Trying to figure out what is a fair weekly allowance to pay myself.
Looking at what others pay themselves or how you did work out what is a fair allowance amount.
My partner and I are both in our mid 20's and are looking to fast track our savings.
Any advice would be much appreciated.
Don't buy 3x coffee's per day
Life isn't worth living without coffee!
someone negged you. Upvoted to counter the neg.
Thanks wozz…. WOW there are a lot of coffee haters around here.
@JimmyF: I love coffee!! but I don't buy any the same way I love avocados but hardly eat them. All I'm doing is saving :P
Agreed, i still save more then enough with my 2 daily coffees. The rest of the comment however has valid points. Life sucks without coffee
Ask your workplace for a tin of Moccona Coffee rather than Nescafe. lol
****** "its a hell of a drug"
How about if I replaced "Coffee" with "tobacco", "alcohol", "methamphetamine" or "oxycontin" or "pot" or "Crack cocaine". Why is it acceptable to be addicted to one substance but immoral/evil to be addicted to another chemical/molecule?
Not all chemicals are created the same
every dollar
Every cent!
OzBargain anything you need ?
That what I did in the past years, ended up buying a lot of crap I don't really need.
So I will add one more point here: quit addictive Ozbargain !
Don't watch Live, search for specific items that you need now or in the future and 'Create Alert'.
This will email you whenever a deal comes up that matches your search item. You can remove/monitor items via your Subscriptions/Events tab (https://www.ozbargain.com.au/user/USERIDXXX/subscriptions/ev…).
Even just knowing what an item was previously, and then bartering with your local B&M store to something similar..
That's what I meant by "OzBargain anything you need"
A bit like doing your groceries at Aldi.
Honestly, cutting out Netflix and Spotify is silly. The cost is negligible at best and if you get good value out of it its fantastic. New games? Go get one every once in a while. You have to treat yourself sometimes, not live a life of boredom. Yes there are other things you can do, but you don't have to be a super tight ass to save money.
Some people have several subscriptions, Netflix, Stan, Foxtel, Spotify, Google Play/Red, Kayo etc etc. I agree with keeping one or two streaming services, but you don't need all of them if you're trying to 'fast track your savings'. Only use the streaming services you're actually going to use (for example, if you've only got Foxtel for Game of Thrones, cancel once the series ends, or only have Kayo for a specific sport, cancel after the season. Also; Use Spotify Free.
Games now seem to have a higher turnover rate than ever. Assassin's Creed, Fifa, Battlefield will be replaced in a year. Waiting a few months before the new one comes out and you'll save a significant amount. People just need to shrug off the FOMO that's becoming more imprinted in people brains with social media/marketing these days.
Yes true I didn't think of the other subscriptions as I only have the two on shared accounts.
I agree with the games, but I'm not an avid gamer so I can't relate to the emotions people go through about getting the latest.
@smpantsonfire: If you wait a year you save so much. Also can save on pc hardware if you’re not constantly pressured to have the most demanding games of today
keep netflix and stop going to the movies that will pay for it
for new games don't buy on release and wait for a sale or buy second hand
If you've got time to watch that much TV you're not working hard enough.
Titanium TV. Spotify Premium Mod APK. Done. Saved you $25 a month.
whats this Spotify mod APK you speak of? legit and no malware?
@kingmw: As in, no malware. All they do is modify the free version to include
Unlocked Spotify Connect;
Seek FWD button added to the information bar/tablet mod;
Visual ads blocked;
Audio ads blocked;
Seeking enabled;
Unlimited shuffle;
Choose any song;
Extreme audio unlocked;
Repeats enabled.
Learn to cut your own hair.
That should be pretty simple, a bald cut every day!
I asked my wife to learn to cut my hair, or I'm growing it long into dreadlocks or shaving it bald.. She was happy to learn how to cut my hair. :D
…man buns work too if you're too lazy to cut your hair…..or at least style you hair in a way that it looks cool with long hair as a guy…..somehow….hahahaha…like those characters in movies and shows who have long hair that are guys…..
