How much do you have saved?

[Cius]

Complete rubbish. Saving or not saving has little to do with salary and lots to do with discipline. There is always someone earning more and less than you it just takes some self discipline to actually say I am not going to fold to the pressure from the joneses and will choose to live on 10% less of my salary than I am used to and save that instead. I've been doing it that way from when I earned peanuts right up to now when I earn a decent salary.

 

[fastesthamster]

these threads are of benefit to no one...they are just depressing...
either people earn a lot and can save a lot -- or their annual CTC is not a much a my mind is making it

No, that's why it's:

amount saved as a percentage of your current cost to company (or gross net income).

That takes the amount you're earning out of the equation. People's lifestyles tend to grow with their income. If you can't save at R100k, you probably won't be able to save at R1m.

 

[SauRoNZA]

these threads are of benefit to no one...they are just depressing...
either people earn a lot and can save a lot -- or their annual CTC is not a much a my mind is making it

Well that's why a percentage makes more sense than an outright value.

A percentage means that you are living within your means. Input vs output etc.

 

[noxibox]

Complete rubbish. Saving or not saving has little to do with salary and lots to do with discipline. There is always someone earning more and less than you it just takes some self discipline to actually say I am not going to fold to the pressure from the joneses and will choose to live on 10% less of my salary than I am used to and save that instead. I've been doing it that way from when I earned peanuts right up to now when I earn a decent salary.

It really does depend on a person's circumstances. I know people who don't spend any more than what they absolutely have to, living in the cheapest, most rubbish places, eating cheap food and so on, but they barely earn enough to even sustain that.

Hmm, not sure if I have something like that built into my PPS benefits. Must check. Also forgot UIF. Hopefully that would get me past that without digging into savings. Well hopefully I am never out of work. So far so good but anything can happen I guess.

UIF is very little. It's enough to eat, but probably wouldn't even cover rent or mortgage for a professional.

Putting it into investments is also fine, financially better. I'm working on a emergency principle when you need cash right now, right here.

How quickly can you access it?

There's also the other option of withdrawing from a credit card in a emergency on the condition that you can transfer it back before they start charging you interest. But this requires a BIG limit

Quickly enough. The point though is that the credit card allows a month's delay in needing to start accessing the funds. Many investments can be converted back to cash within 24 hours.

If you can't save at R100k, you probably won't be able to save at R1m.

If someone is not supporting others then that may be true, but not necessarily.

 

[cerebus]

Complete rubbish. Saving or not saving has little to do with salary and lots to do with discipline. There is always someone earning more and less than you it just takes some self discipline to actually say I am not going to fold to the pressure from the joneses and will choose to live on 10% less of my salary than I am used to and save that instead. I've been doing it that way from when I earned peanuts right up to now when I earn a decent salary.

I'm just guessing that when you were earning peanuts you were either single and self-supported or living with parents. If that peanuts (say anything under 10k) was going to support a family, and you still managed to put 10% aside and meet your needs, I'm truly impressed. If not, you have no idea what you're talking about and you've managed to convince yourself that your good fortune equals fiscal discipline, and anyone who doesn't have it is just weak willed. Although the chances are also that you developed good financial advice from an early age.

There's a certain threshold of living requirements below which it puts incredible pressure on someone's income, and mental state; and saving becomes literally impossible. I'm not sure precisely what that is, and it depends on everyone's case - expenses expand to meet income increases - but there is still a baseline of survival below which you won't go.

 

[Cius]

I'm just guessing that when you were earning peanuts you were either single and self-supported or living with parents. If that peanuts (say anything under 10k) was going to support a family, and you still managed to put 10% aside and meet your needs, I'm truly impressed. If not, you have no idea what you're talking about and you've managed to convince yourself that your good fortune equals fiscal discipline, and anyone who doesn't have it is just weak willed. Although the chances are also that you developed good financial advice from an early age.

There's a certain threshold of living requirements below which it puts incredible pressure on someone's income, and mental state; and saving becomes literally impossible. I'm not sure precisely what that is, and it depends on everyone's case - expenses expand to meet income increases - but there is still a baseline of survival below which you won't go.

