How much should you earn?

[RichardG]

If only the article was true
And for those that earn more than 75 Grand per month, please tell me the secret

 

[gregmcc]

I look at people my age buying nice cars worth about R200k+ and wonder to myself if they 1) are stinking rich or 2) have not planned for their future at all.

its a big problem - most of them are not planning for the future. In a good couple of years they will have to live out of their cars. I see a lot of people that always have flashy cars - when it comes to retirement they will be screwed.

 

[Picard]

its a big problem - most of them are not planning for the future. In a good couple of years they will have to live out of their cars. I see a lot of people that always have flashy cars - when it comes to retirement they will be screwed.

+1

 

[Vice]

its a big problem - most of them are not planning for the future. In a good couple of years they will have to live out of their cars. I see a lot of people that always have flashy cars - when it comes to retirement they will be screwed.

Why do you think we have so many bridges on our roads To accomodate the bad planners

 

[Bobb]

But that is Gross which is pretty easy.

It's the take home on R 35k combined Gross that is pretty small
The take home on that is about R 20k ??

Take home on R40K is approximately R29K... of course thats after medical aid deductions so add on about R1.2K.

 

[swsup97]

Just to survive, be able to afford a house, 2 Cars and send kids to school one should at least be earning over R 20k per month and then have a spouse salary also. A combined salary take home of over R 25k or your fk'd

Sad aint it

I agree with this - I earn in the mid 20's ( contracting in Networking )
Combined with my wife's salary it goes to about 35k some months more some months less depending on how many hrs or overtime i worked - believe it or not we struggle - expenses skyrocket , after paying off car (polo 2006 model ) bond , creche , insurance, levies, rates, petrol and food etc etc ...not left with much - we dont even have DSTV or other so called luxuries and i'm not earning a bad salary yet struggle more than the guy earning 6k a month. I'm not the only one - my mates are in a similar position.
Count yourself lucky if you own your property ( paid off ) - bond is a killer and these days for a 1st time buyer what can u get for 500k - a &*%&^$ shack !! and u paying 5-6k for that priviledge.

 

[Rouxenator]

its a big problem - most of them are not planning for the future. In a good couple of years they will have to live out of their cars. I see a lot of people that always have flashy cars - when it comes to retirement they will be screwed.

I'm glad I am not the only one wondering about that... I actually need to put away R5.5k per month if I want to keep my current life style and retire on 55 (I am 27). However, with the current state of things I am only putting away R1.5k per month in my retirement annuity. The only other "future friendly" expenses I have is an investment fund of R1k pm and obviously my house (R8k pm).

I have toyed with the idea of cancelling my life insurance as my wife does not have any for me (well, she is not earning anything). But I just cannot get it over my heart thinking she will loose the house if I die. Then again my folks are pretty well off (having a farm outside Stellenbosch) but I don't think she would like to bum on my folks when I die. Come to think of it, she'll probably want to move on and get another man when I am pushing daisies

Am I too young to think of such things?
Maybe I should just trade in my car en get the Corsa OPC I have been dreaming of for so long...

 

[Rouxenator]

@swsup97 - I feel for you!
BTW, what rate did you get on your bond?

I was very lucky because I "got" R500k that I could use to buy a house with, so my wife and I got a R700k access bond and bought the house (then worth R1.1m). The banks were very generous with the rate (-2) since the property was worth much more than the bond. However we are still k4king af with the current state of financial affairs - even with my car fully paid off (2001 Astra)...

 

[Rabbit7766]

300k per month , is your friend Telkom's CEO?

nope, he owns several of his own companies...

 

[EtienneK]

Maybe I should just trade in my car en get the Corsa OPC I have been dreaming of for so long...

I feel you man, I feel you!

I've been wanting to get myself a Ford Focus ST, but I'm getting married next year. So now I've started budgeting and there's no money left for a new car. Guess I'm stuck with my 1.4 liter 2005 Ford Fiesta for another couple of years

It's really tough starting out.

 

[FarligOpptreden]

@swsup97 and Rouxenator - I'm in the same (almost sinking) boat as you guys. It's sad that we have to be dependent on a second income these days. I'd love for my wife to stay at home and cook, clean and look after the kids. Its just not possible these days...

@EttieneK - Good luck man, being newly wed is wonderful, but very difficult to adapt to. After being married for almost 2 years, me and my wife are only starting to form our own little routines and proper monthly budgeting is looming on the horizon...

