I have a confession to make.
Whenever I read a money diary which involves someone who is living at home rent free, I roll my eyes and click to another article. Ditto for people who’ve bought a home with the help of mum and dad.
The eye roll is mainly due to the fact that for me and for many of you reading this right now, moving back in with your parents or relying on the bank of mum and dad after high school simply isn’t an option.
I want to see more role models who are kicking ass with money, who don’t live at home and who are attempting to pull together a mortgage on their own. I currently save 40 per cent of my income as a woman living in a major city with her partner and paying her way.
Watch: Budgeting with a banana. Post continues after video.
Here’s exactly how I save 40 per cent of everything I earn:
1. It takes time
When I started working full-time, my savings rate was 0 per cent. Part of this was moving across the country for work, with moving costs eating up my savings. The full-time salary I moved for was far less than the average graduate salary, which made it an uphill battle to save money when against the pressures of inner-city Melbourne rent and the whims of 20-year-old me. It took time to take my savings rate from 0 per cent to 40 per cent through small improvements made over time.
2. Get clear on your why
I really struggled with saving money because I didn’t think it was that important. The only financial goals presented to me were retirement or buying a property – and when you’re a 20 something on a low income, taking away money from your current wants for 70-year-old you or having faith that you can build a mortgage payment can be difficult.
What helped me start saving was to define my why: what was important to me and to be clear on what I was saving for. Whether it be short term purchase or to retire early, your individual goals will provide strong motivation to start saving.