Budgeting tips: Surprise at how woman spends $100k

Smart Women Society shared a TikTok video — which has been seen by over 100,000 people — on Tuesday revealing how the professional chooses to spend her cash.

After taxes, student loan payments and superannuation the anonymous woman was left with $5,297 a month, with her long term goals being to top up her “emergency fund” and save for a $3,000 holiday at the end of the year.

Her expenses each month total $4,215, with $2,200 spent on her mortgage, $400 on bills, $30 on her phone, $250 on transport and $140 on her health.

She also spends $500 in groceries, $500 in insurance, $70 for internet and $25 for subscriptions, with an extra $100 given to charity at the end of the month.

She has no extra debts other than her $32,000 HECS bill which is automatically taken out before she’s given her pay packet each month.

At the end of the month she is left with $1,082, or $300 for her emergency fund, $400 for her holiday and just $382 for “fun” activities.

Many of those who watched the video were astonished by the tiny amount of money set aside for “fun” at the end of the month.

“So you’re earning $100k but only have 400 bucks to yourself a month?” One woman said.

“You are making me feel so bad that I’m spending more than $300 each week on drinks since the lockdown was over … I think I should work from home again,” said another.

A third added: “I’m not sure how smart it was to be paying that mortgage on $100,000”.

Others shared some advice with the young professional.

“I think she should also allocate some of that amount into investments each month, even if it’s a small amount to reap the rewards of compounding,” said one woman.

“That budget is not realistic. You haven’t included any money for general spending like gifts, hair cuts, medicine, dentist, new tires and clothes,” said another.