Share

Comparing today's money value to 30 years ago

A Fin24 user wants to compare the value of an amount of money in today's terms with that of 1974. He writes:

What is the value equivalent of R10 000 on June 15 1974 in today's money value?

In general, what was the monthly or annual salary of employees on June 15 1974?

How easy was it for a general employee to be able to invest a lump sum of R10 000?

Looking forward to hearing from you.

Chris Veegh, head of consulting at 10X Investments, responds:

The equivalent value of R10 000 in June 1974 is approximately R425 000 today.

Average salary is not a meaningful number, given our high Gini co-efficient - the inequality within the country's income levels.

However, assuming an average income of R20 000 per month today, this would equate to around R230 per month in 1974.

As real incomes have grown over time, the ratio of the stated investment lump sum over "average monthly income" has declined from 43.5 to 21.2 over the past 40 years.

In other words, in 1974, R10 000 represented 43.5 months' average income and in 2014, R425 000 represents only 21.2 months average income.

In this context, R10 000 in 1974 represented a significant lump sum, out of reach for most income earners, even more so than R425 000 is beyond the savings realm for the great majority of South Africans today.

- Fin24
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.99
-0.2%
Rand - Pound
24.09
+0.1%
Rand - Euro
20.60
-0.0%
Rand - Aus dollar
12.37
+0.4%
Rand - Yen
0.13
+0.5%
Platinum
904.45
+0.2%
Palladium
999.75
-0.6%
Gold
2,152.91
-0.4%
Silver
24.91
-0.5%
Brent Crude
86.89
+1.8%
Top 40
65,985
-0.4%
All Share
72,185
-0.3%
Resource 10
53,353
+0.1%
Industrial 25
99,500
-1.0%
Financial 15
16,667
+0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders