View Full Version : How much of your net salary do you spend?
Dolby
10-04-2007, 09:03 AM
I asked for a poll on this - but I'm impatient ;)
How much of your net salary - what goes into your account - do you spend on living? In my previous job I was at 60% - that was car installment, car insurance, petrol, credit cards, Telkom landline - and was told even this was too high.
In fact I was told to spend only 30% of your salary .... is this even possible is this day and age?!
JenMoo
10-04-2007, 09:09 AM
i'd say 60% is brilliant! i spend 120% of what i earn! not sure if that typical women for you or just that i'm not earning enough!
Pitbull
10-04-2007, 09:09 AM
I asked for a poll on this - but I'm impatient ;)
How much of your net salary - what goes into your account - do you spend on living? In my previous job I was at 60% - that was car installment, car insurance, petrol, credit cards, Telkom landline - and was told even this was too high.
In fact I was told to spend only 30% of your salary .... is this even possible is this day and age?!
I spend 100% of my salary... we live of my wife's :D
Bondizzo
10-04-2007, 09:13 AM
I believe it makes sense to spend less of your salary, I got a new job and earn like 10k, I have no bills to pay, no food to buy, no car installments. The only thing I pay for is telkom and bandwith. I spend about 20% of my salary on games every month, the rest I save. If you are living by yourself I think it would be impossible to spend only 30% of your salary unless you making over 20k
Gargmel
10-04-2007, 09:18 AM
I spend every last cent and then some...
JenMoo
10-04-2007, 09:19 AM
I believe it makes sense to spend less of your salary, I got a new job and earn like 10k, I have no bills to pay, no food to buy, no car installments. The only thing I pay for is telkom and bandwith. I spend about 20% of my salary on games every month, the rest I save. If you are living by yourself I think it would be impossible to spend only 30% of your salary unless you making over 20k
wow Bondizzo! want to spoil me?! ha ha :D
sometimes i think i should've stayed single! husbands and babies just drain the dollars!
Highflyer_GP
10-04-2007, 09:25 AM
Spend 80%, save 20%. Takes discipline but at least I know that it's there for a rainy day.
dotVIBE
10-04-2007, 09:27 AM
Believe me, if you live by yourself and have to pay car etc., you will spend just about all you earn. Anything I have left over just goes straight into my bond account.
Does paying your bond count as spending?
JenMoo
10-04-2007, 09:36 AM
my husband was retrenched last year and was unemployed for 6 months! i was only working half day when that happend. we're now both employed full time and a year later we're still struggling from that. i was retrenched begining of the month and thought we're just going to get deeper in the K a K but i have found a job so we won't be missing a salary. but with daily expenses it's hard! we're lucky enough to stay in my moms house as she works overseas! but we lost a lot and have to start from stratch! i think these days you have to earn 10k up to survive and my dream is to get there one day! :rolleyes:
Bondizzo
10-04-2007, 09:47 AM
my husband was retrenched last year and was unemployed for 6 months! i was only working half day when that happend. we're now both employed full time and a year later we're still struggling from that. i was retrenched begining of the month and thought we're just going to get deeper in the K a K but i have found a job so we won't be missing a salary. but with daily expenses it's hard! we're lucky enough to stay in my moms house as she works overseas! but we lost a lot and have to start from stratch! i think these days you have to earn 10k up to survive and my dream is to get there one day! :rolleyes:
may I ask, what do you do ?
JenMoo
10-04-2007, 09:58 AM
i am a graphic artist but as i only have a one year diploma and not through the technikon not many companies look my way. the talent is here but i lack the paper work :D
i am going to be moving across to admin and perhaps a pre-school teacher, i will keep at my graphic skills and will be learning the newer programs this year and one day when i'm big i hope to work for myself creating and making! :rolleyes:
derekc
10-04-2007, 10:16 AM
I spend 30% and save 70%. That's all because I dont pay rent, rates, electricity, food etc. Pay for petrol and lunch. It's difficult to save more than 40% if you have rent etc to pay for.
