A 21-year-old took to social media to share something she’s noticed that she thinks has become “normal” and that reality is grim.
In a TikTok video that has garnered over 200,000 views, Freya described a trip to the grocery store that left her feeling broke.
“I went to buy some makeup because I wanted to save money. I started looking at foundations, and it turned out they were $35-$40 for a drugstore brand foundation. What’s going on?” I asked.
The exorbitant amount she had to pay for the basic foundation sent her into a tailspin, leading her to realise that after paying taxes, pensions and HECS repayments, it would take her two hours to earn the $40 she needed to buy basic cosmetics.
“Am I poor? Why do I feel like I can’t afford the things I used to be able to afford on a regular basis?” I asked.
The young Australian woman was asked on social media if she was poor. Photo: TikTok/freyaleach
Her tweets about the cost of living have garnered 200,000 views. Photo: TikTok/freyaleach
Freya’s comments about the cost of living angered Australians, who were quick to point out that she felt everyone was feeling poor these days.
“I have never made more money than I do now and I have never felt so tight financially. The cost of living is literally out of control,” one person wrote.
“I’m making the most money I’ve ever made, but I’m struggling to keep up with the cost of living. I can’t even enjoy my new high salary,” another shared.
“Yes! It’s like there are poor and rich and nothing in between,” wrote another person.
One commenter said she was living on one income and paying $550 in weekly rent, which is half her salary.
“But I think when our bills are paid, we will have food on the table,” she said.
An Australian woman has revealed that she feels broke despite working full-time.
Freya says it has never been harder for young people to feel wealthy or financially stable.
She lives at home, is engaged, and hopes to buy her first apartment with her partner soon.
However, she said she pays an “insane” amount of taxes, making it difficult to achieve her goals. She knows that the more she earns, the “worse” it will be in terms of how much she will need to pay the government.
“You constantly feel stressed about money,” she told news.com.au.
According to comparison site Finder, the cost of living has negatively impacted Gen Z’s ability to save, with more than half saying they would only be able to live on their savings for a month if their income dried up tomorrow.
Even more ominously, 93% feel somewhat or very stressed about their current financial situation, up from 84% in July 2019.
She explained why it was so hard to make progress. Photo: Instagram/freyaleach
The young Australian said she can’t help but feel poor sometimes. Photo: Instagram/freyaleach
Freya said she feels like she’s on a “financial treadmill that’s not going anywhere” and that most of her peers feel the same way.
“The cost of living affects young people a lot. When your income is low, you start your career, and the cost of necessities goes up, that affects a larger part of your income,” she said.
In Freya’s case, she decided not to move out of the house until she could buy something because she knew she couldn’t afford to save up to pay off the mortgage while paying rent.
“You can’t move unless you don’t want to buy at all. Once you start renting, you’re out $30,000, so what do you have left after that? That’s going to set you back years if you’re trying to get into the real estate market,” she says.
Freya pointed out that it is very difficult for young people at the moment. Image: iStock
Even without having to pay rent, she said she has had to rethink her lifestyle as the cost of living has risen, and she feels “forced” to make decisions she never had to make before.
“I definitely think I feel like I have to make decisions about how I spend my money that I didn’t have to make even two years ago when I was working part-time. Do I buy concert tickets or buy a new venue?”
Freya said she has also noticed how quickly the cost of living crisis has affected her socially. People her age are looking for ways not to spend money.
“We go shopping less, we eat out less, we go for walks instead of breakfast. People are looking for different things,” she said.
The young worker realizes that she is in a privileged position. She can live in her own home, save money, and set up her own home, but in the end she believes that the system is the problem.
“It’s crazy that ordinary people with average salaries feel poor.”
financial expert Rebecca Pike He said there is no magic salary that can make someone feel rich because all wealth is “relative.”
“The median wage in Australia is around $67,000, while the average salary is over $98,000, but that is mixed with higher earners,” she said.
“Someone earning $50,000 in a low-cost regional area may be financially comfortable and have a good budget. Meanwhile, someone in Sydney earning $100,000 may struggle with high rent and living costs.”
Ms Pike said the housing crisis put more pressure on young people and contributed to people earning decent wages feeling unwell.
“The housing crisis is the main reason for this phenomenon. Renting, once an affordable option, is now seeing massive increases with no end in sight. Homeownership is no better, with mortgage payments rising on average by $15,000 a year. Until the housing market cools and inflation slows, we will remain stuck in this debt.”
