A growing number of Australians are calling themselves working poor. One woman, who is 31 years old, said that she was broke even though she made around $77,000 a year.
She was forced to cancel her child’s extracurricular activities because she could no longer afford them.
She was told that she had 30 days to provide notice.
However, due to her financial situation, she was unable to make the final payment.
She was then left with a $9 service fee and no money left until the next payment.
Sharing her experience on TikTok, Alicia noted that she was forced to confront her financial issues. She said that she didn’t have enough money to pay her electricity bill.
Comparison site Finder noted that this type of situation isn’t unusual for Australians, as 45 percent of respondents stated that they had less than $1,000 in their bank accounts. A single mother makes around $77,000 a year, which is a reasonable wage, but is it sustainable in 2024?
Although her earnings are above average, Alicia’s rent is $530. She also has to pay over $300 a week for childcare, and she’s left with only a few hundred dollars left to spend on food and household necessities.
Even though she has a good job as an executive project officer, she’s struggling due to the high cost of living. She works full-time to support herself, and she often goes without makeup or nails because she doesn’t have the money to spend on them.
When she’s grocery shopping, the mother finds cheaper alternatives for her purchases, such as laundry liquid. She said that she’s doing it tough and that she’s considered a working poor, which means that she has to limit her luxuries.
She also frequently cancels her memberships and watches what she spends on her essentials. Alicia said that she had to limit her expenses and buy her kids clothes in bigger sizes as they don’t fit anymore. She additionally said that she had to stop using streaming services.
She told news.com.au that she had to buy lamps and globes that are cheaper than the ones that are installed in her house. She also changed her method of washing clothes, which used to involve using a brand-name liquid. She said that she feels like she can’t get ahead because most of her income goes to childcare and rent.
She recently spent a lot of money on hearing aids in order to be able to do her job properly. According to her, many families are struggling with meeting basic needs, and she doesn’t think there’s a way out. She said that relocating to a more affordable area would prevent her from using the services she relies on.
Feeling overwhelmed by the high cost of living has taken a toll on Alicia, who recently considered relocating to a more rural area. She was unable to find childcare that would allow her to maintain her employment. Even though she’s currently working full-time, she doesn’t feel that she’s living a comfortable life with her kids.
When she was a child, she said that a salary of that amount would have allowed her family to live on an easier street. Sarah Megginson, a money expert, noted that many people are now struggling with their finances due to the high costs of living.
According to Ms Megginson, many middle-class families are resorting to relying on services that they have never needed before, such as food banks and charitable organizations. She noted that individuals who work full-time have to rely on such services as these.
Due to the high cost of living, many families are now struggling with their finances. Ms Megginson noted that Alicia is currently struggling with her salary of around $77,000. She said that she could live in a regional area with a low cost of living and still feel financially secure.
Suppose an individual in Sydney earned $100,000 annually and lived alone, paying 75 percent of their income into utilities and rent, using their credit card only to purchase groceries, and was always stressed out about their finances? According to Ms Megginson, this scenario is typical of many people who struggle with high living costs.
She noted that until the housing situation improves, she and her family will continue to struggle with high rent prices and higher interest rates.