On becoming a millionaire, South African household debt, and the budget speech

How long before you are a millionaire?

A lot of people I meet often says that you have to earn a lot of money in order to get ahead and be wealthy, I agree to a certain extent, but that is not the whole story.

High income earners definitely have an advantage, but there is something called the lifestyle creep that affects most of the high-income earners, meaning they start spending more as they earn more, thus never getting ahead.

Everyone can become a millionaire, it takes patience and dedication, in the table below you will see that it is a simple bit of math that can easily get you there:

How many years to become a millionaire?

South African consumer debt – Higher earners are the most indebted

Debt busters recently released their Quarter 4 findings over the past 5 years indicating that consumers are now funding their lifestyles by getting more and more indebted, with the higher income earners being the worst off.

Original overall debt to annual net income ratio

What the budget speech revealed

I think there weren’t too many shockers in the budget speech, it went pretty much as everyone predicted, except for a few welcomed tax reliefs.

Below is the new income tax calculator you can use to see what impact it has on your salary.