surviving a financial emergency when you don't have emergency savings [thread]
in a perfect world we all have cover to survive a sudden retrenchment, an expensive accident or a massive bottle service bill at groove
we don't live in a perfect world, we live in SA
more importantly, you really can't save money you don't have - here's a few game changers
we don't live in a perfect world, we live in SA
more importantly, you really can't save money you don't have - here's a few game changers
1. Get a RCF
Resting Cash Face? No, a Revolving Cash Facility or Revolver
This revolver is the gun to save your ass when shit gets real. Many pvt banking clients have access to revolvers & hardly ever use them
It's basically a facility of cash open for you to "draw down"/ use
Resting Cash Face? No, a Revolving Cash Facility or Revolver
This revolver is the gun to save your ass when shit gets real. Many pvt banking clients have access to revolvers & hardly ever use them
It's basically a facility of cash open for you to "draw down"/ use
2. Bond overdraft facility
a great tool if you have a bit of headroom, close to the end of the repayment period or started out with a juicy, heavy deposit on the adult res
a heavy deposit, accelerating repayments & living within your means creates a nice equity surplus
a great tool if you have a bit of headroom, close to the end of the repayment period or started out with a juicy, heavy deposit on the adult res
a heavy deposit, accelerating repayments & living within your means creates a nice equity surplus
3. Get decent gap cover
It's a really small price to pay for heavy cover. If you're skeptical, ask @Dre_AFC just how vital this is to take care of medical emergencies
if you hit a medical aid cap, this can literally save your life
It's a really small price to pay for heavy cover. If you're skeptical, ask @Dre_AFC just how vital this is to take care of medical emergencies
if you hit a medical aid cap, this can literally save your life
4. Be forensic on insurance exclusions + manage cover
Most people are a) overinsured & b) paying for the wrong coverage
recalibrating your risk to match the product you're paying for is a great first step in unlocking surplus cash & making sure emergencies won't ruin your life
Most people are a) overinsured & b) paying for the wrong coverage
recalibrating your risk to match the product you're paying for is a great first step in unlocking surplus cash & making sure emergencies won't ruin your life
5. Increase your credit limit when you have the chance
credit is oxygen & when you're suffocating - the air gets thin quickly, banks turn off the supply
be responsible with credit, always have a rescue line (of cocaine) available
credit is oxygen & when you're suffocating - the air gets thin quickly, banks turn off the supply
be responsible with credit, always have a rescue line (of cocaine) available
6. liquid assets!
No, not Savanna - stuff you can sell quickly
Your 500 million shares in Aveng aren't just worth R14.70, they're also illiquid as fuck
assets that can be translated quickly into cash are an essential part of every portfolio
No, not Savanna - stuff you can sell quickly
Your 500 million shares in Aveng aren't just worth R14.70, they're also illiquid as fuck
assets that can be translated quickly into cash are an essential part of every portfolio
7. working capital facilities
something small businesses don't use nearly enough! a working cap facility is usually secured against debtors, inventory & other current assets
it gives you much needed relief to settle payroll when cash is coming in a few days later
something small businesses don't use nearly enough! a working cap facility is usually secured against debtors, inventory & other current assets
it gives you much needed relief to settle payroll when cash is coming in a few days later
8. asset backed lending
many banks will allow you to borrow against your assets (& stocks) - it's how rich folks get richer, pay less tax & enjoy the benefits of ringfenced leveraged
this deserves it's own thread - you can create tons of wealth if you're smart here
many banks will allow you to borrow against your assets (& stocks) - it's how rich folks get richer, pay less tax & enjoy the benefits of ringfenced leveraged
this deserves it's own thread - you can create tons of wealth if you're smart here
9. sell an organ
actually, wait don't
I hear kids in Bangladesh are pretty productive as cash generating machines though - this is not investment advice
actually, wait don't
I hear kids in Bangladesh are pretty productive as cash generating machines though - this is not investment advice
10. force yourself to save
I hate this approach personally - the structured 13th cheque - it feels like a bonus sat the end of the year
BUT if you know you have habits like Don Petty Cash - pretty girls, dry powder, champagne & a gambling habit - do it!
I hate this approach personally - the structured 13th cheque - it feels like a bonus sat the end of the year
BUT if you know you have habits like Don Petty Cash - pretty girls, dry powder, champagne & a gambling habit - do it!
Shout-out for making it to the end. I appreciate you. This is probably the only finance account worth following on this app - trying hard to be modest here.
Please also check out my burner over @Banker__X, top tier content out there from a stacked crew of smart guys.
Please also check out my burner over @Banker__X, top tier content out there from a stacked crew of smart guys.
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