The Cost of ‘High’ Living
"It is not so much the high cost-of-living, but the cost of high-living”
The cost of living seems to go up and up every year, whether it is electricity bills, rent, or insurance....how does one save when every year essential costs increase and our salaries fall further behind?
One way, is looking at the 'cost of high living'. I am not talking about luxury cruises or penthouse suites, I am talking about the decisions we make regarding our essentials; housing, food and transport.
The decision to rent in one suburb vs another, or choosing the modern updated Townhouse vs the older but still function apartment down the road can impact your savings substantially. It’s not whether you can afford it that should determine where you live, but what suits your needs, what are you willing to compromise on and what are 'nice to haves' - $100 week extra in rent will cost you $5,200 a year!
If you are thinking about upgrading to a larger house, this means higher mortgage repayments, stamp duty and conveyancing costs (plus the selling and moving expenses). Generally the ongoing costs, such as utility bills, insurance and council rates are also higher, so it’s worth considering the 'needs' versus 'nice to have' if your bank tells you that 'you can afford the repayments'.
Transport: If taking public transport or carpooling to work 2 times a week is possible, parking in a cheaper (or free) spot down the road (and walking) is viable, this too will save you markedly.
Eating out is a well-known cost and you can do your own maths on what it costs you and whether it’s just convenient or for genuine enjoyment.
Essentials need to be weighed up together - you may move closer into work - which costs more in rent - but you may only need 1 car or can ride to work- so one advantage offsets another cost. Similarly, if you are buying loads of groceries but not eating it all, that may cost more than just eating out in the first place....and wasting food.
What decisions have you made that have affected you cost of living, in a positive or negative way?
- Coach Rach
