How to save and buy an island (you need only R2000 per month)
(This interview took place on 1 November 2018.)
There are a whole bunch of audacious, really fun things you could be doing with your money, says Sam Beckbessinger, author of Manage Your Money Like a F*cking Grownup.
Like buying a private island in the Caribbean.
But we assume we can never afford these things, so we limit our ambitions.
Maybe we daydream about buying a better car but assume that to buy a private island, you'd have to win the lotto.
Well, fun fact:
If you sell your expensive car and buy a cheaper one, and invest R2000 a month into the JSE Top 40, you will be able to afford to buy TWO private islands over your lifetime.
No, for real.
Beckbessinger has done the maths.
They chatted about how spending less money every month on the boring stuff like your car can allow you to do outrageous and courageous stuff with your money.
Because compound interest is magic.
For more detail listen to the interview in the audio below (and/or scroll down for quotes from it).
This gorgeous island costs R3 million… it’s a lot of money, but it’s not Richard Branson money…Sam Beckbessinger
If you spend R4000 a month on your car… trade it in for one that costs R2000 a month… invest the difference… it’s likely to grow to R6 million over your working life… Which means you could have two private islands if you wanted to!Sam Beckbessinger
Car salesmen use every trick in the book to make you think you can afford it… if you can pay off a R400 000 car over five years, you can just as easily pay off a R400 000 flat.Sam Beckbessinger