Some finance companies and large retailers often offer to finance goods on hire purchase with catchy slogans and seemingly easy terms. Watch out for this practice. This is often a very expensive way to finance the purchase of goods that will eventually lose their value. (more…)
June 4, 2009
Credit Cards, Borrowing For Consumables?
Credit cards have become one of the growth sensations of this country since Mastercard and Visacard were introduced in the early seventies. They are the new super weapon in the never- ending attack on your rand and represent a bigger threat to your money tree than a plague of locusts. Living within your means is a constant battle — credit cards make it much harder.
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May 8, 2009
May 6, 2009
Credit Ratings, what happens when a lender calls the credit bureau
For some strange reason the term “credit rating” sends strong men weak at the knees and conjures up visions of little men in darkened rooms keeping track of a person’s every movement. I do not know how this came about but I do know there is no reason for this illogical fear about having somebody check up on your credit. (more…)
May 4, 2009
Your Favorite Investment Alternatives continued
At this stage you should learn the Golden rule of Investment:
“The higher the expected return, the higher the risk.” Let’s face the fact — if there were fool-proof, high yield investments around for the asking, people who knew about them would keep the knowledge to themselves. (more…)
May 1, 2009
Gearing – Speeding Up the Way to Wealth (Or Ruin!)
If you have ever used a tyre lever, or played on a seesaw, you will understand the principle of leverage. By the use of leverage the power of a small force can be greatly increased to have an almost unbelievable effect. In investing the correct use of leverage, or “gearing” as it is more often called, enables the rate of return to be increased substantially.
Think about two people with $50 000 each. The first buys a house for $50 000 that is returning $400 per month. The second is more adventurous and buys two houses for $50 000 each. Because he has only $50 000, he has to borrow another $50 000 to complete the purchase, using the rents to pay the loan repayments. (more…)
how about spending Money You Don’t Have?
It is a strange thing that most people who have made fortunes could not have done it without borrowing money, and yet borrowing money has sent many others bankrupt. How can it be such a good thing for some and so bad for others? Borrowed money is like fire — “a good servant but a bad master”. (more…)
November 12, 2008
Credit Market is filled with Cheap Money, Economy Goes Grimly
US bailout, UK has been throwing money at economy, China’s plans to pump more money into its red flagging economy.
All these cheap money sent many world wide stock markets temporarily high.
But even as stocks strikes, the economy was going grimly.
Neither money nor economy is independent. The economy is much worse with the generous pumping money.
Retail sales are falling and house sales are in hell.
November 2, 2008
Sizzling Capital Requirement, swelled Trade Deficits, and Worse South African Rand
September machinery equipment and oil imports brings the South African trade deficit from R5 billions in August to R7 billions.
Last Week Friday South African Customs figures released imports rose 4% to R68bn which Oil imports R1bn and machinery and appliances imports R2bn; while exports rose a more modest 1.4% to R61bn in September. (more…)
Political Uncertainty, South African Welfare Spending and Poverty
Raising the interest rate to increase South African government spending to relieve South African Poverty, it is going destroy the investors’ confidence.
South African Reserve Bank has increased interest rate by 5% within last two years. Rand is reaching the lowest level in the past 6 years. New financial minister still cheers up, the fundamental South African economy is strong, no need to cut interest rate. (more…)
