How I got into, and out of, debt

Millennials have become a generation of ’side hustlers’ so that they can stay afloat financially. Broadcast engineer Afika Soyamba shares his experiences with debt and his project on the side

How did you get into debt?

I'm not a fan of debt, so I only had one clothing account which I got when I was at school. I was told that it would help me build my credit record. Once I started working, I closed that account and took on a credit card with a low credit limit. I managed it well until I took on more responsibility.

When did you realise you were in a deep hole?

At some point I reached my credit limit, which was R80,000.

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What did you do?

I began paying off R4,000 every month - more than the minimum required. Seeing the credit-card balance going down got me excited. The car that I had at the time - a Citi Golf - was about R1,300 a month, so I started paying more towards that as well.

How did you prioritise between paying off debt or investing?

I decided to do both. The investing part was more about doing the practical learning. I knew nothing and so it was a learning curve. I didn't want to have to dip into my credit card if I had a problem. I used my investments as a safety net.

And what led you to start investing?

I started saving in 2011 in MTN Zakhele shares. I was an MTN user and I thought it would be good to own a piece of MTN. After that, my interest in investing grew and that led to me finding out more about investing.

How have you remained disciplined?

Between 2011 and 2014, when I was still learning how to invest, I used to go back and sell my shares when I needed the cash. In the past two years I haven't sold any shares, because my situation has changed.

Now that you're more consistent with your investing, what are your goals?

I invest for the satisfaction of it; knowing that my money will do something for me and my kid in the future. Another one of my goals is to retire before 60.

People always tell stories about investing R10,000 in great companies in 1994, and they're millionaires today. I want people to talk about me like that one day.

And what is your investment strategy?

When buying shares I look at companies that I like and the people behind it. If they have a good track record, I go for it.

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Such as?

Curro and Capitec, both owned by PSG. Curro is offering something parents need - quality private education that is affordable.

And what are your thoughts on side hustling to supplement income?

I believe that every working person must have a side hustle.

What are some of your side hustles?

I bought a car so I could become an Uber partner to raise money so I could start my own car wash business. All the money I made from Uber went towards my car wash.

Partnering with Uber worked well for me. The car wash is still new, so we'll see how that goes.

What advice do you have for anyone who wants to start saving or investing?

Start somewhere. Look at the products banks offer and take it from there.

You can use social media and watch YouTube videos that will help you figure out how and where to invest depending on your goals and risk appetite.

tsamelad@sundaytimes.co.za