People earning over R600,000 a year are in deep trouble in South Africa

[BusinessTech]

People earning over R600,000 a year are in deep trouble in South Africa

South Africans earning more than R50,000 a month, or over R600,000 a year, are in distress.

 

[Stokstert]

If those people are in distress it is just because they are living beyond their means. Not everyone can afford the latest
lifestyle with big homes, cars and other luxuries.

 

[cguy]

I'm sure that they're missing the good time when they were marking R300k per year.

 

[NarrowBandFtw]

errr ... no upper cap there? so people over 600k are in trouble, including those who make 50 mil a year?

GTFO

 

[HumanShield]

"Middle Class South Africa Under Siege"

 

[Pax]

"For South Africans taking home more than R50,000 a month, debt repayments now consume 101% of their net income.

Additionally, the debt-to-income ratio of these income earners has climbed to 303%, the highest of all income groups."

'Keeping up with the Jones's' it looks like....in other words, being stupid with money. I'll be there if I try to drive a Bentley like my neighbour, but I am wiser than diving into a debt pit that deep.

 

[Corelli]

If those people are in distress it is just because they are living beyond their means. Not everyone can afford the latest
lifestyle with big homes, cars and other luxuries.

You must be delusional if you think thats luxuries.

That buys you at most R1.9 million a house and you can find that where?
Then add R1100pm for insurance, about R2600pm for electricity and R2200pm for rates, taxes, and water.
R12000pm in income tax,
and if family of 4? R6000pm on school fees for 2 kids, R8000pm for medical aid

and there you are, you have now spent more than what you have.

And that's not including internet, food, fuel, car payments, even your pension.

And then thats not even luxuries. So R50k is peanuts these days.

And then if you want to send your kids to university its about R200k per child per year.


However.....

If you dont earn anymoney this is what you get in SA

1. Free housing (R600k avg value)
2. Free Basic Water and Electricity
3. Free Schooling for your kids
4. Free University for your kids
5. Child Grants
6. State Pension
7. Free Basic Medical care etc.
8. No Property tax
9. No income tax


And guess what the freebies are all covered by the high taxes the R50k pm earner pays, and what does he get of the above...Not a thing, as he is all excluded.

Welcome to South Africa.

 

[orin76]

If those people are in distress it is just because they are living beyond their means. Not everyone can afford the latest
lifestyle with big homes, cars and other luxuries.

If you are talking about single people then I agree with you but add kids, school fees (especially if you don't have decent public schools in your area) life and disability insurance (to look after those kids should things go wrong) etc. and you'll find that money doesn't go very far even before adding car payments and entertainment.

 

[FiestaST]

https://twitter.com/x/status/2063274537202958469

 

[My_King]

1 thing that helped me was talking about my debt.

For 2 years I bored people here with my debt payments.

Like practising what you preach.

No credit card since last year Nov. So 6 more months, then I will be CC free for 1 year.

 

[biena]

If you are talking about single people then I agree with you but add kids, school fees (especially if you don't have decent public schools in your area) life and disability insurance (to look after those kids should things go wrong) etc. and you'll find that money doesn't go very far even before adding car payments and entertainment.

You forgot medical which takes a big chunk out of R50k for 2 adults and 2 kids