Monthly Expensive F

[felixbf2]

The below is the costs for a young couple in the Northern Suburbs of CPT. This is really "entry-level middle class" with you owning and paying off your own home.

The scenarios is that they have just bought a 100 sqm + double garage townhouse in Durbanville (with the help of Dad). It is 3 bedrooms (one used for guests the other as a work from home room). They own 2 cars, the one is an old student car which is debt free, the other a basic entry level "family sized" car of R300k which is being payed off over 6 years with a 30% balloon payment.
The critical expenses are the absolute minimum that is needed. Groceries are bare-bone middle-class stuff and is pasta, bread, chicken, instant coffee based.
The essential expenses allows for "fancier" food, including a sub-R100 bottel of wine once a week. It allows for subscription entertainment services, some take-outs and a cleaner and gardener once a week, the gardener also washing the cars every now and then.

It includes no saving and uses a low cost digital-only bank account. Each receives a 13th check and this money is used for holidays, savings etc.

To be able to afford the below, it will require both partners to earn a salary of R35k gross (the after tax net in 2023/2024 will be R28,533) which will give you a combined take-home salary of R57,066.

CRITICAL
Medical (2 adults Keycare hospital plan)	R3,000​
Bond (3 bed townhouse 2.5mil)	R25,000​
Insurance (house, cars, home content of R300k)	R2,500​
Rates, water, refuse	R2,500​
Car (one R300k being paid off, the other is an old student car which nothing is owed on)	R5,100​
Petrol (3 tanks per month)	R2,500​
Groceries - food	R4,000​
Groceries - cleaning and toiletries	R1,500​
Electricity	R1,200​
Cell (2 voice/data only contracts - MTN 12GB/100min - handsets are exisiting ones)	R800​
Home internet (Cool Ideas FTTH 50/50)	R700​
Armed response	R450​
Total	R49,250
ESSENTIAL
Clothing	R1,500​
Take-out / restaurants	R2,000​
Entertainment (subscriptions / movies / shows)	R1,000​
Groceries up (adding "fancier" food and wine)	R2,000​
Cleaner / gardener (each once a week)	R800​
Total	R7,300
	R56,550​

R25 000 for a bond.? If one of you lose your job and cannot find employment, you are f&cked.
Essential = Take-out.? Cleaner.? Entertainment.?
Cook your own food.
Clean up and take care of your own garden.
Things are free on the internet.

 

[eepr0m]

You hate yourself, right?

why

 

[Brawler]

If you spending more than 5k on food a month, you are doing it wrong.

Does that include general groceries? Bathroom and cleaning stuff? Pets?

 

[eepr0m]

Heh - I thought you were in college ?

In any case, do you plan to adopt someone? Asking for a friend.

Common misconception made by @epah

 

[Brawler]

If one of you lose your job and cannot find employment, you are f&cked.

That is pretty much the situation for everyone in SA. R25k bond or not.

 

[6spdmanual]

Comfortable and still enjoy life? I’d say a nett of 40K.

 

[felixbf2]

That is pretty much the situation for everyone in SA. R25k bond or not.

That is only if you follow the pack. There are many ways to skin a cat as they say.

 

[eepr0m]

R25 000 for a bond.? If one of you lose your job and cannot find employment, you are f&cked.
Essential = Take-out.? Cleaner.? Entertainment.?
Cook your own food.
Clean up and take care of your own garden.
Things are free on the internet.

I Would say if one has to spend 25k pm on a bond cut back on other expenses and pay as much as you possibly can extra into your bond to pay it of quicker. Having debt is only good if there are tax benefits and with primary residence that is not the case unless you work from home and can claim back some office expense which prob won't be alot.

I love debt but only for the tax benefits and being able to pay it off with opm (other peoples money)

 

[Sideshow Bob]

The below is the costs for a young couple in the Northern Suburbs of CPT. This is really "entry-level middle class" with you owning and paying off your own home.

The scenarios is that they have just bought a 100 sqm + double garage townhouse in Durbanville (with the help of Dad). It is 3 bedrooms (one used for guests the other as a work from home room). They own 2 cars, the one is an old student car which is debt free, the other a basic entry level "family sized" car of R300k which is being payed off over 6 years with a 30% balloon payment.
The critical expenses are the absolute minimum that is needed. Groceries are bare-bone middle-class stuff and is pasta, bread, chicken, instant coffee based.
The essential expenses allows for "fancier" food, including a sub-R100 bottel of wine once a week. It allows for subscription entertainment services, some take-outs and a cleaner and gardener once a week, the gardener also washing the cars every now and then.

It includes no saving and uses a low cost digital-only bank account. Each receives a 13th check and this money is used for holidays, savings etc.

To be able to afford the below, it will require both partners to earn a salary of R35k gross (the after tax net in 2023/2024 will be R28,533) which will give you a combined take-home salary of R57,066.

CRITICAL
Medical (2 adults Keycare hospital plan)	R3,000​
Bond (3 bed townhouse 2.5mil)	R25,000​
Insurance (house, cars, home content of R300k)	R2,500​
Rates, water, refuse	R2,500​
Car (one R300k being paid off, the other is an old student car which nothing is owed on)	R5,100​
Petrol (3 tanks per month)	R2,500​
Groceries - food	R4,000​
Groceries - cleaning and toiletries	R1,500​
Electricity	R1,200​
Cell (2 voice/data only contracts - MTN 12GB/100min - handsets are exisiting ones)	R800​
Home internet (Cool Ideas FTTH 50/50)	R700​
Armed response	R450​
Total	R49,250
ESSENTIAL
Clothing	R1,500​
Take-out / restaurants	R2,000​
Entertainment (subscriptions / movies / shows)	R1,000​
Groceries up (adding "fancier" food and wine)	R2,000​
Cleaner / gardener (each once a week)	R800​
Total	R7,300
	R56,550​

Sounds similar to ours but subtract 30K due to no debt.

