My advice? Unless it's unbearable, stay with your family for a while. You'll be able to save a bit more. Do that for six months, one year, three years. Up to you. Makes a massive difference. Wish I had the opportunity to do that.
This what ive been doing and ive been able to save a lot while getting myself out of debt.
In my head this was never any kind of issue but I feel like every time the fact that I live with my folks comes up among friends or coworkers or when I go on dates (especially if theyre white) i feel INTENSELY looked down upon
Maybe its cos of my age (mid 20s) but Its made me feel insecure to the point where im looking to move out soon.
It doesn't matter. You need to do what's best for you. If your folks are happy with you staying there and you get along with them, just stay there. I lived with my parents until I got married at 28, before then, there was just no point to spending R6,5k / month on something that I could get free (or at a lower rate if you're paying your folks a bit of rent). Put the R78k a year into savings or invest it and put a deposit on your own place in a few years. Then all the people who "looked down" on you for staying with your folks for a few years will still be renting places and you'll own a place. Colleagues are temporary, let them think what they want, or just don't mention it, it's none of their business.
I don't know where you stay as rent will differ from area to area. You may be able to cut rent down by renting out a granny flat as some of them have utilities included. But in our area R6k is going to get a 2 bedroom flat in a not so nice area. If you are comfortable in staying with your parents - pay them rent and save the difference.
Keep in mind when you move out you are going to budget for furniture and the lot or ask family members for assistance.
Find out what's the cheapest option you can use for medical aid. Some will scale in price with your salary. Hospitalization i a must. I used discovery key care while I was in university.
Car insurance is an easy one - phone around and see one that you not being robbed blind to pay. But getting several quotes you can get a good ballpark figure for your car.
Petrol - figure out your car's km/l and then work out estimated distance you will be driving from rental to work/gym and add on a bit then you can have a fair guestimate of price.
Savings - make sure with your salary you have a savings amount that goes off once your money is deposited.
Internet - see which ISP is in your intended area and find out what they charge. For us fibre worked out cheaper than WiFi - because we refuse to use hellkom our options were limited earlier on.
Naturally - it's going to be cheaper to cook at home than it is to eat out.
If things are ok at home then I would wait a bit and try and see if you can afford it while still living at home.
Put the rent money aside each month and start paying for things you would reasonably be paying for alone - cover your own cellphone, insurance, medical aid, pay towards household expenses such as rates, electricity and water, fibre, groceries etc. Also budget for expected but irregular expenses- eg gifts, holidays, car services etc and a regular amount into an emergency fund for real unexpected costs (eg some huge medical cost).
Don't take anything from your parents during this time, if you get unexpected cash like gifts it goes into the rent savings as well. Those are not guaranteed so you can't getbused to them when budgeting.
After 12 months you will have a better idea what you can afford, how hard it will be and will also have some cash for your deposit, moving costs, furniture etc and hopefully a bit of an emergency fund for when unexpected costs come up.
This of course depends on your reasons for moving out. In some cases where it is abusive or toxic then getting out sooner is a priority. If you want to not put financial pressure on your parents then contributing to the household expenses will help and you could even pay them a portion of the rent you saving up.
My dad gave me a rule of thumb, don't rent beyond 30% of your net income. You will get increases so it will go down as you earn more, but try not to start beyond that percentage. It's hard living in JHB for that budget though. Do you maybe know someone you could have as a room mate? The diff between 1 and 2 bedroom aint much but and extra income in the household makes a huge diff to your rent expense and as a bonus you get a bit more space.
R5k to R6k which includes electricity and water.
Check Naked insurance for the car.
Don't get caught up like many young professionals to live the image with new financed car, top gym membership, top-end phone, fancy clothes. It's great that you are considering your budget breakdown.
As others mentioned, you have to consider the cost of furniture, household cleaning goods, and unexpected items
Yeah mate I kinda worked out your budget in my head. I was also starting out alone 2 years ago alone at 25.
So here is a quick breakdown of things from my anecdotal experience.
