Is it possible to live on $40,000 a year in Sydney?
Nearly 10 years ago, I found myself single with an elderly parent to care for and 50/50 custody of three children under 10.
Up to that point I had been earning a substantial income but a redundancy saw me out of work for the first time in my life at 40. I managed to negotiate an amicable split costing me only $2500 in legal fees. I was devastated at having to sell the family home, as I couldn’t afford to buy my ex out.
I made the decision to pool resources with my mum who was also single and together, we were able to buy a modest home in an average suburb in Sydney.
I applied for the Newstart allowance and Family Tax Benefits A & B but fortunately, the Godfather of Radio in Australia, John Brennan threw me a lifeline. John said to me in my interview “I have a job for you but I can only offer you $40,000pa.” I was so grateful for the opportunity to work for a company that I have long admired and I jumped at the chance.
For the first time in my life I had to look long and hard at every penny going in and out. I knew if I had to, I could make it on that amount of money — and if I can live on an annual income of $40,000 here in Sydney with 3 kids, I would be ok.
I became vigilant about limiting our fuel and utility bills (click here to see our latest energy offer), but without a doubt, the biggest area where I knew I can really cut corners if need be is the family grocery bill. I created a weekly planning menu and did the bulk of my shopping at Aldi…I love that place, I’m constantly amazed when I get to the check-out with a full trolley and the check out person says “that will be $120”.
I cut down on expensive cuts of meat and only bought fruit and veg that were in season. There were some things that my mum wouldn’t compromise on, toilet paper (really?) and Twinings Tea.
I struggled a bit with the mortgage so renegotiated with the help of a broker to an interest only repayment. My kids were also attending Catholic Schools so I explained my situation to the Burser/s and was able to reduce my school fees considerably for a period of time.
While at the time I was a little resentful at having to watch every penny I was surprised when this feeling gave way to a pride that I could live on $40,000 pa. Now that I’ve set that benchmark, I really enjoy looking for bargains and take great pleasure in NOT spending money.
I’m now in a better financial position and I admit to sometimes buying my lunch instead of bringing it to work but my mortgage, school fees and all bills are up to date.
Sometimes we are forced into a position where we are counting pennies but I would encourage you to try it even if you can afford whatever you want. It’s wonderfully liberating……
