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.
Yea I need to know more about this.
I need to get a cleaner for our place. My wife and I like to let our hair down during the weekends, so getting a cleaner would be awesome.
@ThadtheChad: Check out whizz.com.au. They’re not the cheapest and you can get $5-10 cheaper elsewhere, but very reliable and good customer service. 1 bed 1 bath full clean is $85 in Sydney CBD. They also have an app that you can book and track. I’m not associated with them at all.
@ThadtheChad: Avoid tidyme.com.au
They've been terrible in terms of:
- Sending random cleaners even though we booked someone specific
- Automatically rescheduling when we've cancelled a scheduled clean.
- There is only incompetent live-chat support, no phone.
The reason given when I asked was about them being lean and keeping costs down for me. The thing is, they're no cheaper than competition.
Also, they seem to take a pretty big cut from the cleaners from what I they were saying.
@idonotknowwhy: Thanks a ton @Hybroid and @idonotknowwhy
Really appreciate the responses. This is most helpful.
Ronerrlaw: How do you spend your money?
Hybroid: This is how I spend my money
Ozbargain: NO U R RONG
If you are bringing in 120k a year and you want to live paying for the conveniences that maximise your downtime, then good on you. I see absolutely nothing wrong with that at all. If you are not financially performing and you are just lazy, then it's a completely different story, but it's almost as if context is important.
This topic isn't about what people do with their 6 figure income in general. The op is trying to "fast track" their savings and trying to get a gauge on what is a reasonable spending allowance. The question is specifically to try to save money quickly while still allowing themselves a treat or two. A person making 6 figures can still save money faster by cooking their own food (for example) in the same way a low income person could. If your spending on takeaway and dry cleaning gives you extra time, that's great, but does it help you save money fast? no.
I agree with what you're saying, however, it is absolutely fine for Hybroid to pitch in.
"Reasonable spending allowance" depends on what one brings home, and what quality of live the couple is willing to put up with.
For people on a very "lean" income certain things like eliminating a couple of coffees outside may have a significant impact on their savings. However, for someone who makes 6 figures (especially in the 150k region), giving up on coffee when they enjoy it, is definitely not worth the sacrifice (IMHO).
Looking at what others pay themselves or how you did work out what is a fair allowance amount.
Someone gave their honest opinion on what they think is reasonable for their pay and lifestyle.
Paying an additional $15-25 a day to not worry about the time and effort of breakfast, lunch and dinner is quite reasonable if you are working 10-12 hour days in a high pressure environment and need to maximise your downtime. If you are only spending $50 a week on the additional food over a 7 day period, you can drop that $15-$25 a day premium further.
$30 a week on your business wear is very reasonable for 5 shirts and two pairs of pants, especially if you are in a profession where a crease in your shirt is going to earn you side eye from management. Some professionals are operating in environments where dry clean only clothes are expected.
$100 a month on fuel is comparatively low. I'd love to be down to that spend.
$100 a week on games/events/going out is a sliver of your money if you are on a wage that high. I've met many people who will spend more than that on a single night out.
There's a huge spectrum of what is reasonable, and just because someone is on the other side of that spectrum, doesn't make them wrong.
@[Deactivated]: Not saying anyone's spending choices are wrong. I'm referring to saving money fast, which is subjective depending on the persons needs i guess. Someone on 6 figures who REALLY wants to save money fast can enjoy their daily coffee, moderate weekly outings etc AND save money faster by cooking just a few meals a week right?
@Blahness: Depends on how much they enjoy cooking and washing up, and whether or not taking on extra responsibilities at home is going to lead to them feeling more burnt out and unable to perform in the office.
@[Deactivated]: I really didn't want to be judgy, but you're starting to make it seem like making 6 figures means that its ok to not know how to make a sandwich or carry a water bottle??? or that you cannot do anything else productive outside of your work? work is your whole life at 150k?
Anyway, even if you make 6 figures and REALLY wanted to save money, you'd learn to make a sandwich at least. If you're ok with that kind of spending, then you'll save less than someone who spends less. that is all.
@Blahness: Judge away, you've judged Hybroid's lifestyle already, and it's not like judgement has a daily cap that you hit which prevents you from judging anyone else within a 24 hour period.
If plain sandwiches and a water bottle make you happy, then that's fine. Me currently, I am looking at about $3-5 for breakfast, $5-10 for lunch, and I spend around $10 a dinner, all of which I make myself. I am not that short of the $25 mark because I am making food which I enjoy for every meal. If drinking freshly ground coffee, and eating a fresh bagel make you happy, then that's also fine. Again, in many professional environments, going for coffee or going out for lunch is just as important for networking as it is for sustenance.
