Minimum take home income to live on your own?

[randomcat]

They are half loafs I think or 600g, cause I checked and ours is R8 for the bakery version.

Yes it is 600g. Shoprite sells it even cheaper at R5 a 600g loaf.

 

[TofuMofu]

My wife got retrenched end of January and is still not working. Work since COVID has been slower but still there. Since she stopped working there hasn’t been much of a change in our lifestyle (maybe less random restaurant nights) but life still going on. What this makes me realise is that we were spending a lot of money on crap. Less take a lot, SuperBalist and other nonsense being bought and we’re still going almost unaffected by the loss of salary. She’s still doing her hair and eyelashes, still planned an over the top party for my daughter which happened the weekend and still borrows money to her younger sister.
Leads me to believe that we only spend more because there is more.

This is the true tea!

I remember when I just moved out of the house and I thought, geez, if only I could get like a few thousand more a month to make ends meet, but ends were met and every salary increase since then just felt like it wasn't enough, but I never got into schit where I cannot pay my flat or my car or put petrol in my tank to get to work.

The more we get paid, the more we spend.

 

[netstrider]

This is the true tea!

I remember when I just moved out of the house and I thought, geez, if only I could get like a few thousand more a month to make ends meet, but ends were met and every salary increase since then just felt like it wasn't enough, but I never got into schit where I cannot pay my flat or my car or put petrol in my tank to get to work.

The more we get paid, the more we spend.

Somewhere among the many random things I read, I read something along the line of:

"If you cannot make do with what you earn, you won't make do with an increase either".

 

[Splinter]

The point I was trying to make was the more you earn the more life costs... and I can't explain why.

At some point money becomes trivial. If you get R200k pm you will get that house and that car and the bank will give you a higher credit limit and you will use it.

There is a lower limit on what what you could get buy on but there is no upper limit on "enough".

Its crazy to think that 13 years ago when I moved out of home we had a combined income of less than 22k and the bond was my wifes entire salary. Its been quite a journey to get to the point we are now but its hard to see what we have gained... all our money seems to be locked up in pensions and policies that don't even seem real.

It's pretty simple. You have kids. They be a black hole of gulping finances. And not even the direct expenses. Policies, as you mentioned. Spending money just in case sh$T goes down and then they will be provided for.

Some here might think I have a bit of money, but it's not really true. Again, I spent years living below my means, and paying off stuff so I could get ahead of the debt curve.

What people with kids spend on them a month easily gets you a PS5 etc.

 

[cguy]

Somewhere among the many random things I read, I read something along the line of:

"If you cannot make do with what you earn, you won't make do with an increase either".

It really depends on how reasonable your spending habits were in the first place. When I started my first US job, the cost of my bond in SA, looking after some family in SA, and the deferred compensation made it very difficult to get by on my net paycheck.

6 years later, I had 3x the net take home pay, but only spent 2x. A few years later I had 12x the take home pay from my starting net pay, but was only spending 4x.

An increase is all I needed to radically transform my level of financial security. Although I increased my spending, I made sure it was always disproportionately lower than any increase.

 

[Splinter]

It really depends on how reasonable your spending habits were in the first place. When I started my first US job, the cost of my bond in SA, looking after some family in SA, and the deferred compensation made it very difficult to get by on my net paycheck.

6 years later, I had 3x the net take home pay, but only spent 2x. A few years later I had 12x the take home pay from my starting net pay, but was only spending 4x.

An increase is all I needed to radically transform my level of financial security. Although I increased my spending, I made sure it was always disproportionately lower than any increase.

Exactly. My disposable income actually increases year on year now (touch wood). It took years, but the years fly by. Ok, I got lucky on one property investment, but I have missed out on a few more investments that would have had me sitting here now in retirement.

But, at the end of the day, I have been able to support family, and am still doing so. I could buy a new, flashier car, but I choose not to because I am ok with my 6 and half year old vehicle. But it's also so I can support my family.

 

[netstrider]

It really depends on how reasonable your spending habits were in the first place. When I started my first US job, the cost of my bond in SA, looking after some family in SA, and the deferred compensation made it very difficult to get by on my net paycheck.

6 years later, I had 3x the net take home pay, but only spent 2x. A few years later I had 12x the take home pay from my starting net pay, but was only spending 4x.

An increase is all I needed to radically transform my level of financial security. Although I increased my spending, I made sure it was always disproportionately lower than any increase.

Of course.

You can definitely increase your standard of living quite well in a good career without putting yourself in trouble. The fact remains, you somehow made it work for the bit with which you struggled.

If, as a result of struggling, you got yourself in debt, it would have taken you longer to get out of that, firstly (not much longer at 6:1, but longer, however; in those months/years, you would have struggled if you added debt).