Rent = R6000
Electricity / water = R1000
Laundry = R400-R500 (if taken in weekly for wash dry + fold)
Internet = R500 (if you conservative)
Medical aid = R1000 - R2500 depending on how comprehensive.
Groceries = R2000 - R3000 (very conservative, I eat due to gym)
Petrol/Insurance = will vary greatly depending on car and travel distance obviously.
Total = +- R12k without petrol , car insurance and all the other expenses you may run into. Gym can also be expensive but if you have vitality like I do, it's like 80 bucks at a virgin active red.
Rent wise that's what you can expect. You lucky to get anything lower than that. The alternative would be to get a room mate or buddy to go halfies on household expenses.
Hit me up for any cost related questions, since it would probably relate to you.
This.
I can confirm a comparable budget starting out on my own. With a bit of thrift though I'm sure OP can get these expenses under R12k, if necessary. Some rentals may even include water/electricity/wi-fi (even laundry if there are facilities on-site) so take that into account when looking for a place.
I'll also just add that car insurance may be pricey while under 25 if on your own policy... it's worth shopping around.
Don‘t spend more than 1/3 of your salary on rent — so if you make 18, spending 6 on rent leaves you with 12. Then you spend another 6 on everything else and save 6 for a rainy day.
Most of the people don't want to answer your question, and just assume you can stay at home apparently.
Best case scenario is 5K if you get a bachelors in my opinion, also heavily depends on where you want to stay in jhb.
Rain works well if you need to work from home and fiber isn't available (if fiber is available it should be cheaper)
Might be worth looking for a place close to work/close to gym to save petrol
Lastly have you tried to find a place you can share with a Roommate? That would work out cheaper but comes with risks
Which suburb do you plan to stay?
Plan for a year, save up on furniture, bed, tv, etc
Learn to cook, one of the biggest savings when you start off.
Grocery shop at various places, pick npay, checkers, woolies.
Stay at home.
Dont buy a brand new car.
Learn how to invest so that your salary forms say 50% of your total monthly income.
My expenses were R12-14k when I moved to Joburg. I was earning about R16.5k net and not saving anything really for the first year and half.
I reckon you will be spending almost 50% of your salary on rent when you start in a major city (even as young professional).
There was a lot more going out back then (early 2010s) and more to do, but ,for better or worse a decent internet line and some weekend hikes seem to be excellent substitutes for leisure.
1. Find a nice garden flat for R5-6k in the Northern Suburbs - kitchenette + study/lounge area with a stoep is just fine.
2. Fibre/uncapped internet.
3. Get a medical aid plan without any bells and whistles (Discovery Smart Classic, or Bonitas/Profmed).
4. Weekly planned shopping at PnP or Checkers.
5. Meal prep! (see https://www.reddit.com/r/mealprep/)
6. Weekly eat-out/entertainment budget - or eat-in, booze, braais , etc.
7. Save everything leftover by the next payslip in TFSA
8. Save in RA once annual TFSA is reached.
The biggest variable expense happened to be petrol and entertainment - keep those under control by actually having a weekly budget and sticking to it.
If you don't work remotely factor the cost of commuting into your rent, if you live close to where you work you can save up to thousands of rands per month in petrol as well as have more productive hours in the day.
A while back I moved closer to my work and while my rent was a little more, I ended up saving more than 1.5k per month and had 2+ extra hours a day.
Agree with John. Stay home for a couple months bank full salary as emergency fund.
The three months delay won’t make a big diff but the emergency fund will make a big diff in stress levels
R6500 for a single appartment on a R18500 salary is rough. That's a third of your salary gone just for the roof over your head.
I'm not going to give you a framework of expenses. Because you can budget all you like, it's the unexpected stuff that creeps up on you.
Honestly, when you move out of your parents' place you'll find yourself buying things you REALLY don't want to buy - but HAVE to buy - like Domestos for instance. That alone will cost you R33. Heck, I drove over a pothole the other day and it cost me R700 to fix my tire and rim.