I disagree but respect your opinion. Personally I have no idea how some people support a family on less than 10K. Still, there are millions of South Africans who live on less than 10K pm and get by. If that is your salary that is your reality. The problem lies in that people try match a lifestyle beyond what they can afford. Everyone wishes to live better and some wish so hard they end up living beyond their means. Whether you earn R5K a month or R50K the point is there is someone who is living on less than you still saving by cutting lifestyle back. In a great book called the millionaire next door they found that people that saved and grew rich invariably lived in a cheaper area than what they could afford. This meant that they could match the lifestyle of the area and save the rest. On the other hand people that struggled to, or did not save where in almost all cases living in areas normally reserved for people who earned more than them. Where you choose to live makes a huge difference in your lifestyle and spending choices. If all your friend and neighbours go to France on holiday you eventually feel embarrassed talking about your Durban holiday. If the neighbours kids get R6K presents on their birthday and you give your kid a R200 present your kid will hate you. This is why people struggle to save.

I can guarantee you that if you ask any of the folks on this forum who have saved a lot where they live as compared to their work peers most you will find live somewhere less fancy.

 

[Kbeat]

these threads are of benefit to no one...they are just depressing...
either people earn a lot and can save a lot -- or their annual CTC is not a much a my mind is making it

Hhahahah so true mate, very depressing. I live below my means and I have money saved and small property bond paid up but it sure depends how much you earn.

 

[cerebus]

I disagree but respect your opinion. Personally I have no idea how some people support a family on less than 10K. Still, there are millions of South Africans who live on less than 10K pm and get by. If that is your salary that is your reality.

I've done it... I'm not there now but I was at a time. So what's to disagree with? Could you save your lovely 10% with that kind of salary and those kind of financial demands? If not, then you do agree. Having been there, I'm telling you it's impossible, it's more than impossible, to save ANYTHING.

The problem lies in that people try match a lifestyle beyond what they can afford. Everyone wishes to live better and some wish so hard they end up living beyond their means.

I'm not disputing that. It's this 'everyone CAN save they're just being frivolous' mentality that irks. You don't sound like you have much of an idea of what poverty feels like. You had your romantic earning pennies student days and you think that qualifies you to arbitrate other people's finances.

 

[Kbeat]

I disagree but respect your opinion. Personally I have no idea how some people support a family on less than 10K. Still, there are millions of South Africans who live on less than 10K pm and get by. If that is your salary that is your reality. The problem lies in that people try match a lifestyle beyond what they can afford. Everyone wishes to live better and some wish so hard they end up living beyond their means. Whether you earn R5K a month or R50K the point is there is someone who is living on less than you still saving by cutting lifestyle back. In a great book called the millionaire next door they found that people that saved and grew rich invariably lived in a cheaper area than what they could afford. This meant that they could match the lifestyle of the area and save the rest. On the other hand people that struggled to, or did not save where in almost all cases living in areas normally reserved for people who earned more than them. Where you choose to live makes a huge difference in your lifestyle and spending choices. If all your friend and neighbours go to France on holiday you eventually feel embarrassed talking about your Durban holiday. If the neighbours kids get R6K presents on their birthday and you give your kid a R200 present your kid will hate you. This is why people struggle to save.

I can guarantee you that if you ask any of the folks on this forum who have saved a lot where they live as compared to their work peers most you will find live somewhere less fancy.

I agree with you there mate. I make little but I managed to pay off my bond staying in a less fancy area even though I can afford to upgrade a bit and I drive an older model car that I put a huge deposit on and also putting a lot more on my savings . The only area where I am not disciplined is expensive clothes, I just love them. But I am working on that addiction.

 

[Kbeat]

Yes, I'd pay with the credit card rather than draw out cash. Can't think of many circumstances where I'd need cash.


I don't know how anyone lives on a state pension in this country.

You have no idea how many of us were raised from that R600 pm (back the). And today its just over a R 1000 and its still bringing up kids.

 

[SauRoNZA]

I'm just guessing that when you were earning peanuts you were either single and self-supported or living with parents. If that peanuts (say anything under 10k) was going to support a family, and you still managed to put 10% aside and meet your needs, I'm truly impressed. If not, you have no idea what you're talking about and you've managed to convince yourself that your good fortune equals fiscal discipline, and anyone who doesn't have it is just weak willed. Although the chances are also that you developed good financial advice from an early age.