@Zachary: I should mention that previously, I only had long hair/dreadlocks and shaved head.. The wife didn't like either of those 'styles'. I've never been one to go to the hairdressers until a few years ago when they started serving beer/scotch :D I supported that new trend, but have regressed(progressed?) back to not wanting to spend the $$ on hair styles.
@rompastompa: …wait which hair dresses is this and where are they located that serve free(presumably) drinks or and food? That's some incentive - I would get my hair cut over there if there was free drinks and food before you leave……
@Zachary: You do pay for it (like $40+ haircuts), but it's a good atmosphere. They give you one free beer or scotch (they don't sell it, so they don't have to have a full liquor license. See https://www.theurbanlist.com/perth/a-list/our-fave-barbers-i… for some reviews.
I've been to:
Uncle Joe's, Perth - Expensive, but was a good and interesting experience. Had lunch afterwards which was very nice.
His Lid, Subiaco - Found the experience expensive, rushed and hair cut was ordinary.. might have been too hipster for me.
JT's (I think?), Carousel - Was cheap, quick, good hair cut. Nice beers.
Dr Snippy’s Barber Lounge, Subiaco - Not bad hair cut, good blokes - didn't offer me beer though (even though the link above says so). Appointment only.
I've attempted to go to Gentlemen’s Hair Lounge in Subiaco a couple of times, but they've wanted to much notice (even though they weren't busy. I can understand wanting appointment only, but still)..
@rompastompa: Oh $40+ that might put a hole in my wallet….. I guess I'm too cheap for them then…..all my cuts have been $10 max(maybe a few $12 ones here and there, but mostly $10), though there have been a several $8 ones in the past……..lol…..and recently home made bald cuts…..so if you see a bald guy walking around Perth CBD, that might be me! hahahaha
My wife doesn't want to cut my hair anymore. She's gotten too lazy but then again, she sucks at cutting hair.
My hair/cut was a known feature of mine. Spent a good deal of time every day on it.
Backpacking changed that. Didn't have the budget for it, and didn't need it. Ended up buying some bargain bin clippers, keep it short & sharp at all times. 10min/week.
19 years and counting.
Bought an $18 set of clippers at Xmas. My gf loves telling me my hair is getting too long and shaving it all off. I was bald to start with
What do we need?
Do I need new dyson? Maybe. I do need to clean my house.
Do I need an electric car? Maybe. I do need a better ride.
Electric scooter? Why not?
New laptop?
How could I know?
Sounds like a pretty boring life to me!
Overspending is: jumping on ozbargain and impulse buying something because you THINK its cheap, when you dont really need it…if you need something buy it. People go out and have brunches all the time, buying new clothes and gadgets and just pissing away booze every week, THAT'S what breaks the bank.
If you cant be bothered cooking one night, treat yourself and spend $20-30 on a meal for yourself. Its not going to send you broke.
A game for 49-59 once every few months isnt going to break the bank either.
Netflix Turkey VPN plus spotify family (split between two) is about $13 a month. Again, not going to break the bank.
Everything left over after mortgage/rent/bills/subscriptions, put most of that in savings and give yourself from 50 to a couple hundred a week for an allowance. This allows you to enjoy yourself and what you work hard for, otherwise youre just taking money as you need from savings anyway.
So if you dont spend your allowance because you're disciplined and frugal, into savings it goes before next pay!
While this is all good advice for saving, it is also worth investing into your relationship. work out what you like doing together and spend on that as a long term investment. Can always ozbargain/Groupon deals to do together and set a dollar limit maybe $100 a month?
Jesus christ that sounds like more trouble than its worth
You shouldnt skimp out on your hobbies just to save a few bucks then why are you even working? And not even doing anything with your significant other doesnt sound like a good idea
Did you mean to reply to me?
I didn't mention anything about 'not doing anything with your significant other'. By the sounds of it, they're both doing it together.
