specially if we trim the food budget down a bit, have been eating way to much junk (chips and chocolates) anyway.

I have also decided I do not need to save the R500 p/m that I was – will just reinvest dividends from the smaller account (R67K) and the TFSA (R30K) as well as put all the rest of the cash I get from stock back/shop fittings into it. Still have around R40 – R50K left. That should take care of savings. Any money I get from new mini ventures I’ll keep and use how ever.

So will just live on the main accounts income and trust money – hopefully R36K and R36K for next year. So that R6000 – Take out the R1000 and still have R5000. Just enough – the following year, when the money comes through from the new REITS, will be a lot easier. Funny how I will probably get the money this week, but will only see any rewards in a years time!

And although I love my life, I am quite looking forward to these two holidays. Maybe it’s a human condition, even being on holiday, we want more – greedy bastards aren’t we? Will have to see if my wife will get her act together – she has at least identified where a fair chunk of money goes – presents. Especially around Christmas. It is nuts – how often do you get a gift you really use or need?? The problem with my wife, is that she will happily use money earmarked for her retirement account for other things – so, like many people, money for retirement/ investing comes last. Good thing her husband does not thing like that.

I give her 10% of my trust money R4000 which I can insist that she saves – as well dividends that she reinvests – she has a share account of around R110,000 – so R3000 or so. So at least the account is growing slightly even when she does not add her money to it. Am trying to get her to open a TFSA with ABSA – at least she could start a stop order with say R500 p/m and then buy some ETF’s monthly. In fact, going to insist she does that this week. All at least suggest very strongly 🙂

Garden Update :: 09 August 2015

Firstly, two of the new beds are doing very well, specially since I made them covers. Birds (I am guess, I think mice could have found their way in) had found the new beds and had started stripping the leaves – but they have recovered very nicely with the covers. First pic is of the kale (have had a bunch already) and I think Cauliflower (why don’t I label plants!!) – could also be Kolrabi?

The frame was made from scrap wood and some conduit bent on a mold I made using my heat gun. Works well, light and beside the covering, cost R20 for the conduit per cover – so pretty cheap. Should really sew up the flappy bits!

This pic is the spinach bed – also recovering nicely – some rocket in there as well – some of which will be finding it’s way onto pizza’s tonight. There is a white tool in there that I use to scrape weeds as they stick their heads up. Got tired of pulling them out – takes a while. When they are young, scraping is very quick, maybe two minutes a bed – so works a treat.

Lastly, looks the compost maker is working – in the winter as well, lovely!.

My Friends and their money :: Friend two, Mr G

Mr G is one of my best friends – known each other since high school. Although we now live far away from each other, we check in once in a while. And, as we chatted yesterday, thought I would write about him.

Career wise he has done very well – at one time we both studied for the same thing. I finished the course and got the diploma ( in the IT field) – he started working while studying part time and never did the exams. I never got a job in that field – he is now earning big bucks.  Work experience, don’t knock it!

But he has always been crap with money. Ever since we where kids, if he had it, he would spend it. And as he has earned a good salary, credit providers have been happy to lend him money. He also is often on the look out to make an extra buck – often with disastrous results. And he has no problem funding these ventures with credit cards. I doubt he has has a positive balance in his bank account at the end of the month in the last 15 years or so. Seriously.

So some of his ideas, a share in a race horse, a website where is was free to list for two weeks – but you would then pay for longer! and his most expensive one so far – a spot of gambling. He’s also just not a saver – when he has cash, he’ll blow it.  His parent where also a bit like that. Really nice people – but they seemed to go out for dinner all the time – I asked once and he said they would go out three times a week or so. My family, on birthdays – so 4 time a year! He once said that his parent did not have a retirement plan at all – their retirement was their property – a large house on a huge plot with a few cottages for rent. At the time, he thought that was nuts. I tend to agree.  So he has seen how NOT to do it.

After he mentioned that he was paying back a huge portion of his salary on cash, he said he worked out his net worth the other day -R600K! Not great when he earns upwards of R60K p/m and has been paying off his flat for 10 -12 years or so. Turns out he taps into his mortgage frequently. Eish.

He is a fantastic bloke and great fun to have around – both my wife and I love having him visit us. And he know’s about the stock market – he had a couple of shares before I did. And he has no problem working. Lastly, he is on the look out for extra money – which should be a good thing, but has not been for him. He would do way better if he stopped on the money making ventures and treated his money like a business.

But he wants his money fast – I think he would think 20% a year as boring. I am surprised he hasn’t signed up with some MLM products – maybe that will come. He is now stuck in a stressful job that he does not really like. As he get’s paid hourly, he doesn’t even want to take a day off to sort out his affairs. I am not sure how long it will take to pay off his debt – and will he then be able to put some money away for retirement? Hmm, clock is ticking. He did say he has cooled it on going out and spends most of his time at home, with the money he earns he should be able to turn things around – but it will take a few years.