Middle-income South Africans spend 80% of salary in 5 days - FNB
A survey by the First National Bank has revealed that it takes an average of five days for a middle-income South African to spend up to 80% of their monthly salary.
According to FNB, the average middle-income consumer, earning between R180 000 – R500 000 per annum, survives on 20% of their monthly salary for more than 20 days in a month.
In addition, salaries middle-income consumers with secured and unsecured credit spend, on average, 30% of their income on unsecured credit and 35% on secured credit.
Consumers have been feeling the pinch following constant fuel price increase in recent months due to rising inflation and the hike in interest rate by the Reserve bank.
Senzo Nsibande, CEO of FNB Money Management, says they have observed that retail customers are more likely to improve their credit, honour debit orders, and begin or increase their savings on hand.
"This is very encouraging because it demonstrates the potential of our tools in assisting customers manage their financial responsibilities, by evaluating all aspects of their finances, consumers can stretch every rand beyond its potential. This may allow them to begin accumulating cash savings for emergencies and better plan for lifelong decisions such as a comfortable retirement."
CFO of FNB Retail Raj Makanjee says this is one of the indications that the average consumer is stretched financially.
"The trend also points to a continued culture of consumption, leaving consumers with little to start saving and investing for financial independence.”
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