60k a year or less, What Do You Go without?

nimnomnimy on 19/08/2015 - 11:55
Last edited 19/08/2015 - 12:55

As a high income earner, I consider my lifestyle average but I'd like to get the point of view of people that might think what I have isn't average but actually a little lavish. what do you go without?

To start, maybe a list of my standard costs of living

  • mortgage
  • refresh wardrobe once a year average spend $3k
  • average $20 a day on lunch, work days
  • cleaner once every 3-4 weeks
  • new iPhone every year
  • new laptop every couple years
  • one major technology buy a year (Apple Watch this year)
  • a couple domestic trips per year
  • ultimate fuel for my car, I don't know why, just feels better
  • 2 meals out both Saturday Sunday, every weekend
  • $4 coffee a day sometimes 2

Feel free to ask questions.. I want to find - are lower income earners actually very good with the money they earn? Do they go into debt? what can we learn from each other

Poll Options

  • 133
    I have everything I want
  • 28
    I want a fancy car and a big house
  • 69
    I can afford my mortgage and I'm fine
  • 223
    I can't save enough for a house
  • 24
    I still haven't got a car
  • 18
    What's a smart phone?
  • 22
    Other
Financial

Comments

        • nimnomnimy on 20/08/2015 - 22:59
          +5

          @algy: my kid is 3, she's just moved on from those stupid egg videos and she's on to water parks.

          They are not missing out on anything I won't teach them when they need to know it. They need to be kids too

        • dannyhc on 31/08/2015 - 16:10

          @algy:
          Most well to do people have ridiculous rules for living, they are so dead inside that they only feel something when they control and dominate other people's lives including their own children.

      • Catsfan070911 on 20/08/2015 - 15:53

        I think the 'spend too much on clothes' is subjective dependent on if there a required or expected high standard dress code with your job. I certainly don't spend $3000 per year but could understand if required for whatever work it is you do. Mainly for me from reading your post it was the fuel (if not required by your car), lunches, clothes (if just for personal use outside of work) and some technology stuff like buying phones (luckily i have never really been drawn to this particular form of technology). Are you able to possibly advise how long it took you to accumulate your current spending habits so i can get a bit of context? Personally i am no where near the top tax bracket, but having started my working life earning well below 40k per year and eventually working my way up to double that figure (over the course of 7 or 8 years) i have tried as much as possible to hold on to my old spending habits without adjusting for any increase in 'disposable' income. In some respects i have failed / become lazy but i feel i have done a reasonably good job. I respect you asking the questions you have in your initial post and hope you get some benefit out of these responses :).

        • nimnomnimy on 20/08/2015 - 16:10
          +2

          Clothing spend definitely way up in the last few years with the new job but I guess I just take a lot more pride in how I look so probably 80% work, 20% personal split.

          But before spending on clothes it was just more electronics, photography equipment, desktop enhancements.

          My spending overall probably hasn't changed much over the last 5-10 years aside from how it's spent.

    • Htu08 on 19/08/2015 - 23:27
      +4

      I'd like to point out that E10 is actually in theory not cheaper because you need more

      "E10

      E10 as its name suggests contains 10 per cent ethanol and has an octane rating of 94 or 95. It is fast becoming the default as standard unleaded becomes harder to find. In many cases it can be substituted for Premium in cars that require PULP. E10 delivers a bit more zip than unleaded, but your car will consume E10 at a faster rate because it does not contain as much energy and generally increases consumption by 1-3.5 per cent"

      Source: http://www.carsguide.com.au/car-reviews/unleaded-vs-e10-the-…

      • inherentchoice on 20/08/2015 - 02:27

        Yep my car doesn't go as far on E10.

      • tomleonhart on 20/08/2015 - 06:37

        I know. When I pull into a petrol station I always make sure E10 is 3.5-4% cheaper than unleaded before I fill up :-)

      • Thenarrator on 22/08/2015 - 22:22

        soo in the pursuit of fuel economy.. is it overall better on e10 or normal 95 or driving hydrid cars?

