silencio Posted March 31, 2015 Share Posted March 31, 2015 What I've forgotten to mention not only separate bank accounts are important in a relationship, my partner and me also use the pie chart/expenditure tool from our bank. It's easy and convenient and you see where the money goes. Surprise: my partner earns more than me but has less money left after each pay-week and in comparison I can only spend less with the lower wage and save at least 1 third more! In the end it all comes to habit, our own financial behaviour/maturity. The other half is a big spender and for myself I can say I always was a saver. We're completely different and in order to achieve our goals I monitor all our financial aspects as otherwise the other half would never save a penny. Link to comment Share on other sites More sharing options...
Eera Posted March 31, 2015 Share Posted March 31, 2015 As previously asked, what do you do for a living because that salary seems low. Link to comment Share on other sites More sharing options...
silencio Posted March 31, 2015 Share Posted March 31, 2015 OP + wife are working 40 hours but in Australia as a rule of thumb 38 hours per week are full time. Are you working overtime as well? Which industry are you in presuming 40 hours as full-time? Link to comment Share on other sites More sharing options...
Marisawright Posted March 31, 2015 Share Posted March 31, 2015 I'm going to be quite open here as I'm interested to find out if there are others in the same boat or any suggestions on how to cope a bit better. I earn a salary of $65,000 and my wife earns $60,000 per year. So our total pre-tax household income is $125,000 which sounds quite reasonable. This works out to be about $99,000 after tax. The problem is where does it all go? We pretty much live pay cheque to pay cheque We rent a 3 bed + study house in an ok area north of the Gold Coast for $440 per week. Water and electricity are extra. If I'm honest we could if we really wanted to downsize slightly and live in a much less desirable area for around $360-$380 per week but it wouldn't get much cheaper than that. Unfortunately many migrants come to Australia with unrealistic ideas of the kind of lifestyle you can lead. Australia is an expensive place! Having been an expat myself, I know one gets used to a certain standard of living in places like Dubai, and you start to regard luxuries as essentials. The fact that you splashed out on what I assume is a new car is an indication of that. Most migrants in your position would have settled for a second-hand one, given the ridiculous price of cars in Oz. So I wonder if you could, perhaps, cut back more than you think? Even just downsizing would save you $3k to $4k a year - and is that just moving to a less desirable area, or taking a smaller house as well? Do you really need three bedrooms right now - you may need a third bedroom when relatives come to visit, but considering what you'd save by going for a smaller place, it might actually be cheaper for them to stay in a hotel when they come, which I assume won't be for several months anyway. What about spending on hairdressers, manicures, dry cleaning, clothes? Do you switch off all appliances at the wall when not using them? Are you sensible with air conditioning (keep the thermostat at 23 degrees not 18 or lower, and switch it off whenever you can). Do you avoid using the tumble drier? Sorry if all this is obvious but the money must be going somewhere. Link to comment Share on other sites More sharing options...
Alaska Posted March 31, 2015 Share Posted March 31, 2015 Unfortunately many migrants come to Australia with unrealistic ideas of the kind of lifestyle you can lead. Australia is an expensive place! Having been an expat myself, I know one gets used to a certain standard of living in places like Dubai, and you start to regard luxuries as essentials. The fact that you splashed out on what I assume is a new car is an indication of that. Most migrants in your position would have settled for a second-hand one, given the ridiculous price of cars in Oz. So I wonder if you could, perhaps, downsize more than you think? I think you have possible hit the nail on the head there - definition of essentials can vary a lot from one person to another. We were on 60% of the income talked about with 2 children on a 457 visa with higher rent, and we were "comfortable" and managed to put a little away at the end of the month. I think it's really a case of cutting it back to the bone for a while and it's amazing what you can save. Link to comment Share on other sites More sharing options...
Quoll Posted March 31, 2015 Share Posted March 31, 2015 I'd be looking for another job - either a better paid one for one or other of you or another job to add to the ones you've already got. As both of you are below the average wage there may be some potential. See what you could negotiate about the car repayments or trade in - that's a horrible amount to be spending on a car! Otherwise, I'm not that surprised at your expenditure tbh, we were an elderly couple owning our own home so no mortgage but have rates, utilities etc plus health insurance and all the other insurances and our annual outgoings were c $60k without being too profligate at all - no real vices other than the odd skein of yarn and a bit of DIY Link to comment Share on other sites More sharing options...
grahamffc Posted March 31, 2015 Share Posted March 31, 2015 I think you are probably feeling similiar to that I did. I earned £40k in London then $75k in Melbourne. It felt comparible as I had enough to have a decent lifestyle and save a little (c.$800 per month) but if I'm honest I felt that I wasn't earning enough to make up for everything I had given up. If I had an expat contract with annual flights home, shipping etc thrown in I would have been much happier. It needs a reality check, most people get by comfortably and have a nice lifestyle in Australia but luxuries are unlikely for most, and trips across the world back home need to be considered a luxury, especially for a family. Link to comment Share on other sites More sharing options...
