A 24-year-old producer who is saving for a home deposit has raised eyebrows after revealing the eye-watering amount of money she spends on ‘fun’ purchases like shopping and dining out.
The Melbourne woman, who earns a salary of $104,600 a year, shared a detailed breakdown of how she budgets her money each month.
WATCH THE VIDEO ABOVE: How a 24-year-old woman spends her monthly income
For more personal finance news and videos, check out Personal Finance >>
She brings home $5,468 a month after taxes, mandatory student loan repayments and superannuation.
Plus, she wins $1,000 on a “secondary hustle.”
Her long-term financial goal is to save $60,000 for a security deposit and money set aside for an emergency fund.
Once all her living expenses are covered, she invests $700 a month in her home savings, $300 in her emergency fund, and spends about $2,582 on “fun” purchases, which leaves a lot of people scratching his head.
Finance expert Téa Angelos, founder and CEO of Smart Women Society, has created a series of ‘pay split’ videos to provide insight into how young Australians are spending their hard-earned money.
In one of her latest TikTok videos, Téa presents the case study of a young woman who spends around $2,377 per month on living expenses.
“Here’s how a 24-year-old producer budgets his $104,000 salary in Melbourne,” Téa said.
His only debts include an Invisalign treatment of $363 per month and his HECS of $26,000, which is automatically deducted from his pre-tax salary.
She spends $1,424 on rent, about $140 on bills, $40 on phone, $50 on transportation, $90 on the Internet, and $300 on groceries.
Other expenses include $99 for health, $74 for insurance, and $160 for appointments with a psychologist.
His remaining money at the end of the month is $3728.
“She’s spending $700 on home savings, $300 on her emergency fund, $200 on extra retirement payments, and the rest $2,582 on ‘fun’ expenses like shopping and eating out.” , said Téa.
“Do you think she should do anything differently?”
“More about home, less about fun”
Her video has been viewed over 27,000 times, with many suggesting the young woman should “put more money into the house deposit fund and less into fun activities”.
“I think if she’s serious about a home loan, she should deposit at least double that in her home savings,” one woman said.
Another said: “Put $2,500 into your savings, emergency fund and super – and use the $1,200 or less for fun. Nobody needs $2500 to go shopping and dining out. It’s crazy.
One suggested, “You have to live like you actually have a mortgage now and add those extra bills to it because when you have a mortgage you don’t get $2,500 a month for ‘funny expenses’ “.
While another added: “Save more. Fun things can wait.
‘Life is meant to be lived’
Meanwhile, some said they had no problem with how she spends her income.
“I think she’s fine. Life is for living and she is young and should enjoy it,” one suggested.
While another added: ‘I would put some extra money in the house and the emergency fund. To be honest, at his age, I was saving for a house, but I was also enjoying life.