SA middle class forced back into poverty?

The new middle class has no clue about money matters and making debt left, right and centre. The BMW, Italian shoes and eating out are a necessity. No one saves first and buys later, rather pays a shatload of interest to loan sharks.
 
What happens when the middle class disseappears, who will then fund State expenses?
 
Stokstert said:
The new middle class has no clue about money matters and making debt left, right and centre. The BMW, Italian shoes and eating out are a necessity. No one saves first and buys later, rather pays a shatload of interest to loan sharks.
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have to agree here.

Looking at the cars (SUVs, 4x4s) on the roads, people have crazy money! (all debt I know)

But electricity price increases are insane.. government is useless.. we are doomed.
 
Stokstert said:
The new middle class has no clue about money matters and making debt left, right and centre. The BMW, Italian shoes and eating out are a necessity. No one saves first and buys later, rather pays a shatload of interest to loan sharks.
Click to expand...

This.

May be a generalization, but I agree. People don't think of saving their money, or cutting their expense as much as possible, it is the high life for as long as possible. And credit cards all the way to afford their high and lavish lifestyle.

Watch when they come to collect the rubbish with the truck - most of our neighbours' rubbish bins are overflowing, some have two overflowing bins.

Ours is the only one which is 1/4 full most of the time.
 
For some time now government realized that they would not be in a position to close the gap between high - middle and low income groups. They are definitely trying to close the gap between middle and low income by doing away with the middle income group. The scary thing is that they are succeeding at this at an alarming rate!

Yeah, would be interesting to see how they will handle tax income when the middle class no longer exists. The rich alone will not be able to carry the country. Most large corporations already have a number of agreements in place where they contribute very little to no tax to SA.

SA is heading towards a collision course that will set it back to the stone-age and will never, ever recover from again.
 
TelkomUseless said:
have to agree here.

Looking at the cars (SUVs, 4x4s) on the roads, people have crazy money! (all debt I know)

But electricity price increases are insane.. government is useless.. we are doomed.
Click to expand...

I had to replace my car after a hijacking a few weeks ago. Bought me a absolutely mint 2008 Toyota Avensis with 72K on the clock for R105k. I couldn't stomach the thought of all that cash going back into a new car after I had a look for what a "reasonably priced sedan" with similar features would cost.
 
The_Librarian said:
This.

May be a generalization, but I agree. People don't think of saving their money, or cutting their expense as much as possible, it is the high life for as long as possible. And credit cards all the way to afford their high and lavish lifestyle.

Watch when they come to collect the rubbish with the truck - most of our neighbours' rubbish bins are overflowing, some have two overflowing bins.

Ours is the only one which is 1/4 full most of the time.
Click to expand...

1 bin overflowed this week, because i cleaned out the garage :P I spend maybe about 400R a month on eating out and thats maybe every 5 months, I also don't have any lights on at night. Only thing i have running in my place is my router, computer, laptop charger, geyser and fridge. Even when im not at home i turn off all none essentials. I live a very simplistic life, the only thing that i use a bit of is water, because my plants are important to me :P
 
Kosmik said:
I had to replace my car after a hijacking a few weeks ago. Bought me a absolutely mint 2008 Toyota Avensis with 72K on the clock for R105k. I couldn't stomach the thought of all that cash going back into a new car after I had a look for what a "reasonably priced sedan" with similar features would cost.
Click to expand...

I have to agree there. I'm now looking around for a new car and immediately started looking at the used car market. No way i'm buying new.
 
Compton_effect said:
I have to agree there. I'm now looking around for a new car and immediately started looking at the used car market. No way i'm buying new.
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I was a bit lavish when i bought new, i had major problems with a used car and wont ever go that route again. But i am almost finished paying it off anyways.
 
Kosmik said:
I had to replace my car after a hijacking a few weeks ago. Bought me a absolutely mint 2008 Toyota Avensis with 72K on the clock for R105k. I couldn't stomach the thought of all that cash going back into a new car after I had a look for what a "reasonably priced sedan" with similar features would cost.
Click to expand...

Don't worry.. I had to replace mine. Went 2nd hand route.. way cheaper.
 
TelkomUseless said:
Don't worry.. I had to replace mine. Went 2nd hand route.. way cheaper.
Click to expand...

Well the cab has a full service history with dealerships and Hollard offer that extended warranty for cars under and up to 10 years/200k kms for R250pm ( varies ) so I'm pretty comfortable and happy.

semaphore said:
I was a bit lavish when i bought new, i had major problems with a used car and wont ever go that route again. But i am almost finished paying it off anyways.
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Semaphore, I was in same boat as you, didn't trust second hand, bought new years ago and then some chop hijacked me with 3 months left to pay :( I looked at new sedans, decent ones all at the R230k+ mark and that's way below the top tier ones.
 
My car paid off, wife's car has 2yrs left, House has 3yrs left.
 
FWIW I would advise newlyweds and young people not to have any children unless they have a very secure financial footing.

And to work very carefully with their money, like avoiding things like credit cards etc...
 
The_Librarian said:
FWIW I would advise newlyweds and young people not to have any children unless they have a very secure financial footing.

And to work very carefully with their money, like avoiding things like credit cards etc...
Click to expand...

Probably the best forum post I have read here on MyBB in a long while!
 
Cars paid off, house bought only last year, but investment property only have 3 years left. (My old flat).

My rubbish bin overflows each week with garden refuse and beer bottles. I like beer.. :)
 
The_Librarian said:
FWIW I would advise newlyweds and young people not to have any children unless they have a very secure financial footing.

And to work very carefully with their money, like avoiding things like credit cards etc...
Click to expand...


We have 2 kids, pricey pricey pricey.
R1500+ on grocery shopping a week for the 4 of us plus nanny.

No credit cards in our family, still on FNB basic account with no bank charges applied.
 
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