21-year-old reveals money ‘rules’ she has to follow on $70,000 salary

A 21-year-old living in Brisbane has revealed how she plans to save for an apartment and the “rule” she’s given herself to pull it off.

A young woman has revealed how she plans to save for an apartment in Brisbane while earning $70,000 a year.

Sam, 21, lives in Brisbane and works as a lab technician. She’s desperate to enter Australia’s booming property market and currently has $10,000 saved and has a property budget of about $500,000 in mind.

According to comparison website Finder’s latest property report, the average Aussie apartment costs more than $600,000 and the average deposit needed to enter the property market is more than $100,000.

Sam graduated with a degree in BioMed. Picture: Instagram/shrimplo

The young worker is already saving for an apartment. Picture: Instagram/shrimplo

Sam is originally from Hong Kong and came to Australia to do her university degree where she graduated with a degree in biomedical science.

She now plans to become a resident and purchase property here. Her parents helped her with her tuition, but otherwise, she is self-sufficient.

The young worker is renting and lives alone, but she is eager to stop paying someone else’s mortgage and start paying on her own.

“If I can afford my own rent, it’d be great if that money were going to a property that I own,” she told news.com.au.

Most Gen Zers might dream of entering the property market, but Sam has a plan.

She recently took to TikTok to share that she’s given herself a couple of rules to follow so she can “hopefully” purchase her place in the next year or two.

She said that her advice might sound “depressing” but thinks these cuts will result in her being able to save more.

“I simply do not purchase drinks at restaurants anymore, unless it is required,” she said.

The 21-year-old said she’ll make exceptions, like if she’s attending a restaurant offering a promotion where you need to purchase a drink to get cheap tacos or something similar, but otherwise, she doesn’t buy drinks out anymore.

She’s also created a rule where she doesn’t allow herself to buy anything two days a week and it forces her to eat whatever is left in her fridge.

“I realised that living alone a lot of food accumulates in my fridge and I don’t eat it and I just keep buying new food so this is a great way for me to save money,” she said.

Sam has changed the way she lives to save. Picture: Instagram/shrimplo

Sam wants to buy property. Picture: Instagram/shrimplo

The recent graduate also buys things in bulk if they are cheaper, doesn’t Uber unless it is late at night, and invests in staple items so she doesn’t constantly need to refresh her wardrobe.

Getting into the property market is important to her because the belief that purchasing property would give her financial security was ingrained in her from a young age.

“Owning property is a pathway to financial freedom since the value will keep increasing most of the time, so it’s a worthy investment,” she said.

She currently has a stable income and wants to take full advantage of having consistent money coming in, being young, and having no dependants.

“I’m grateful to be in a position where I have a stable income and don’t have to do anything particularly extravagant to save money,” she said.

She's also an online creator. Picture: Instagram/shrimplo

Despite Sam’s dream and budgets, she worries that her small changes aren’t making a “huge difference” because property in Australia keeps rising.

“It feels like at the rate that housing prices are increasing, I’ll never catch up. I do still want to let myself enjoy things and do things that cost some money, but I’m still trying to find the balance between doing things I like that cost money and saving money,” she said.

The Gen Zer remains hopeful that eventually she’ll be able to afford something even if it is only “tiny.”

Finder’s money expert Graham Cooke said it is getting harder for young people to break into the property market.

“Housing prices have skyrocketed in recent years, far outpacing wage growth. This has made it increasingly more difficult for young people to save money for a down payment,” he said.

Mr Cooke pointed out that Generation Z is also burdened with plenty of other financial disadvantages.

“Gen Z is burdened with a record amount of student debt, and on top of rising costs, this has limited their disposable income, and made it harder for them to qualify for a mortgage, While Millennials faced their own hurdles to homeownership, Gen Z is definitely entering a steeper climb,” he said.

Mr Cooke advised that the best approach to getting into the property market is to start small.

“Start small but smart. Building a budget and saving regularly, even just a little each month. Review your expenses and cut out anything unnecessary. Look for better deals on things you still need,” he said