    • nimnomnimy on 19/08/2015 - 13:54
      +4

      Coles puts 2lt Coke on sale for $2 each pretty often. Everyone can still enjoy an unhealthy Coke habit

        • nimnomnimy on 19/08/2015 - 14:21

          Could get a job at Coke….
          Pretty sure they would load you up

        • robiji on 20/08/2015 - 12:35
          +2

          @clickship: With a name like 'Cheap Charlie' I'm not sure he's talking about Coca Cola :P

        • nimnomnimy on 20/08/2015 - 12:37
          +1

          @robiji: I know, I was taking the piss

    • itbargainhunter on 19/08/2015 - 15:59
      +1

      Be a dealer. Not a consumer.

  • Blugok on 19/08/2015 - 13:57

    what cars do you own?
    do you live in a $2mil+ house?

    • nimnomnimy on 19/08/2015 - 14:03

      7 year old 4 door auto :)
      No, 1 small 2br unit as investment and living in house is under $500k
      Nothing special in that way at all

      • DealzEddy123 on 19/08/2015 - 14:16

        sweet 4 door auto

        • nimnomnimy on 19/08/2015 - 14:20

          4 cyclinder, 1 for each tyre. 2.4l of 0 balls.
          It's an amazing car though

        • Azn310 on 19/08/2015 - 21:44

          @clickship: Dont know why but my head keeps telling me its an Accord? Camry would be logical if you are still happy after 7 years.

        • nimnomnimy on 19/08/2015 - 22:04

          @Azn310: accord euro was my 2nd choice.

  • darren870 on 19/08/2015 - 14:04
    +29

    My partner and I are in the "top tier" tax bracket when you combine our incomes. We live a very happy lifestyle with no stress or worries. My expenses consist of:

    • Mortgage
    • I don't refresh my wardrobe. If something needs replacing I will replace it, but I don't shop to shop.
    • I bring my own lunch in everyday, though I may eat out maybe once every 2-3 weeks. Usually only because I forgot it or we're going out for a team lunch.
    • I clean my own house
    • I purchased my first phone after 10 years. All the rest have been company phones. Nexus 5 in 2015.
    • My laptop is 4 years old, I'll buy a new one when it finally goes
    • Don't buy gadgets or things that will sit in collect dust. I think about my purchases and think "Am I really going to be using this in a year?"
    • I do travel a bit, probably my biggest expense. I'm still a cheap traveler.
    • I ride my push bike to work everyday. We do have cars, two but both were bought used and are worth less then 10k.
    • I go out on the weekends, but usually will eat before I go out or if I am going to have a night out its only one day.
    • I use the coffee machine at work, though every now and then I'll get a take away.

    No offense mate, but you are a pretty bad spender and the fact you consider that "average" is a problem on its own. I consider my lifestyle way way way above average. I literally never even have to think about money, but that's because of the way I treat it, which is vastly different then you.

    Now, I did use to be a bad spender. But after a few years I realized what was more important in my life. I use the "Am I really going to be using this in a year?" for all my purchases, often buy used, and save for a purchase.

    To each their own though…

    • nimnomnimy on 19/08/2015 - 14:16
      +2

      i don't think it's a matter of good and bad spending.

      You seem to prioritise your spending on travel? I don't know if you have kids, maybe not why you can still travel cheap haha
      I don't know what else, maybe big one off spends or maybe you just enjoy saving?

      I prioiritise convenience and spending on everyday items and consumables.

      like most, I live within my means - anyone who lives within their means rarely worries about money

      • darren870 on 19/08/2015 - 14:23
        +4

        I guess, all I am really saying is that you think your lifestyle is average, where I think my lifestyle is way above average yet I consume much less.

        I do travel a lot, and I don't have kids. Travel would be my biggest expense, but at the same time its nothing crazy. We still stay in hostels and are low spenders despite being in our 30s and able to afford much more.

        As long as you live within your means then obviously I can't tell you how to spend your money (even if you lived outside your means).

        To answer your original question your lifestyle is lavish to me :)

      • dealman on 20/08/2015 - 14:49
        +1

        like most, I live within my means - anyone who lives within their means rarely worries about money

        That is true however if you don't save enough when the going is good, Money worries can start the moment something goes wrong at work. IF you lose your job or are unable to work or anything like that, With a lifestyle like this it'd be a struggle while @Darren870 could go on forever with this lifestyle.

        I'm similar to @Darren870 Eat out maybe once a month with friends, etc, Love books, Ride when the weather is good. Always pack lunch etc. Spend on travel and 2 trips overseas.