benthomas010 Posted March 31, 2015 Share Posted March 31, 2015 I think you are probably feeling similiar to that I did. I earned £40k in London then $75k in Melbourne. It felt comparible as I had enough to have a decent lifestyle and save a little (c.$800 per month) but if I'm honest I felt that I wasn't earning enough to make up for everything I had given up. If I had an expat contract with annual flights home, shipping etc thrown in I would have been much happier. It needs a reality check, most people get by comfortably and have a nice lifestyle in Australia but luxuries are unlikely for most, and trips across the world back home need to be considered a luxury, especially for a family. I always read the rule of thumb was you need around 2.2 times your UK salary... you were earning pretty much on par with your uk salary but in a much more expensive environment.. You work in finance right? What roles were you doing in oz out of interest? Link to comment Share on other sites More sharing options...
grahamffc Posted March 31, 2015 Share Posted March 31, 2015 I was working as a management accountant for a medium sized company. It wasn't very interesting (but I did the first job I was offered) but was pretty much the same level wise and the people were nice. Link to comment Share on other sites More sharing options...
matte Posted April 1, 2015 Author Share Posted April 1, 2015 I work as a video engineer for live events and installations. I could leave my full time position and look at going freelance. That way I would earn a fair bit more during the busy months but I would be sacrificing job security at the same time which is not really something I wanted to do within our first year or two of being here. Having said that being a freelancer could have a few extra financial advantages tax wise in being able to claim a portion of rent/utilities/petrol etc as a lot of the work takes place on site at venues around Brisbane and the Gold Coast. There are full time positions advertised at around the $75000 - $80,000 mark but these are in Sydney and I was told not to expect that sort of salary living on the Gold Coast. The other half works as a paralegal and she has a law degree from the UK. What she's earning seems to be the going rate in this area. If she wanted to progress further it would involve going to uni full time for a year to do her PLT course so she could progress to being a lawyer. That's roughly another $12,000 to $15,000 I believe. We would also have to factor in that she couldn't work much whilst doing her training. OP + wife are working 40 hours but in Australia as a rule of thumb 38 hours per week are full time. Are you working overtime as well? Which industry are you in presuming 40 hours as full-time? By 40 hours I mean 5 days a week 9-5. Technically it's 37.5 if you don't factor in your lunch break. I agree with que sera sera dump the car mate.what car is it if you don't mind me asking, because $215 a week is a bit steep.are you sure thats not monthly? It's a VW Jetta. There is a little bit of loan insurance incorporated into that payment if either of us do lose our jobs. I have been contemplating whether it might be worth looking at that and taking that off as it's dead money however it is nice to have that safety net. As for hairdressers, fashion, phone contracts. I cut my own hair and the wife has only just been to the hairdressers last week. Her first trip since June last year! We don't have any mobile phones contracts. Both on PAYG with Boost at $40 per month. Clothing, I think I've bought 3 T-shirts since we arrived at $10 each and the wife has only bought a few work clothes from Target. There's not much we could cut back further there. Link to comment Share on other sites More sharing options...
Loopylu Posted April 1, 2015 Share Posted April 1, 2015 I work as a video engineer for live events and installations. I could leave my full time position and look at going freelance. That way I would earn a fair bit more during the busy months but I would be sacrificing job security at the same time which is not really something I wanted to do within our first year or two of being here. Having said that being a freelancer could have a few extra financial advantages tax wise in being able to claim a portion of rent/utilities/petrol etc as a lot of the work takes place on site at venues around Brisbane and the Gold Coast. There are full time positions advertised at around the $75000 - $80,000 mark but these are in Sydney and I was told not to expect that sort of salary living on the Gold Coast. The other half works as a paralegal and she has a law degree from the UK. What she's earning seems to be the going rate in this area. If she wanted to progress further it would involve going to uni full time for a year to do her PLT course so she could progress to being a lawyer. That's roughly another $12,000 to $15,000 I believe. We would also have to factor in that she couldn't work much whilst doing her training. By 40 hours I mean 5 days a week 9-5. Technically it's 37.5 if you don't factor in your lunch break. It's a VW Jetta. There is a little bit of loan insurance incorporated into that payment if either of us do lose our jobs. I have been contemplating whether it might be worth looking at that and taking that off as it's dead money however it is nice to have that safety net. As for hairdressers, fashion, phone contracts. I cut my own hair and the wife has only just been to the hairdressers last week. Her first trip since June last year! We don't have any mobile phones contracts. Both on PAYG with Boost at $40 per month. Clothing, I think I've bought 3 T-shirts since we arrived at $10 each and the wife has only bought a few work clothes from Target. There's not much we could cut back further there. Not wishing to be the bearer of bad tidings, but your wife would probably have to do more than sit the PLT course at uni to qualify as a lawyer in Australia. Her UK degree will need to be assessed and, as a minimum, she will probably have to sit extra exams in Australian Constitutional Law and Property Law. Depending on what her degree covered in the UK there may be other pure law subjects to study... Link to comment Share on other sites More sharing options...