Dolby
10-04-2007, 10:17 AM
The argument started with me spending 60% while in my previous job - and pretty much wasting the remains on gadgets and drinking. I could more than manage until 1 December 2006 when I lost my job. All of a sudden I was using more and more credit to live and am now owning R10,s of thousands.
I've just got a new job earning the same as my prior - but because of the debt I had to cover during the 4 months, I'm battling slightly. Certain members accused me of over spending and spending outside my means, but I disgree. How many people could survive 4 months without an income?
Anyay - this money owed now is all on credit cards at 18% or so. I have no bond or overdraft. How could I consolodate this? I thought of a personal loan - but afaik, interest is higher? Can I negotiate?
ToxicBunny
10-04-2007, 10:21 AM
I try and keep my spend to about 70% of my salary.. but occasionally its very difficult to do.
Always find that i get an increase and somehow the cost of everything just climbs ever so slightly mor ethan the increase every time... Drives me mental
Highflyer_GP
10-04-2007, 10:21 AM
The argument started with me spending 60% while in my previous job - and pretty much wasting the remains on gadgets and drinking. I could more than manage until 1 December 2006 when I lost my job. All of a sudden I was using more and more credit to live and am now owning R10,s of thousands.
I've just got a new job earning the same as my prior - but because of the debt I had to cover during the 4 months, I'm battling slightly. Certain members accused me of over spending and spending outside my means, but I disgree. How many people could survive 4 months without an income?
Anyay - this money owed now is all on credit cards at 18% or so. I have no bond or overdraft. How could I consolodate this? I thought of a personal loan - but afaik, interest is higher? Can I negotiate?
What about taking out a long-term bond (say 20 years)? I'm pretty sure that the interest rate is lower on it. It should ease the pressure as you wouldn't have to pay much p/m, and you could pay it off soon after things stabilise for you.
Random717
10-04-2007, 10:23 AM
I save 40% of my salary... i drive a crap car, so no monthly payments and services are really cheap, so that helps a lot.
I could probably survive for 6 months without a salary, longer if i canceled a few things. The result is I got a crap pc, crap cellphone, old clothes, but some security is priceless :D
Dolby
10-04-2007, 10:31 AM
Agreed - but I wouldn't get a bond as a) The amount needed is too small and b) I don't have a property in my name - so they wouldn't approve.
The other thing counting against me is I started this job 1 March 2007.
JenMoo
10-04-2007, 10:33 AM
The argument started with me spending 60% while in my previous job - and pretty much wasting the remains on gadgets and drinking. I could more than manage until 1 December 2006 when I lost my job. All of a sudden I was using more and more credit to live and am now owning R10,s of thousands.
I've just got a new job earning the same as my prior - but because of the debt I had to cover during the 4 months, I'm battling slightly. Certain members accused me of over spending and spending outside my means, but I disgree. How many people could survive 4 months without an income?
Anyay - this money owed now is all on credit cards at 18% or so. I have no bond or overdraft. How could I consolodate this? I thought of a personal loan - but afaik, interest is higher? Can I negotiate?
not sure if we're in the same boat or on the same ride but like i said previously we were also with out a salary for about 6 months and also lived off credit and are struggling to get back up! don't it suck?!
i've asked all the banks to help us reconsolidate debt but none are willing unless you are earning over R17Kp/m then standard bank will help. if you have a house or bond then you can apply for a second bond to reconsolidate your debt. in our case we don't earn property so we can't get help anywhere! don't it suck?!
so we get lawyers letters etc.. etc... etc... we're just going to pay what we can to the people we owe and hopefully soon we'll be able to pay more then interest alone! don't it suck?!
but all in all, don't debt suck?! and don't the lack of money suck?! :(
skoob
10-04-2007, 10:34 AM
I'm very good with my budget, I make sure that I don't overspend. I just need to start disciplining myself to start saving. It very difficult if you have a baby though. Still. That's no excuse!...Oh!, back to your question....I spend 100% of my salary. I tried saving, come Christmas time, I end up spending again. I only have one credit card, and its "normally" used for "emergencies".
derekc
10-04-2007, 10:35 AM
What about taking out a long-term bond (say 20 years)? I'm pretty sure that the interest rate is lower on it. It should ease the pressure as you wouldn't have to pay much p/m, and you could pay it off soon after things stabilise for you.
u cant just go and take out a long term bond...these are usually for properties. Banks charge a crap load for short term loans and I think banks are the 'lowest' interest rates a.t.m.