 

[lexor]

While I agree that things have gotten expensive, I also understand that the difficulties in life come from wanting too much.

I may get a lot of flak for this, but material possessions, relationships and children are demanding to the body, mind and spirit. I am not knocking any of them, but I think we can all agree they take work in many contexts (financial, physical and mental). Also let us not forget about the opportunity cost and freedom.

I'm one of those 100k earners, but my total living costs are just under 20k. This includes rent, utilities, groceries, medical aid, connectivity and insurances. It was a little bit more pre-covid due to traveling costs.

This situation would change DRASTICALLY if I had a demanding, non-contributing s/o, kids, numerous possessions, fancy car, etc...

Unfortunately schools don't teach you about your options in life and where each path may lead or what the requirements are to keep it going. Things like:

- What you study effects your income potential
- Studying costs money and you'll need to pay off tuition
- Children are expensive and require investments of time, money and effort
- Relationship pitfalls, the consequences of divorce, child support costs and emotional turmoil
- The world is bigger than the country you're living in and what that truly means
- The cost of freedom

Now don't get me wrong, I was on track to do all those things, but thankfully something clicked and I skipped all of it. Will I miss out on some things? Sure. Am I constantly stressing about people in my life, bills and finding a place big enough to put my acquired possessions? Nope. Most of my days are peaceful and quiet and you actually grow to like it.

I'm still a "slave to the system" for now, but I don't experience the problems everyone else does. I'm better positioned, though not out of it yet. All I know is living would be more difficult if I had all those things.

Something for you to think about perhaps. For some, too late to think about.

On the other hand - living & dying alone without wife/ kids is also not fun I assume ?

 

[netstrider]

It's pretty simple. You have kids. They be a black hole of gulping finances. And not even the direct expenses. Policies, as you mentioned. Spending money just in case sh$T goes down and then they will be provided for.

Some here might think I have a bit of money, but it's not really true. Again, I spent years living below my means, and paying off stuff so I could get ahead of the debt curve.

What people with kids spend on them a month easily gets you a PS5 etc.

I'm a recent father, child born Dec last year.

I shudder to think that daycare and so on is not too far away.

They do cost money, it's costing money to make sure she remains healthy, but that's something you do out of love and for some reason it doesn't register.

I would much rather go hungry and without internet and so on than see my baby not have what she needs.

Medical aid, gap cover, insurance policies, investments, general savings, and more. Those are just some of the things to have in place and it ends up costing a pretty penny.

If you don't start saving for your child now, you will have a hard time helping them go to uni in future.

 

[Splinter]

I'm a recent father, child born Dec last year.

I shudder to think that daycare and so on is not too far away.

They do cost money, it's costing money to make sure she remains healthy, but that's something you do out of love and for some reason it doesn't register.

I would much rather go hungry and without internet and so on than see my baby not have what she needs.

Medical aid, gap cover, insurance policies, investments, general savings, and more. Those are just some of the things to have in place and it ends up costing a pretty penny.

If you don't start saving for your child now, you will have a hard time helping them go to uni in future.

Just a heads up - day care, primary school, high school - in some strange fashion in SA, it can actually be more expensive than Varsity.

 

[netstrider]

Just a heads up - day care, primary school, high school - in some strange fashion in SA, it can actually be more expensive than Varsity.

Thanks.

I've noticed as much. It depends on how well they do in sport as well. That can set you back some moola as well.

At least in the case of daycare, the wife would be working I would hope, which she currently does not. But the baby is 3 months old.

 

[r4nd0m]

On the other hand - living & dying alone without wife/ kids is also not fun I assume ?

Well, my identity is not founded in others. I came here alone and who knows where I'm going when I pass.

Rather ask yourself why you need others to be comfortable with yourself.

Keep in mind that my saving of money and frugal habits are a side-effect of not needing. I won't take it with me when I'm gone, but while I accumulate it, I'd rather not spend it if I don't need to.

By the way, whatever partner or children people might have, there's no guarantee that they'll be there for you throughout your life.

Please don't take this as me advising you not to explore those areas of life. By all means if it interests you, please do and I hope it turns out well for you. It can and the possibility is there.

 

[netstrider]

Well, my identity is not founded in others. I came here alone and who knows where I'm going when I pass.

Rather ask yourself why you need others to be comfortable with yourself.

Keep in mind that my saving of money and frugal habits are a side-effect of not needing. I won't take it with me when I'm gone, but while I accumulate it, I'd rather not spend it if I don't need to.

By the way, whatever partner or children people might have, there's no guarantee that they'll be there for you throughout your life.

Please don't take this as me advising you not to explore those areas of life. By all means if it interests you, please do and I hope it turns out well for you. It can and the possibility is there.

