My first post!
I have been lurking and reading since 2015 when my FI journey started and I usually find what I need and can apply it to my situation, but now Im stumped. Let's start with the numbers then go into all the background:
I am 35 ( nearly 36) single, no debt.
I earn 91200 per annum/ U$D 103200 (7600 per month/ U$D 8600) I moved to Germany mid-May and am currently in a company flat for 6 months so my expenses are little as I am settling in. Then I have to hunt for my own place.
SAVINGS IN SOUTH AFRICA
Retirement Annuity: South African ZAR
. R361,928.00
..21,935.03
Cash Balance: South African ZAR
. R525,288.47
..31,835.66
Bitcoin: South African ZAR
R22,000.00
.1,333.33
SAVINGS IN GERMANY
Contribution to German state Pension
..
1,571.00
Cash in Germany
.31,951.82
TAX
About 3600 in tax, yep crazy high, it covers mandatory health, obligatory pension scheme, unemployment insurance solidarity tax, church tax
Current Total savings
(ZAR909,216.47) 55,104.03+33,522.82
. 88,626.85
CURRENT Expenses (till Nov 2018)
Groceries, household costs etc
150.00
Public transport
.80.00
Entertainment and Leisure
70.00
Studies - uni courses, online
.10.00
Bank charges etc (SA)
..15.00
Donations, Church
20.00
Current Total Expenses
.350 / U$D 400
Savings rate (of nett) 91%
Savings rate (of gross) :( 48%
PROJECTED Expenses (from NOV 2018)
Accommodation per month
.700.00
Utilities - water and electricity, radio
80.00
Internet
30.00
Groceries, household costs etc
150.00
Clothes
.50.00
Public transport
.40.00
Entertainment and Leisure
50.00
Studies - uni courses, online
10.00
Sports fees, subs - fencing + dance
30.00
Music, strings, lessons etc.
30.00
Bank charges etc
Donations, Church
50.00
Holiday savings and gifts
.50.00
Parents Mortgage, dependants
100.00
Liability insurance
10.00
House insurance
20.00
Musical Instrument insurance, 2 harps, violin
..20.00
Car Insurance and bicycle
..60.00
Petrol/ Travel Costs, toll gates etc.
80.00
Vehicle payments - maintenance/ servicing
..33.00
Vehicle payments - cost buying
Projected Total Expenses
.1,593.00 / U$D1805
Savings rate (of nett) 60%
Savings rate (of gross) :( 32%
Now with the numbers out of the way Some background info:
1. I have no debt
2. When I began my FI journey in SA I figured I could hit my target of R4,5mil by 40 to 43 or so especially as my salary was increasing quite a bit and my savings rate was about 80% and life in SA is dirt cheap. I've moved and this no longer holds true and I need a new plan ASAP... more like yesterday....
3. I was planning on getting a small flat to rent out in SA before I moved, hence the reason I have so much as cash because it was in a managed fund I took it out to pay for the flat cash (about R300k) and then reinvest the rest, and then I planned to move to Canada in 2019. I then got headhunted by a German firm and it seemed an amazing offer, well job wise it is coz I was beginning to hate my job
.
4. Now it seems impossible to reach FI early because life in Germany is expensive ( projections are looking like 16 years :() Rent alone will cost me about 700 in SA I paid about 270
I had hoped to not have vehicle costs but I am finding that places close to my place of work are a bit expensive and I cant get to the stuff I want to get to, symphony choir, a place to play music, church, fencing, dance. So if I move it makes sense to get a car as the trains here are not that cheap either (and maybe Ill be able to start playing at weddings again and the harp pays for its own costs). Could not bring my car from SA as we drive on the left over there
I plan on learning how to cycle and then use that to get around till November and reduce car costs that way as well after November.
5. I think Ill stay here for about 2 years till mid 2020 (unless I get married or something like that) Plan is to move to Canada (have family there) or some place in Asia like Japan.
6. A lot of rentals here have no fitted kitchen
its crazy but it means quite a bit of money is used up just to rent
7. Buying property here is a nonstarter
.
So here are some expenses I am expecting to have by November
Upcoming costs
Bicycle
..300.00
Car
.5,000.00
Kitchen + furniture
.5,000.00
The questions:
1. That money sitting in SA is no good, but I have no idea how or where to even begin looking to invest in Germany, everything is so confusing and my day to day German does not cover financial stuff yet, any idea where I can get good simple information? So far it seems that taxes are the one thing that will kill me.
2. Any ideas on how best to move my cash out of ZAR? End of May I could have gotten about 36k euro but now the Rand has dropped so am looking at about 32k so it does not seem like a good idea to keep it there
3. Or should I just look to reinvest it as previously intended in SA as moving it out will kill me with charges and exchange rates
?
4. Is there a way for me to invest internationally so that regardless of which country I end up in I dont get hammered by stuff like capital gains tax? If yes what should I start investigating, I have seen some Vanguards in the UK/ Ireland but how would those work?
5. What is the easiest stuff to start with, I keep seeing stuff about EFTs and Bonds but Im not sure I understand them enough to know what I should go for?
6. Everyone in Germany is insured to their necks, Im not sure what to take or not, because repairs here would kill me - is household insurance, loss of work etc insurance necessary in Germany? I am thinking if I get a car then I get insurance only for car and personal liability and little for my musical instruments, but if I can get out of paying insurance I welcome any possible alternatives.
7. I want to help my mom pay off her mortgage (about U$D 15000) in Zimbabwe and had thought to just do that, but with the Rand Dollar exchange rate not being in my favour at the moment not sure anymore about doing that now. Good or bad idea to use the SA money for this?
8. Anything that Im doing that is totally dumb? Any ideas are welcome, Im totally out of my depth and this stuff is making me feel stupid coz I cant figure out what to do.
I know most of y'all are in the US but still hoping to get some good information. Thanks in advance :)