Rising costs hit middle-class hard

dlk001

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Cape Town - Middle-class families are being hit hard by the rise in the cost of living over the past few years.

Evona Rebelo, 48, of Green Point, who is married with three children, one of whom is intellectually challenged, said there were some positives from this year’s Budget speech, but the cost of everyday living was still very high.

She also looks after a niece and nephew.

Rebelo is the director of the Catholic Schools’ Office and her husband works as s an engineer, so they can afford their children’s varsity fees, but she said cutting other expenses was a necessity.

“We are skilled people with decent salaries, but sometimes we also feel the strain, as our insurance has gone up and so has our medical aid.

“I try to not have any accounts at places like Woolworths and Edgars. Credit cards are also a no no.

“It is quite expensive to run this family, with an intellectually challenged boy and another two at university. Food has become unusually expensive, so the food budget had to increase, tapering our whole eating style. The fuel price has also become ridiculous.”

The care for her 19-year-old challenged son made a huge dent in the family’s budget as they had to employ a caregiver.

She welcomed the increase in disability grants from R1 270 to R1 350.

“That money goes straight into his bank account for the future when one day we are not here.

“Accepting the social grants was an eye opener for me as it is a levelling factor across all sectors of communities. It is mind blowing to see that whole families live on that amount a month.”

She was also in favour of the R9.3bn tax relief, but questioned where the government was taking the money from to meet the deficit.

“It’s coming from sin taxes and fuel levies, which is not a positive at all.

“In terms of fuel levies we are all at a disadvantage.” - Cape Argus

http://www.iol.co.za/business/budget/rising-costs-hit-middle-class-hard-1.1653823#.Uw9blfmSxu4
 
I'm not even lower middle-class yet ... and by this rate I don't think I will ever reach middle-class.

Most of us aspire to reach upper middle-class at least, based on merit ... but it seems like merit is not a valid factor in South Africa anymore.
 
Well this is an issue indeed I feel, that the middle class bear the brunt of the recent price hikes.

I feel based on my understanding of economics, that the government needs to cut spending and raise taxes which in turn combats inflation, however they won't do this as employment is a necessity, especially when you promise people jobs (and ask the reserve bank to keep the repo rate low to encourage growth), compounded by wasteful expenditure, thus resulting in "economic growth" and a rise in inflation, if I am not mistaken. And the budget speech yesterday, well they are going to spend a lot of money, youth wage subsidy, tax relief, etc.

If they want more people moving into the middle class, they need to combat inflation.

But hey I just speak from the theory I learnt, it's probably much more complex.
 
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I'm not even lower middle-class yet ... and by this rate I don't think I will ever reach middle-class.

Most of us aspire to reach upper middle-class at least, based on merit ... but it seems like merit is not a valid factor in South Africa anymore.

It never was.
 
I'm not even lower middle-class yet ... and by this rate I don't think I will ever reach middle-class.

Most of us aspire to reach upper middle-class at least, based on merit ... but it seems like merit is not a valid factor in South Africa anymore.

My wife could not believe me when I told her what our household income was as she is self employed and does not track her expense (she pays an accountant for a reason). Middle income household ceiling is R50K and that is not hard to achieve that these days.
 
Well this is an issue indeed I feel, that the middle class bear the brunt of the recent price hikes.

I feel based on my understanding of economics, that the government needs to cut spending and raise taxes which in turn combats inflation, however they won't do this as employment is a necessity, especially when you promise people jobs (and ask the reserve bank to keep the repo rate low to encourage growth), compounded by wasteful expenditure, thus resulting in "economic growth" and a rise in inflation, if I am not mistaken. And the budget speech yesterday, well they are going to spend a lot of money, youth wage subsidy, tax relief, etc.

If they want more people moving into the middle class, they need to combat inflation.

But hey I just speak from the theory I learnt, it's probably much more complex.


I don't know all that much about it either, but I agree with you.

I believe that if we want to "combat" inflation effectively, the amount of goods produced in South Africa needs grow faster than the money pool does. Then inflation works.

That does mean that when shopping, we as South Africans need to look at where our products come from, and where the money is going. We should at all costs try to keep our Rands in SA. (It does get more complex than that I'm sure, but from a global perspective: what is outside investment worth if we can't profit more than the outside does?)

This is one of the only reasons I am against the e-tolls. For all intent and purposes, it is a tax, but as it is setup now is, a lekka chuck of money is leaving the country every time you drive through a gantry. In essence we are paying tax to foreigners. Fluusssshhh.
It would have been better that the petrol levy goes up, some corrupt official steals that money every month, and buys his/her whole department lunch everyday from a local shop.

Also, government grants on industry is great, but what they need to do is give us access to cheap resources to produce things. As soon as they can appreciate that we cannot compete on the global market effectively st this time (not in all, but allot of sectors), and address that, the better for us all.

Tax relief is great, but money back on money spent does not help if you cannot afford to spend it in the first place. In my humble opinion, that is a recipe to create debt (if you can get credit) that you may or may not be able to pay back in the end of the year. Meaning another chunk of money goes right back to the banks and if which I have it right, drives inflation even more (and how much of our banks do we own?).

I may be wrong on all my points far, but a believe I am right when I say, lastly we need help from government that does not require a tax consultant to decode in order for us to take advantage of it. Because, who can afford it? The Rich.

Please correct me where I am wrong, I am always willing to listen to reason.
 
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My wife could not believe me when I told her what our household income was as she is self employed and does not track her expense (she pays an accountant for a reason). Middle income household ceiling is R50K and that is not hard to achieve that these days.

So what are the subdivisions of middle class and what threshold is uppercase?
If 50k is middle class, what is upper middleclass?
 
So what are the subdivisions of middle class and what threshold is uppercase?
If 50k is middle class, what is upper middleclass?

This best describes middle-class. There is no concept of "upper" middle class, just upper class.

The UCT study classified South Africa’s middle class as households earning between R15,000 and R50,000, with their own transport, a tertiary education, employment in a white-collar job and owning their home or spending more than R4,000 a month on rent.
 
Well damn, it's pretty easy to be upperclass then. Guess I have to go buy a Porsche now and move to Dainfern.
 
The UCT study classified South Africa’s middle class as households earning between R15,000 and R50,000, with their own transport, a tertiary education, employment in a white-collar job and owning their home or spending more than R4,000 a month on rent.

That counts me out - what's below middle class? lower class, working class, peasant class ?
 
So your combined household icome is > R10 000 pm, then you are upper class? BS!!!
 
The Rand has become worthless, inflation hus been much higher than the published figures.

Try to live on R10 000, even R20 000 per month !

Look at rent, medical aid, food, insurance, transport, rates, electricity, clothes

Just does not work.
 
The Rand has become worthless, inflation hus been much higher than the published figures.

Try to live on R10 000, even R20 000 per month !

Look at rent, medical aid, food, insurance, transport, rates, electricity, clothes

Just does not work.

Exactly..
 
The Rand has become worthless, inflation hus been much higher than the published figures.

Try to live on R10 000, even R20 000 per month !

Look at rent, medical aid, food, insurance, transport, rates, electricity, clothes

Just does not work.

Agreed. To be just ok you need around R25k.
 
I tend to disagree...

You CAN survive on R10k - R12k per month... you just have a very different lifestyle to what a lot of us are used to.
 
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