What is the perfect salary to be happy?

[ToxicBunny]

I mean, you need to be LSM 7 and up to live comfortably and even then "comfortably" is short-lived, inflation over the last 5 years exceeded what people's salaries offer I think. Just look at Milk & Meat, not a chance it grew by just 5.5% since 2015.

Of course if you look at specific items, the inflation rate will be out, and it also differs per LSM in terms of the products they choose to use.

But for averages 6% kind of works, hell even if you make it 8% it still doesn't really paint the picture of needing 40k clear every month to live a middle class life.

 

[Pineapple Smurf]

Well the R15k quoted is for a single person. Also you don't need to marry and have kids since it's not a requirement or stated in the bible etc.

Proper clothes will last you 10 years if well looked after.
You can walk around the block for free and just pay R30 p/m for Youtube Premium with a James brown playlist. No need to drive to a gym to do the same on a treadmill.
Only debt you should have is a home loan.
You don't need life or household insurance and can put that away monthly for when something actually do break.
Clean up after yourself and you don't need a cleaner.
Cut your own hair
Buy a cheap R2k-R3k smartphone and use it till the battery goes and go prepaid (where the specials are) for calls/data.
Etc. etc.

Some good pointers there.
Except I did take out Life Cover to cover my bond with FNB should I die or be in an accident where I can not continue to do my job properly. I am a technician, so imagine both hands cut off.
This costs me R260 a month, kinda worth the risk I reckon, as my bond will be fully paid for if this were to happen

 

[ToxicBunny]

I just do not see this as being practical, most people who earn in that LSM 7 and up have emails and other ad hoc work on their phone.

I think in 2021 onwards a phone is as important as a good PC.

I have a 3 year old mid range phone and I still do emails and adhoc work on the thing very comfortably.. so a new R3k phone will do the job just fine for that.

 

[pinball wizard]

both hands cut off.

You should have learnt your lesson after the first one?

 

[thestaggy]

As I've upgraded my lifestyle from sharing a flat with a friend, to living in a Golf Estate and then driving everything from a basic Fiat Uno to an Audi, I can honestly say that happiness comes more from having the funds to have experiences in life, more so than material possessions. I personally also get far more "happiness" and comfort from feeling safe and secure than from the things I own. There is also a lot of satisfaction from having spare funds available for life's ups and downs and having enough to go on nice holidays. It is also important to have funds available for your interests and hobbies. It can really suck not being able to afford a nice PC if you like gaming as an example but...

The material possessions do give you pleasure and entertainment, but not really much more happiness.

People confuse "Entertainment" and "Happiness". Money buys a lot of Entertainment, but not much happiness.

That said, I reckon about R35k a month net take home pay will meet pretty much all your desires in life and buy you comfort and security.

So much of this.

Happiness is knowing you can afford a night out at the movies, or concert tickets, or a day-trip out to visit a microbrewery without counting pennies and stressing over what you spent. Happiness is knowing you can grab a few drinks on a whim at the bar and not feel guilty for using money for food. Happiness is knowing if you have to replace your car's battery tomorrow you can do so and won't have to eat bread for the last week of the month.

These things in themselves are not high standards of living, they're the mere basics of enjoying oneself and being able to cover real, unplanned expenditure.

 

[Pineapple Smurf]

You should have learnt your lesson after the first one?

On a motorbike going to work?

 

[Charlesjjm]

Where do you live? I've based the bond on a one bedroom flat in a reasonable area in Durban with a decent deposit.
How much of your groceries are pre-prepared/ processed?
How much your monthly groceries are junk food?

Okay, that makes more sense. I have a 2 bedroom apartment in Rosebank.
Take out is once a week, but I'll admit I probably spend a lot on luxury food items. My goto is Woolies, which is not the cheapest. I also like their heat-and-eat food...

 

[dualmeister]

Money can't make you happy.

Yes, but it can buy you bacon and that is happiness

 

[dualmeister]

R100K a month after tax would make me happy

 

[YoungSandwich]

This is the area I focus on.

One night out at a bar/restaurant is R200 - R300. Even a braai can be expenisve. What happens if something mechanical happens to your car, or a pair of work shoes breaks? What if you own a PC/gaming console and want to buy a new game? If you are a guy, the average barber charges R150 for a haircut, if you are a women, then RIP as they get ripped off at hair salons. What if you want to join a gym? That R1300 can disappear in a hurry.

What about any savings/investments?

I don't doubt that you can live on 15k take-home, but then its pretty much hand-to-mouth with little to no savings and no room for unplanned expenditure.

100% agree. Not sustainable. Which thank god for overtime am I right. Luckily for me, I've always prioritized insuring my car and my health over everything else. Because then at least if anything happens I can get hospital food and my car will be fixed. With entertainment, we are lucky to live in a world where the subscription model is now becoming the normie GamePass. I'm pretty introverted as it is and really do not enjoy going out to drink at bars or going out at all really. If I drink it's with 1 or 2 close friends with a cheap bottle of 1880 we can buy at a merchant for half the price. As for saving and investments, I firmly believe in spending what you have to construct the life you want. You can do way more and build more with your money as a young man than what you can do with it sitting in a bank account gaining interest that will only be of substantial 30 - 40 years down the line.

If you cant afford to save - don't. Rather factor the money you would be saving into some sort of asset that will allow you to grow your wealth. Put it into a car payment or something. The previous car I sold for R60k, took R40k put it down on a deposit on my next car, kept R20k to supplement payments for the months I'm short on and for services - now I have a car worth R130k which is insured for anything - which in my view means I jumped from a wealth of R60k to R130k. If I need money, that car is my fall back essentially. Assets should be your savings, not a bank account.

 

[backstreetboy]

I just do not see this as being practical, most people who earn in that LSM 7 and up have emails and other ad hoc work on their phone.