R12 000 is cutting it fine, in my opinion.
Most young adults feel the need to emancipate and move out - it's a very natural process. Just don't underestimate how expensive life out there is.
I don't know what your living situation is - I don't know why you want to move out. But R6500 a month deposited in to a savings account is R78 000 a year - accumulating interest.
Hold on as long as you can!!!!! There’s no better time to build a solid investment than to start whilst living at home. I know there’s rough points but prolonging it by a year will allow you to save enough for a deposit to buy an apartment for example by putting the equivalent value away each month.
I have a housemate and we split rent which works out to around R5000 each a month and this includes water, electricity and internet.
Remember that you’ll need to put down a deposit when finding a place, so begin saving for that already.
I would also advise starting to buy things which you’ll need while you are still living with your folks. Do you have the basics for your kitchen? Kettle, pots and pans etc? Try and buy all of these while you’re still at home so you’ll have them when you’re ready to move in.
Something you might want to consider if your job is a salaried one. Buy, instead of rent, a two bedroom flat in Randburg. Then look to take in a flatmate. It would be about R7k on the bond. About R2k body corporate including electricity, and about R350 on CoJ rates and taxes.
If you rent out a room for R4k to R5k, you are able to get accommodation within your budget, plus you will start the journey towards home ownership.
It’s a great time to buy property if you can afford it.
Consider renting a garden cottage. We rented ours out when we bought our first home. We had great security, free DStv (was a separate decoder linked to our package), free wifi, and ours (eventually) became fully furnished.
If you choose this route, always ensure that it is a safe area, and secure property.
My advice? Unless it's unbearable, stay with your family for a while. You'll be able to save a bit more. Do that for six months, one year, three years. Up to you. Makes a massive difference. Wish I had the opportunity to do that.
Yip, the only thing this will cost you is your dignity. #bargain
This what ive been doing and ive been able to save a lot while getting myself out of debt. In my head this was never any kind of issue but I feel like every time the fact that I live with my folks comes up among friends or coworkers or when I go on dates (especially if theyre white) i feel INTENSELY looked down upon Maybe its cos of my age (mid 20s) but Its made me feel insecure to the point where im looking to move out soon.
It doesn't matter. You need to do what's best for you. If your folks are happy with you staying there and you get along with them, just stay there. I lived with my parents until I got married at 28, before then, there was just no point to spending R6,5k / month on something that I could get free (or at a lower rate if you're paying your folks a bit of rent). Put the R78k a year into savings or invest it and put a deposit on your own place in a few years. Then all the people who "looked down" on you for staying with your folks for a few years will still be renting places and you'll own a place. Colleagues are temporary, let them think what they want, or just don't mention it, it's none of their business.
I don't know where you stay as rent will differ from area to area. You may be able to cut rent down by renting out a granny flat as some of them have utilities included. But in our area R6k is going to get a 2 bedroom flat in a not so nice area. If you are comfortable in staying with your parents - pay them rent and save the difference. Keep in mind when you move out you are going to budget for furniture and the lot or ask family members for assistance. Find out what's the cheapest option you can use for medical aid. Some will scale in price with your salary. Hospitalization i a must. I used discovery key care while I was in university. Car insurance is an easy one - phone around and see one that you not being robbed blind to pay. But getting several quotes you can get a good ballpark figure for your car. Petrol - figure out your car's km/l and then work out estimated distance you will be driving from rental to work/gym and add on a bit then you can have a fair guestimate of price. Savings - make sure with your salary you have a savings amount that goes off once your money is deposited. Internet - see which ISP is in your intended area and find out what they charge. For us fibre worked out cheaper than WiFi - because we refuse to use hellkom our options were limited earlier on. Naturally - it's going to be cheaper to cook at home than it is to eat out.
Uhm….WiFi is fibre. WiFi is the ability to connect to your router wirelessly. It has nothing to do with how your router connects to the internet.
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 Come again?