Hobbies and downtime are not unproductive. They are incredibly productive if they enable you to more easily maintain work life balance.
blah blah spectrum blah one end blah blah other end. Getting tired of saying it.
@[Deactivated]: As you say, blah blah blah. The point of this topic is how to save money fast, nobody cares particularly how or why another spends their money.
so you spend $250 a week or $1000 a month because you dont cook or wash/iron yourself?
Just learn to do it, its actually not that hard!
$50 per week.
Same. For husband and wife. That's for everything non-essential one wants during a weekday.
Figured it's two coffees, or pie & a drink etc each day. Anything less, it'd get broken. Anything more, no interest in making own food/coffee.
Exceptions to the rule… Anything done together/family is from joint account. Inc friday night takeaway, booze, sweets etc. Holidays, nice lunch out etc. Any time we get a bonus, we split it. Like $500 of it in each account. Fancy clothes, gadgets etc from that.
We came from student & backpacker beginnings, rode out 2 rough redundancies, 2 kids. But killed it with savings. It's wearing a bit thin now. Time to change gears, now that we've achieved what we wanted.
I created my own cryptocurrency and pay myself an allowance via my cryptocurrency - 1 million ozcoins a week
Just shy of $1m per week… but I am currently taking myself to court for back pay for lost allowance…
$50 a week for beer/hobbies. That's all I spend on me, the rest goes to mortgage/bills/food/savings/fuel. Most of the time its much less than that.
For the record, I have a wife and 4 kids and only get just over a grand per week after tax.
Been like that since my first kid was born 11 years ago. It only works if you are frugal, cook all of your own food from scratch and take the leftovers to work for lunch, can fix pretty much everything yourself, and don't have a massive mortgage.
It was hard at first but I've learned a lot of stuff along the way and will be teaching my kids to do the same.
That's impressive
I just buy whatever I want within reason.
$50-$100 a week.
$200-$500 once a month.
Barefoot Investor percentages.
As much as I need
Calculate basic expense. And I transfer my (pay minus basic expense) to saving account as soon I get paid.
Whatever I need
Frankly, I've found the best way to save money is to double your income. I went from 'happy to have $1000 emergency money and huge credit card balances' to $5k in the bank and close to $0 owing by finding a job that pays better than any I've had for a few years. My spending hasn't changed much - I drink office-Moccona instead of buying coffee, take my lunch and use a Concession Myki… maybe the only difference is I buy Chivas more often than Aldi scotch
Um how are you able to use a concession myki?
You buy one from the station and use it. I've had mine for 6 or 7 years and only been asked to prove a concession once. Fortunately I happened to have a health care card from the last time I was between contracts (even if you don't proceed with a Centrelink claim after finding a new job, the card lasts a year and stays in your wallet). I figure now, I'm so far ahead that even a fine a month is better value
Back in the day when you could order them online, I had Mykis for Luke Skywalker, Trogdor the Burninator and Benny Lava
If you're going to dodge fares, you may as well not pay anything…
I guess you can also save money by paying no income tax and stealing all your groceries
@miarn: You'd have to have some sort of cloaking device because sooner or later you will be found out by repeat offense……at the same store or place no less………
Yeah how do you get concession Myki unless you're a student or making below average wages and still getting part centrelink
Enrol in a year long course and get your Myki, then withdraw without penalty before the withdraw time limit arrives (usually a few weeks in). I haven't done this, but I did do a short full time course last Feb, and was able to keep and use the concession all year which saved me a lot.
How is Aldi Scotch (Highland Earl) compared to regular Chivas?
To be frank, Highland Earl beats out almost all of the sub-$40 bottles (JW, Black Douglas, Teachers etc) imho. Its 'just' whiskey, without being too sweet, tart, thin (yers, very professional descriptors, but I can tell brands apart by the extra notes in a glass… I mix with Dry, not Coke). However, when I'm looking for a treat, Dimple or Chivas have an extra buttery / nutty flavour so you can tell you're on a different level. I actually don't like the Islays / Hebrides single malts, they're too overpowering
Please elaborate on the concession myki
TL:DR - Buy concession Myki. Use it.
When you get to Flinders St / Southern Cross, watch the hundreds of people streaming through the gates and watch the Metro staff not give two shits when the orange light flashes to indicate a concession. IF you see Inspectors watching the exits like a hawk, I guess you might be in trouble, but frankly they're usually busy harassing a backpacker.
I've even had inspectors on a train ask to scan my ticket. I keep it in my wallet in a flap with a couple of Japanese rail tickets and concert tickets, so its in there, but not visible. I tap it on their little machine and either it only registers as 'valid' or once again, they don't care to ask for proof of concession
Ah the Joe Hockey method.
