Young Aussie reveals how she budgets because of the cost of living crisis

A young Aussie has revealed the “tough” reality of her mortgage increasing and the measures she’s taken to still be able to pay it.

Relentless mortgage rises has forced families who were financially ahead to drastically change how they live.

After relentless interest rate rises to the current level of 4.35 per cent, the average mortgage rate in Australia is now past six per cent.

Brittany Smith bought at just 19 for a reasonable price, but now her mortgage has increased by more than $850-a-month.

She’s gone from being able to spend at the grocery store without thinking about it to living on a strict budget.

Ms Smith, 25, lives near Newcastle with her two children and partner Chad.

She is the first to point out that the couple is by no means struggling, but they’ve definitely had to change their lifestyle because of the rising interest rates.

“Doing the groceries is my weekly dose of anxiety for sure,” she told news.com.au.

“For someone who has only been living out of home for five years, the change in the amount is astronomical.”

Brittany said her and her family are in a lucky position. Picture: Instagram/brittany_smith99

The young family have changed the way they spend. Picture: Instagram/brittany_smith99

She’s noticed that the cost of keeping her family fuelled and fed for the week is increasing rapidly.

“It used to be affordable if you were unorganised to grab a snack or lunch on the go. Now being constantly prepared with packing snacks for the kids because it will be a very expensive outing,” she said.

“If you happen to forget a water bottle, it is stressful.”

Ms Smith recently amassed more than 40,000 views on TikTok for a video where she was shocked by the price of a pie that cost her $8.50.

The price sent her reeling because it was just another example of how “quickly things are increasing.”

So many families are feeling the pinch. Picture: Istock

Inflation is on its way down, but it is still high, at 3.8 per cent, and we are in a housing crisis. According to a recent study by Roy Morgan, 30.3 per cent of Australians with mortgages are struggling to make their repayments.

Ms Smith has become the master of cutting costs. She’s tried to limit eating out, getting her nails done, and beauty appointments. She also actively tries to negotiate the best prices on recurring bills.

“I used to buy whatever groceries we needed. Now I have a budget and I won’t go over it,” she said.

She’s witnessed first-hand how most families have to revaluate their spending. When she was working as a lash technician, she saw the business dry up.

“I used to do lash extensions as my full-time job and people can’t afford these luxuries in this cost-of-living crisis,” she said.

“So much so that I had to go back to other work because I didn’t have enough clients anymore. Going from over 30 clients a week to nearly none.”

Ms Smith said that while she’s conscious that she doesn’t want to spend on things she doesn’t need, she also doesn’t want to budget herself at the cost of her wellbeing.

“I will say that there is a fine line in the sense that mental health is more important than money and I do advocate for that and the fact that people can’t budget themselves into the ground,” she said.

“It is a really tough situation that we are all in and people are cutting out thing that they need to be healthy and happy. I am lucky that we are okay and will be okay financially but everyone is making changes and pivoting.”

She said so many people are in “tough” situations. Picture: Instagram/brittany_smith99

She’s hyperaware that her family are doing well. Picture: Instagram/brittany_smith99

The young mum is hyperaware that she and her partner are still in a very “lucky” financial position. Yes, the interest rate rises have been felt but they are still able to make repayments.

“We are lucky to own our home and still be able to afford it. I have started working more compared to when I had my first child,” she said.

“I’ve cut out unnecessary spending even if it bought happiness or improved my mental health. Not to mention, the main form of socialisation we used to do involved meals out, which is now stressful due to the price associated with it.”

Even with all that said, Ms Smith said she couldn’t imagine what it would be like for people who didn’t get ahead early.

She was lucky and bought her first place at 19, which has given her a huge leg-up. She’s hyperaware of how “badly other people are struggling” when she can see how her lifestyle has had to be overhauled due to the cost of living.

She’s had to change the way she lives even with both her and her partner working and a mortgage she had six years to put a dent in.

Financial expert Graham Cooke previously told news.com.au that housing in Australia has officially gone “through the roof”.

“Rents and mortgages have gone through the roof. They are the number-one source of financial stress in Australia and people can no longer cut costs elsewhere to get by,” he said.

At this point, Mr Cooke said the best advice he could give people is to consider moving in with family or friends to help carry the load.

“Reducing or eliminating accommodation costs, if you are in a position to do so, will significantly improve your cash flow and allow you to accrue savings much quicker,” he advised.

“Not only will you reduce your housing costs but potentially you’ll save money by sharing utility bills and even lower grocery costs.”