Instead of CC rates, maybe ask how much your bank charges for short term loans (personal loans they call it I think).
And also, always try and aim to save at least 6+ months of salary in your bank account. Open a money market account that gives a favourable savings rate. Then if u ever end up unemployed, u can survive during that period with ur savings without having to tap ur loans etc.
JenMoo
10-04-2007, 10:35 AM
oops... earn propert = have property
bwana
10-04-2007, 10:54 AM
I asked for a poll on this - but I'm impatient ;)It makes it easier when there is a thread available to add a poll to :)
Random717
10-04-2007, 10:55 AM
does bills include entertainment costs?
Highflyer_GP
10-04-2007, 10:56 AM
u cant just go and take out a long term bond...these are usually for properties. Banks charge a crap load for short term loans and I think banks are the 'lowest' interest rates a.t.m.
If the amount needed is significant enough, you can depending on whether you have existing property on your name. I was under the impression that he did ;)
_Anubis_
10-04-2007, 11:15 AM
Spend 100%, car payments, rent, credit cards, accounts, food etc.
Dolby
10-04-2007, 11:17 AM
It was only 4 months ... it's really is not significant enough ;) And no, the property isn't in my name. I guess I'm stuck to a higher interest personal loan over 60 months to ease currents payments per month.
jb007za
10-04-2007, 11:18 AM
yikes, amazing to hear that some people save more than half of their net earnings. hectic ;)
i reckon you could only do that whilst living at home with your parents. i earn a decent salary (not enormous though) and will still spend close on 100% of what i earn every month.
if any of you have ground-breaking hints and tips on saving, please share them with me. with the cost of accommodation, medical aid, insurances, vehicle repayments, food, petrol, entertainment, broadband, etc... where is there room left to save? especially for young people, i don't know how they manage to make it. keeps me up at night.
Bondizzo
10-04-2007, 12:04 PM
get a part time job perhaps ? If you currently spending 100% of what you earn then how would you be able to live without a job ? you shouldn't be sending more than 1/4 of what you earn on car payments, basically try living slightly below your means, if that makes sense
diabolus
10-04-2007, 12:09 PM
People saving 30%+ of their salaries....hectic indeed. Does that include or exclude retirement/providence funding?
Rent : R2500
Insurance : R500
Medical Aid & Disability Insurance : R1000
Car/House/Student Loans : R3000
Food : R1000
Petrol : R500
Phone/Internet : R500
Other [movies/eating out etc] : R500
= R9,500
That's pretty standardish or "low cost" i'd say [and even that is somewhat scraping through] ? Obviously excludes retirement funding . Now to save 30% on top of that, you need to earn:
R14,000+ NET [R17000+ GROSS]
So i gather those that's saving that much is earning [jointly if married] R15k+ OR they don't have rent/loans . I don't see any other way?
Above stuff still excludes buying "stuff" you might need [like tv, furniture, dstv, all other subscriptions, books, games, dvds etc etc] . If you bought a place then it's probably even more [house bond, but no rent]
TelkomUseless
10-04-2007, 12:36 PM
hell. I spend 90% of my salary. My petrol is almost R1500 pm. House is cheap because we bought before the boom. (But now I need to buy a bigger house). I *try* to put at least R300+ extra into house each month.
We have 2 cars, 1 is paid off (94 model), but my Golf got stolen last year (would have paid it of this year). So had to buy new car (2nd Peugot 307). So there is R2900 extra. Insurance another R400.
My wife is a teacher, get paid ok (nothing to write home about). I earn a good salary , but stuff are frieking expensive. We got one 3 year old girl.
We don't have Mnet,Dstv ,quad bikes etc.. so cutting cost there. I put my bonus/extra money into house bond, so I don't spend it. And when car needs a service , I withdraw money from bond , which I saved for specific purpose.
ghoti
10-04-2007, 12:38 PM
The percentage of a persons salary that they are able to spend/save is almost directly related to how much they earn. Higher earners are able to save more.