OP is looking to 'fast track our savings'. I gave options that they may be overlooking. Nothing about what I said is concrete, OP can pick and choose, or do nothing that I mentioned. For example, OP might not have thought twice about delaying their haircut as it could be routine.
OP could be trying to save a deposit for a mortgage. The more they save in the short term, the better off (providing they don't buy more than they can afford, or housing dramatically drops in the new future). Especially if your house repayments are equal or less than rent expenditure.
I see
Good plan.
Best thing to do is be flexible. Don't buy anything that you don't need. But anything that you can afford and is important to you, irrespective of how much it costs. Simple :)
I only buy coffee once a day for five days a week, but that is the problem. It's $5.10 every time.
Had to explain to my gf why buying a decent machine (barista express in this instance) will save me money in the long run. Of course, coffee plunger can work, but not a fan of it. I can buy beans from manna and it would taste just as good, if not better than the cafe coffees. In half a year of use, it would pay for itself.
Get yourself an AeroPress and buy some quality beans. While it may look like a cheap piece of plastic, it makes superb coffee in minutes, and you can take it anywhere! I would die without mine.
Ah Yeah. I heard good things about the AeroPress. Thanks!
Will definitely consider it down the track. Might need one at work eventually lol.
spend everything the day I get it.
The economy thanks you
As above, don't have an allowance, just buy the things you need. If you want something, just make sure it's really worth a lot to you. I put all excess money (anything over 1k) in my mortgage the day before payday in order to save.
If you have an offset account, it is convenient to have the income straight into it.
I 'pay myself' as much as I need.
Pay goes in the bank and whatever is left over after all bills and weekly expenses etc. are covered is what I save. Varies from week to week.
$20
.
$20 on Nugs seems like a good allowance for the week.
As others have said, my weekly allowance is $0 and always has been. I try not to spend money on anything that is not necessary. That is the fastest way to save.
My weekly allowance is $0… it's not by choice, I'm simply that fluffing poor :(
You guys can afford an allowance?!??
Unfortunately over 30 years of neoliberal policies carried out by the usual two corporate tools have left Australia in the rather dire position of having a median income (earnings - tax) of $44K in 2017. So half of Australia's workers are paid less than this and half more.
The average wage is somewhere around $65K. Median is a more representative figure to use than average because averages are dragged up and down by small number of outlying figures. In this case it shows that a small number of people are bringing home large amounts of money compared to everyone else that was counted.
According to the Government the poverty level is $23K but this figure is the one they use to set disabled and senior pensions so it's likely that it should be higher.
I believe this is the figures for everyone - whether full time or part time. A more accurate figure would be median full time earnings.
I think the median is around $20k (includes children, elderly, disabled).
If you focus only on the 16-56 bracket, and those working/earning, it's something more like $36k.
When you disregard part-time workers and Centrelink recipients, that's when it's around $46k full-time.
While household median seems to be around the $70k-$85k bracket.
The averages are a joke…and it's not funny. We've lost the lead to USA within 15 years, when it comes to overall cost of living and savings.
KANGAL ….. USER NAME CHECKS OUT…
kangal translates as Poor https://meaning.urdu.co/kangal/
I guess you already knew….lol
:) :)
I pay myself $100 a week (and my spouse gets the same), and have to budget IT, clothing, personal care, work lunches and gifts for my partner from it.
The household budget pays regular bills we have agreed to, and shared expenses like a holiday.
This allows us to save up for things like an iPhone without it being a signal that the other deserves the same if they blew their cash on beer.
Without an allowance, we would see spending on lots of little lifestyle stuff like cafe lunches and Friday beer plus the expensive stuff too.
If I lived alone, I would probably drop this down a bit and save more for future things.
With this approach somebody needs to review household spending every month to keep an eye on it too.
Thats $10,400/year for the both of you…
True.