It's different for everyone, but what works for me is to have my bills and food money (about $600 a fortnight) come out immediately into the shared account (w my partner), $1000 directly into my savings, and I go get $150 cash out. That leaves a little left over in my everyday account just in case, and I am free to spend that $150 on whatever I like knowing that just over half of my income has gone into savings and all my debts for the week have been paid.
I do something similar with a housemate. I own the house, so the bills and mortgage are on me, but her $300 a fortnight is my pocket money. In years past, I kept it all inside a fake book in my bedroom, and ended up with over $6000 (paid for a trip to Japan)… but now it alternates between bills when times are tight, or pizza / nights out for the house when I can afford it
Me and Partner did allowence and it worked great for us before I opened my own business.
We used to have $500 each to spend on ourselves only. Such as haircuts, catching up with people, gifts and all.
All remaining things such as groceries, fuel utilities etc were not included
Me and Partner
Your partner and I ;)
Thank you, Queen Elizabeth Hando
What were you doing with their partner?
Pick up a copy of The Barefoot Investor, it helps you work out how much to pay yourself while also achieving your financial goals. It's not realistic to 'not spend' - discretionary items (and everyone buys them, but often confuse them with necessities), are important for quality of life. Like everything, it's about balance and moderation - and patience.
Ditch the partner :p
I personally spend whatever I feel like. I've always just tried to maintain a certain amount in my account and just keep upping it.
Lately I think if a purchase is need or a want. Even if I need it, I think "ok, where do I store it, how much space will it take? ". Then think forward 6 months, "can I see it collecting dust?". If yes, I won't get it. I will have that short regret for not buying it, but then a few days later I realise, phew glad I didn't act on impulse.
Basically for me it's the relisation of how much space something will take up and how long before it becomes a dust collector, rather than how much $$ I'm wasting. But in turn, it does just that, saves $$.
Yep I think the taking up space idea is a good one. Afterall, noone wants to have a cluttered house of impulse purchases
100% - I took inspiration from the Barefoot Investor and instead of a 'bucket' account, I use a '(profanity) it' account
Jesus, show some manner, how others spend their money is none of your business as long as the money is legit. You can disagree with their spending but 'your parents failed you'? are you serious? Don't point fingers.
My wife and I funnel all income to the offset account and pay ourselves "fun money" or a sub allowance of $280 each per fortnight (about 10%).
I gotta say it's been fantastic and essentially alleviates all money related arguments!
Great idea:)
$80 a week for myself and that is my groceries/food/eating out budget
Well my friend who got divorced 15 years ago always said:
“Don’t have a girlfriend, just go to the pro once in a while. You pay it either way and won’t take half away when she leaves”
Have to say I feel sorry for the guy……..
Certainly a tough mindset to live with!
Lucky for your friend. I am currently spending 100-150/ week
It would be cheaper to oggle the ladies in the Target catalogue or if money is really tight the Dimmeys catalogue.
Would it be ok to look at the Victoria's Secret Catalogue on your birthday?
Your post is so vague. You need to go through every single transaction to determine which ones are unnecessary and could be avoided if you really want to save more. Some of things I do:
- buy cool tech stuff only once in a year to treat myself
- make lunch at home and only eat out once for lunch and dinner
-only have one subscription at one time
- don’t buy things you don’t need
It all depends on how far you are willing to take it, the possibilities are endless.
i used to carry a heap of cash around with me and found i was spending it just because i had it basically
now i only carry $40 in case of emergency and use eftpos for everything else
this helps with tracking my spending it all shows up in my statement and i know exactly how much i've spent and where
workout your weekly expenses take that out of the equation then with what is left save 50-70% of it just put it in a high interest account and the rest of it do what you want
cant live off 0 dollars a week of entertainment that is how you end up depressed/divorced/suicidal because it isnt sustainable no point having money for life if you dont live it just need to stick a plan and dont buy anything on credit besides a house that is a trap
can't work out outcome without knowing the income.
$35.2 weekly for Public Transport
$19.55 weekly for Gym
$30 weekly for meals
$60 monthly for fuel
$10 weekly to splurge for fun
Anything else goes into savings
How on Earth is your food for a week only $30? And $10 for fun, wow you must be the life of the party hahaha.
I still live with my parents and considering I work 6 days a week 9-5. $10 is just money I spent on scratchies. If I do happen to go out then i'll spend more obviously but that's usually my weekly spend when i'm not to lazy or tired to go out haha
$50 per week enough for coffees and a little bit of petrol. The rest goes to the mortgage and future car savings
We both have $125 a week. That includes coffee's/lunches/parking etc etc.
