Risk consultant, 25, on $90k saves $54,000 in less than four years by living on her graduate salary

Thrifty risk consultant, 25, saves $54,000 in less than four years by continuing to live on her ‘graduate salary’ despite promotions pushing her wage to $90K

  • A 25-year-old risk consultant on $90,000 has amassed savings of $54,000
  • She deposits $1,220 into savings and investment accounts every month
  • Her monthly credit card bill is $1,000 while the train sets her back a further $160
  • She avoids paying rent and utilities by living at home with her parents

A young risk consultant who earns $90,000 a year has saved $54,000 in less than four years by setting aside a quarter of her monthly income and meal prepping in bulk.

Writing anonymously in a financial diary for Whimn, the 25-year-old Sydney woman revealed she spends roughly $2,365 and deposits $1,220 into savings and investment accounts each month.

Credit card repayments cost $1,000 while train fares, petrol and groceries set her back an average of $280 a month – but she doesn’t spend a cent on rent or household utilities by living at home with her parents.

Despite securing four pay increases and two promotions since graduating in 2015, she continues to live off her starting salary, depositing the difference.

The average Australian graduate salary for accounting and finance services in 2019 was $55,551, according to data from Grad Australia.

A 25-year-old Australian risk consultant who earns $90,000 a year has amassed a savings and investment portfolio of more than $54,000 by saving $1,220 a month and living at home with her parents (stock image)

As part of her savings strategy, the woman uses the Raiz app, an investment tool that collects your spare change and automatically invests it in shares.

She spends most on fitness, splashing $224 a month on a gym subscription and martial arts club membership. But she cuts costs on food by eating frugal breakfasts of Vegemite on toast and leftover salad sandwiches for lunch.

She doesn’t drink coffee, which saves her ‘quite a bit of dosh’, and takes snacks to work to avoid expensive cafe fare, bringing her monthly grocery bill to just $50.

‘I often spend at least one Sunday a month meal prepping five different dishes in bulk that can be portioned and frozen,’ she said.

A BREAKDOWN OF SPENDING AND SAVING

MONTHLY INCOME: $4,900 (after tax)

Rent and utilities: $0 – lives with parents

Health insurance: $117.35

Phone: $40

Gym and martial arts membership: $224

Public transport: $160 

Petrol: $70 

Groceries: $50 

Netflix and Spotify: $25

HECS repayment: $370

Hair, beauty and therapy: $141

Credit card repayment: $1,000

Car insurance: $142

Car registration: $25 

Regular monthly spending (excluding socialising and one-off purchases): $2,364.35

Monthly saving: $1,200

Monthly investment: $20 via the Raiz app, which automatically invests spare change

Even socialising is done ‘on the cheap’, meeting friends for dinner at local restaurants where share plates cost just $12 per person.

She maintains her appearance on a budget of $55 a month, spending $45 on skin treatments for acne and $10 on boxed hair dye.

Sessions with a therapist cost $86 a month, while streaming services Netflix and Spotify set her back another $25.

Read more at DailyMail.co.uk