Tax break: I'd like to save up for a house

2012-02-23 00:00

THERE are two unavoidable certainties in life, death and taxes.

After Finance Minister Pravin Gordhan’s budget speech, proposed tax relief awaits those who earn R250 000 or less.

Government employee Minenhle Shangase falls into that category, saying that the government has eased his financial burden.

“I would probably concentrate on saving up for a house. I would like to have more money to put away each month,” he said.

Budget speeches are followed by those who anticipate a financial impact, but Shangase said he followed the speeches attentively if work allowed because it provides him with a chance to plan ahead.

“It means a little reflection on my personal economic circumstances at this point. It’s also a chance to plan ahead for the year, to gauge whether I may be able to meet certain targets.

“There were talks around the issue of VAT [value added tax]” he said. “If it went up, it could have affected how much I spend on essential household goods. So I could have ended up with less money in my pocket. But since it has not changed, I don’t foresee any major changes in my spending patterns.”

Shangase said his monthly budget was centred on his family.

He said there could be increases in certain parts of the budget which could force him to cut back on spending.

“There are always increases, but it depends what they are. If it affects sin tax, which has gone up, then I would have to put a lot of brakes on weekend spending.

“Most of my money goes towards travel and groceries, but if I cut it down to percentages, I spend 20% of it on food, 20% on children, 15% on travelling and the rest to accounts and groceries.”

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