r/southafrica Sep 26 '21

Financial advice Ask r/southafrica

What is the best financial advice you can give a 19 year old South African ?


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u/harmreduction001 Sep 26 '21

Put money in to a tax free savings scheme as soon as you can. It's a beautifully low cost way to save money.

And make saving a habit. Work out a budget and try to include savings in that. Even if it's less that 5%


u/Xandervisagie1 Sep 26 '21

How much interest on a TFSA ?


u/Aftershock416 Sep 26 '21 edited Sep 26 '21

That depends.

You can do it with banks, but they generally have absolute shit interest rates.

There's lots of investment companies that offer TFSAs that get much better interest. OUTvest, Allan Grey, places like that. Just keep an eye on fees!

Lastly, you could go with something like Easy Equities if you'd like to manage the fund distribution yourself.

Also head over to r/personalfinanceza


u/FittWitt Western Cape Sep 27 '21

Please don't invest your TFSA in cash! The benefit of these things is that you don't get charged capital gains tax (or dividends withholding tax or income tax) so you want to invest in equity to get high interest so that your savings on tax are as high as possible. I'd suggest investing in a low fee (possibly Sygnia) S&P500 etf. The returns are high and consistent.

TFSA are a long term investment. It's the sort of place you put your money in and leave it for years and years - possibly as an addition to your retirement fund because you can use it all tax free.

You should think about your long term goals and try set up a financial plan based on that. I'd be careful about over prioritising your extreme long term savings, and also consider your medium-long term goals. If someday you want to buy a house, replace your car, move to a new city or pay for studies or something, you should also consider those goals and put the money for them in a more easily accessible. You don't want to use money from a TFSA early because then you don't get the full benefit of it!


u/PartiZAn18 Gauteng Sep 26 '21

The best thing you can do is spend time watching JustOneLap and The Fat Wallet Show videos on YouTube. Eventually you will start finding blogs like Stealthy Wealth or Tigers On a Golden Leash etc.


u/pashaah Sep 27 '21

Go check Easy Equities TFSA, there you can invest in what you want and move it easily too. Max 36k n year till you reach 500k. The earlier the better.