A 24-year-old producer saving for a house deposit has drawn attention after revealing the staggering amount of money she splurges on “fun” purchases like shopping and eating 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
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She takes home $5,468 a month after taxes, mandatory student loan payments, and retirement.
Plus, he wins $1000 on a “hustle.”
Her long-term financial goal includes saving $60,000 for a down payment on a house and money set aside for an emergency fund.
Once all of her living expenses are covered, she puts $700 a month into her household savings, $300 into her emergency fund, and spends roughly $2,582 on “fun” purchases, leaving many baffled.
Finance expert Téa Angelos, founder and CEO of the Smart Women Society, has created a series of “salary breakdown” videos to offer insight into how young Australians spend their hard-earned money.
In one of her latest TikTok videos, Téa presents a case study of a young woman who spends around $2,377 per month on her living expenses.
“This is how a 24-year-old producer budgets his $104,000 salary in Melbourne,” said Téa.
His only debts include the $363 a month Invisalign treatment and his $26,000 HECS, which are automatically deducted from his pay before taxes.
He spends $1,424 on rent, about $140 on bills, $40 on his phone, $50 on transportation, $90 on internet, and $300 on groceries.
Other expenses include $99 in healthcare, $74 in insurance and $160 in appointments with psychologists.
His money left over at the end of the month is $3,728.
“She puts $700 of this into household savings, $300 into her emergency fund, $200 extra retirement payments, and the remaining $2,582 for ‘fun’ expenses like shopping and eating out,” Téa said.
“Do you think I should be doing something different?”
‘More at home, less in fun’
Her video has been viewed more than 27,000 times, with many suggesting that the young woman should “put more money in the house escrow fund and less on fun activities.”
“I think if you’re serious about a home loan, you should invest at least twice as much in your home savings,” said one woman.
Another said: “Put $2500 in your savings, emergency fund and your grocery store and use the $1200 or less for fun. No one needs $2,500 to shop and eat out. That’s great.
One suggested: “You need to live like you really have a mortgage now and add those extra bills to it because when you have a mortgage you don’t get $2500 a month for ‘fun spending’.”
While another added: “Save more. The fun stuff can wait.”
‘Life is for living’
Meanwhile, some said they had no problem with how he spends his income.
“I think she is fine. Life is for living and she is young and she should be enjoying it,” one suggested.
While another added: “I would be leaving a little extra money at home and in the emergency fund. To be honest, at his age I was saving for a house, but I was also enjoying my life.”