A project manager earning the equivalent of NZ$134,000 claims she can't save enough to afford a house deposit. Photo/News.com.au.
A project manager earning the equivalent of NZ$134,000 claims she can't save enough to afford a house deposit. Photo/News.com.au.
An Aussie millennial has copped a fierce social media backlash after complaining about her struggles to save for a housing deposit on her six-figure salary.
Kate Smith*, 29, now lives in London, where she works as a project manager on a high salary of £70,000 ($NZ135,000).
The median gross annual wage for people working in inner London is £34,473. For the UK as a whole it's £22,044.
In an article for iNews titled "How I live on a £69,500 salary while saving to buy a two-bedroom flat", part of the news outlet's New Money series, she describes the "radical changes" she had to make in order to save for her home, including cancelling her gym membership and forgoing extra drinks at the pub.
She breaks her monthly £4003 ($NZ7697) take-home pay down as follows:
• House savings: £1500 ($NZ2890) • Rent and bills: £830 ($NZ1600) • Pension contributions: £264.25 ($NZ510) • Travel: £110 (NZ$212) • Mobile phone contract: £10 ($NZ20) • Sports club: £40 ($NZ77) • Food shopping: £350 ($NZ670) • Holidays: £375 ($NZ772) • Total: £3479.25 ($NZ6704) • Amount left to spend: £523.75 / £121 per week ($NZ233)
At the same time, Smith enjoys a luscious life of drinks and getaways. Her social media posts boast a lifestyle of fancy dinners, cocktails with friends and overseas holidays that have taken her everywhere from Goreme, Turkey to Italy's Amalfi Coast and New York.
Smith's ultimate target is a two-bedroom flat in London's Zone 2, near her current residence in Bethnal Green, East London.
An average two-bed apartment in the area currently stands at around £560,000.
The average property price across the UK is around £230,000.
In the original article, Smith notes that travel is non-negotiable in her savings quest, although she always gets the cheapest flights and watches her spending.
She said saving for her has been about cutting out taxis, her gym membership and "random stuff".
She says she won't stop saving for overseas holidays. Source:Supplied
"I cancelled my £150 ($288) per month gym membership and started going running instead," she said. "I've also reduced how often I take taxis. Now, when I do take one, I link it to a specific credit card so I can track how much I spend per month.
"Recently I was going to buy a red jacket, but then I thought: 'I don't need a red jacket, I've got a navy one and it's fine.' So I've changed my train of thought about what I really need to spend money on.
"By doing that I've been able to save even more than my target."
Social media users have been quick to slam the article as out-of-touch, pointing out that Smith's salary puts her in the top five per cent of British earners and mocking the "sacrifices" she made to save:
Wow! Rich woman cancels £150 gym membership and stops getting taxis everywhere and now can afford a flat. So easy! https://t.co/DK5djZczjf
Such a slap in the face for most working people! > ‘saving £1500 a month’ That’s more than what most people live on a month!! https://t.co/oBJirlHbhg
— Charlie Kiss 🌹 🏴🇨🇴🇪🇺🏳️⚧️ (@charliekiss) July 18, 2018
Other users put the blame on the outlet, rather than Smith, pointing out that the headline was one of the most infuriating parts:
This title is the first of many insulting things about this article. Are you that out of touch with millennial living, Independent? “How I live on £69,500 a year while saving to buy a two-bed flat” - https://t.co/9wHb2h1vXw
A journalist from the outlet tweeted to another story in the series following the backlash, which looked at how one family supports two kids on a salary of less than half of Smith's:
