Savings Diaries: How real South Africans save their money

Savings Diaries: How real South Africans save their money

Published on 25th June, 2019 at 11:29 am

Here, see how a 44-year-old sales and marketing manager saves and spends – and why she needs to prioritise her future-savings plan asap!

Monthly income (after tax): R43 000

Insurance and risk:
Life insurance (myself and spouse): R2 600
Medical aid (for two adults and two children): R3 000
Gap cover: R870
Car insurance: R800

Savings & investments
No savings for retirement or an emergency!

Other spending:
Utilities: R2 600
Groceries: R12 000
School fees (two children): R5 200
Children’s nanny: R7 000
Kids’ extra murals: R800
Entertainment and other (restaurants, coffees, hardware store, takeout): R6 000
Petrol: R1 300
Toiletries: R800

Money left at the end of the month: R30

“What I learnt”

“I was really shocked at these results. When I actually sat down and looked at my income versus my bank statement, I couldn’t believe it. I am spending far too much!
“What scares me most is that the entertainment and ad hoc amount is so high, and I’m saving nothing for my future. In fact, I’m not even putting money aside for a rainy-day fund – if my car broke down tomorrow, I’d struggle to afford to fix it.
“I also think that my family and I are spending far too much money on groceries. We can definitely reduce that spend by shopping wisely, making use of monthly special offers and buying certain items from certain shops, rather than getting everything in one place and not shopping around for deals.
“If we just cut back on two restaurant outings a month (approx. R1 600) and saved R1 500 on our groceries, that’s already a saving of R3 100. That’s a good amount I could be saving towards my retirement with – a big blind spot in my finances at the moment!”

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

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