I think in 2021 onwards a phone is as important as a good PC.

Sure you can. Reminds me of the guy that went to a meeting where people were ferociously typing out on their iPads taking notes. Afterwards he just went to the speaker and asked the speaker to email him his notes (which he gladly agreed to do).

 

[Zophos]

R100K a month after tax would make me happy

I would also like R100k per month, but with 1 conditions ----> No work, kind of like a suspension with pay type deal...Although I think that only works in politics....

 

[Pineapple Smurf]

I would also like R100k per month, but with 1 conditions ----> No work, kind of like a suspension with pay type deal...Although I think that only works in politics....

So like Zuma then that still earns over R200k a month on his Presidential salary?

 

[Erohann]

Well the R15k quoted is for a single person. Also you don't need to marry and have kids since it's not a requirement or stated in the bible etc.

Proper clothes will last you 10 years if well looked after.
You can walk around the block for free and just pay R30 p/m for Youtube Premium with a James brown playlist. No need to drive to a gym to do the same on a treadmill.
Only debt you should have is a home loan.
You don't need life or household insurance and can put that away monthly for when something actually do break.
Clean up after yourself and you don't need a cleaner.
Cut your own hair
Buy a cheap R2k-R3k smartphone and use it till the battery goes and go prepaid (where the specials are) for calls/data.
Etc. etc.

Fair points but... an accounting intern, needs to dress smart, look smart, and hopefully not be female so as to not need/want makeup in the above budget. Eish I entirely forgot about that. Getting clothes once every 10 years is not what I would call realistic, especially in a professional environment. How do you bank roll the initial setup or the replacement wardrobe? Do you replace it piece by piece over the 10 years? Then is there a monthly budget for it? Or once off? Then the savings must be there?
I also hope this hypothetical accounting intern has a consisten body composition and doesn't put on weight during lockdown? Maybe lose it again? Inherently needing wardrobe adjustments?
There needs to be enough cashflow to allow buying a 3K phone once off, or you assume parents provided one, and you can save up for the inevitable replacement so long... and again those darn student loans

 

[dualmeister]

I would also like R100k per month, but with 1 conditions ----> No work, kind of like a suspension with pay type deal...Although I think that only works in politics....

Eskom sounds perfect then

 

[thestaggy]

100% agree. Not sustainable. Which thank god for overtime am I right. Luckily for me, I've always prioritized insuring my car and my health over everything else. Because then at least if anything happens I can get hospital food and my car will be fixed. With entertainment, we are lucky to live in a world where the subscription model is now becoming the normie GamePass. I'm pretty introverted as it is and really do not enjoy going out to drink at bars or going out at all really. If I drink it's with 1 or 2 close friends with a cheap bottle of 1880 we can buy at a merchant for half the price. As for saving and investments, I firmly believe in spending what you have to construct the life you want. You can do way more and build more with your money as a young man than what you can do with it sitting in a bank account gaining interest that will only be of substantial 30 - 40 years down the line.

If you cant afford to save - don't. Rather factor the money you would be saving into some sort of asset that will allow you to grow your wealth. Put it into a car payment or something. The previous car I sold for R60k, took R40k put it down on a deposit on my next car, kept R20k to supplement payments for the months I'm short on and for services - now I have a car worth R130k which is insured for anything - which in my view means I jumped from a wealth of R60k to R130k. If I need money, that car is my fall back essentially. Assets should be your savings, not a bank account.

Rainy day savings?

Your out of warranty car fails and ends up with a bill of R8,000 at the workshop. WYD?

You have a pet, it gets sick. Vet bills are murderous.

 

[Dolby]

I was doing OK before lockdown - not a massive salary, but I didn't want for anything and was single.

Then I met someone during lockdown with a 6 month old baby ...
And then a few months later she fell pregnant too ...
And then a few weeks after that, I learnt it was twins ...

Now it's strain for me - but that said, I wouldn't take it back

 

[CruelBreeze]

Bond : 4000
Household: Insurance: R1000
Home Internet: R1000
Phone + data : R1000
Groceries: R1500
Medical Aid+ Gap + Hospital Insurance: R2000
Vehicle + Insurance: R3000
Petrol: R2000
DSTV (for the spurts) + Streaming Services+ VPN : ~R1500

At a Take home of R20,000 for a single person and you'd be living a really high standard of living and with total peace of mind. It seems you are one the money when it comes to a couple with no kids though.

Drag me sir.

 

[NR7]

I was doing OK before lockdown - not a massive salary, but I didn't want for anything and was single.

Then I met someone during lockdown with a 6 months old baby ...
And then a few months later she fell pregnant too ...
And then a few weeks after that, I learnt it was twins ...

Now it's strain for me - but that said, I wouldn't take it back

When Cyril makes it level 4 in the summer you better warn the next guy so he doesn't end up with triplets.

Jokes aside, twins are rough. Hope it goes well dude

 

[YoungSandwich]

Rainy day savings?

Your out of warranty car fails and ends up with a bill of R8,000 at the workshop. WYD?

You have a pet, it gets sick. Vet bills are murderous.

Sell the car. One can survive without a car in 2021 quite easily. Just takes a lot of effort to adjust.

Renew your warranties. Read your car insurance and make sure you are covered for anything. Know it better than them for when they try to pull their ****ery.

Vet bills are a hard one, I know. I've got a little kitty that's just made 1 year now, and I tell you what, shots and getting her fixed was not the cheapest experience in the world. Thankfully I didn't have any issue affording such things, but I am looking into pet insurances at the moment.

I know I fall back a lot on insurances etc etc but if you know what you're doing, you know how to read between the lines and know their policies like you work for them, you can give yourself a lot of peace of mind from finances knowing not that they will pay - but HAVE to pay.