According to research reports from Standard Bank this includes lower income groups as well as the middle class. Apparently the lower income groups spend way more than what they can afford, roughly R3 805,27 more every month. In addition to micro-lending, these groups often receive money from someone in their family.
News 24 reported that it is only higher income groups (those who earn more than R57 334 per month or R688 001 per year after their taxable deductions) who spend lessthan they earn.
This group only represents a staggering 5,5% of South Africans.
According to the reports most South Africans contribute most of their income (29%) towards medical aid, short and long term insurance as well as retirement funds or pension funds. A total of 20% of their income goes toward food, drinks and tobacco followed by 15% on motor vehicle payments and fuel.
It looks like they only spend about 2% of their income at restaurants, coffee-shops, hotels or communication and 4% on clothing.
A scary contribution of only 3% ultimately goes to education – this includes primary, secondary and tertiary education.
- Furniture, appliances – 5%
- Health – 6%
- Water, electricity, gas – 5%
- Miscellaneous goods and services – 6%
- Leisure and entertainment – 3%
The report also divided South Africans into eight income groups and three categories:
- Lowest income group: Up to R19 000 per year or R1 583 per month.
2. Second lowest income group earning between R19 001 to R86 000 per year or between R1 584 to R7 167 per month. Almost 44,1% of South African households fall into this category, the biggest of them all.
3. Lower emerging middle class: R86 001 to R197 000 per year or R7 168 to R16 417 per month.
4. Emerging middle class: between R197 000 to R400 000 per year or R16 418 to R33 333 per month.
5. Lower middle class: R400 001 to R688 000 per year or R33 334 to R57 333 per month.
6. Upper middle class: R688 001 to R1 481 000 per year or R57 334 to R123 417 per month.
7. Emerging Wealthy: R1 481 001 to R 2 360 000 per year or between R123 418 to R196 667 per month.
8. Wealthy: More than R 2 360 001 per year or R196 668 per month. Only 0,4% of South Africans live up to be considered ‘wealthy’.
Source: The South African