Welcome to A Week In My Wallet – your free-for-all look inside the financial lives of real women…

This week we see what life in lockdown looks like (that explains the $0 entertainment and travel expenditures!) for a young business owner in Sydney, saving for a house deposit.

Monthly expenses

What was your family’s approach to money when you were growing up?

I think my parents have brought us up to live within our means, and that is very much so reflective of my relationship with money. We were encouraged to save from a young age with the good old Dollarmite accounts, and that even putting aside a small amount of money over a long time can make a difference if you keep chipping away. My parents have never been material people and taught my sisters and I the value of not spending on frivolous things but instead things that will enrich your life – travel, education, experiences, etc. 

I was never across my parents’ finances, but I knew they were saving hard to give my sisters and I the opportunity to go to boarding school, and I was always conscious of how they put us first, and very grateful for that.

We didn’t get pocket money as my parents said we should just help out around the house, but each week when mum would do the groceries, we’d be given the same amount of money each to pick an ice-cream to have. I think it was mum’s way of keeping us entertained. It worked! We used to spend the entire time trying to figure out what ice-cream we’d get with our $1. As we got older, I think mum finally bumped up the budget to $2 as our options were getting a bit limited. $2 could get you a milo cup or a frosty fruit but didn’t stand a chance at getting a magnum. I think they were $4 at that point!

I find this ice-cream scenario a little bit similar to how I approach things now. Sure, I will buy a t-shirt, but I’m not getting the $200 t-shirt, the $40 t-shirt will work just as well. 

What is your biggest barrier to home ownership?

We’re just in the midst of getting this all underway. As a recently new owner of small business, banks wanted to see my business history before lending us money without a risk fee tied to it. We’re in a much better position now that my business has some financial history to support it. We’ve spent years chipping away at adding that little bit to our savings each pay cycle, and if there’s going to be a silver lining to COVID it’s that it has helped speed up our savings goals. Now we just need to get ourselves along to some inspections once they open up! 

Are you working towards any financial goals?

Yes, very much so saving for a house deposit. We’re in a good position but now need to find a place that works within our budget – easier said than done!

I think after the last two years, an overseas holiday in 2022 is on the cards. European summer is calling my name.

Aside from the big expenditures, what do you think you fritter money away on?

Definitely eating out! I am a bit of a foodie, and a social one too. I love spending the weekends catching up with friends and family over brunch and lovely dinners with good quality wine! 

What is holding you back financially?

Prior to working for myself I feel like it was the ‘fixed’ income. We were both working for companies, and when you are on a salary there is only so much you can save. Starting my own business has given us more scalability with earnings which has been a positive.

What motivates you financially?

Goal setting. If I don’t set goals I am nowhere! Whether it is goal setting around an amount I’d like to have in savings, or the goal of wanting to go on a trip and how much money I need to make that happen. If I don’t have goals, well that just becomes all a bit dangerous for my new-found love for online shopping! 

Do you follow a budget?

Ah, not quite a budget but I do have separate accounts where funds are allocated. Each monthly cycle my money gets divided up into four accounts – tax, savings, joint and personal.

How do you and your partner split your expenses?

We keep it pretty simple and put the same amount into an account each fortnight that we both have access to. This covers all costs that are associated with both of us - rent, groceries, utilities, takeaway, weekends away (typically), coffees, internet bills etc.

Do you think of yourself as good with money? Why or why not?

I do actually. I think I have always valued saving, and even managed to save a small amount of money when I was on minimum wage for my first job and living in Sydney! I have always lived within my means. Those stories of people having multiple credit cards worth of debt and getting stuck in vicious AfterPay cycles just bring me too much anxiety! 

A Week In My (Lockdown) Wallet

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