How do I budget my R25 000 salary?

Last updated on 20th February, 2024 at 03:24 pm

This time of the year, budgeting is on everyone’s mind. Three ordinary South Africans share where their money goes, what challenges they face, and what their financial dreams are for the future.

Reading time: 4 minutes

In this article you’ll learn:

• Budgeting insights from ordinary South Africans
• Relatable budgeting advice
• Resources to budget like a pro

Did you know that the average South African working in the formal   sector earns roughly R25 000 at the moment? To be exact, Stats SA reported that average salaries now sit at R25 994, up from R23 640 a year prior. With the rising cost of living however, it begs the question: is this enough to comfortably budget and live on? We spoke to three average South Africans between the ages of 28 and 37 earning in this bracket to try and answer that question.

Nozipho Ndlovu, 37, HR consultant – “Your budget cannot look the same year after year.”  

“As a single mother of one, sometimes my budget goes out of the window,” says Nozipho. “As my daughter gets older, there are constantly new things that pop up.” Nozipho also currently invests money in insurance that covers her income and health, as well as a savings account that her daughter will use to go to university one day. “The best budgeting advice I ever got was this: your budget cannot look the same year after year; it needs to change and evolve as you do.” She adds that once her daughter goes to university, she will focus on retirement. “For me it’s about tackling one big milestone at a time,” she says, “so while I may not earn enough to get to everything now, I know that will change in the future.”

Biggest expenses: “Most of my budget goes towards rent, school fees and aftercare, transport, food, and savings.”

Biggest financial goal: “Giving my daughter an education, and afterwards focusing on retirement, savings, and travel.”

Anele Mxenge 30, media specialist – “Don’t be overwhelmed by money. Be patient, smart and focused.” 

“My family made every sacrifice to get me through university,” says Anele, “and now that I have a steady job, I am paying them back. A big part of my monthly budget goes towards helping my mom build a new house, and that means that very often there’s not much left over for other things – that’s when things get quite tight.” Anele points out that in his culture, it’s not about doing things alone. “I am helping my parents, so they can help my brother. In turn, my brother will help me one day – it’s about building family wealth, not personal fortune.” Unfortunately, with his current responsibilities, Anele can’t afford to invest his money elsewhere for the time being. “But that fact reminds me of the best budgeting advice I ever got, which was: don’t be overwhelmed by money. Be patient, smart and focused.”

Biggest expenses: “My budget revolves around renovation fees, debt, transport, and food.”

Biggest financial goal: “Helping my family enough so I can start focusing on investments, retirement and medical aid.”

Chris Geldenhuys, 28, production co-ordinator – “Always think about the future; everything you do shapes it.”

“Building a career can be really tough,” says Chris, “and currently I don’t really have enough disposable income to do everything that I know I should like retirement annuities, investments, and risk cover. In that regard, my parents are helping me a lot.” Chris says that his budget is currently feeling the pressure of rent and traveling expenses, but that he hopes it will change soon. “As my career grows,’ he says, “I believe my budget will allow a lot more room to focus on my future, because I know that’s the most important thing.” Chris says this is a valuable lesson his parents taught him, and a conversation they often have as a family. “The best budgeting advice they gave me is this: always think about the future, everything you do shapes it.”

Biggest expenses: “I spend most of my budget on rent, transport, amenities, and food.”

Biggest financial goal: “Earning enough money so I can take over my own medical aid, and start saving towards living a comfortable life, and a financially stable future.”

Wondering what the perfect budget looks like?

Because they’re focused on very specific life goals at the moment, Nozipho, Anele, and Chris all admit to feeling guilty when they spend money outside of their main budget. We recently chatted to Farzana Botha, Manager: Segment Solutions, Recurring Savings at Sanlam. She shares tips about managing money, letting go of guilt, and building the perfect monthly budget. You can read the full article by clicking here.