This system's been really good for us. Everything else after expenses goes into savings.
I don't have an allowance or pay myself anything. I save every cent that isn't needed for something important (groceries, mortgage, utility bills, transport costs to/from work etc).
Good for you!!! You probably want to have something to enjoy occasionally just for your mental health though
Probably goes to friends' houses and watches Netflix and plays their games and goes to free events and things. Next level ozbargainer. Hopefully.
7k in to the family account every month which pays for bills, rent, food, car and petrol etc. Then 1k in to my pocket as play money.
Yep, this is probably the closest here, though for many housesholds this would be combined and 50% for the mortgage.
Play money probably isnt the best wording though, really its everything else.
Buying lunch, comes out of it.
Holiday? Comes out of the money…
New work shoes? Dont you know it…
Surgery on your back? Start saving….
New video card? Sure, sell your old one though to help pay for it while leaving enough for the rest of the month. Find a good deal first.
My entire salary goes into paying off the mortgage. Missus salary pays off the bills and any expenses. I get $50 allowance in my wallet, and if I'm running low I just get a top up. Missus is low maintenance so doesn't need designer clothing/handbags, makeup or her nails or hair done every week.
Missus is low maintenance so doesn't need designer clothing/handbags, makeup or her nails or hair done every week.
Did you find her in a ditch? I want one of those.
We get $80/week + $100/month in our individual spendings. For entertainment and clothes and whatever we might want. This covers lunch if buying out (leftovers or basically any lunch from grocery stores including frozen meals we don't have to pay for with our personal spendings). Sadly most of my money goes to buying lunch every day. And coffee. But that's a choice and something I can do without feeling bad since it's coming from my spendings.
All other regular expenses are covered in budget and is not taken from this money, for example public transport and phone credit.
PS: for me, this is fairly generous. If you are serious about saving, you can easily manage with less. Especially if you are better with bringing leftovers for lunch etc. It's only this high because of my wife and her spending habits, I'd be happy to reduce it.
I'd recommend aiming at $50/week each. If too low, gradually increase. But definitely no more than $100/week. All depends on how much you earn. $100 per week for two people is $10000 a year. That's quite a bit of money for someone trying to save.
Seems old school. But what my wife and I did while saving for a house around 10 years ago. Is to physically take the cash out of the bank. And have containers for each bill or expense. The cash gets split up into the containers based on what each thing needs. Leftover goes into a big piggy bank.
We found it so much harder to spend the excess cash. And it was so much more rewarding to see real money build up.
Extremely saving:
- $20 food a week (cook your 1 meal for a whole week? or free if you know where to get free food)
- $5 a year mobile phone
- cut your hair yourself
- ride bicycle
- no rent (living with parents)
- shower 4 days a week
- internet?
- not going out, no friend ok
- no coffee, no smoking, no drinking, no boys, no girls…
You could save 50k a year.
I'm joking, enjoy your life, I'd probably die somewhere when I ride bicycle.
you realise water use is actually pretty cheap? the biggest cost is the service and waterways charges lol
7 showers…just have shorter ones lol
But this would totally save you megabucks. super fast tracking savings
Divide your fortnightly pay by 50, spend that much a day, you're left with 72% of your pay in savings.
For someone earning $50,000 AUD, that would be an allowance of ~$31 a day.
Great idea, except bills.
When we both worked, and pre kids, we got $150 each per fortnight for 'fun' spending (drinks, clothes, electronics, lego, etc).
Now, 1 income and 2 kids at school, we get $0 per fortnight. Necessary purchases only.
Good question. There is probably about 15-20 or so categories you spend money on throughout the year, major categories being rent/mortgage, bills (phone/internet insurance, utilities), health, car, food, clothing/personal, entertainment, giving etc. and plenty of subcategories within those. If you're keen, do a complete track of your budget such as YNAB, so you know exactly what you're spending on and you can categorise your spending. It helps you see where you can cut back, but also what categories you're spending less and therefore can splurge on in the next month, or just save. It also keeps you on track for annual or sporadic payments by allocating set amounts a month to categories. For example, you might put aside $500 per month for holiday, so when you do spend $6k on an annual overseas holiday, you feel like you've actually budgeted for it.
But regardless of whether you've budgeted for it or not…you've still spend 6k…and that's 6k less that is being saved. Not having a go…but paying things in instalments or outright doesn't make a difference when you look at your bank balance at the end of a year. 6k is 6k.
