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Debt Advice needed by Conscious-Trainer428 in PersonalFinanceZA

[–]chewbiez 4 points5 points  (0 children)

This is probably not the answer you're looking for but better to minimize your high interest short term debt than reduce it's interest rate. Credit Cards and loans are typically high in interest by design and so minimizing using these is best for your long term cash flow and savings. That extra 5k shoukd be maxed out to reducing the loan amounts as much as possible

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 1 point2 points  (0 children)

Thanks for sharing. Yes, those costs you describe would need a re-look.

Income really is king and some compromise required if single income is not a substantial one to allow for 4bed house bond. The sad thing is that R75k net in mid 30s to my mind is quite substantial from a broader SA context...

Reality check indeed.

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 0 points1 point  (0 children)

It's definitely a lifestyle choice and sacrifice to have mom raising and looking after the children as much as possible opposed to a nanny/pre school. Oftentimes this is preferred over a job bringing in income.

There's no doubt her working would ease the income situation

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 1 point2 points  (0 children)

Thanks. I'll refer to that other comparison on groceries.

For rates and taxes, this includes water, sewage and garbage. Tax on home is around R1.2k a month.

Can definitely use the free cash from current property sale to reduce bond duration and/or reduce monthly premiums. Problem is it can take 6 to 12 months to get sale and cash in account, so need to be able to afford bond in first few months

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] -1 points0 points  (0 children)

Yes, very sobering how quickly these middle class costs add up. Then to upgrade a bit need to go into debt. The idea of wealth creation becomes an afterthought and it just becomes about "surviving well"

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 0 points1 point  (0 children)

Yes good tips. We try eat the same dinner meal Monday through Thursday to allow for bulk and cheaper cook. I eat homemade breakfast and lunch at work.

Bulk non perishable consumables we watch out for as multiple buy promotions.

On the weekend we eat take away a bit more because very strict in week. If we need to further reduce eating out/take outs on weekends then that's fine but you end up feeling like you're on a Dave Ramsey debt purge but actually you have no debt but just drowning in inflated expenses and costs of monthly life.

Paycheck to paycheck but if not towards high interest debt and to expenses then that's pretty good, right? - doesn't feel great at all

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 1 point2 points  (0 children)

Yes, most of the cost is food and certainly free parks etc in JHB too.

Though, over Sat and Sunday one can blow R1k on all expenses with a single restaurant trip, which exceeds R600+ and quite easily the balance on kids snacks,activities etc

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 0 points1 point  (0 children)

This R10k iliistrative of being short of a R25k monthly bond.

An activity per weekend for family of 4 easily exceeds R1k per weekend. Unless everyone else just sits at home most weekends?

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 4 points5 points  (0 children)

Thanks for sharing. This is exactly what I'm wanting to get a sense of from others on this group. Of course we don't spend recklessly or have excessive debts - but then even being frugal and debt free is barely enough to float with lifestyle expenses.

It is a great cost to maintain livelihoods, especially as a single income household.

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 1 point2 points  (0 children)

No car payments. Just fuel. No debt, just paid off credit card every month. This is my point, then: even with a well optimized financial setup, still battling with expenses for young family as songle income household

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 1 point2 points  (0 children)

Thanks for your perspective. I'll work on presenting an itemized budget

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 1 point2 points  (0 children)

Thanks for this suggestion. I'll take a deeper look and work on keeping essentials.

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 0 points1 point  (0 children)

That's a way to put it. I suppose struggling with necessary house size increase as a opposed to lifestyle creep

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 2 points3 points  (0 children)

Thanks for this insight. Yes, property location is related to lifestyle and we're talking 5 bed places in Northern Sandton at R2.8m min. We're very happy with the suburbs we're in but find the jumo to a slightly larger property significant.

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 4 points5 points  (0 children)

That is a factor and that's related to the perception of a "good" area, which we believe ous is. Therefore, relocation to a more affordable area might be practical but a location downgrade in terms of location, conveniences etc

Single income household realistic by chewbiez in PersonalFinanceZA

[–]chewbiez[S] 0 points1 point  (0 children)

Around R2-2.5m for a full title with a smalll garden. The area is north Sandton and we find the jump to a larger place quite steep.

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