        • nimnomnimy on 20/08/2015 - 15:00
          -6

          I don't worry about losing work because there is always work for those looking, I've never been out of work more than 2 days

        • dealman on 20/08/2015 - 15:17
          +2

          @clickship:

          I have never been out of work as well my friend but I have seen it happen to others. I hope you don't have to see the day, but being dependent on the teat of an employer never makes you free.

          I hope I can wean myself off a steady paycheck and have an independent stable and dependable source of income. That's the goal. Otherwise I've got pretty much everything else I need, always a few more things I want though.

          PS: I didn't neg you.

        • nimnomnimy on 20/08/2015 - 16:03

          @dealman: I don't mind, all I meant was as long as you have some savings to cover you between jobs, losing jobs isn't the end of the world. That said, I know some people having s tough time finding work right now.

        • lemc6125 on 20/08/2015 - 19:59

          @clickship: I find this comment so worrying coming from someone with kids, especially young kids.

        • nimnomnimy on 20/08/2015 - 20:07

          @lemc6125: it's situationally appropriate. As in if you lose your job, you can't change that but that doesn't mean your life ends.

    • imahapyboy on 20/08/2015 - 12:02

      nice, so jealous :)

  • Hotpotcorn on 19/08/2015 - 14:11
    +4

    土豪

    • nimnomnimy on 19/08/2015 - 14:19

      Tyrant?

      • scotty on 19/08/2015 - 15:23
        +1

        See this wikipedia page.

        • nimnomnimy on 19/08/2015 - 15:45

          ah, Pity I can't reply in his tongue

        • TtiGeR on 20/08/2015 - 00:10
          +3

          @clickship:

          Tuhao (Chinese: 土豪) refers to the mainland Chinese people who are rich but uncultured.

          I wouldn't say it's incorrect (for ‘土豪’s original meaning), but it's quite often used (especially lately on the Internet) just as an expression to tease someone - "You are rich!" like a friendly joke.

          Sydney's off-peak train fare is 30% cheaper using Opal Card. So quite often I wait until 6:30pm to ride my train home. Sometimes, I pay the peak fare to leave early for medical appointments and my mum would tease me ‘土豪’. :)

          PS. Your list is quite lavish to me. I wish I can be as 土豪 as you but that would completely compromise my six figure annual savings goal. :(

        • nimnomnimy on 20/08/2015 - 07:53

          @TtiGeR: $100k year saving goal?

        • Charity on 20/08/2015 - 10:01

          @TtiGeR:

          love it! lol how to pronounce ? "2 - how"?

        • TtiGeR on 20/08/2015 - 15:21

          @Son ofa Zombie:

          https://translate.google.com.au/#auto/en/%E5%9C%9F%E8%B1%AA

          You can listen to its pronunciation by clicking the little speaker icon. :)

        • TtiGeR on 20/08/2015 - 15:22

          @clickship:

          Yes - sounds crazy but been successful for two FYs so far. :)

        • jellykingdom on 20/08/2015 - 15:56

          @TtiGeR:

          Probably a bit crude to say he's uncultured. He might like going to the theatre for all we know?

          The mining bogans are the perfect example of 'tuhao' - lots of money, literally 0 class. And literally 0 jobs now…

        • cannedhams on 20/08/2015 - 17:39

          @TtiGeR: the Japanese call them なりきん which is closer to the equivalent term nouveau riche in French/English.

        • TtiGeR on 20/08/2015 - 17:46

          @jellykingdom:

          That's exactly my point of the post - Wikipedia says it means "uncultured" but people don't necessarily mean that nowadays when the phrase is used. :)

          The meaning of words quickly deviates from their original intentions in modern Chinese societies. For example, 同志 (comrade) used to be a commendatory word in the communist country. However, it now means, neutrally, homosexual. So if you call someone a comrade (同志), you are saying he/she is gay.

        • nimnomnimy on 20/08/2015 - 22:10

          @TtiGeR: I've decided to take it as a compliment and future tattoo idea

        • jellykingdom on 21/08/2015 - 09:18

          @TtiGeR: What an unexpected factoid

        • SpendLess on 21/08/2015 - 15:44

          @TtiGeR:
          your doing great saving! but i hope your also investing this money
          I assume your fairly young still and time is always on your side when investing. You will find it hard to keep up with CG of a good investment over time…

  • montorola on 19/08/2015 - 14:15
    +15

    Lol what stunned me was the $20/day on lunch alone

    Here I am thinking even $10/day for lunch is bad because I know deep down I could bulk buy ingredients from the supermarket and make my own.