The better advice is to decide whether you can happily go on a 1k or $500 camping holiday and put 5k towards your saving. If you can, great you've fast tracked your savings by 5k. If you cant…then you have to accept you aren't going to be fast tracking as much as you could
It's all relative to how much you earn and how much you value your holidays. $6k on holidays is different for a household income of $100k vs $500k, while the saving might be same in your bank balance, it doesn't mean the same to everyone. Average Aussie household spends way more than $6k on holidays a year so I thought that was a modest amount. It's also not literally paying in instalments, it's just budgeting for it and not going into debt for irregular expenses. It doesn't matter so much the type of holiday you go on, but more the fact you can actually afford it and your other expenses are
FYI, of our net income, 1.5% is spend on eating out, 3% on personal expenses (excluding gifts). Set a budget of around 5-8% for holidays depending on where you like going.
Totally get it depends on the household budget…which is why I tended not to comment on a set amount in my own reply. someone with a million dollar budget will have a different 'spend' to someone on 40k. The point i was making a 6k holiday is still a 6k holiday. Which I actually think is a quite a bit…but that might be due to my gross wage vs yours…or just how i prioritise. For example I paid for my house outright…but then this was because I didn't go on 6k holidays, or buy coffees etc.
So when the OP talks about 'fast tracking' I consider 6k, 6k. regardless of whether you've budgeted through instalments or not.
I think you are right about affording things. For the op the need is to work out what % of their after expenses they wish to allocate to their savings vs disposable income. Budgeting is the result of this…not the determining factor.
I give myself $150 per week for groceries, transport, entertainment, gym membership, bills, everything! I’ve set it up so my salary gets split into different accounts so I’ll get $300 into my transaction account every fortnight. Usually I don’t spend all of it and the leftover I put into a separate “fun” account. This fortnight I have $100 leftover, I usually don’t like buying things frivolously. I also find I get a little depressed if I’m in “crazy savings mode” so this is a good guilt free way to spend/enjoy my money :-) if I want something I can buy it from my “fun” account and if I don’t have enough then I’ll have to save with my “allowance”.
I am the same. Recently raised it to $170 per week for everything (except for rent - which is another ~200$ for my share). At $170 per week there is always extra that sometimes gets shifted to savings.
I give myself $50 a week to waste on whatever, pay goes into spending account which big purchases come out of and if that goes over $500 I dump the excess into savings
For out and about random spending, whilst seriously saving, maybe $100 p/w each.
As long as you keep to it, why go without a beer, snack, coffee, or movie, here and there.
Moderation and frugally treating myself worked for me while paying off my home.
You gotta live a little. You're not a bank.
Decide what you want..and what you can live without.
Understand your budget and what your goal is.
What others pay themselves is irrelevant as they may be happy to never go out and eat, never buy takeaway coffees, buy op shop clothes.
If your goal and focus is to fast track your savings…reduce your outgoings. The more you dont spend the faster and more you will save.
But only YOU will know what you are willing to give up.
GL
Thre'pence ha'penny
Whatever i want, because i'm worth it.
I'm saving for a house.
Going it on my own on a casual wage (45 hrs a week)
(yes, it is possible and I'm about to go in for pre-approval!)
I give myself a $50 a week allowance, and often have $10-$20 of that left over each week.
Any extra $$ goes into an overflow money box, for weeks with higher expenses (like birthdays)
The trick is that I withdraw all my allowance as cash.
If I'm out of cash, I tell myself I have no more money.
Saved $30,000 last year on a casual wage, solo
Best of luck :)
I just spend
Depends on your living expenses obviously. That in turn depends on your lifestyle and location.
Anything I don't spend on necessities goes straight into savings. If I need to buy something that's not regular spending (e.g. a new phone), it goes out of savings.
Regular living expenses should be less than your earnings. If they're not, then you need to find ways to cut down. Buy your groceries from cheaper places, shop around for your produce instead of going to Coles/woolies. Quality is usually better and cheaper elsewhere. Look into other life hacks to save money.
Save up enough and you can buy a non-scheduled expense.
I don't keep to weekly savings targets. If I need to spend I will spend, but I always put into a savings account anything left over. The kind that if you take money out, you lose some interest for the month.
OzBargain dictates how much allowance to give me, that is, whatever is left over from deals.
I try to spend on only groceries really. Which is $50pw budget for me and $50 a month on like movies etc
Living in QLD, I find a weekly allowance of about $350 sufficient including (rent (shared with GF), food, gas, basic activities) to be fair. I can still save a little money on a measly PhD scholarship income.
I suppose everyone has their own opinion, that's fine. Cleaner is a good point, I get a $85 Whizz clean every 2 months too.
Dry cleaning is only 5x shirts at $4 a piece and $10 trouser every week. Everything else is washed at home myself.