Wise words.

Nothing goes with you to the grave.

 

[Nerfherder]

It's pretty simple. You have kids. They be a black hole of gulping finances. And not even the direct expenses. Policies, as you mentioned. Spending money just in case sh$T goes down and then they will be provided for.

Some here might think I have a bit of money, but it's not really true. Again, I spent years living below my means, and paying off stuff so I could get ahead of the debt curve.

What people with kids spend on them a month easily gets you a PS5 etc.

Sure thats another whole debate.

We weren't very frugal before the kids but always seemed to have enough. Having kids has been a massive adjustment.
I think thats a problem though, yes there will always be more costs when you have a kid but it does feel that its disproportionately what it should be.

 

[Nerfherder]

Well, my identity is not founded in others. I came here alone and who knows where I'm going when I pass.

Rather ask yourself why you need others to be comfortable with yourself.

Keep in mind that my saving of money and frugal habits are a side-effect of not needing. I won't take it with me when I'm gone, but while I accumulate it, I'd rather not spend it if I don't need to.

By the way, whatever partner or children people might have, there's no guarantee that they'll be there for you throughout your life.

Please don't take this as me advising you not to explore those areas of life. By all means if it interests you, please do and I hope it turns out well for you. It can and the possibility is there.

I think, based on the comments of some people who have decided to remain childless, that they expect to save insane amounts of money and live a hedonistic life of pure joy and selfishness. And then when they are too old they will have enough to just relax and die comfortably.

What I'm finding though with my peers is that you do need community and you can find that in creating a family.
The kids might end up being a disappointment but your money will never have empathy for you when you lose your mind.

Having kids is not necessarily the answer to this problem but ultimately involving yourself in the lives of others will go a long way.

 

[Barbarian Conan]

On the other hand - living & dying alone without wife/ kids is also not fun I assume ?

It's definitely more fun than spending your life with the wrong woman, or having kids that cause nothing but heartache.

 

[Yirhu]

Looks like you have your head screwed on properly!

Is the Hospital plan at R480 medical aid or medical insurance?

Make sure it's a medical aid because insurance is useless for the big stuff. You can get some entry level medical aids for close to R1000 last I checked and in SA it is pretty vital.

It's just medical insurance for when I need hospitalisation I don't have to be at guavament hospitals, at the moment I can't afford medical aid. Yes it's vital but I'd have to drastically change my budget to accommodate medical aid and most likely would cost me in the ballpark of R1500 for a barely entry level one I suppose.

 

[airborne]

It's just medical insurance for when I need hospitalisation I don't have to be at guavament hospitals, at the moment I can't afford medical aid. Yes it's vital but I'd have to drastically change my budget to accommodate medical aid and most likely would cost me in the ballpark of R1500 for a barely entry level one I suppose.

Unfortunately Medical insurance pays a pittance, barely enough even to cover the hospital bed each night. You have to have medical aid, they cover you literally for millions.

But last I looked discovery had policies for lower income earners that were near R1000 and you'd be surprised what's out there, I'd phone a broker just to see what options are out there.

 

[Gozado]

Well honestly depends on what you consider 'bare minimum', I get just under 8K after deductions, live within walking distance from work, groceries R1500, internet R300, electricity R350, rent a paltry matchbox for R1200, student debt R1003.5, life insurance R315, hospital plan R480, savings R1200 to1500 depending on my budget, further studies approx. R1500(depends on registered subjects per semester but not every month).

I'm one of those 100k earners, but my total living costs are just under 20k. This includes rent, utilities, groceries, medical aid, connectivity and insurances. It was a little bit more pre-covid due to traveling costs.

This situation would change DRASTICALLY if I had a demanding, non-contributing s/o, kids, numerous possessions, fancy car, etc...

Would you care to set out your [approximate] living costs, in roughly the way @Yirhu did, please?

 

[r4nd0m]

Would you care to set out your [approximate] living costs, in roughly the way @Yirhu did, please?

Sure. This is straight out of my budget spreadsheet.

R 2 449	Medical Aid (myself)
R 2 449	Medical Aid (parent)
R 309	Car Insurance for a 2005 BMW (paid off)
R 88	Funeral Insurance (myself)
R 803	Life Cover (myself)
R 1 000	Electricity
R 500	Water
R 9 000	Rent
R 2 000	Groceries (for 2, but parent has own pension)
R 399	Connectivity

There's miscellaneous costs like bank fees (R90), prepaid airtime (R50), traveling costs (petrol) and ad-hoc costs that happen once yearly (car service, licenses, subscriptions, etc...), but it's few and far between.

Yeah I get that people want to go out, have fun, get drunk, get laid, etc... but I am not that person. I spend my time either reading, gaming or some other interest I have at the time.