How Tutu saved R2 400 monthly on her car installment

Hi Phumelele,

Since you came to our company early in the year to do workshops, I have been thinking about ways to reduce my monthly expenses. Your talk made me brave enough to downgrade my car. I have been driving a car with a monthly instalment of R5 600. I have just sold this car and I am now driving a cheaper car with an instalment of only R3 200. So I now have R2 400 savings on the car instalment. When you said to us “most of you think you are driving your cars and yet your cars are driving your destinies” I felt so guilty because I knew I didn’t need such a big car. I bought it because my friends and colleagues have nice big cars too. I am so happy my company invited you to talk to us because I now know what I need to do to be prosperous 🙂

Thank you


I was so pleased to receive this email and I immediately wrote back to Tutu to find out more about her plans.

Phumelele: I’m so pleased to hear you have freed up R2 400 to use to your benefit. So what will you be using it for?

Tutu: The settlement amount on the big car was high. When I sold the car, I still had to pay in R36 000. I had to take a loan to pay off the R36 000 shortfall. So I will be using the R2 400 to pay off this loan over the next 15 months.

Phumelele: Have you thought about what you will do with the R2 400 once you have paid of the R36 000 loan?

Tutu: Yes, I want to buy a house

Phumelele: You must have also saved some money on the insurance on the new car?

Tutu: Yes, you are right. I actually saved another R500 on insurance so in actual fact, the monthly savings are R2 900. Plus I decided to take out life cover so I wouldn’t have to pay credit life on the new car. I was paying R700 monthly on credit life. So I am scoring really big now that I know what I’m doing.

Phumelele: I’m really happy for you so in the next year or so, you will be ready to buy your own home? Tutu: Yes. I actually realised I was wasting my money. I have been renting this townhouse for 2 years now and I’m paying R5000 rent. When you said to us, “most of you say you cannot afford to buy a home but you are renting. Do you realise that you are actually paying someone else’s bond?” I knew at that point that I needed to make changes in how I was spending my money.

Phumelele: Good for you. I will continue to use the ‘guilt trips” to haunt people like you who earn good money and throw it all away to impress everyone. Remember that you don’t have to take 20 years to pay off your home!

Tutu: Sure not. I’m so fired up I will actually use your tip to make sure I pay the house off in ten years. I am 25 years away from retirement and I want to own at least one investment property that I will rent out and supplement my pension in retirement. Your talk actually made me realise that it is actually easy to become financially independent and even rich, it’s just that we are not wired to think right about money. Phumelele: Thank you, Tutu

Invite Phumelele to speak to your employees before they get their bonuses. Hopefully, they too will become money wise and make the most of their money.While many people are thinking of buying those “buy now and pay only in April 2013 cars”, employees who come to my talks and workshops are constantly thinking about how they can use their money to their own benefit. So don’t wait until your employees toy – toyi for bigger salaries, invite Phumelele now so she can show them that “it is not about how much you earn, it is about how you use what you earn that counts”.

Invest R15 000 to the financial well – being of your employees and invite Phumelele to address your employees. To find out more email

What has been said about the book

Thank you so much Phumelele, I have read your book, From Debt to Riches, so assisting, so simple.  I am now assured that my children, unlike me, will start on a sound financial foundation. Thank you so much! (it is so practical and up to date – from it, one goes straight to action)


From Debt to Riches

Warm regards


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