How much $$$$$$$$$$ do you need to live well in South Africa.

[loc]

Seriously?

at R1m per year before deductions I wouldn't be living well, I'd be living like a bloody king.

I can't even imagine 500k pa before tax. I wouldn't have a financial care in the world

 

[Ancalagon]

Seriously?

at R1m per year before deductions I wouldn't be living well, I'd be living like a bloody king.

What if you had a family to look after?

 

[Messugga]

I can't even imagine 500k pa before tax. I wouldn't have a financial care in the world

Depends on the lifestyle you want to maintain. Living the simple life in a small town, that would be an absolute fortune. In GP just what I spend on travel and insurance is already shocking. Property prices aren't exactly reasonable either.

 

[ponder]

100k pm is living decently for that situation

Agreed.

 

[ToxicBunny]

What if you had a family to look after?

Even with a family, I could still live like a king...

 

[Nefertiti]

In the 1970's and up to about R 1985, a R3m nest egg was considered adequate to retire on, with interest rates above 10%, annuities were paying R 14k per million so a R3m portfolio would bring in R 42k a month, more than adequate

if you needed R3m at 1985 what do you need now?

 

[Messugga]

if you needed R3m at 1985 what do you need now?

Last I heard, around R30m.

 

[pboy]

I mentioned this before:
Saw a Tony Robins Video on youtube where he asks the audience to put down their number and then he proceeds to show them how that number is alot less than they think it is!

Now i know the OP said to live WELL in SA...
but I honestly dont know how to put a number to that, as "WELL" is quiet subjective.

In my case, I could do with this per month:
15k house
10k insurance, med aid etc
10k cars and petrol
20k pvt school for 2 kids
15k food, ent etc
10k ad hoc ( to be kept aside for car/house maintenance, holidays, or just unused per month..)

thats 80k p.m. or R960k p.a.

but that would be living above average, with 2 cars, pvt school etc puts someone in the upper earning brackets. nowhere near middle class or just above.
half that, or R40k p.m. should be enough.... i feel.

 

[Ancalagon]

Even with a family, I could still live like a king...

See above calculations - not likely. You would be comfortable with R1m for a family of over, but by no means living like a king.

Try buy a R3m house with R1m including and 2 R300k cars, see how much you have left over for food and medical aid.

 

[GhostSixFour]

I mentioned this before:
Saw a Tony Robins Video on youtube where he asks the audience to put down their number and then he proceeds to show them how that number is alot less than they think it is!

Now i know the OP said to live WELL in SA...
but I honestly dont know how to put a number to that, as "WELL" is quiet subjective.

In my case, I could do with this per month:
15k house
10k insurance, med aid etc
10k cars and petrol
20k pvt school for 2 kids
15k food, ent etc
10k ad hoc ( to be kept aside for car/house maintenance, holidays, or just unused per month..)

thats 80k p.m. or R960k p.a.

but that would be living above average, with 2 cars, pvt school etc puts someone in the upper earning brackets. nowhere near middle class or just above.
half that, or R40k p.m. should be enough.... i feel.

You forgot about tax didn't you.. Something like 47% at that level.

 

[ToxicBunny]

See above calculations - not likely. You would be comfortable with R1m for a family of over, but by no means living like a king.

Try buy a R3m house with R1m including and 2 R300k cars, see how much you have left over for food and medical aid.

I don't need a R3m house to live well, or 2 R300k cars.

Thats the problem with this kind of thing, my idea of living well and everyone elses will be completely different.

I'm very happy in my R1m house, with my R60k car.

 

[pboy]

I don't need a R3m house to live well, or 2 R300k cars.

Thats the problem with this kind of thing, my idea of living well and everyone elses will be completely different.

I'm very happy in my R1m house, with my R60k car.

I agree with this.
its all relative man!

 

[Messugga]

You forgot about tax didn't you.. Something like 47% at that level.

Indeed. Tax at that level stings. You need a mighty healthy salary to get close to R1m after SARS has their way with you. Of course, if you're a dual income family, then you don't need nearly as much to get to R960k after tax.

 

[Messugga]

I don't need a R3m house to live well, or 2 R300k cars.

Thats the problem with this kind of thing, my idea of living well and everyone elses will be completely different.

I'm very happy in my R1m house, with my R60k car.

If I didn't have to actually work to earn that R500k, I'd probably be living like a king as well - granted without kids going to private schools or kids at all, for that matter. I'd go live in a smaller coastal town, get myself a cheap to maintain car for running errands and live in a reasonable house. I'd probably drop comprehensive health cover in exchange for a hospital plan as I'd be living a much healthier lifestyle and I'm not prone to get sick very often anyway.
Sounds pretty good to me, actually...

 

[ToxicBunny]

If I didn't have to actually work to earn that R500k, I'd probably be living like a king as well - granted without kids going to private schools or kids at all, for that matter. I'd go live in a smaller coastal town, get myself a cheap to maintain car for running errands and live in a reasonable house. I'd probably drop comprehensive health cover in exchange for a hospital plan as I'd be living a much healthier lifestyle and I'm not prone to get sick very often anyway.
Sounds pretty good to me, actually...

Now you're starting to get the idea

 

[Messugga]

Now you're starting to get the idea

But unfortunately have to work for my salary. Doubt the missus would allow me that early a retirement while she keeps on maintaining my lazy self

 

[ToxicBunny]

But unfortunately have to work for my salary. Doubt the missus would allow me that early a retirement while she keeps on maintaining my lazy self

You need a new missus then

 

[Messugga]

You need a new missus then

Not likely to get another as good as this one. Bit of a fluke as is, in my opinion.

 

[Nefertiti]

I'm very happy in my R1m house, with my R60k car.

True, but. At the rate things increase your R1m house or R60k is not going to get you far. If your salary doesnt increase and in five years time your replacement car is going to cost R100k, what then. Granted you wont move house, unless the area become completely dodgy. The more you earn now and you invest money the better it will be in the long run. I had a similar idea about what I have, but the last couple of years and certain events have changed my opinion. Im going to aim for more and squirrel it away, for future just in case.

 

[Humberto]

If you can find a nice home in a nice area for R1.2m, tell me now because I'll buy it. In Pretoria that buys you nothing more than an empty plot of land in the better areas. And not a great plot either - those go for R2+m. R4m can buy you a rather nice existing house though.

Wow. I thought you were exaggerating but I just checked the prices of empty plots in affluent Pretoria suburbs on privateproperty.co.za. Indeed, they really do go for R 1 million.