8 July 2020
1300 794 893

Where did all my money go?

Harry Tyson
8 October 2019

It’s fair to say that spending money has to be one constant in life that never changes. Whether it’s purchasing food, paying rent, travelling, movies, heading out with friends or dare I say it... investing in stocks or property. This is quite daunting to a young adult around my age. This can be attributed to a range of possibilities, the main ones being: a lack of financial education surrounding the various opportunities available (to fix this I’d recommend subscribing to the Switzer Report for a mere $397 per year!), the inability to control spending and the cost of living being far too high. Before all you readers jump down my neck for ‘complaining’ that property prices are far too high and the stock market is extremely hard to be successful with, without professional advice, it’s important that you see firsthand what millennials are spending their hard-earned cash on!

I never really understood when my Mum used to come home and groan at the price of the weekly food shop, but since I began doing my own shopping I soon realised why. The weekly grocery shop on a Sunday evening, combined with the amount of money you spend on the weekend, is enough anxiety to give anyone around my age a case of the Sunday scaries. Taking food out of the equation, you might ask: what else do you spend your money on? Well, there’s probably $50 on public transport, depending on your plans at least $50-$150 on entertainment, whether that be knocking back a couple of well-earned beverages at the local pub, heading to the movies with friends or taking someone out for dinner. After scratching around in your pockets for those expenses, you’ve probably run up a total weekly bill around $300-$350, give or take. Now it’s time to put your focus towards the fun things like rent, internet and telephone bills and utilities. Tally all this up and you’re staring down the barrel of a ballpark figure of another $350 at least (depending on your personal circumstances).

After looking at the previous expenses, I think it’s fair to say that some people aged in their early to mid-20’s have a few other priorities than saving for an investment property or share portfolio. The cost of living in major cities is extremely high, with prices of food and rent not looking like slowing down any time soon either. This has resulted in this younger generation becoming thriftier and more innovative with their hard-earned money. Looking for restaurants that offer discounted meals on certain nights, buying groceries on special and heading to a pub located off the beaten track offering $5 pints are all things young people are doing to try and save a little money. And who knows, maybe saving those couple of extra dollars will prove to be quite crucial in laying down a deposit on a first home. If Steve Keen and Martin North are correct in their prediction for a housing collapse of 40% that day might come sooner rather than later!

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