This 22-year-old managed to save $70,000 after her parents encouraged her to adopt a simple weekly habit. (Source: TikTok)
A young Australian worker has revealed how simple savings habits can help you amass a huge fortune. The 22-year-old was stopped on the streets of Sydney recently and was candidly asked how much money she had in her bank account.
She revealed she had around $70,000 waiting to be used eventually to buy a home one day. The woman credited this to a trick she learned from her parents a few years earlier.
“From when I got my first job, I used to always transfer $100 into a savings account,” she told property buying app Coposit.
As she started earning more money, that weekly deposit grew as well, and she’s now placing $400 per week into her account.
According to SEEK, the annual pre-tax salary of a Sydney bartender is $70,000-$75,000, or $1,346-$1442 per week.
That means she’s dedicating more than a third of her salary to her savings.
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The bartender admitted that when she turned 18, she was spending much more of her pay on going out and having fun, but she’s been able to rein that in to keep herself on track.
When her parents encouraged her to squirrel away a decent chunk of cash every time she got paid, she was initially sceptical.
“I was like, Why should I do this?” she said in the TikTok video.
“But now I don’t regret it, which is good. I see the positive and the benefit.
“Definitely always put some money to savings on a rainy day because you never know what’s gonna happen.”
According to Westpac customer data, the average 18- to 24-year-old has an average balance of $13,069 in their savings accounts, with the median amount being $2,410.
The 22-year-old has a healthy amount in her savings account, and being a first-home buyer, she could purchase something worth more than $1 million.
While she would love to buy something at the moment, she said it’s currently unobtainable with just her income.
“If I have, like, a partner, so maybe [the mortgage] can be split, but if you’re solo, individual, probably not,” she said.
The bartender hopes that she could enter the property market by the time she’s 25, which would be fairly impressive.
According to the UNSW, the average age for Aussies to buy their first home is 36.
One person was shocked that even with $70,000 ready to buy a home, it’s still not considered enough.
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“This is such a dystopia we live in. She’s amazing for saving and planning for the future but have to rely on a partner to get a place before 30 is just exhausting. We used to get a house car partner kids etc before 25. It’s not possible for the average person today,” one user said.
The bartender said she tries to keep her spending to an absolute minimum to ensure she keeps her savings in a good shape.
Ben has been doing the same thing ever since he got his first job, and the 20-year-old said there are three things that people fork out money for that’s holding them back.
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Spending money on food delivery
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Buying a brand new car
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Going out every single week
“I’ve never actually used Uber Eats or anything. I don’t even know how to use it,” he told Yahoo Finance.
Ben, 20, has saved up $100,000 and hopes to buy his first property in the next year or two. (Source: TikTok/@benvvesting)
“I think it’s just something you can get addicted to [and] trapped into. It’s something I hear of people spending heaps and heaps of money on. I think it’s a waste personally.”
Despite only just entering his 20s, he has managed to save $100,000.
The Canberran credited part of that to living at home, however, he still pays rent to his family.
But he explained that keeping an eye on small things like weekly drinks or dining out can ensure you’re not throwing your money away.
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