Bankserv reported that it cleared 4,7 million card transactions on black Friday, 24 November 2017. Of these transactions, debit and credit card retail transactions totalled R2,5 billion.I was called by UkhoziFM on the eve of black Friday to comment, or should I rather say to caution consumers against excessive spending, especially on credit, on black Friday.
My viewwas, and still remains that if you decide to shop on black Friday, you would stand to benefit the most if you do so using cash that you have rather than buying on credit. While it is correct that you are buying at a discount, if you are going to incur interest costs as a result of your shopping then you are diminishing your gains as you are going to spend the next 6 to 12 months paying off high interest debt.
Stokvels stand to benefit the most from black Friday if they respond appropriately. My suggestion is that stokvels must respond by distributing their savings at least 1 week before black Friday. That would enable their members to shop using cash [debit cards] at a discount. Food prices, furniture, clothing and basically just about everything goes up in December. This is when stokvels distribute their money. In the past, stokvel members have been wasting a big chunk of their savings by buying at a premium.
With Black Friday happening just weeks before stokvels distribute their savings, stokvel members stand to benefit the most if they change the date of distribution to November. By buying what they needonblack Friday, they stand to benefit the most as they should have very little need to buy during the expensive Christmas season.
ThuthukaSA is an independent Financial Services Provider, we are in a better position to advise and help stokvels invest their money. We have our preferred investment houses based on the profile of the stokvel members, their appetite for risk, investment term, investment objective, etc… See at the bottom of the email signature the companies we use to invest money for stokvels.
For stokvels that want to invest for black Friday, we would typically invest your funds in a Money Market Unit Trust fund with returns above CPI and interest compounding monthly. Beneficiation can be at a personal or individual level or at a collective stokvel level based on the needs of each stokvel. Members do NOT have to invest the same amounts per month and do NOT have to withdraw all of their funds at the end of the year. They could choose to withdraw a portion of their funds at the end of each year and leave the balance of the funds to be invested for medium to long term objectives e.g. for university fees of their children, as a deposit for a home or a car, start-up capital for their future business, etc….
If you want us to help you invest your funds as a stokvel or even as an individual, drop us a line at firstname.lastname@example.org
Phume & the ThuthukaSA Team