Author Topic: Feeling the pinch?  (Read 2690 times)

random mo

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Feeling the pinch?
« on: August 30, 2014, 01:51:11 PM »
The examples in this article get funnier and funnier.

From the family earning $245,000:

"The reality is if we save half our monthly disposable cash, it will be 40 years until we can afford a 5 per cent deposit to buy a house at the average Sydney house price."

http://www.news.com.au/finance/money/feeling-the-pinch-take-part-in-newscomaus-cost-of-living-survey/story-e6frfmcr-1227041183279

frugledoc

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Re: Feeling the pinch?
« Reply #1 on: August 30, 2014, 02:50:08 PM »
I don't get the obsession with people having to maintain their standard of living when their income plummets.

Surely, the rational thing to do is rapidly adjust your standard of living so that you still have a great life but stop wasting money on pointless crap.

DSA

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Re: Feeling the pinch?
« Reply #2 on: August 30, 2014, 02:52:00 PM »
Let's see...

Average Sydney home price is $671500 ( https://en.wikipedia.org/wiki/Australian_property_bubble#Rising_house_prices ).
5% percent deposit would be $33575.

40 years * 12 months in a year = saving about $70 / month towards this.

So if that's half the monthly disposable cash, then that's $140/month that they're not spending each month? (Not taking any investment returns into account here which could only help them)

Take-home pay from $245000 is about $155000 I think (http://www.paycalculator.com.au/), or about $12800 monthly.

So yeah, surprise surprise, if you're only saving 1.09% of your take-home pay each month then it's going to take a while before that actually accumulates.


Elderwood17

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Re: Feeling the pinch?
« Reply #3 on: August 30, 2014, 07:50:28 PM »
I don't get the obsession with people having to maintain their standard of living when their income plummets.

Surely, the rational thing to do is rapidly adjust your standard of living so that you still have a great life but stop wasting money on pointless crap.

One would think so!

red7

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Re: Feeling the pinch?
« Reply #4 on: August 30, 2014, 11:00:35 PM »
The things that really get me about the article are the pictures and their captions. The very first one:

Quote
Do you find yourself comparing the prices on everything you buy?

Um, who doesn't compare prices?! That's just good common sense. But somehow, I get the feeling they intend for me to see that as a flashing red sign that I'm broke, but I just haven't realized it yet.

"Wait, I compare prices on everything. Oh Nos! I'm poor! well THAT explains why I never have any money. Good thing I have an excuse for it now, otherwise I might have actually been forced to do some thinking about my general life choices. Ha! Oooh look at all these other poor people in the article; they're just like me, even with a bigger salary! Well that settles it, there's definitely no point in trying to do better."

Thank goodness this article is there to help me realize that I'm poor, not just sensible like I always thought. And that I should have no hope of ever not feeling poor. Best not to think at all about what I spend.

Beric01

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Re: Feeling the pinch?
« Reply #5 on: August 31, 2014, 12:47:22 AM »
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ROBYN ó 52, single, on less than $50,000

Robyn spends $400 to $500 a month on groceries

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ROHIT, 29, single on $104,000

$800 to his car loan [a month]

He spends about $200 a week eating out because as a single person working full time, itís hard to cook every night

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JESSICA, 31, family on four on $245,000

As a result, her family took out loans to maintain their standard of living which saw their personal and credit debt spiral to almost $55,000.

childcare is setting her back $5000 a month

Unbelievable, just unbelievable. How can these people do this to themselves! (yes, I understand 1 AUD = 0.93 USD).