With the rapidly rising cost of living, it may not be clear how much money South Africans need to survive, both while earning a living and in retirement. The costs can also increase significantly when considering how much it costs to live a more traditional ‘middle-class lifestyle’ in South Africa, says personal finance site JustMoney.co.za.
Gareth Price, founder of both Cloudworx and Investmint, and chief financial officer at BackaBuddy, says that people have different ideas about what it means to survive financially.
He noted that, in general, households should prioritise the basics, such as food, rent, transport, electricity, education, burial insurance, debt repayments, basic hygiene and medical products. On average, these costs add up to R7,000-R9,000 per month, he said.
“If you want to move into the middle class, school fees and rent become more expensive, and you may choose to purchase a car rather than relying on public transport. On top of this, you may take out medical aid and perhaps invest in a savings plan. Here, you’re looking at an income of between R35,000 and R45,000 per month,” said Price.