Saving Money in Sydney story. I can see why she can't save.

Discussion in 'Investor Psychology & Mindset' started by wylie, 1st Jun, 2016.

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  1. bobbyj

    bobbyj Well-Known Member

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    I agree. I actually read the article and thought good for her for doing what she does.
    Some things may be considered important to her that you folk think is a waste of money. She probably would die without her phone - fair enough for someone from Gen Y.

    I think most people here are a bit tight and will happily sacrifice a lot of comforts (and wants) for their end goal.

    It's a good thing, trust me.
    It's also all relative. Regardless, she's saving her income so she is essentially living below her means. She's already winning.

    I spend way more than she does. I drive everywhere. I spend $100 bux on dinner for 2 multiple times during the week. I buy $5 cappuccinos, but I also save a large amount from my income.
    If you work hard I think as long as you're aware of where your money is going you're entitled to spend it however you like.
    Just don't whinge that property is too expensive and how life is unfair. That's a definite loser mentality.
     
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  2. Mumbai

    Mumbai Well-Known Member

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    Fair enough
     
  3. Ed Barton

    Ed Barton Well-Known Member

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    I'd be ashamed to be living somewhere and not contributing. From my first after school job as a sixteen year old I gave my mum money. I don't know whether it covered my costs, but it's the thought that counts.
     
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  4. Sea Eagles88

    Sea Eagles88 Well-Known Member

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    The weekly spend $450 does not include the $50 weekly grocery and phone $120 a month phone (lets call it $40 a month phone), so her weekly spend needs to add another $90 which takes it to $540 a week.
    But that is still not the complete of her spending for the whole year, unless she does not buy presents for friends, take holiday, movies/theatres/concert/sporting events, buy clothes/things etc, service her car, insurance for car, etc.

    to work out your spending, you need to do a full comprehensive whole year budgeting. I know with mine, it's very frightening when I add up all the bits and pieces of spending, almost nothing left!!
     
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  5. nothingman

    nothingman Active Member

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    for her age she isn't doing too bad. I wasn't saving anything at 24

    however she's essentially throwing that money she spends on gym membership down the toilet. Spending that much per week and not having a strict diet is killing her. She's better off spending half that elsewhere and then maintaining her diet, will work out cheaper for her
     
  6. Azazel

    Azazel Well-Known Member

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    Exactly what happened in Brisbane.
    Introduce new Go Card. No one wants it. Increase paper tickets by <>35%. People buy Go Cards. Pat yourself on the back to the media.
     
  7. larrylarry

    larrylarry Well-Known Member

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    Indeed. Just a small sample on a good week.
     
  8. Jasmine

    Jasmine Well-Known Member

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    I know this is a very minor point in the whole article, but people seem to be focused on it. From personal experience, the 24/7 gyms are not the same as full service gyms complete with trainers and (Les Mills) classes. As per the article, it works out to be $8 per class. That is cheap when compared to seeing a movie or a round of mini golf. Furthermore, it is cheaper than most hobbies. This is not to mention the increased health aspects (and reduced public healthcare costs).
     
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  9. Mumbai

    Mumbai Well-Known Member

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    But on top of that she spends 110 on supplements! Is that normal too?
    If you really want 'increased health aspects' start with eating healthy, non processed stuff, not some off the shelf vitamins and supplements (unless you have a medical reason to do so)
     
  10. big max

    big max Well-Known Member

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    I must say, in my early days as a young professional, I really struggled to save. After the cost of accommodation rent, car, utilities, the occasional boys night out, buying some clothing every once in a while - it was tough. And I really got the sense that most people in the property market did through old school wealth and money (at least the deposit but usually more) provided by their parents.

    When I moved to the Gold Coast my costs were way down, cost of buying a property was lower, lifestyle was better, and (for me at least), income was higher (but I know that would not be the case for all). I did start later buying in Sydney (apartments in Bondi), but that was only later with a bit of savings and equity etc from my Gold Coast gains...
     
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  11. Elives

    Elives Well-Known Member

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    Sorry just checked prices they are now 14 per week as you said. i was going to gym in 2012-2013 prices then were 7-8 i remember paying. and fitness first prices were 17/ week
     
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  12. Elives

    Elives Well-Known Member

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    i just saw jetts prices were 14.95 per week now. but to make a fair comparison.

    jetts $14/wk no lock in contract generally no set up costs. excess to all gyms.

    fittness first etc (one in brissy area)
    $13/wk locked into a 12 month contract $50 starting fee (i'd think you'd be able to get it waived)
    you have to pay for classes as you said maybe $8 i'm not sure on there prices. and you ONLY have excess to that 1 gym. costs more if you want excess to other fitness first gyms.

    i think most people sign up on january and then by feb they have given up. but still pay for it because their locked into a contract where jetts is no lock in.
     
  13. Sea Eagles88

    Sea Eagles88 Well-Known Member

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    going to 6 high powered yoga class and spending $110 on health supplement food, maybe she is a super model with massive payback in the near future.
     
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  14. larrylarry

    larrylarry Well-Known Member

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    Yeah who knows! Does she work in north Sydney?
     
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  15. Azazel

    Azazel Well-Known Member

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    Or manages to snag one of the Sea Eagles...
    ;)
     
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  16. Jennifer Duke

    Jennifer Duke Well-Known Member

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    This times 100. We spend unnecessary amounts on things we like/want and will never scrimp when it comes to our animals... but we also don't whinge about being unable to go overseas - it's a choice.
     
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  17. bumskins

    bumskins Well-Known Member

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    From quickly scanning the article but. There appeared to be some large one off/irregular costs included too.
    It probably makes more sense to remove the one off's and see what her base weekly figure is.

    Because at the end of the day this is not a true yearly budget anyway.

    Clearly missing things like:
    * Car Rego/Insurance/Servicing.
    * Health Insurance/Doctor Visits/Dental/Medicines
    * Clothes/Makeup.
    * Gifts did get a mention (flowers).
    * Rent/Utilities (as mentioned in the article they are gifted to her) By far the biggest gift $10,000-$12,000/year compared to share housing (and thats only for somewhere cheap)
    * Regular food (pay's for extra's but otherwise provided for her) Gift of atleast $2,500/year.
    * HELP debt (no mention)

    The total cost of saving's per year for where people have been critical are:
    Supplements: 12 x $110 = $1320/year.
    Phone: 12 x $120 = $1440
    Gym: 52 x $45 = $2340
    Total = $5100 saving if she completely wiped out these expenses. Obviously that's not going to happen. Let's say she managed to halve all these costs. So she save's $2,550 more per year.

    If she started from no savings today in 3 years she would have saved an extra $7,500 for a deposit in 3 years. Very decent but still a drop in the bucket when it comes to a deposit in Sydney.
    The more significant savings are coming from the $15,000/year not paying rent, food, utilities.
     
    Last edited: 2nd Jun, 2016
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  18. bumskins

    bumskins Well-Known Member

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    Did you see the new IPART recommendations if they are adopted?
    I believe they were going to count the 10 most expensive journey's and then make it free after that. Now there's talk of it being 8 and then a 50% discount.
    On top of this their was a proposal to put up fair's by 4.2%, but this wasn't going to apply uniformly. I know for my station it was proposed to go up much higher.

    What's really going to sting over the next couple of years though is anyone who uses the M4 or M5. M4 is getting a Toll put back on it after the extra lane is added. M5 gets one after the tunnel is duplicated.
     
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  19. Azazel

    Azazel Well-Known Member

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    That's the one.
    And also increasing the daily and weekly caps.
     
  20. Azazel

    Azazel Well-Known Member

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