‘Is it normal to feel poor?’: 21yo reveals sad Aussie trend
A 21-year-old has taken to social media to share something she’s noticed that she reckons has become “normal” and the reality is grim.
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According to 21-year-old Freya, who works full-time and earns $75,000, it has officially “become normal to feel poor in Australia”.
In a TikTok that amassed more than 200,000 views, Freya detailed a trip to the grocery store that left her feeling broke.
“I went to buy some make-up because I wanted to save money. I started looking at the foundations, and it is like $35-$40 for a (chemist brand) foundation. What is going on?” she asked.
The pricey amount for a basic foundation sent her into a spiral, leading her to realise that after paying tax, superannuation, and HECS repayments, it would take her two hours to earn the $40 she needed to purchase a basic makeup supply.
“Am I poor? Why do I feel like I’m not able to buy stuff that I used to be perfectly fine to buy regularly?” she asked.
Freya’s cost-of-living rant hit a nerve with Australians, who were quick to reaffirm her feeling that everyone is feeling skint these days.
“I have never earned more money than I do now and have never felt so strapped for cash. The cost of living is literally out of control,” one wrote.
“I’m earning the most I have ever made, but struggling to keep up with the cost of living prices. Can’t even enjoy my new higher salary,” another shared.
“Yep! Feels like there’s poor and rich and no in-between,” someone else wrote.
Another commenter shared that she was on a single income and paying $550 in rent a week, which amounted to half her salary.
“But I guess when our bills are paid, we have food on the table,” she said.
Freya says it is has never been harder for young people to feel rich or financially stable.
She’s living at home, engaged, and hoping to buy her first apartment with her partner soon.
However, she said she pays an “insane” amount of tax, which makes achieving her goals difficult. She knows that the more she earns, the “worse” it’ll get in terms of how much she’ll need to pay the government.
“You constantly feel squeezed for money,” she told news.com.au
According to the comparison website Finder, the cost of living has detrimentally impacted Gen Z’s ability to save. More than half say they could only survive up to a month living off their savings if their income dried up tomorrow.
Even more grimly, 93 per cent are somewhat or extremely stressed about their current financial situation, up from 84 per cent in July 2019.
Freya said she feels like she’s on a financial “treadmill that isn’t going anywhere” and that most of her peers feel the same way.
“The cost of living impacts young people so much. When you’re at a lower income level, and you are starting out, and essentials go up, it just eats into a greater portion of your income,” she said.
In Freya’s case, she’s decided not to move out of home until she can buy something because she knows she can’t afford to save for a mortgage while paying rent.
“You can only move out if you never want to buy. Once you start renting, it’s like $30,000 gone, and then what are you left with? It sets you back years if you are trying to get into the property market,” she said.
Even without needing to pay rent, she said she’s had to overhaul her lifestyle as the cost of living has exploded and she feels “forced” to make decisions she didn’t used to have to make.
“I definitely think I feel forced to make decisions on how I spend my money, which I didn’t have to make even two years ago when I was working part-time. You know, do I buy concert tickets or do I buy a new lounge?”
Freya said she has also noticed how swiftly the cost-of-living crisis has affected her socially. People her age are looking for ways not to spend money.
“We are going shopping less, eating out less, and going for a walk instead of brunch. People are looking for different things,” she said.
The young worker realises she’s in a privileged position. She can live at home, save, and set herself up, but ultimately, she thinks the system is the problem.
“It is crazy when normal people earning average salaries feel poor.”
Money expert Rebecca Pike said that there is no magic salary that can make someone feel rich because wealth is all “relative.”
“The median wage in Australia is around $67,000, while the average salary is over $98,000, but that’s conflated by higher earners,” she said.
“Someone earning $50,000 in a low-cost regional area might be financially comfortable, budgeting well. Meanwhile, someone in Sydney making $100,000 could be struggling with high rent and living pay to pay.”
Ms Pike said that the housing crisis has put even more pressure on young people and has contributed to people earning decent wages feeling strapped.
“The housing crisis is a major culprit. Renting, once an affordable option, is now seeing massive increases with no end in sight. Owning isn’t much better, with average mortgage payments jumping by $15,000 annually. Until the housing market cools and inflation slows, we’re stuck with these burdens.”
Originally published as ‘Is it normal to feel poor?’: 21yo reveals sad Aussie trend
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