 

[eepr0m]

 

[Affieplaas]

R25 000 for a bond.? If one of you lose your job and cannot find employment, you are f&cked.
Essential = Take-out.? Cleaner.? Entertainment.?
Cook your own food.
Clean up and take care of your own garden.
Things are free on the internet.

Yes, stay with your mamma as long as you can.

Go on to Property24 and have a look at house prices in the Northern Suburbs of CPT (Durbanville, Belville, Brackenfell, Kuilsrivier). R2.5m just barely gets you a 100sqm townhouse on a 300sqm erf.

https://www.property24.com/for-sale/sonstraal-heights/durbanville/western-cape/9550/112333696
https://www.property24.com/for-sale/durbanvale/durbanville/western-cape/9570/112387306

A R2.5m bond will cost you over R25k per month.

 

[eepr0m]

Yes, stay with your mamma as long as you can.

Go on to Property24 and have a look at house prices in the Northern Suburbs of CPT (Durbanville, Belville, Brackenfell, Kuilsrivier). R2.5m just barely gets you a 100sqm townhouse on a 300sqm erf.

https://www.property24.com/for-sale/sonstraal-heights/durbanville/western-cape/9550/112333696
https://www.property24.com/for-sale/durbanvale/durbanville/western-cape/9570/112387306

A R2.5m bond will cost you over R25k per month.

View attachment 1503171

Provided you put down no deposit and do not get prime minus 0.5% or more.

 

[PPLdude]

If you spending more than 5k on food a month, you are doing it wrong.

I spend close to 5k on food for myself

 

[rvZA]

For two people with absolutely no debt you will likely need to look at around R50k-R60k a month, which will include rent or bond payments, water and electricity, limited groceries and food, proper medical aid, vehicle payment - or if no vehicle uber fees. Maybe watching a movie or eating out once a month. No things like clothes or any other necessities. But, this will be a very basic lifestyle for two. You will not stay in an upmarket area, or perhaps even in an average middle class area. But, this is as good as it will get for this amount. Alternatively, with less money, you will live a struggling life in South Africa.

 

[TheTwo]

-School fees if not private seems a bit high....
-No need for such a expensive car
-Sounds like you have Discovery's Classic saver or coastal package.. there are cheaper alternatives.
-I cannot judge on the 2k per week for food
-Do you get comparison quotes yearly from different insurance companies? You should. I'm sure you could get insurance cheaper with the same cover.
-Pension - Do you diversify?RA/ Pension fund, savings, Shares, TFSA, other property?
+1 for everything else. that seems on par with some of my expenses except for my cellular account... I can save a bit there.

Hmm 2 points popped out for me..

1.1 Cheaper Medical aid than Classic Saver or Coastal? Id love to know and with similar cover, basically Hospital and Chronic meds

2.2 Diversifying investments, was on the 10x site I think and it gave a projection of saving R3k every month in a TFSA up to the lifetime R500k limit over 13 odd years AND the return was R2.2 million instead of a traditional savings account providing R1.7 after that 13yr period.

I was very ignorant on how a TFSA could help one save and it seems to be a brilliant investment option.

Anything better than a TFSA over that period in terms of Return?

 

[airborne]

Hmm 2 points popped out for me..

1.1 Cheaper Medical aid than Classic Saver or Coastal? Id love to know and with similar cover, basically Hospital and Chronic meds

2.2 Diversifying investments, was on the 10x site I think and it gave a projection of saving R3k every month in a TFSA up to the lifetime R500k limit over 13 odd years AND the return was R2.2 million instead of a traditional savings account providing R1.7 after that 13yr period.

I was very ignorant on how a TFSA could help one save and it seems to be a brilliant investment option.

Anything better than a TFSA over that period in terms of Return?

Probably nothing better in terms of low risk but if you play the stock markets right the sky is the limit!

 

[eepr0m]

Hmm 2 points popped out for me..

1.1 Cheaper Medical aid than Classic Saver or Coastal? Id love to know and with similar cover, basically Hospital and Chronic meds

2.2 Diversifying investments, was on the 10x site I think and it gave a projection of saving R3k every month in a TFSA up to the lifetime R500k limit over 13 odd years AND the return was R2.2 million instead of a traditional savings account providing R1.7 after that 13yr period.

I was very ignorant on how a TFSA could help one save and it seems to be a brilliant investment option.

Anything better than a TFSA over that period in terms of Return?

I mainly dump 3k per month onto he nasdaq and s&p 500 index fund. Occasionally I will buy some eurostoxx or japan stox.

In regards with Saving for retirement if that's what you are aiming for, Consider a RA.If you fall in a higher tax bracket ie. 30-40% then it will have a significant impact on the tax you are liable to pay.

In terms of the cheaper medical aid. Have a look at the classic smart from discovery. Works well if you manage it well. Keep in mind there are no Savings account but you do get some money on your medical aid that can be used for meds every year. Lots of day to day benefits i.e. dentist and gp visits provided they fall under the network plan.