Jirrupin

I thought it might be useful for people to share their experiences of patterns of budgeting/expenditure between UK and OZ.

When we were in the UK we were getting more of an income and had middle class expenditure. There was no reason to price up things in the shops, if we wanted something we could afford it (obviously some limits).

In OZ we are now living on a strict budget which is equivalent of about $40,000 and it is tight, we have to think about everything we buy. We look out for the reduced items at the supermarket (and you can save a small fortune).

We don't use the car too often we walk most places even into the city, it is tight for buying luxury items like new clothes even the basics like shoes and underwear.

This is not a post to say come to OZ and you will have no money but even if working my spending mindset would have to change.

I was able to save in UK because I was earning a good salary, but for those people who cannot save already I think they really need to review their budgeting skills before they arrive. Especially when work may not be immediately available.

markeh

Hi Jirrupin,

the question of money raises it's unly head agin

Is there just one of you working at the moment, or are both of you working.

This would obviously have a big impact on income.


Here in the Uk I work full time and the wife works when it is available. It makes a big difference if there are two incomes.

Keep watching the pennies.
Markeh

sunny_samantha

I think this would be a really useful post for people in Australia to respond to if they have time (and indeed if they dont mind sharing this information). Having recently had a baby in UK we have had to adjust from a middle class lifestyle to a one income lifestyle but it can be done once you get used to it so we feel that initially Australia shouldnt be a problem in terms of money. Its amazing how you can adjust your lifestyle so easily...in our case it is so rewarding because of our son and he is a principal reason for our desire to go to Australia.

nicky s

I don`t understand. I`m much better off financially in Oz than I was in the U.K. My wages are roughly the same and I think that everything is cheaper here (apart from buying property). I`ve just been back to the U.K and found things so expensive..food, clothing etc..also when you live in the U.K there are things such as T.V licenses and council tax to pay....can`t understand why you would struggle so much here

Jirrupin

From your posts you have been in Sydney for 8/9 years which I think can make it difficult to make a wage comparison, if you are going to UK on holiday with AUD then you will naturally find things more expensive given the exchange rate, just as if I was earning GBP on holiday n OZ I would find some things cheaper but certainly not everything. Also OZ has council tax and need i mention GST and Stamp Duty

paddythepilot

This has been a very interesting post.

Having spent a year in Brisbane I came to the conclusion that we would be better off living/working somewhere like Hong Kong or Singapore and then retiring to Oz at a later time.

Why? Well simply I worked out I would hardly be able to retire even at 65 with an average Ozzy salary but after say 15-20 years working in a low tax environment we 'might' be able to retire at say 55 and then REALLY enjoy what Oz has to offer.

The economic reality of Australia means relatively low salaries and very high taxation.......very tough conditions if you want to get ahead with life!

Just my view of course.

The Koalas

When in OZ I used to budget and look for cheap buys, in the UK I did the same. I have had good incomes in both countries but still went out looking for best buys in each of them. That is why a lot of people fall flat they think becuase they have good incomes why budget and save. That is just spending for spending sake. We should all use our legs more to walk to town or use public transprt. Better for the environment as well. To many people today because they have money to squander buy for want and not for need. How many people when they left the UK threw out stuff that was never used or used once maybe? Why keep comparing the costs of living between countries? I never understand this. Yes things in UK are cheaper in some respects and salaries higher but why compare? People should review their budgeting skills if they have been used to squandering. But for me it never worried me as I have always budgeted and always bought for need and not for pure want.

nicky s

Yes have been here 9 years but recently looked into going back as Mum is unwell so I did my research into my line of work and what I would be earning in the U.K. I guess it depends on your line of work. I just don`t find it a struggle here personally.

Zebra4

I'm not sure that I understand this post. What exactly is middle class expenditure in Australia?

If you're not working now but once had 2 incomes, then you're comparing apples with pears. There's bound to be a bit of adjusting to do.

I've been here a few years and agree with nicky s. It's such a good life that you don't have to worry too much about monetary comparisons. You can't postpone your life by living somewhere you don't want to be just for the sake of saving, surely.

Presumably we're all dead a long time, so why not enjoy what we have. It's not that hard to enjoy Australia.

The Koalas

I agree 100'/. why worry about having a middle class status in OZ. I got by ok on what I earned. To me it is pointless to keep harping on about how worse off you are in OZ to the UK. I do see the need to compare when on holiday so you can take things home if they are cheaper where ever you are holidaying, but to go on about it once you are living your new life...pointless. Just get on and enjoy. To be middle class in UK what is it anyway? a car each, high salaries, your own house, entertaining at home or going out to eat and be merry? Plus the stress of mantaining it all. Hate the so called class system anyway, stinks.
You can do so much and see so much with out it bieng expensive in Australia.

Elaine M

Hi all,

My take on this is that since becoming a single parent 11 years ago I've always had to budget, although tings have been a little easier in the last year or two.

Now that my daughters are 18 and 16 I hope to be able to let the purse strings loosen a bit as they leave home so perhaps I'm lucky in that I may find I have more disposable income when I arrive in Aus next year.

