Yahoo Finance I’m 23, negotiated a $30k pay rise and am ready to buy a house
Tom* is 23, lives in Melbourne on a $80,000 salary after negotiating a $30,000 pay rise, and saves around $775 per week.
He shares his budget with Yahoo Finance.
Also read: I’m a homeowner, run a small business and save 80% of my income
Also read: I’m a single mum earning $45k, and paid off my house in 5 years
How much do you earn?
I earn $80,000 from my job as a management accountant for a small private business, and I earn around $10,000 from additional accounting contract work.
I was originally earning $50,000 in February this year, and negotiated to $80,000 after six months’ work.
How much does your rent cost?
My rent in Camberwell, Melbourne costs $700 per month.
Do you have any other ongoing expenses?
My main ongoing expenses are the standard: internet, power, water, gas, Myki (Melbourne public transport card), phone bill and gym membership. I don’t have a car.
Do you have any debts? How did you pay them off?
I have my student HECS debt which is $35,000. It comes out of my income weekly.
How much do you spend on food each week?
I regularly eat out for lunches at work and dinner on weekends. I budget around $120 per week to cover all food and miscellaneous costs throughout the week but find myself regularly exceeding this.
Do you put money into savings?
I transfer $775 per week into a "high interest" savings account at 2.3 per cent interest, and I never withdraw from this account.
This is going towards a home deposit which I hope to buy late next year.
Do you spend money on travel?
I've recently booked a 17-day trip overseas to South East Asia. I've budgeted $4500 for all costs.
Do you receive any financial assistance?
Aside from being on my parents private health cover, I've been fully independent since moving out of home when i was 18.
During my first year of university I applied to Centrelink for assistance, but was told I was ineligible. After this I just decided to pick up more work to get by.
What are your tips for getting by?
Having a clear financial goal in mind is important; whether that be buying a home, car or just saving $5,000 for a holiday.
Once you have that goal, you just have to formulate a realistic plan to achieve it, but still allows you to live comfortably and enjoy life.
*Name has been changed to protect person’s privacy.
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