I buy lunch once a week at work, and breakfast with a coffee once a week. I buy clothes several times a year, a present for Xmas, birthday and Mother’s Day for my spouse. Most years I will with buy either a phone or a computer or other IT sort of stuff for myself. A club I am in charges $50/m membership, and I buy about a case of beer a month and a couple of bottles of wine. I find there are $10 or $20 of random eBay purchases each month for things like Sd cards or eneloops.
$10k isn’t really a shocking amount considering I would still need to clothe myself and buy occasional discretionary items. $100 lets me have some nice lifestyle perks without going overboard.
When I was younger I would have blown that on a Friday night on drinks, eats and a cab home.
I’m lucky that we have good jobs and otherwise low expenses - no car loans or debt except a small mortgage, so it isn’t financially a problem.
That’s similar enough to my budget! My partner isn’t working, so we budget $150/week each (in NZD, at NZ grocery and fuel prices, so it comes out to about the same).
I find I save better with strict budgets, rather than discretionary “what you need” spending. In saying that, it would be impossible to purchase an iPhone or other luxury item with that - money is super tight, and unless you have a substantial income behind that from which you buy luxury items, I just can’t see that happening. Even buying clothing/shoes is hard.
Admittedly I haven’t bought an iPhone since the iPhone 4 and I have an old laptop.
I did get an iPad 12months ago.
I’m also lucky not to have the insane hairdresser costs some female friends have, who can easily spend $200 a month colouring their hair. There is a very costly appearance standard for women in corporate jobs that men don’t have.
My best trick is to cut costs around catching up with friends by grabbing morning tea instead of lunch or dinner, and cheap outings like art galleries etc.
My girlfriend and I place 5% of what we earn a fortnight into an account for eating out and entertainment. This is realistic if you still want to enjoy yourselves yet still save.
Otherwise like everyone said put everything into savings and not have a fund to enjoy. You’ll get a bit more savings that way.
Unlimited.
We follow the Barefoot Investor "bucket" method, just slightly modified.
I have a spreadsheet which calculates the % of our income that goes to bills/groceries/car etc. Then the remainder is split across 3 other accounts. My wife and I have our own splurge accounts which gets 5% each fortnight then family splurge, fire extinguisher and mojo.
Has made life comfortable as we don't need to feel guilty about spending too much on coffee. Our splurge is a no questions asked account.
For those who aren't aware of this method, Scott has made a useful guide.
Works well if you're working full time and/or predictable hours. Not so much for those working part-time, casual or with unpredictable hours. If you're studying full-time, working part-time/casual and getting some centrelink money, money is prioritised towards rent, food, transport and bills before feeding down to splurge or savings. Sometimes it feels like it's impossible to save.
When I was working I would put a fixed amount into a savings account every pay and the leftover was effectively an allowance - this was to cover everything though (rent, bills, eating out etc). I never budgeted closely enough to make an allowance after everything was paid, but the amount I spent - the amount I made - recurrent costs = an 'allowance'.
Obviously scales depending on income/expenses
$30-40 a day in meals as can't cook at all.
$50 a week in other groceries, fruit, snacks.
$100 a week in entertainment, going out, buying games, events etc.
$30 a week in dry cleaning to avoid having to wash and iron myself.
$100 a month in fuel.
Rest goes into savings and every so often several hundred on flights, gadgets, clothing etc.
For a second I was thinking why are you getting downvoted. Seems pretty normal but upon a second take… $30 or $40 in meals a day ??? Are you out of your mind
I know it's crazy and trying to find a convenient way to reduce this but that's where it's at currently. I don't usually have breakfast, maybe a $4 hot chocolate or something. Lunch is usually a $10 sandwich from Georgie Boys or salad combo from Soul Origin and $3-4 drink or $5 Boost smoothie. Occasionally an $8 sandwich or wrap from Coles. Dinner is what's the most expensive. A GYG burrito, side and drink is $25. Down'n'out burger and drink is $20. A regular meal anywhere in city is going to be $20-25 minimum…
That’s completely abnormal, I hope you realise. What were your parents doing with you when you were a teenager? They really failed you.