 

[swsup97]

@swsup97 - I feel for you!
BTW, what rate did you get on your bond?

My current rate is 15% i dunno how the guys do it when they get like -2 % prime

Sad Indeed - as they say "Vok maar voort" or Carry on regardless.

Word of advice for those talking about retirement bucks - for long term rather invest in the stock market and spread your risk than taking these so called policies out, dont let them bull**** u with them telling how much u will get out when u retire - that's based on forecasting and chancers are u will receive a pittance - and if u do deal direct - dont go thru a broker - they take a commision.
dont rely just on this as your retirement income - if u do u will be eating dog-food !!

 

[Gatecrasher]

And for those that earn more than 75 Grand per month, please tell me the secret

NOT working in the IT sector.

 

[xrapidx]

NOT working in the IT sector.

I beg to differ.

 

[Paul_S]

Just to survive, be able to afford a house, 2 Cars and send kids to school one should at least be earning over R 20k per month and then have a spouse salary also. A combined salary take home of over R 25k or your fk'd

Sad aint it

It's worse than that.
My fiancee and I are looking at buying a house and with a combined income of R40K (gross) the max we'll qualify for is about R900K over a 20 year period at prime.
R900K for a 2 or 3 bedroom, free standing house, in a safe area is a bargain around the JHB, PTA area. We're still looking ...

That's 25K for me and 15K for her with a combined take home pay of about R25K.
The bond repayments are R12K per month, add rates and taxes, water and lights, food, etc. and you're up to about R14K per month ... just for a house.
Add R2500 for food, R1000 for house and car insurance, R4100 for repayments on two cheap cars, R3000 for fuel and suddenly you're up at R24600!
Now we have to figure out what to do with the remaining R400.

So in my opinion you'd need about R30K+ take home salary to survive in an average/cheap house with two kids and two cheap cars.
That means no eating out, no DSTV, no Internet connection, no spare money for investments/retirements ...

 

[2CentsWorth]

I'm assuming this is before tax?

Either way, I am being paid well above average according to that article :|

 

[MarthinusSwart]

Yup. Diploma or whatever is just to get your foot in the door at your first or second job. Thereafter your experience should count for a lot more.

Sorry, no. Degree always counts, Hons. even better, Masters, now that counts a lot.

Maybe working for yourself it doesn't count, like Bill Gates, started his own company after dropping out of Varsity, but in general, if you want to work for someone, the degree always counts.

 

[Sandman30s]

Doesn't matter how much you earn, it's all about lifestyle. If you live beyond your means and are always in debt, no salary will be high enough. Also, people with low salaries should look at the simple things - eg. making a sandwich instead of buying food every day, and not drinking your salary away in clubs - and you will be surprised, you will go from debt to actually saving. Finally - annuities are crocks - whatever was hot 10 years ago is now a dead policy. I have cancelled all my policies and invested the same money in property.

 

[XSA]

'enough' is relative.

 

[2CentsWorth]

I'm glad I am not the only one wondering about that... I actually need to put away R5.5k per month if I want to keep my current life style and retire on 55 (I am 27). However, with the current state of things I am only putting away R1.5k per month in my retirement annuity. The only other "future friendly" expenses I have is an investment fund of R1k pm and obviously my house (R8k pm).

I disagree. Investment vehicles for someone your age is considerably cheaper. In any event, if you're putting away R5.5k a month in solid investments then you will in all likelihood have a fantastic lifestyle come your retirement. Unless you're investing stupidly that is. Perhaps buying a few Apple shares?

I have toyed with the idea of cancelling my life insurance as my wife does not have any for me (well, she is not earning anything). But I just cannot get it over my heart thinking she will loose the house if I die. Then again my folks are pretty well off (having a farm outside Stellenbosch) but I don't think she would like to bum on my folks when I die. Come to think of it, she'll probably want to move on and get another man when I am pushing daisies

A life policy on you should be no more than R200 a month. I have R5 Million cover and only pay around R370. My wife pays a lot less and hers is also for R5 Million.

Am I too young to think of such things?

You're never too young. Debt after death is one of the biggest causes of post natal stress in South Africa. I suggest you speak to a financial advisor if you have any questions.

Maybe I should just trade in my car en get the Corsa OPC I have been dreaming of for so long...

In that case I wouldn't cancel any life cover....