    • nimnomnimy on 19/08/2015 - 14:19

      Yeah I know that's def an overspend. The only thing I like around work is nandos and damn that's pricey chicken.

      I will most likely change that habit in the near future or at least I get my 10 odd free meals I've saved in peri perks

  • OzPunter on 19/08/2015 - 14:25
    +6

    Hi ,
    I earn close to 100 k and my expenses vis-a-vis yours

    *mortgage Sydney market is too wild to get in.
    *refresh wardrobe once a year average spend $3k 1.5k
    *average $20 a day on lunch, work days Lunch box with previous night leftover
    *cleaner once every 3-4 weeks DIY
    *new iPhone every year Have been using basic android(sony ericcson) for 3 years
    *new laptop every couple years Still using 6 year old Acer travelmate
    *one major technology buy a year (Apple Watch this year) What is that??
    *a couple domestic trips per year
    *ultimate fuel for my car, I don't know why, just feels better Opal is my friend
    *2 meals out both Saturday Sunday, every weekend Eat out once in a month
    *$4 coffee a day sometimes 2 A coffee (should i call it so?)a day from vending machine at work

    Even after spending so conservatively,i am sure i can never afford a house in Sydney.

    • nimnomnimy on 19/08/2015 - 14:35

      yes sydney is in bad shape.
      The problem is that where housing is affordable, there are no jobs in my speciality or paying in line to the work.
      Melbourne I find is the best balance but Sydney def has better weather.

      • mousie on 20/08/2015 - 10:03

        better weather = better women :)

        • nimnomnimy on 20/08/2015 - 10:04
          +8

          I already married the best one ;)

    • ef on 20/08/2015 - 14:41

      If you earn that much(close to 100k, is higher than mine) and spend so little I don't see why you can't afford a property in Sydney. Get an investment, once you pay it off a bit you can move into it or use it a leverage to make your LVR better and get your own place.

      But I guess it depends on your definition of sydney, I mean Granville, parra(parra is about out of reach now) and penrith for house. If you go for apartments can go closer to CBD. But I'm spending like +60%(salary) on mortagages, but I also have investment income.

      • Thenarrator on 22/08/2015 - 22:36

        bankstown easily a (close to) positive gear investment. $450000, 2 bedroom + study.. rent out for $550/w.. your rent yield (7.9%) is actually > interest expense rate (4.85%) assuming you borrow 360000

  • Adz81 on 19/08/2015 - 14:26
    +1

    I think folks get too hung up on, what they have to "go without" for a certain wage bracket… I've found that, at least in my case, you adjust fairly quickly to what you earn… I'm currently in a position earning relatively good money, and I'm actually looking forward to a pretty significant wage drop to around $40k.

    $40k working in conditions poles apart from where I am now will allow me to:
    1) Pay rent/mortgage
    2) Pay off the last of my car
    3) Pay all of my bills
    4) Finally get a dog :D
    4) Socialise and
    5) Save a little bit…

    It will require some adjustments, but adjustments like, I'll have reason to restart the home brewing that I haven't had the time or space to do this year (and produce a fairly decent beer in the process). I'll finally start building the projects that I've been gathering for the last 4 years that I haven't had the time for…

    I don't think about it so much as going without so much as making the most of what you have.

  • Reverse Snorkel on 19/08/2015 - 14:35
    +2

    •average $20 a day on lunch, work days

    make your own sandwich.

    $20 * 5days a week * 52 weeks = $5200 just on lunches give or take a few weeks.

    It all adds up.

    Nobody needs a stupid iphone every year. That's just first world problems. Live with a handset for a few years like most people do. Don't need quad-core to run facebook. Same goes for a laptop. None of that is a necessity. If you work in IT try and get your work to flip for those things if they are used for work. You may also be able to claim some back as work expense in some circumstances.

    If your car isn't tuned to require PULP, use 95. You will save a lot over a year.

    My 5c reality check.

