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How Real South Africans Save Their Money

19 March 2020

See how a 32-year-old HR manager from Jo’burg saves and spends – and the changes she can make to meet her goals.

Monthly Income (after tax):R29 800
Insurance and Risk
Medical aid: R1 800
Funeral cover:R950
Car insurance:R600
Savings and Investments
Retirement annuity: R1 100
Money market account (emergency fund):R500
Other Spending
Rent:R8 500
Utilities: R1 400
Groceries:R3 800
Toiletries: R1 000
Gym:R650
Petrol:R800
Cell phone: R950
Entertainment:R2 000
Grooming (hair, nails, etc.): R850
Debt
Car repayment: R2 000
Credit card payment: R750
Store card repayments: R2 000
Money left at the end of the month:R150

Lessons Learnt

“I’m spending more on my clothing and beauty products than I do on my car repayments and medical aid contributions combined. I hadn’t realised how much I was spending on ‘fun’ stuff proportionate to the more important things.

I am quite good with eating at home and preparing meals for the week ahead on a Sunday, so I think those costs aren’t too bad, but I definitely need to relook at how I am spending my money.

I do have some basic savings in place, which is great – that said, I’m sure it wouldn’t hurt to increase my retirement annuity (RA) contribution. I know I’m not making as much of a tax saving on this each year that I could be, and that probably doesn’t make the best financial sense. Since my savings amounts go off each month via debit order, I must be honest I don’t miss them – they’re out of my account before I can even think about what else I would have spent that money on. It means that increasing my RA contribution probably won’t hurt as much as I think it might.

I also want to save towards an overseas holiday, and take out income protection – cutting back on my grooming would allow me to do both.”

Need help getting your finances in order? Contact a financial planner today and work towards a financially healthier you.

This article was prepared by Sanlam Reality.

Sanlam Life Insurance is a licensed financial service provider.
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