What are some tested money saving tips?
Below are some tips of my own that assist me to be disciplined in my approach to saving money:1. Have a plan and definite GOALSWhether it is for retirement or something simple, like saving for travelling or your children’s education, it is important to have a goal to save towards. Add a rand value to it and write it down and always refer back to it for motivation and reference.Start off by saving 10% of your monthly incomeI recently read the classic “The Richest Man in Babylon” by John S Clason (I highly recommend it). His “First law of Gold” is that if you save one tenth of your earnings consistently you will have enough to provide you with income in the future. Saving anything more is obviously even more advantageous but 10% is a good starting point.2. Start earlyThe time value of money and compounded returns play a massive role here. A simple example in the graph below shows five different people each saving R1 000 per month up to age 65. Returns assumed at 12% and also assuming no withdrawals during the period invested.R 12m when saving for 40 years compared to just under R1m when saving for 20 years speaks for itself. More notably and underlining the importance of starting early is the fact that by starting only 5 years earlier the 25 year old accumulates R 5.5m more than the 30 year old when both reach 65.3. Cutting down on spending/penny-pinchingAn easy way to increase saving is obviously to spend less. Assessing my bank statement at the end of a month and highlighting areas where I can improve in the next month helps with having extra money to save. Again I would challenge myself with goals and it can be as simple as renting a movie and watching it at home rather than going out to the movies or playing one less round of golf per month.4. Guard from loss/invest smartIt is important to invest your savings in a product that beats inflation and doesn’t lose any capital over your investment period. There’s nothing worse than losing your hard-earned savings by being invested in, for example, a money market fund which would not guarantee inflation-beating returns. It is always wise to consult your financial advisor to make sure you invest your savings in an appropriate investment vehicle
Breaking a lease?
If you break your lease you will be responsible for every day or month until the unit is re-rented to a new tenant. Depending on the lease agreement, which is very rare, if it states that you are only responsible for one month then you should be fine. The only time that you do not have to pay the remainder of your lease is if you had to break your lease due to "unsafe" circumstances. Examples: Your apartment or vehicle has been broken into many occasions and the company cannot provide you with 24 hour security. There are rats or other unsanitary conditions happening in the apartment, also fire hazards that the apartments refuse to fix or have neglected. You have an ex or someone who is harassing/stocking you or your life is in danger due to the individual(s). Otherwise, if it was due to financial hardship or for other personal reasons, you will still be liable for the unit until they find new tenants. You can contact the Tenants Union in your area to get info on your rights as a tenant.
What is the most common problem for landlords when it comes to dealing with tenants?
Tenants who don’t pay their rent. Sometimes they lose their job and then you have to either evict them or wait for them to find another job.I have had several tenants who pay their rent late every month until they are 6 weeks behind in their rent. I have to live them behind in their rent, or I have to evict them.I have had tenants who painted their apartment, painting over every doorknob and light socket. One tenant painted the room dark dark wine red and then splatter-painted the ceiling and doors.Scratching the newly refinished hardwood floor as soon as they move in, dragging something across the floor that gouges the floor.Destroying the window screens. Every second or third tenant destroys all the window screens, usually with a dog wanting to get out to bark at another dog.Several tenants who want everything repaired, including the height of the toilet, the kitchen faucet that gushes if you force it over to the side, tells me there are drips in the bathroom when I can’t find drips, wants the fridge resealed when they don’t close the door properly, wants the door to her bedroom replaced because she lost her key and kicked it in one night when she came home drunk.Disagreements with spouse on how to run the business.Tenants take down the smoke alarms required by the city, because the smoke alarms go off when they smoke marijuana, or when they cook, or when the batteries run down. Then I have to replace the smoke alarms every three years when the city inspects.Less common: Tenant who broke up with her boyfriend, so he went around the house damaging the stove, fridge, doors, toilet, and sewage system, flooding the basement.Less common: drug addicted tenants whose drug supplier sends someone to enforce them paying their bill. Drug dealers who deal out of the apartment.So now I always get rental references. No moms, priests, social workers. Only landlords or someone they have paid rent to. And the previous landlord wants them out, so sometimes will tell me they are great when they are awful. So I need two references.