    • nimnomnimy on 19/08/2015 - 14:40

      I'm thinking of doing a novated lease for a new car so that would negate the fuel problem as it would be pretax. (I think that's how it works- still looking into it)

      General concesus is food - that's the place people save.

      Phone and laptop are not huge expenses and they are tax deductions so they don't amount to much to really consider.

  • [Deactivated] on 19/08/2015 - 14:37

    rent
    Addition to wardrobe when feel like it - $300 a year
    average $20 a day on lunch, work days Take lunch to work 9 out of 10 days
    cleaner once every 3-4 weeks DIY
    new iPhone every year Android phone one generation behind the latest one every two years and only if on offer
    new laptop every couple years PC when required (avg 5 years) laptop when required (avg 3 years)
    one major technology buy a year (Apple Watch this year) Gadgets that I find a use for occasionally
    a couple domestic trips per year One or two trips to wherever a year
    ultimate fuel for my car, I don't know why, just feels better 91, walk to work mostly
    2 meals out both Saturday Sunday, every weekend Eat out every couple of weeks
    $4 coffee a day sometimes 2

  • andymatter on 19/08/2015 - 14:51

    What do you do for work clickship? Please be as specific as you can.

    • nimnomnimy on 19/08/2015 - 14:52
      +1

      One of those sales jobs with the words OTE just before the $

      • ilsan0 on 19/08/2015 - 15:18
        +1

        my bet would be IT Sales.

        • nimnomnimy on 19/08/2015 - 15:19

          Yes definitely

        • ilsan0 on 19/08/2015 - 15:26

          @clickship:

          Same here :)

        • ilsan0 on 19/08/2015 - 16:28

          @clickship:
          Vendor/Partner/Distributor??

        • nimnomnimy on 19/08/2015 - 16:37

          @ilsan:
          All I guess, not traditional IT

        • ilsan0 on 19/08/2015 - 16:38

          @clickship:

          Managed Services then?

        • nimnomnimy on 19/08/2015 - 16:40
          +1

          @ilsan:

          Haha, that's also an offering. Sorry no more specifics

        • ilsan0 on 19/08/2015 - 17:19

          @clickship:

          All good mate. I am in IT sales (Disti land)

        • nimnomnimy on 19/08/2015 - 17:23

          @ilsan: I did my time at distiland for too long and too little pay before they did me the favour. It was the time I spent the most developing my own businesses. Take the experience and head into solution sales companies unless you're on a good wicket already

        • ilsan0 on 19/08/2015 - 17:24

          @clickship:

          I am close to $180k a year and I mainly work from home unless I need to see clients.
          I drop and pick up my kids from School at least 4 times a week.

          I reckon I am doing ok…

        • nimnomnimy on 19/08/2015 - 17:29

          @ilsan: much more than okay. Well done!

        • ilsan0 on 19/08/2015 - 17:31
          +1

          @clickship:

          Thanks. When I started in IT in 2004, I was on $28k a year.
          Basically jumped every 2 years to get to where I am.

          When you know your worth and work hard, the money will follow :)

        • nimnomnimy on 19/08/2015 - 17:40
          +1

          @ilsan: no truer words. Know your worth and earn your pay.

        • k on 25/08/2015 - 13:07

          @clickship:

          Account manager? ;)

        • nimnomnimy on 25/08/2015 - 22:10

          @k: yes

  • lost69 on 19/08/2015 - 15:21
    +8

    I've never made more than 30K a year due to a variety of issues, closer to 25K really, and I have no issues with it. I'd rather spend the time I have how I want to spend it not slave 38hrs a week week in week out until you are an old fart and fit for the grave. And no, I'll never own a house or have a huge pile of savings and I couldn't care less.

    EDIT: If you want examples, $10 phone, clothes every 2-3yrs (trackies normally), and everything cut right back to the bone.

    • [Deactivated] on 19/08/2015 - 18:10

      Who are you to say that they are a 'slave', just because they have more money than you?

      THey might not be this 'slave'… they might have some business that brings in money as they sleep.

      • lost69 on 21/08/2015 - 07:29

        Passive income you barely work for sure. 38hrs plus slaving away 100% not happening. All the money in the world I wouldn't do it.

