How much are we all earning? How does your profession add up? How are women your age spending their money? Is everyone in debt? And is the cost of living crisis biting everyone?
It’s time for some honest, candid conversations about money and budgets as we steer down a recession – so welcome to our new series ‘Money, Honey’, where we’ll be diving deep into the bank accounts of wahine across the country to truly get a sense of what’s going on in our piggybanks.
Up this week it’s second-year teacher Hailey – and click here for our previous instalments – Sarah, a 31-year-old account manager and Katie, a 34-year-old journalist.
Name: Hailey, 28
Location: Christchurch
Living situation: Flatting with three others
Job: Intermediate teacher
Salary per year: $57,000
Any other income: No
Take-home pay per week: $768
Investment returns: N/A
My situation:
I live in Christchurch with three others in a rented flat. I have a boyfriend but we don’t live together, and all of our finances are currently separate. After taking off after high school to travel the world for a few years as a backpacker, I returned home and went to uni when I was 23, when all the rest of my friends had mostly finished their tertiary education and I was just starting, which was a bit of a weird situation.
My financial situation is precarious. I don’t make a lot currently – everyone knows teachers don’t – and with everything becoming so expensive I’m in a constant state of panic as I watch my bank balance drain every week.
Weekly budget:
Rent/mortgage: $180
Food: $150
Bills: $120
Childcare: N/A
Investments: N/A
Debt payments: $180
Spending: $150
Surplus: $88 – sometimes this goes to savings but often it’s for things like WOFs, doctor’s visits etc
What’s inside your bank account?
Savings: $32
Kiwisaver: $6,324
Debt: $18,559
How do you approach budgeting?
I’m trying my absolute best to be super-strict with my budget because I have to be. I have a stupid amount of debt and I don’t earn a lot, so I have to be very regimented with my spending. Right now there are no luxuries at all. I went to the Citizens Advice Bureau and they helped me with some budgeting resources and that’s helped. I now use a spreadsheet to track my money and I’ve started taking out my food and spending money from the ATM to make it a physical thing – once it’s gone, it’s gone.
Do you have any debt, and what is it from?
I have so much debt and it’s one of the biggest regrets of my life. When I left high school I immediately headed for London to ‘live my life’ which, don’t get me wrong was amazing and so much fun. I had saved up money from my part-time job and I also had a bit that was left to me by my granny, so I decided to YOLO, as we said back then, and experience all that life had to offer in between working in bars and clubs.
But eventually that money ran out and I took out personal loans and loaded up a credit card and figured I’d worry about it later. Now, it’s later. I’m trying my best to pay it off as quick as I can because I’d like to save for a house at some point but realistically, that’s very very far in the future.
I wish I had balanced out the travel and life experiences with being a bit more careful with my money. I don’t regret going overseas and starting my career a bit later on but I do regret being so frivolous. I could have done things so differently.
I also have about $11,000 owing on my student loan.
Are you a spender or a saver?
A natural spender who is trying very much to be a saver for all the reasons I’ve said above!
How has the cost-of-living crisis affected you and your spending?
It’s affected me a lot – my food bill has gone up about $50 a week despite my efforts to keep it under control and that has a huge effect on me and my week. I’ve switched from fresh to frozen veges and tried to buy in bulk as much as possible (but when you’re flatting you only have one shelf and one tiny freezer bit, so it’s hard!).
What are your financial goals?
To be debt-free and eventually own a house. Getting rid of the debt is priority number one. I’m doing this by being very regimented – if I keep up my current rate I’ll be able to clear it in about three years.
What’s the best thing you’ve bought in the last three months?
When I do go clothes shopping I try my best to go to second-hand shops first – good for the planet and my tiny wallet – and I found a Moochi blazer at an op-shop for $32. I was on cloud nine for the rest of the week!
What’s the thing you regret buying the most in the last three months?
A subscription for at-home workouts – I thought it would be cheaper than a gym but I’ve never used it and it’s $150 I’ll never see again.
Aside from the big stuff (rent/mortgage, bills etc) what’s your biggest source of discretionary spending?
Food of course, but despite me trying not to, I spend a bit of money on my classroom. We don’t have a lot of resources at our school and I like the classroom to look nice and for the kids to be inspired when they come to school, so I buy sparkly pens, paper and few other bits and bobs.
My boyfriend often pays for dates but I don’t love this, so I try my best to contribute where I can with cheap but cute dates – picnics in the park and movie nights at home.
Do you worry about money?
I’m often in tears about money because I know that my shit financial position is my fault because of the decisions I’ve made and I can’t help but look around at my friends who are earning far more, who have no debt and are really enjoying their lives. But one of my favourite sayings is that you can’t compare someone’s chapter 17 to your own chapter three, and I know I’m working really hard to build a good life for myself. I just wish things were a bit easier at the moment and I could get ahead a little more. #payteachersmore
How much money (honestly) do you think you’d spend on an average day?
About $10? I treat myself to a coffee out sometimes, and if I’m running late I’ll have to buy lunch from the shop down the road from school. I try my best to take it with me but honestly I get so sick of stir-fry and chickpea salads!
Where do you think it’s worth spending money, and where do you think you can save it?
I spend a bit of money on streaming services so I can entertain myself at home and not go out, so I think that’s a pretty good one (I have Netflix and Disney). I also can’t not buy Wattie’s sauce even though it’s more expensive. All the rest of my shopping is home brand but I can’t part from the classic.
I save on clothes by shopping mostly second-hand.
Do you have any money-saving tips you’d like to share that work for you?
I do a big shop at the Asian supermarket once a month – it’s so much cheaper. Also we use a power company that gives us three hours of free power, so we most definitely take advantage of that!
My cash system is working, I think – making money a tangible thing really helps my brain visualise how much I have to spend.
What’s the first and last thing you would cut from your spending if you had to make some savings?
I’d cut the occasional coffee although it’s really one of the only luxuries I have, and maybe I’d have to choose between Netflix and Disney. I’d have to still have one, though!
If you’d like to contribute to a Money, Honey story (anonymously!) please email [email protected] – the more we talk about money, the more we demystify it!