First of all buy a microwave. You can make your own hot chocolate, milk in a mug 2 minutes in the microwave, 2 min 10 for extra large mug. Cadbury hot chocolate powder is like $3 for a tin and a bag of homebrand sugar is about $1. You would however be better off eating a real breakfast, so you can concentrate better and you get less hungry for lunch. Microwave porridge sachets are very filling, or at least consider cereal or toast. You could hardly call either of those “cooking”. Or at least eat a banana.
Second of all buy a freezer. Stock up on frozen meals at the supermarket when they’re half price or better so you always have something ready for when you’re hungry and aren’t tempted to eat out.
Third of all learn to make sandwiches - there’s no excuse, any random ten year old can do it. A bought lunch should be a treat, NOT a normal thing.
You would be better off being a pack a day smoker who knows how to cook than what you’re doing now.
Edit: and I missed the $30 a week in dry cleaning/ironing. That is disgraceful - no excuse for that unless you’re a high powered executive who has to wear an expensive suit every day that can’t be washed. Buy a washing machine and an ironing board ffs. No female will ever want any part of that.
@Quantumcat: I don't feel the need to justify myself on your other subjective points, but do bear in mind that it is in fact quite normal for many working in the city. Cost isn't the only factor but convenience, time constraints & preference etc are also issues.
@Hybroid: I’ve never met anyone who eats out every meal and I lived in the city in Sydney for a few years (double bay).
It takes way less time to make some toast at home than line up or wait to be served in a cafe. You already go to the supermarket so you’re not saving time there (and anyway, online recurring deliveries exist). Preferences is one thing but is that really worth $6K-$12K a year? I’d love to have a massage every day but value other things in my life higher. I guess you can do what you want but I’m surprised you’re even on this site when it is super easy to give yourself a $10K pay rise with no effort.
@Quantumcat: Give him a break, he worked long hours. Plus he is contribute his hard earn $ back to our eco
@Quantumcat: I'm sorry, while I agree with the points you make, the way you have put it is unnecessarily abrasive and confrontational.
Re buying work lunches, this is very much a thing. Especially among the single folk. I found it was the older staff who tended to bring home cooked lunches and the like. I too was young and foolish, and saved a tidy bomb by bringing my own lunch (largely leftovers).
I guess you can do what you want but I’m surprised you’re even on this site when it is super easy to give yourself a $10K pay rise with no effort.
OzB is not exclusively for people married to frugality. :) There a fair few people who are here for good deals and some retail-therapy from time to time.
@Quantumcat: You can get away without ironing even. I haven't had one for 20 years, I just wash shirts, hang them up and put them on wrinkled. Big deal
@GaryQ: Or you can buy non-iron shirts from tm Lewin or Charles tyrwhitt for $30 each on sale. I haven't owned an iron for 5 years.
@Quantumcat: The perks of being single. I'm the same and I wouldn't have it any other way. I'm in my 20s but I've all but given up on dating/marriage until I'm at least 35. For now I'm able to eat out at least 3-4 times a week at work (something decent too, not quick salads or burgers), all the newest and nicest gadgets, clothes, etc and still afford to put $600 a week (just less than half my weekly wage) into a savings account so I can buy my own place one day (currently living with parents in exchange for occasional rent and chores on the land).
Might sound like I'm cheating but I challenge anyone to be in their 20s and be content with being single. It's hard. The extra money you save is a very fair reward for that sacrifice. I support dating/marriage/having kids but rushing into it before you're completely comfortable with your finances is an overlooked mistake too many people make.
If you have a job you can cook. Literally a trained monkey can make a burrito or burger
@PAOK11: I don't know about monkeys making burritos or burgers; I've never seen them made by any animal other than apes.
@Ash SA: Perhaps look up "phylogenetic tree" or "primates."
Lots of people cannot handle that we are animals, let alone apes, and yet we are. I think your comment says more about yourself than it does about me.