melbourne Posted April 26, 2015 Share Posted April 26, 2015 This is a sobering thread, because until now I thought a salary of $140k would do the two of us pretty well. Apparently not, from what I've read here. I worked out that we'd end up getting out about $7500/month after tax. I calculated costs as follows: Rent: $800/week (need the space for pets) = $3200-$4000 depending on 4/5 weeks Food, travel, insurance, healthcare etc: $2000/month Savings then of around $1500-$2000 / month. Having I got things wrong? Please share honestly, as this will be very helpful in deciding how to move forward. Link to comment Share on other sites More sharing options...
Guest Posted April 26, 2015 Share Posted April 26, 2015 $800 would be a large amount if in Brisbane, but I assume Melbourne is much more expensive to rent. Your $2000 a month costs also seems quite high, how are you working that out? Link to comment Share on other sites More sharing options...
robfromdublin Posted April 27, 2015 Share Posted April 27, 2015 This is a sobering thread, because until now I thought a salary of $140k would do the two of us pretty well. Apparently not, from what I've read here. I worked out that we'd end up getting out about $7500/month after tax. I calculated costs as follows: Rent: $800/week (need the space for pets) = $3200-$4000 depending on 4/5 weeks Food, travel, insurance, healthcare etc: $2000/month Savings then of around $1500-$2000 / month. Having I got things wrong? Please share honestly, as this will be very helpful in deciding how to move forward. I know Melbourne is more expensive but that seems totally fine to me for two people. Depends on your expected lifestyle of course, but I would have thought you'd be pretty comfortable. We nearly live off my salary of ~$5300/month after tax in Brisbane (my wife's goes to savings) and we have a 1 year old so more expenses in terms of childcare, etc. You won't be living like kings with a new car and foreign holidays every year though. If you have a comfortable lifestyle where you're coming from, you would probably want to do some careful sums on living costs. Link to comment Share on other sites More sharing options...
Chortlepuss Posted April 27, 2015 Share Posted April 27, 2015 We earn quite a bit more than you and aren't exactly rolling in it in Brisbane - No car loans, $650 a week rental (we live near the city), rarely go out, buy food at local markets, take sandwiches to work, don't buy coffees, source most clothes from UK (with UK funds). Things that take our money - servicing and running 3 modest cars (2 teenage drivers), school fees (state school but IB so quite costly), electricity bills (sky high), telstra, gym, Foxtel, extra super contributions - Went to New Zealand for a holiday last month $$$$$ (and of course no paid leave for me) So we have scope to cut down but I wanted my lifestyle to be similar to that in UK. I am on a zero hours contract (well paid when I do work) so it's famine or feast. What I do spend a huge amount on is medical bills - cost of health insurance, medical bills for the 90% of things that aren't covered by private health insurance, prescriptions etc... It is bloody expensive to live here. We are fine as long as there is work, but quickly suffer if I can't get a contract. So I'm not surprised that you're not flush with what you're on. Australia offers a lovely lifestyle for those on big bucks who own their houses but otherwise it's a struggle for many! Link to comment Share on other sites More sharing options...
Freckleface Posted April 27, 2015 Share Posted April 27, 2015 This is a sobering thread, because until now I thought a salary of $140k would do the two of us pretty well. Apparently not, from what I've read here. I worked out that we'd end up getting out about $7500/month after tax. I calculated costs as follows: Rent: $800/week (need the space for pets) = $3200-$4000 depending on 4/5 weeks Food, travel, insurance, healthcare etc: $2000/month Savings then of around $1500-$2000 / month. Having I got things wrong? Please share honestly, as this will be very helpful in deciding how to move forward. Unless you have extravagant tastes you should be fine on 140k. I know families living happily in Melb on a lot less. Link to comment Share on other sites More sharing options...
