What is the perfect salary to be happy?

[cerebus]

Happiness plateaus as the average income in society reaches $70,000 (R1 million).

If you have to support a family, I don't believe $70000 combined is enough to be comfortable and happy. You'll make it, but it will still be tight in most places. I think you'd need more like $100k, or roughly $5-6k after taxes.

 

[SykomantiS]

I'm not saying money can't buy happiness, I'm just saying I'd like a chance to prove that it doesn't

I've seen some of the meth-ematics you guys use. I'm not even close to happy.

 

[YoungSandwich]

what do you save or RA etc?

Nothing. Again it's, not a sustainable strategy, but again in this current economy I think it's unreasonable to expect someone to be saving while trying to keep up and build a life. The way I see it, use every resource you have at your disposal to build, and worry about saving later.

 

[Thor]

In this country if we were to assume an average inflation rate of 6% since 2011, then according to the "official" LSMs levels from 2012 LSM 6 and upwards would be classed as "middle class"

LSM 6 - R11321 per month average household income
LSM 7 - R18365 per month average household income
LSM 8 - R25096 per month average household income
LSM 9 - R35197 per month average household income
LSM 10 - R52815 per month average household income

Put things into perspective

 

[Grouter]

Absolutely crazy everywhere, just for shits and giggles I randomly chose Sedgefield near Knysna to look at properties. It's also madness, the whole country has lost the plot.

I know a few estate agents here and they also can't quite believe when they value a property, add 10% (for shits and giggles?), and it still sells for the asking price...

 

[RunningFromFat]

How? A packet of chicken breasts is like R60, so times that by 7 days is R420.. unless you want to just eat chicken on it's own for a week, you'll need a little more than R500 a week for veggies, sauces and pasta, rice etc. I need to find out who your chicken guy is.

You can get braai packs at roughly R60 for 1kg at my local PNP.

 

[Voicy]

Maybe they're sad on the inside, that's why they bought one. People buy lambos to impress others, it's not the most practical car and it's expensive to maintain. Have to worry about where it's parked, the low profile is difficult on speed bumps and ditches. Also you get a lot of unwanted attention. It actually creates a lot of anxiety having a lambo.

Fair point, but I think all of us would rather be sad in a lambo than in a Tata.

 

[Charlesjjm]

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.

That is not high standard of living.
I'm single, my rent is R11,400 per month and my groceries averages about R4,000 per month.

 

[ToxicBunny]

Just having a quick look at my "grocery" budget for the month...

I'd say I spend around R650 a week on veggies and little odds and sods from Woolies and such, and about R1000 per month on meat and its generally decent quality stuff like fillet steak, lamb, pork etc... I don't skimp there too much but I buy in bulk once a month. And then maybe R1500 every 2 months on general household products. This is for 2 people in a largish 3 bed home. So all in around R4500 per month probably on groceries. It does fluctuate when I get a bee in my bonnet and buy things that are pure luxuries, but even my normal shop includes luxuries so I could shave that grocery bill in half if I was quite strict on things.

 

[nazmo]

I know a few estate agents here and they also can't quite believe when they value a property, add 10% (for shits and giggles?), and it still sells for the asking price...

We went in at 20 percent less than asking price and got it. It was during first wave and Tons of uncertainty

 

[ToxicBunny]

Put things into perspective

What sort of perspective?

I can link you to what defines each LSM officially if that would help?

But in general LSM 6 is "lower middle class" in this country by definition.. Yes it may not track with what you define as middle class, but we are a large and diverse nation that tends towards the poorer end of the spectrum.

 

[Cage Rattler]

An Eskom salary.

 

[cguy]

Put things into perspective

Ok…

 

[pinball wizard]

Ever see a sad person in a lambo? Exactly

That Lambo is in my brother in law's garage. The driver and the owner did not look happy at the time this photo was taken.

 

[Polymathic]

That is not high standard of living.
I'm single, my rent is R11,400 per month and my groceries averages about R4,000 per month.

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?

 

[backstreetboy]

Does nobody buy clothes anymore?
Go to gym?
Service their vehicles?
Have the inevitable bit of debt to service?
Great lack of savings/RA's unless it just didn't sink in inbetween all the other opinions I've been reading.

The "itemised" list of expenses feels out of line with what I expected to find? I say this knowing I don't know how to manage my money well, but I would assume:

• Accomodation (rent or bond)
• Accomodation: Levy: The above can include that as well as rates and taxes
• Accomodation: Utilities: Water and Lights, heck even gas? The above can include that as well
• Accomodation: Insurance
  
  
• Vehicle: Repayment
• Vehicle: Servicing
• Vehicle: Insurance
• Vehicle: Running costs, from fuel to rubber?
  
  
• Food: Groceries
• Food: Do you ever do takeout?
  
  
• Household: Cleaning stuff
• Household: Do you ever need new linen, replace an appliance, furniture
• Household: Does everyone clean their own homes? No domestic worker?
• Household: Internet
  
  
• Personal: Hygiene
• Personal: Clothes
• Personal: Life insurance?
• Personal: RA?
• Personal: Rainy day fund?
• Personal: Medical aid
• Personal: Cellphone/Subscriptions
• Personal: Gym or something of the sort?
  
  
• Unsecured debt: Be that CC, overdraft, personal loan, clothing accounts, a lot of people have these to service monthly?
• Debt: Interest... sometimes this can just be a running expense with no end in sight?
  
  
• Kids? .... I can't even begin to imagine what this might all ad up to, its not just school, or clothes, or medical expenses but to get them stimulating exposure, be that gymnastics or music lessons, PLEASE don't put them in front of a screen all day
• Other family to support?...
• Holiday is obvisouly not a thing? nor is gifts or wasteful spending?

I'm sure the list can be changed a lot on a per household basis and requirements. You can live off of 15K net, but I hope you don't have student loans? or hopes and ambissions of being a homeowner and having kids and putting money away for retirement and sending your kid off to Uni... unless you have a plan to increase your earning potential or you have a partner that can contribute enough to the budget as well

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.

 

[thestaggy]

So my basic is around R15k. My salary fluctuates quite rapidly due to overtime, which is paid extremely well at my company. 9 months out of 12 I usually walk away with between R19k to R21k. But on the months I only walk away with my basic of R15k I can live pretty comfortably honestly. My rent is about R5200, power is about R300 a month, the internet is about R300 for a 1gb line fibre (shared with my landlord) food (I usually only cook for myself at night) may be about R1500 a month. Car payment with insurance and tracker + AA about R3600. Minus R2300 for medical aid, and thank God I drive a Polo Vivo because that vehicle gets me through the month on R500 no joke. Leave me with about R1300 just for myself with all my basic needs to survive and keep my standard of living fine. One can have a quality of life on R15k, and can have some fun. But I don't think it is a sustainable strategy. But if you are smart with your cash, your debt etc etc, you can get the ball rolling to start moving up.

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.

 

[My_King]

The perfect salary is the one you don't have to work to get

 

[Thor]

What sort of perspective?

I can link you to what defines each LSM officially if that would help?

But in general LSM 6 is "lower middle class" in this country by definition.. Yes it may not track with what you define as middle class, but we are a large and diverse nation that tends towards the poorer end of the spectrum.

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.

 

[Thor]

Buy a cheap R2k-R3k smartphone and use it till the battery goes

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.