Discover and read the best of Twitter Threads about #FinancialHealth2020

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The amazing power of compounding ๐Ÿ’ธ๐Ÿ’ธ

Compounding is when your savings generate additional earnings for you over a period of time. Huh??

A thread ๐Ÿ‘‡๐Ÿพ

#FinancialHealth2020
#FinancialIndependence
Simply put, compounding is the growth of your savings.

This growth is the interest earned on the amount saved; each month you earn interest on the initial amount plus the interest already earned (your money increases over time with very little action required from you).
Compounding in action:

Let's say I save R1200 on 1 Jan, the bank offers me an interest rate of 6% per annum. A simple interest calculation tells me that I will have R1272 at the end of the year. But come 31 Dec I will actually have R1274.01 ๐Ÿฅณ๐Ÿฅณ
Read 10 tweets
I turned 30 on the 28th of Feb and this year I decided to celebrate my Birthday differently. Here are the 30 financial ideas I learnt along the way that shaped and continue to shape my life as I journey for my Financial Freedom. A thread

#FinancialHealth2020
#FinancialFreedom
1. BUDGET! BUDGET!
This is the best way to keep track of your CashFlows. Technology has made life easy: you can find it in most Financial Apps or Google the template & create one for yourself. Always remember that you spend what is left after Savings, not the other way round
2. Be very realistic with your expenses, donโ€™t under or over allocate funds to them. If you not sure how much you need for a certain expense, give yourself 3 months to track your spending then after you should have a figure to put down.
Read 40 tweets
ETF101 - Always read the Minimum Disclosure Documents(MDD). They tell you what companies countries and sectors make up the ETF.

If you are thinking of adding a new ETF to your portfolio, compare that with what you already have, and see if adding the new ETF adds any real value..
Example 1: ETF issuers
The main issuers have global ETFs that track the "MSCI World Index", therefore holding more than 1 of the following offers no benefit (diversification or otherwise)
1nvest MSCI World
Satrix MSCI World
Sygnia Itrix MSCI World

Just pick 1 and buy more of it
Example 2: S&P 500
All the following track the "S&P 500 index"
Sygnia Itrix S&P 500
Satrix S&P 500
CoreShares S&P 500
1nvest S&P 500

Again, no real benefit to holding more than 1 of the above.
Just pick 1 and buy more of that preferred ETF
Read 9 tweets
Thread ๐Ÿ™‚
I recently looked at my statements from @EasyEquities and my
investments have performed well over the past year so Iโ€™m sharing what steps I followed to improve the performance. Preparing for #FinancialHealth2020 Images are
1. ZAR
2. TFSA
3. USD
I have been an active investor for the past 5 years but my
returns have significantly improved in the past 3.

This means if I invested R100 000 12 months ago today I
would have:
ZAR: 144 000
TFSA: 122 000
USD: 115 000
2. I setup an automated transfer of funds for investing on payday (monthly). I used to spend first and invest what was left at month-end. Changed this to ensure investing is a habit.
Read 15 tweets

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