Baby Boomers know how tough it can be to save for a house, but chances are they weren’t on an annual income of $122,200 a year and spending money on a lavish lifestyle and flamboyant holidays while trying to put down a deposit for a home.
That’s the problem one 29-year-old has found herself in. Originally from Australia, the woman now lives in London where she earns a cool £69,5000 (AU$122,200, US$90,840) each year. Telling her story to I News, the project manager revealed that she needed to make big changes to her spending habits to save the £1,500 a month a mortgage broker told her she would need in order to borrow £320,000 for the kind of home she’s looking for.
Originally, she was saving £800 a month, although she’s been forced to give up certain things to meet her new goal of owning property. She moved out of her share house into a cheaper one which saves her £50 a month and also cancelled her gym membership which was costing her £150 a month and now goes for runs and plays weekend football at the cost of just £10 per game. She also admitted to reducing her use of taxis, but admitted she won’t give up travelling and taking holidays.
Each month, she sets aside £375 for holidays, spending most weekends abroad. She noted that she won’t drink alcohol if she’s visiting an expensive place and that she only purchases the cheapest flights.
Kate also spends £350 each month on food shopping and an additional £100 each week eating out and socialising with friends.
“I order less when I’m out now: in the pub I’ll have two drinks and then drink water, and on a day out I’ll get food from a street market rather than pay for a pub lunch, which means I pay £7 rather than £16,” she said..
Other costs include £10 a month for her phone contract, £110 for travelling around London and £830 on rent and bills.
When the story was shared online, many mocked the efforts she’s made to save money, claiming that she isn’t dealing with a real problem.
One person wrote: “Someone help me out here, is this actually a parody? I mean, I hope this isn’t real, but how ‘not real’ is it?”
Another comment read: “I’m going for parody or an example of how millennial’s are out of touch with how the world works. £350/m food shopping? What, is 2/3rd’s of that made up of alcohol? It obviously ain’t going on food with that figure. She does realise ‘food shopping’ doesn’t include alcohol, right? [sic]”
A third person sympathised with Kate and said: “People criticising need to realise living in London, which I assume she does, is a different kettle of fish than living anywhere else. Salaries might be higher so are expenses. I do sympathise, for a first time buy on your own it is very difficult wherever you are.”
https://twitter.com/spaceofandy/status/1019551672882917376
It’s not the first time Millennials have complained about the difficulties of purchasing a home. In May, a 35-year-old gave her parts full control of her pay packet so she could save for a deposit. Emily Power’s parents would give her pocket money out of her own salary each fortnight after they’d paid off her debts and saved money on her behalf.
Read more: ‘I’m not embarrassed’: Pocket-money Millennial responds to backlash
Meanwhile, a couple appeared on Australian TV show Buying Blind last month and complained that they couldn’t find a suitable home on their $1.8 million budget, leading viewers at home to brand them “pompous jerks”.
Read more: Millennial couple complain they can’t find a home, despite $1.8M budget