@PAOK11: not that he can't cook
just lazy, that's all
more time to play games or browse Ozb and sleep, than cooking
@PAOK11: $150k in engineering actually. Work long hours with unpaid overtime (10-11 hours daily vs 8 paid) and hence value the few hours after work before sleep rather than chores. Also spend many Saturdays catching up on work and report writing. Guess this isn't the average audience here but it's an example of what some others do.
@Hybroid: Yeah fair enough. I understand that.
I'd say a rather vocal majority here pursue frugality for the sake of it. However, you have the luxury of making enough that in certain cases its just not worthwhile making the effort saving a few bucks.
However there is the health aspect of the regular eating out to consider. This shit is not good for you in the long run, mate. I would highly recommend learning how to cook, not only do you save a tidy little sum that'll help, but it will really help with your physical and emotional upkeep.
PM me or something if you'd like some recipes and the like. Also, cooking/meal prep is very relaxing and cathartic. It's actually quite therapeutic. Also, 9 times out of 10, the home cooked meal (if you have the dosh) tends to be far superior to what you were going to eat out anyway. :)
Source: I used to be you ~5 years ago; a good salary, but pissing away money, time and energy on eating out for every meal.
@Hybroid: if youre working 3 hours extra a day plus working saturdays youre working about 18 hours extra a week …have you calculated how much youre really on if youre working those hours?
Can’t you at least bring a water bottle so you can save on the drink? Or takeaway your burrito dinner home and have it with some soft drink from the the 2L bottle you get from a supermarket? You could save at least $1000 a year just like this!!
@Blahness: Did you read the salary above? The time and hassle isn't worth it for a single person with a salary like that.
When you're working these sort of hours, they 15 minutes you can save to relax is worth the money you're throwing at it.
Money-rich time poor vs time rich, money poor.
@idonotknowwhy: Did I suggested he make a 3 course meal everyday? Really. I had know idea taking a water bottle could be such hard work for anyone, even for a "money rich time poor person". (Not to mention the health and waste aspect).
@idonotknowwhy: The suggestions given actually save time. By bringing food from home (either dinner leftovers or frozen meals) you save the time it takes walking to a place to buy food & the time spent waiting to be served. More relaxing on your lunch break. You can even take shorter lunch breaks and go home earlier. Saving time is not a good excuse, just using your time extremely inefficiently.
@Quantumcat: Nah, ubereats takes even less time. It even remembers your last order so it's like 3 clicks, then going to the door.
@idonotknowwhy: Then you have to wait for it to get to you. A lot quicker to pop a meal in a microwave (2-6 min) or eat your sandwich (0 min)
@Quantumcat: We preorder when we get Uber Eats at work, then take lunch when it arrives. It costs one of us 2 mins to get it instead of waiting half of lunch for a microwave to be free. Usually about once a month, we're not on $150k.
I normally get lunch in the subsidised cafe though, $5-$8 for a good hot meal and just have it as my big meal. Healthier than what I'd normally cook just for myself.
This is literally me in the Melb CBD, except swap the fuel for ciggies.
OP:
Looking at what others pay themselves
So you responded, and got downvoted because your spending habits are on the other end of the spectrum.
FWIW, mine are more similar to yours. No fuel or dry cleaning as I moved into a place < 5 minutes walk from the offic and dress like a bum, but I hire a cleaner once every 3 weeks and have a gym membership.
Create a budget.
Add your wages in.
Weekly Allowance = $0, unless you need/want something.
Everything that is left over, save.
Simple, don't spend! Don't buy 3x coffee's per day, make your own lunches for work. No fast food, restaurants unless on special occasions. New game comes out? Buy it in a years time or borrow it from friends etc. Question what you spend, that you don't need. Reduce your phone plans. Don't have a subscription to every streaming service. Learn to cut your own hair. Don't buy new clothes/shoes unless needed.
OzBargain anything you need (via subscriptions/event). Spend months, even years, searching for that elusive bargain. Share the bargain here after you've purchased.
Once you've created your budget, you will see what you can reduce or remove. Be vigilant on every dollar that comes out from both of you.