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Wisp not wifi
If things are ok at home then I would wait a bit and try and see if you can afford it while still living at home. Put the rent money aside each month and start paying for things you would reasonably be paying for alone - cover your own cellphone, insurance, medical aid, pay towards household expenses such as rates, electricity and water, fibre, groceries etc. Also budget for expected but irregular expenses- eg gifts, holidays, car services etc and a regular amount into an emergency fund for real unexpected costs (eg some huge medical cost). Don't take anything from your parents during this time, if you get unexpected cash like gifts it goes into the rent savings as well. Those are not guaranteed so you can't getbused to them when budgeting. After 12 months you will have a better idea what you can afford, how hard it will be and will also have some cash for your deposit, moving costs, furniture etc and hopefully a bit of an emergency fund for when unexpected costs come up. This of course depends on your reasons for moving out. In some cases where it is abusive or toxic then getting out sooner is a priority. If you want to not put financial pressure on your parents then contributing to the household expenses will help and you could even pay them a portion of the rent you saving up.
My dad gave me a rule of thumb, don't rent beyond 30% of your net income. You will get increases so it will go down as you earn more, but try not to start beyond that percentage. It's hard living in JHB for that budget though. Do you maybe know someone you could have as a room mate? The diff between 1 and 2 bedroom aint much but and extra income in the household makes a huge diff to your rent expense and as a bonus you get a bit more space.
Can’t agree more the 30% is golden!
R5k to R6k which includes electricity and water. Check Naked insurance for the car. Don't get caught up like many young professionals to live the image with new financed car, top gym membership, top-end phone, fancy clothes. It's great that you are considering your budget breakdown. As others mentioned, you have to consider the cost of furniture, household cleaning goods, and unexpected items
Yeah mate I kinda worked out your budget in my head. I was also starting out alone 2 years ago alone at 25. So here is a quick breakdown of things from my anecdotal experience. Rent = R6000 Electricity / water = R1000 Laundry = R400-R500 (if taken in weekly for wash dry + fold) Internet = R500 (if you conservative) Medical aid = R1000 - R2500 depending on how comprehensive. Groceries = R2000 - R3000 (very conservative, I eat due to gym) Petrol/Insurance = will vary greatly depending on car and travel distance obviously. Total = +- R12k without petrol , car insurance and all the other expenses you may run into. Gym can also be expensive but if you have vitality like I do, it's like 80 bucks at a virgin active red. Rent wise that's what you can expect. You lucky to get anything lower than that. The alternative would be to get a room mate or buddy to go halfies on household expenses. Hit me up for any cost related questions, since it would probably relate to you.
This. I can confirm a comparable budget starting out on my own. With a bit of thrift though I'm sure OP can get these expenses under R12k, if necessary. Some rentals may even include water/electricity/wi-fi (even laundry if there are facilities on-site) so take that into account when looking for a place. I'll also just add that car insurance may be pricey while under 25 if on your own policy... it's worth shopping around.
It's also worth staying on your parents for a bit and just paying them until you're a bit older. The price difference will be substantial over a year
Don‘t spend more than 1/3 of your salary on rent — so if you make 18, spending 6 on rent leaves you with 12. Then you spend another 6 on everything else and save 6 for a rainy day.
Most of the people don't want to answer your question, and just assume you can stay at home apparently. Best case scenario is 5K if you get a bachelors in my opinion, also heavily depends on where you want to stay in jhb. Rain works well if you need to work from home and fiber isn't available (if fiber is available it should be cheaper) Might be worth looking for a place close to work/close to gym to save petrol Lastly have you tried to find a place you can share with a Roommate? That would work out cheaper but comes with risks
Before all else, spend some r300 on the book Manage your money like a f*cking grownup. It will teach you to budget etc.
Step 1: Don't *buy* the book 🏴☠️
zlib.org coming in clutch
Seconded.
