‘Should have paid it off by now’

The Sydney woman said she had $4,500 in savings and was paying off a mortgage from a home she bought 25 years ago. · Source: TikTok/@coposit_street/

A Sydney mum has candidly revealed how much money she has in savings while paying off a mortgage. The cost of living is making it harder and harder for people to save, and it means many people aren’t where they thought they’d be financially.

The 49-year-old woman was stopped in the street by property app Coposit and revealed she had $4,500 in savings. She shared that she bought a house 25 years ago and “probably should have paid it off by now”.

She’s not the only one in this position. Exclusive Finder research shared with Yahoo Finance found that more than half of Australians weren’t where they thought they would be financially.

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The woman said the high cost of living meant many people had to adjust their spending and couldn’t splash out on the things they once could.

“You just can’t spend. You can’t buy the delicious meat that you used to buy at the butcher,” she said.

“You have to be tight, you have to go to the op shop. I don’t do my nails, I’m not fancy. You just have to be frugal.”

The woman said her adult kids, who are in their twenties, had “heaps” more money in savings than she had because they didn’t spend unnecessarily.

“I watch my kids save and they are doing the things that I didn’t do, I didn’t save back then,” she said.

“It’s a bit weird, but they know that they’ve got to do it differently.”

Despite this, she said she didn’t know when her kids would be able to afford to buy a house.

“I won’t be able to be the Bank of Mum and Dad and give them $50,000. I just won’t be able to with my $4,500 worth of savings,” she said.

While the woman said her finances were “a mess”, she actually is doing better than the average Aussie in her age bracket.

Westpac data found the median 45 to 54-year-old had just $1,429 in their savings, while the average had $52,836.

The median is the middle value when the numbers are arranged from smallest to largest. It can be a better representation of where you sit than the mean average, which can be skewed by very big or small numbers.

Aussies online praised the woman for being so transparent about her situation.

“She’s lovely and she’s honest. I’m sure she works very hard to pay that mortgage. It’s hard to save and pay all the bills,” one said.

“Good mum, smart kids,” another said.

The Finder research found 53 per cent of Aussies felt like they had fallen behind financially and had failed to meet the goals they once set for themselves.