I think the point is well made though that you have to leave the holiday "spend what you like" attitude behind when you migrate and understand the reality of the tax regime, cost of living v salary calculation etc.

Elaine

PeteY

Costs of living?

My wife and i have a combined salary here in the UK of £50k.

Largest expenditure = rent = £850pm for a 2 bed house.

If we both had work in oz, and worst case, had a combined of $70k (unlikely)...

Rent = $1000pm approx for 3 bed house in bris.

In UK rent = 20.4% of annual income.
In Oz rent = 17.1% of annual income.

You can do this for all expenditure types and Oz always comes out on top. It IS cheaper living in Oz. The experts ar'nt wrong.

This is of course assuming both parts of the couple have work (which may take a while).

Its worth noting that i live in London however, and thats where all my comparisons are from. I should imagine it would be very different in other parts of the country.



Anyone who does'nt have an income would need to be very careful of what they spend, wherever they are.

MrsDagboy

Pete has it exactly right, you need to work expenditure out as a percentage of wage as a comparison. After you work out the large expenses eg rent, electricity, phone, food etc then you can work out the things that are different between the countries eg sunscreen vs gloves, scarves & beanies. That is truly the only way to find out if you are better off or worse off in one country than the other. I know that we are financially better off here than in the UK. Other people might find differently especially as Pete says depending on where you live in the UK & where you live (or plan to live) in Australia, what sort of house you have , what sort of car you drive etc, but you can't just pluck figures out of the air & say we are worse or better off. And you have to compare like with like eg you cant compare 2 brm flat vs 4 brm house with pool, costs of running a Nissan Patrol 4WD with costs associated with a Vauxhall Astra.

As Zebra pointed out, comparing a $40K budget in Australia - which you have set for yourself because neither of you is working & isnt indicitive of the wage that you will both be earning - with 2 "middle class" incomes in the UK is comparing apples with oranges.

Jirrupin

The reason I started this thread was after reading another where those planing to come and live in OZ were having to clear £000's of debt. When we first arrived we did not have any kind of budget plan but soon realised that we needed one.

In UK we only had one wage income, and the budget we have set ourselves would be the equivalent take home wage I would get if I did get the same job over here which is looking doubtful at the moment.

The thread is not about where is more expensive but I do think that if you have poor credit habits before you get out here you will struggle. My opinion. There are lots of things free in life all over the world. But things also cost all over the world.

I agree that percentages is the way to work things out but in general I consider that you have to be earning at least twice your UK salary to maintain the same standard of living in OZ. If you want to do anything cheaper then of course you can. But don't draw a veil over things saying well its much cheaper etc etc, because I think that creates a false impression.

Everyone will have different opinions. Everyone will have different expenditures, we have savings, if I want or need to buy something then of course I can, but that is not the point of the exercise, to survive in OZ we need to adjust to OZ salary and this is the adjustment we are making.

MrsDagboy

Sorry, I assumed that you were both working in the UK & that you would both work here as you were saying that you were both looking for work. I have to say though, if you struggle on $40K take home pay without any kids then things must be alot more expensive in Perth than here in Brisbane .

Totally agree. As you probably would anywhere - there are people who struggle with credit cards & debt the world over.

I dont necessarily agree with double the salary, but having said that, I think a fairly reasonable percentage of people would probably get that or very close to it anyway, depending where in Oz you are. But that is probably misleading too, as double the gross salary will probably be similar, but that doesnt necessarily make the take home pay double. And thats where I think alot of the difference lies.

I mentioned comparing like with like eg, living arrangements & cars & never said it was much cheaper as a blanket comment - my only comment on that was that we were better off here than in the UK. But everyone circumstances will be different. I think some people will find it cheaper, some wont. But once again the only way to know is to do the percentage thing. We have come out way in front & have gone from a 2 brm terrace house to a 4 brm, 2 bath with full sized office, rumpus, outdoor spa on 3 acres & 1 car Mazda Astina to a Nissan 4WD & a second car. So our standard of living has gone up in regards to our possessions as well as financially. For some people that may not be the case, thats just our situation, coming fom the SE & moving to Brisbane.

Agreed, everyone will need to adjust & adapt to some extent. Some people will rent, some will have a mortgage, some one car, some 2, some private schools, some state etc. All that needs to be taken into account as well.

My comments were directed at both sides of the argument. But I do get sick of people (not talking about you or this thread or picking out anyone in particular, just in general & INCLUDING people who are still in the UK!!) being surprised that they have to budget now that they have moved to Australia (like they suddenly thought there would be a money tree in their backyard? ) & saying "Oh we dont have as much money as we had hoped" but forgetting that they have gone from a matchbox to a "big 'ouse with a pool" & other things I have mentioned. As I said, apples with oranges.

I do totally agree with you last comment in your original post though, if you cant save or have any sort of money problem in the UK, then learning to budget will be a well learned skill. Australia's money trees only grow in certain backyards, Im thinking of asking dotty to adopt me .