Quinkla Posted April 27, 2015 Share Posted April 27, 2015 This is a sobering thread, because until now I thought a salary of $140k would do the two of us pretty well. You should do fine on that as a couple. The problem comes when you start factoring in children. Bringing up children in Australia is very expensive - childcare, before/after school costs, food, clubs, extra utilities, transport, etc. Plus, schools and clubs expect you to have bottomless pockets to provide books, uniforms, costumes (super-heroes day anyone?), raffle tickets, etc. It's contsnt. Your rent figure looks too high, and your food, travel, insurance, etc. looks low. By way of example, food @$15 a head per day is not a lot and would get you over $900 a month without trying. Link to comment Share on other sites More sharing options...
melbourne Posted April 27, 2015 Share Posted April 27, 2015 Thanks very much for the feedback all. I'll revise the food prices soon - I'm going to take a normal bill from home and cost out each item online at coles.com.au for an idea on monthly grocery and food costs, and then factor in a bit for bought meals now and again. At this point we could be talking French Francs for all these numbers mean to me. Trying to get a feel for the context. Link to comment Share on other sites More sharing options...
Quinkla Posted April 27, 2015 Share Posted April 27, 2015 Thanks very much for the feedback all. I'll revise the food prices soon - I'm going to take a normal bill from home and cost out each item online at coles.com.au for an idea on monthly grocery and food costs, and then factor in a bit for bought meals now and again. I know this is what a lot of people suggest but it can be misleading. Basically, you eat different things in Australia. For example, you'll probably eat more in the way of Asian inspired foods; you may end up eating pumpkins and squash, more fresh fruit, more pasta and pizza. You are likely to eat less in the way of leeks, turnips, courgettes, pork sausages, pork in general, bread and tinned things because they are expensive. Ready meals are not common. It sounds trivial when you write it down, but you will initially find life expensive as you try to recreate life in Britain, and in time you will find a more efficient way of living in Australia. Oh, and many things go on promotion every few weeks - sometimes as little as half price. Then you stock up and avoid ever buying that product at full price. It is better, IMO, to ask people here how well they manage and how luxuriously or frugally they live on different wage amounts. But your first year will be expensive as you set things up and sometimes make choices that with more information you would not have made. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted April 27, 2015 Share Posted April 27, 2015 Thanks very much for the feedback all. I'll revise the food prices soon - I'm going to take a normal bill from home and cost out each item online at coles.com.au for an idea on monthly grocery and food costs, and then factor in a bit for bought meals now and again. At this point we could be talking French Francs for all these numbers mean to me. Trying to get a feel for the context. These sort of comparisons may be ok for a few essentials but if you are anything like us much of our food shop is discretionary and, at least to some extent, influenced by special offers and multi-buys. For that reason comparing a weekly shop in Tesco in February might produce a surprise if you looked at the same goods in the same shop in May. I suspect that if you were actually in Coles then you would also apply discretion based on what looks better value. Brand names are likely to be different too. Link to comment Share on other sites More sharing options...
Que Sera Sera Posted April 27, 2015 Share Posted April 27, 2015 I have lots of friends here in Perth who's joint income only totals that or a lot less and they manage fine here which is supposed to be much more expensive than anywhere else :wink: Link to comment Share on other sites More sharing options...
melbourne Posted April 27, 2015 Share Posted April 27, 2015 Some good feedback here. I hadn't even considered a possible change in buying habits, or weekly specials. I'm going to go through the exercise anyway, just to get a rough feel for the same-same buying power in terms of cost to salary. Link to comment Share on other sites More sharing options...
Parley Posted April 27, 2015 Share Posted April 27, 2015 This article may be a year old but things won't have changed much. A household income of $140K would be I believe in the top quartile of household incomes across Australia. The average wage for an individual is about $70K. Many earn less. So the majority of households survive on less than $140K. Things are relative of course. If you choose to take on a huge mortgage or large rent then you may consider yourself as struggling. But it doesn't have to be so. http://www.news.com.au/finance/money/do-you-consider-yourself-a-struggling-comfortable-or-rich-australian/story-e6frfmcr-1226910189131 Link to comment Share on other sites More sharing options...
melbourne Posted April 27, 2015 Share Posted April 27, 2015 A household income of $140K would be I believe in the top quartile of household incomes across Australia.The average wage for an individual is about $70K. Many earn less. Things are relative of course. I guess that's the thing. I will say that we pay a fortune in 'ordinary' monthly costs at the moment, that I'm looking forward to reducing in a new country. Things like electricity, water, sanitation, rates (house ownership tax), private medical insurance. These things have become ridiculously overpriced, never mind the normal mortgage, petrol (prices through the roof), food costs soaring. Link to comment Share on other sites More sharing options...
Parley Posted April 27, 2015 Share Posted April 27, 2015 I guess that's the thing. I will say that we pay a fortune in 'ordinary' monthly costs at the moment, that I'm looking forward to reducing in a new country. Things like electricity, water, sanitation, rates (house ownership tax), private medical insurance. These things have become ridiculously overpriced, never mind the normal mortgage, petrol (prices through the roof), food costs soaring. And it will be similar here. But statistically speaking you are on a well above average income. Most earn a lot less so it must be doable or society would be collapsing. Link to comment Share on other sites More sharing options...
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