One of my clients traded in his fancy German sports car and the results are astounding.
Last year one of my clients contacted me to say his budget is tight and he is struggling paying all his bills every month. We had a look at his budget and realised 30% of his salary is going towards paying his car installments. I urged him to trade in his car and buy a cheaper reliable option and after some negotiations he agreed that the car had to go.
Now almost a year later, we have the results:
| GERMAN SPORTS CAR | NEW SOUTH KOREAN SEDAN | |
|---|---|---|
| Installments | R7 800pm | R2 900pm |
| Insurance | R1 200pm | R900pm |
| Petrol | R2 100pm | R1 650pm |
| TOTAL | R11 100pm on his car (excluding any maintenance) | R5 450pm |
| Total saving of R5 650pm |
We agreed that saving R3 500pm is a good idea and now a year later my client has roughly R45 000 saved up and will be taking his family on a nice overseas holiday next year.
Just another reason to assess your current car installments and decide if you are spending your money on the right things.