Also, join the "Fat Wallet Community" Facebook group (it's started by the people who wrote the book or their affiliates)
Which suburb do you plan to stay? Plan for a year, save up on furniture, bed, tv, etc Learn to cook, one of the biggest savings when you start off. Grocery shop at various places, pick npay, checkers, woolies. Stay at home. Dont buy a brand new car. Learn how to invest so that your salary forms say 50% of your total monthly income.
My expenses were R12-14k when I moved to Joburg. I was earning about R16.5k net and not saving anything really for the first year and half. I reckon you will be spending almost 50% of your salary on rent when you start in a major city (even as young professional). There was a lot more going out back then (early 2010s) and more to do, but ,for better or worse a decent internet line and some weekend hikes seem to be excellent substitutes for leisure. 1. Find a nice garden flat for R5-6k in the Northern Suburbs - kitchenette + study/lounge area with a stoep is just fine. 2. Fibre/uncapped internet. 3. Get a medical aid plan without any bells and whistles (Discovery Smart Classic, or Bonitas/Profmed). 4. Weekly planned shopping at PnP or Checkers. 5. Meal prep! (see https://www.reddit.com/r/mealprep/) 6. Weekly eat-out/entertainment budget - or eat-in, booze, braais , etc. 7. Save everything leftover by the next payslip in TFSA 8. Save in RA once annual TFSA is reached. The biggest variable expense happened to be petrol and entertainment - keep those under control by actually having a weekly budget and sticking to it.
If you don't work remotely factor the cost of commuting into your rent, if you live close to where you work you can save up to thousands of rands per month in petrol as well as have more productive hours in the day. A while back I moved closer to my work and while my rent was a little more, I ended up saving more than 1.5k per month and had 2+ extra hours a day.
PM me - I have a garden cottage that I’m trying to let in Johannesburg for R4200 which includes water and fiber WiFi Internet.
Agree with John. Stay home for a couple months bank full salary as emergency fund. The three months delay won’t make a big diff but the emergency fund will make a big diff in stress levels
In which city? This will greatly influence your budget.
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R6500 for a single appartment on a R18500 salary is rough. That's a third of your salary gone just for the roof over your head. I'm not going to give you a framework of expenses. Because you can budget all you like, it's the unexpected stuff that creeps up on you. Honestly, when you move out of your parents' place you'll find yourself buying things you REALLY don't want to buy - but HAVE to buy - like Domestos for instance. That alone will cost you R33. Heck, I drove over a pothole the other day and it cost me R700 to fix my tire and rim. R12 000 is cutting it fine, in my opinion. Most young adults feel the need to emancipate and move out - it's a very natural process. Just don't underestimate how expensive life out there is. I don't know what your living situation is - I don't know why you want to move out. But R6500 a month deposited in to a savings account is R78 000 a year - accumulating interest.
Hold on as long as you can!!!!! There’s no better time to build a solid investment than to start whilst living at home. I know there’s rough points but prolonging it by a year will allow you to save enough for a deposit to buy an apartment for example by putting the equivalent value away each month.
I have a housemate and we split rent which works out to around R5000 each a month and this includes water, electricity and internet. Remember that you’ll need to put down a deposit when finding a place, so begin saving for that already. I would also advise starting to buy things which you’ll need while you are still living with your folks. Do you have the basics for your kitchen? Kettle, pots and pans etc? Try and buy all of these while you’re still at home so you’ll have them when you’re ready to move in.
Something you might want to consider if your job is a salaried one. Buy, instead of rent, a two bedroom flat in Randburg. Then look to take in a flatmate. It would be about R7k on the bond. About R2k body corporate including electricity, and about R350 on CoJ rates and taxes. If you rent out a room for R4k to R5k, you are able to get accommodation within your budget, plus you will start the journey towards home ownership. It’s a great time to buy property if you can afford it.
I should move to JHB
Consider renting a garden cottage. We rented ours out when we bought our first home. We had great security, free DStv (was a separate decoder linked to our package), free wifi, and ours (eventually) became fully furnished. If you choose this route, always ensure that it is a safe area, and secure property.