Mom Shares Budgeting Tips After High Cost of Living Forces Major Lifestyle Adjustments
A mom has opened up about the significant lifestyle changes her family has made to manage their household income amidst the high cost of living. Despite earning an annual income of AU $140,000 (approximately US $92,000), the family of three found it challenging to make ends meet.
Taking to TikTok under the username @thatmoneymum, the mom shared her experience and the strategies they’ve employed to stretch their budget. She admitted, “It feels embarrassing to admit that six months ago on $140,000 a year, my husband and I were losing money.”
Her candid revelation highlighted a growing concern: AU $140k is “not a high income in the current Australian economy.” She emphasized the need for change to secure her family’s financial well-being.
Differentiating Between Wants and Needs
One of the key pieces of advice she offered was learning to distinguish between wants and needs. “Our generation has been conditioned to buy as soon as that want arises,” she explained, using the example of a double-walled coffee cup she initially wanted to purchase but instead chose to buy from a thrift store.
Tracking Spending
The mom stressed the importance of tracking expenses to identify areas of overspending. “This changed the game… it helped us realize where we were overspending and we realized food was a massive problem area for us.” By closely monitoring their spending, they were able to make more informed choices.
Adjusting Grocery Shopping Habits
To cut down on costs, the family altered their grocery shopping habits. “We shop at our local market and Aldi and only go to Coles and Woolworths if we’re desperate,” she said. She pointed out the stark price differences, noting, “The prices at Coles and Woolies are literally out of control. Washing powder at the Reject Shop is the same price that Woolworths has it at half off in terms of retail.”
Rising Costs and Financial Pressures
The family’s struggle was compounded by rising expenses, including an $800 monthly increase in their mortgage and the additional costs associated with raising children. These factors made it crucial for them to find ways to save money and live within their means.
By sharing her story and practical tips, @thatmoneymum hopes to help others facing similar financial challenges. Her advice underscores the importance of mindful spending, budgeting, and making deliberate choices to navigate the high cost of living.