        • Thenarrator on 22/08/2015 - 23:02

          how would you find a decent girl to follow you with 25k income

        • eagle86 on 22/08/2015 - 23:28
          +1

          @Thenarrator: ouch

        • lost69 on 23/08/2015 - 17:40
          +1

          @Thenarrator:

          I find them by the hour. And get discounts like any repeat customer.

    • pilchard on 19/08/2015 - 18:18
      +1

      How many hours do you work per week?

      • nimnomnimy on 20/08/2015 - 12:56

        I work long hours, very long, I probably don't switch off when it comes to emails on almost 18 hour day basis and emails come pretty relentlessly. Still I wouldn't call it being a slave because I love what I do.

      • lost69 on 21/08/2015 - 07:27

        20ish. Maybe a bit less, maybe a bit more.

    • bargainslut on 20/08/2015 - 00:04

      This sounds like me. I tried the 'expensive lifestyle' as well. Done nothing for me.

      We eat well, our rented housing is decent and we are happy. Ticked boxes ticked!

      A few ways we cut down as follows

      make coffee at home
      1 takeaway per week in total
      Get things on sale and stock up where possible,this includes most things including flights/accommodation.
      Buy second stuff (If it adds value)

      We are trying to get as close to zero spending. House sitting and foraging with a dash of dumpster diving and a twist of imagination.

      The less time I spend working for the man the better!

      • nimnomnimy on 20/08/2015 - 12:58

        While I've been sick, I lived off the first 4 days eating nothing but a couple fruit and veg so ive saved hundreds already

        • bargainslut on 20/08/2015 - 15:58

          All the alkaline in the fruit will really help you bud, the wallet is secondary.

        • nimnomnimy on 20/08/2015 - 16:13
          +1

          @bargainslut: are you saying I batteries would be faster? Jk

        • bargainslut on 20/08/2015 - 18:15

          @clickship: yes, just lob 4 in a food processor and sprinkle over some watermelon. Pukka.

        • nimnomnimy on 20/08/2015 - 18:18

          @bargainslut: aa, aaa or other?

        • bargainslut on 20/08/2015 - 18:20
          +1

          @clickship: I prefer the slender triple A's on watermelon.

  • Davo1111 on 19/08/2015 - 15:26
    +1

    average $20 a day on lunch, work days
    $4 coffee a day sometimes 2

    Cut out those two things alone and you'll save $100/week (make lunch at home)

    2 meals out both Saturday Sunday, every weekend

    Cut that to one and you'll save $50-100 every weekend

    Just doing those two things you've saved yourself 10k

    cleaner once every 3-4 weeks

    Depends on the cost, but you can probably cut that out.

    • nimnomnimy on 19/08/2015 - 15:48

      You still have cost for making food at home, it isn't free haha
      True I could let the family go right to the edge and take them out Sunday
      Definitely not ditching the cleaner - it's only $100 for over 3 hours of hard labour

      I'm going to do a new forum after this - stay tuned

      • Davo1111 on 19/08/2015 - 15:58

        well what's the cost of bread every 2 days.. $3. Plus a filling.

        I'd say the cost of a sandwhich is less than $4/day

        • nimnomnimy on 19/08/2015 - 16:01

          I can't argue with that, it's significant saving
          But if it's $4 a day I could just grab subway for significantly less effort for $5 similar size and it'll be fresh

  • scrimshaw on 19/08/2015 - 16:08
    +14

    Everytime I drink a $5 beverage I think to myself that my sales job pays $23 gross per hour ($20 after tax) so that drink basically costs me 15 minutes of my time working. Doesn't sound like good value :(

    • nimnomnimy on 19/08/2015 - 16:14
      +1

      Yep - I don't know how most places want to charge $3 for a can of Coke anyway A CAN!
      It's $2 for $2lts at the supermarket - what's your markup???

    • Adz81 on 19/08/2015 - 16:26
      +4

      This is how I justify paying for video games… It costs "$X", I'll need to work "Y" hours for it… Will I get that many hours of play from it?

      Although the validity of this is hazy… I can usually juggle numbers to make sure it's worthwhile. :D

      • ilikeradiohead on 19/08/2015 - 16:40
        +1

        I paid $7.98 for Fallout 3 last year (although admittedly it was 6 years old by that point), and spent over 100 hours playing it. 8c/hour in labour to play it, vs like 15 mins labour to buy it haha.

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