The percentage of a persons salary that they are able to spend/save is almost directly related to how much they earn. Higher earners are able to save more.
I wish :( the more you earn the more you spend, then you have kids,
TelkomUseless
10-04-2007, 12:46 PM
@ W1z4rd
very true...
Till you have children ;). That takes a big bite, but you still love them to death!
dotVIBE
10-04-2007, 12:53 PM
yeah, some people live w. their parents and drive cars that were bought for them by their parents. nothing wrong with that, but it does cut down the expenses.
someone asked about paying off credit card debt ... my 2c is to always pay more than the min reqd - never less.
focuss on clearing off one card at a time ... while still maintaining min payments on your other cards. It helps if you have a homeloan because you can capitalise on the low interst rate on credit.
luxuries have to be curtailed during this process ...
i have my doubts about personal loans cos you have to be disciplined even in that case.
in my books only one method works .... that is to get off your ass, draw a budget and stick to it, come hell or high water. It sounds rough, but desperate times calls for effective measures!
after you have cleared out your debt (starting with the c-card with highest interest rate, make an plan to contribute towards an RA and pump spare cash into your bond) ....
Bondizzo
10-04-2007, 01:06 PM
someone asked about paying off credit card debt ... my 2c is to always pay more than the min reqd - never less.
focuss on clearing off one card at a time ... while still maintaining min payments on your other cards. It helps if you have a homeloan because you can capitalise on the low interst rate on credit.
luxuries have to be curtailed during this process ...
i have my doubts about personal loans cos you have to be disciplined even in that case.
in my books only one method works .... that is to get off your ass, draw a budget and stick to it, come hell or high water. It sounds rough, but desperate times calls for effective measures!
after you have cleared out your debt (starting with the c-card with highest interest rate, make an plan to contribute towards an RA and pump spare cash into your bond) ....
sounds good, but it doesn't sound like a fun life as you'll be worrying everyday, If you don't have a spare 5k-10k after all your expenses then you not living a happy life
i would say that this plan would be for someone in the k#k , so to speak.
Once you have paid of those venomous c-cards ... it is best to delay gratification and save for those special somethings...
Personally, we pay ourselves at teh end of each month, so that we can get nice-to-haves.
Holiday abroad at least once a year with weekends away every 2nd month ...
Being financially free has it's advantages ... you reap the benefits later one from the sacrifices made.
sdd
i spend about 40% of my net , thats for car, rent, insurance, dstv, adsl, cellphone , l+w, and the odds and ends
i live on my own and am not married
GavinMannion
10-04-2007, 02:18 PM
I was doing well until I had 2 kids and the boss stopped working..
Now a budget is a long lost dream :D...
Once the kids get to say about 21 I am sure it will come right again ;)
adamr
10-04-2007, 03:51 PM
25% for me ... i honestly cannot complain with what i earn, even when i started working i could not complain .. im content ... seriously ...
JenMoo
10-04-2007, 04:26 PM
25% for me ... i honestly cannot complain with what i earn, even when i started working i could not complain .. im content ... seriously ...
you are my hero! i truley wish i could earn 75% more then i need. what line of work are you in? i take it you earn more then my R5K
adamr
10-04-2007, 04:33 PM
lols !!! :)... I'm a consultant ... elec engineer by profession ... company has alot of perks too and that helps
JenMoo
10-04-2007, 04:40 PM
i definately think i made wrong choices as to my profession! think i was jolling to much in my final school days!
Juggy
10-04-2007, 05:22 PM
You don't need to do well in high school to earn a good salary.
25% for me ... i honestly cannot complain with what i earn, even when i started working i could not complain .. im content ... seriously ...
And you got a M! See thats good, If i had ill have like 3 Porsches!!:o
adamr
10-04-2007, 06:03 PM
You don't need to do well in high school to earn a good salary.
Agreed, Most of my friends are business people ... and they alot wealthier than my friends that are professional ...
adamr
10-04-2007, 06:03 PM
And you got a M! See thats good, If i had ill have like 3 Porsches!!:o
hehehehe ... :D .... wait ... :eek: