Times are tough for many families around Australia, although a man on a $300,000 annual income says he and his family would struggle if he earned any less than what he does now.
Telling his story as part of News.com.au’s Cash Confessions series, 31-year-old Melbourne man Phil revealed he earns three times the national average wage and owns eight investment properties, but says he, his wife and six-month-old child don’t live a luxurious lifestyle. In a confession that is sure to anger pensioners and over-60s doing it tough, the IT sales and development manager feels pressure to maintain his lifestyle and says life as he knows it would be compromised if he earned less.
In the exclusive article, Phil says his monthly grocery shop is $1,000, while he pays $8,000 in mortgage repayments. He also forks out $300 on coffee and takeaway food, spends $250 on a personal trainer and provides his wife with a $1,000 personal allowance because she’s on maternity leave.
He argues that it’s not easy to maintain their comfortable lifestyle because his family doesn’t get government benefits such as childcare assistance or welfare due to their higher income bracket.
“Our investment properties suck on to a huge amount of discretionary cash, meaning we just don’t seem to have a lot left over at the end of the month,” he says.
Although the family doesn’t live on a budget, Phil says visitors to his Clayton, Victoria home wouldn’t think he earns as much as he really does. His comments are sure to draw ire from many Australians, including those struggling on the pension. A single person on the age pension currently receives just $834.40 per fortnight, while couples receive $1,258.
Many Baby Boomers lived on tight budgets when they were raising their own families and wouldn’t have dreamed of spending large amounts of money on takeaway coffees or personal trainers. In fact, the Boomer generation proudly survived by making the most of what they had. Leftover food wasn’t thrown away and a slight tear in a pair of pants didn’t mean rushing down to the department store for a new designer pair of slacks, but instead pulling out the sewing machine or needle and threat and resewing it at home. In fact, if a Boomer was earning $300,000 in 1970, it would be the equivalent to $3.4 million in today’s money, when inflation rate is considered.
Phil isn’t the only person with large sums of money to complain in recent times. Earlier this year, a Millennial couple on Channel Nine property show Buying Blind caused outrage when they said they couldn’t find a home to suit their needs – despite their $1.8 million budget.
Engaged couple Mags and Tyson applied for the show, which lets experts use their savings to purchase a home on their behalf. The couple complained the market was “horrible” and that they were “watching the houses get further and further out of reach”. They faced backlash online from viewers who couldn’t understand how even in today’s financial market, a young couple couldn’t find a home with nearly $2 million.
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