There's a certain threshold of living requirements below which it puts incredible pressure on someone's income, and mental state; and saving becomes literally impossible. I'm not sure precisely what that is, and it depends on everyone's case - expenses expand to meet income increases - but there is still a baseline of survival below which you won't go.

This thread is relevant to maintaining the same lifestyle going forward, not making more or less money.


So ultimately the input doesn't really matter as the output is defined by the input to maintain the same lifestyle.


I do agree that there is a certain threshold at which it becomes quite difficult, but then at the same time things like UIF and TAX are a constant equivalent for everyone and simply because it's forced people manage to make do with those amounts falling away from their salary.

So imposing those "forced" charges on yourself is really where savings come from regardless of how much you earn and that is the discipline that Cius is referring to.


Often the pickles people find themselves in are silly life choices or other compromises that they were willing to take. I'm not referring to unforeseen consequences like job loss here, just general decision making.


However your point regarding financial education is a very valid one and I wish they would spend less time on other **** in school and teach people real world life skills like matter.

It scares me how many young people get straight out of school and hit their first jobs with absolutely no idea what insurance is or how it works, medical aids, finance loans, credit cards and credit histories, retirement/pension funds and other investments etc.

The first thing they normally do is run out and buy themselves a fancy cellphone on a 24-month contract for a ridiculous monthly charge, instead of putting that same money away from the word go for early retirement.

 

[SauRoNZA]

I can guarantee you that if you ask any of the folks on this forum who have saved a lot where they live as compared to their work peers most you will find live somewhere less fancy.

EXACTLY!

Living within real world means, not the bank's idea of what is deemed "affordable".

 

[supersunbird]

It scares me how many young people get straight out of school and hit their first jobs with absolutely no idea what insurance is or how it works, medical aids, finance loans, credit cards and credit histories, retirement/pension funds and other investments etc.
.

Parents job?

 

[Kbeat]

Parents job?

When your parents are educated yes they may offer that. But how about someone raised by their grand mother and their parents working as domestic workers in the big cities?

 

[SauRoNZA]

Parents job?

That's what I used to think.

Then I realised many many parents don't seem to have a clue about these things either and that's why they find themselves in the positions they are in.

When I met my wife she didn't have medical aid or insurance on her car and I had to have a serious conversation with her about the "what if situations" and what they could potentially cost her if she didn't have insurance in place.

As time went on I realised that her two sisters didn't have a clue about any of these things either because "money matter were never discussed in our house". They didn't even have a clue about bank charges and different accounts and therefore the one didn't even have a bank account until very recently when she actually started working.

It seems money is taboo as a discussion in many households, which is the worst thing I can imagine. If you got it horribly wrong then surely you'd want to educate your children about the mistakes you've made so that they don't do the same.


I was fortunate in that my old man worked in the insurance field and therefore I picked up a lot of financial educations in many discussions with him and yet even so I wish that someone had sat me down when I was 21 or even younger and drew me some pretty pictures of real world affordability vs my idea of affordability. I would have been close to retirement by now then.

 

[ponder]

You can count pension/provident funds, and extra amount saved in bond.

I don't think you should count those.

 

[ToxicBunny]

Things like this are vaguely amusing in their own way.

I am guilty of living beyond my means at times... but as it stands right now, I live a very average life and have a decent enough salary and I still find it monumentally difficult to save anything every month. The cost of living has gone through the roof, but salaries have come nowhere near close to keeping pace. If my salary from 10 years ago had kept pace with real inflation (not the BS figure the government puts out), I would be saving bucket loads every month.

 

[Sly21C]

Got retrenchment cover (R142pm) that will get my by for 6 months without touching my savings.

Retrenchment cover with which company? Does it cover people who are fired too?

 

[HavocXphere]

Like 10%. Not even slightly stressed about it though. Getting 25%+ raises p.a. (off a low base) with no major increases in living costs so its all fun & games at this stage. Plus I seem to be doing better than my peers savings wise....hell two have approached me for short term loans...

See also related thread I created here...
http://mybroadband.co.za/vb/showthread.php/440157-Emergency-cash-reserves?highlight=

I've done a quick calculation and i have enough money to live comfortably for the rest of my life, if i die on Sunday

Lolly wins this thread.

 

[supersunbird]

Retrenchment cover with which company? Does it cover people who are fired too?

Frank.net. I'm not sure.