Certainly not. There are things in life we choose to spend on, and things we have to have. And in everything there are options and price points. I may not be typical in nature, but I am on a salary that is normal for someone of my age. Here’s what I do spend, and mostly I couldn’t spend much less.
- Food – $70/day week, if I take my own lunch to work and cook my own meals. I might eat out if I wasn’t single
- Water – free, comes from a tap
- Alcohol – $20/week to get drunk as a skunk 4 times a week, if I chose to (cask wine). In reality I also go to the pub but don’t need to
- Transport – $40/week, tram to the city. This is normal for most of Melbourne if they choose public transport
- Shoes and Clothes – I’m not into fashion, so $10/week would be plenty
- Utilities and insurance – $40/week and I don’t have health insurance
- Entertainment – $90/week for books, pay TV, internet, Spotify, going out. Otherwise I’d go mad…
- Child support – which I would pay even if I didn’t have to, $175/week
- Saving – for holidays (paying off credit card from holidays is more likely), is $100/week
I think you get the idea – I live quite economically, and it doesn’t bother me at all. Material possessions and preciousness are not me. But if they were, my expenses would be way higher.
- Housing – $430/week. I live in the inner suburbs, because I need to to stay sane. I could live in a very shitty alternative to my 1-bed apartment and pay $350/week. The most despicable of private accommodation in the outer suburbs is $250+/week and I’d literally rather live in a tent.
So, roughly speaking, I spend $1,000/week, and 43% of that is on rent*. If I chose a less nice apartment it would be 35%. And that is as someone who is frugal. If I spent what most people spent on non-essentials, I’d be broke. Or have no life whatsoever.
The perceived wisdom in developed countries is 30% of income should be the maximum you spend on rent, and in Australia the average in capital cities is 40%. Couples have it much easier, obviously. As a single person, being in a relationship could be seen as a massive economic advantage, and while that couldn’t be a motivation for me, it is food for thought.
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