madziebee's 2021 Challenge

[madziebee]

Hello everyone, this will be my first post on the ERE forum. I am posting here to help me stick to my goal for 2021.

I found ERE in 2015 when I was 18 and working at my first full-time office job. I wanted to work for 2 years and save as much as possible to support myself through University, which I have done successfully so far.

About me: I'm Australian in my 20s and have just finished my Bachelor of Science. I will be doing a full-time year of research called Honours next year during which the government will pay me approximately $1100 AUD per month to support my studies. That is below the poverty line in my country, but I have been living off of approximately $1500 AUD per month this past year so I am up for the challenge that 2021 will bring me. I am currently employed in a store for the Australian summer break, but my contract ends next month and they may not offer me a permanent position due to the state of the economy.

Goal: To only spend $12,000 AUD in 2021, saving approximately $1200 AUD.

Budget per month for 2021:
Rent (room in a share house) $594
Utilities (electricity, gas, & internet) $150
Groceries $150
Transportation (bus) $20
Dining out $50
Health care (medication & vitamins) $11
Miscellaneous $25
Total: $1000

I sold my car 2 years ago so I mainly walk everywhere now or use public transport. This year I spent about $40 per month on Uber as I like to party, but I won't have time to party next year during my research project anyway. I was also spending at least $50 a month on alcohol which I need to cut back on. My local Aldi has $3 wine so it's that for me next year or nothing! I do dine out about twice a month ($50) with my boyfriend as he likes to do that and I am willing to spend that money with him. I am very lucky that in Australia if you live below the poverty line you get discounted medication, as I'm a severe asthmatic and get my medication very cheap which helps tremendously. My medication also affects my blood so I have to take vitamins as per my doctor's instructions. I get to see the doctor and dentist for free in my country due to my low income. Miscellaneous includes things like entertainment, clothing, toiletries etc.

This year I spent about $30 per month on fitness, music and TV subscriptions, but I have been working to end these in the past few months. My Apple Music student subscription which is $6 per month will expire on Jan 1st, as will my Disney+ subscription which is $9 per month. I can watch Australian TV for free on my laptop, but it does include ads. I have 3 months of Spotify Premium for free at the moment and then I will stay with the free service. I paid upfront for my 2 year phone contract (about $280) so I won't need to worry about that next year. I have recorded all my expenses for the past 5 years, so I always know exactly where my money is going. 2021 will be challenging to me as I have never spent so little before. I also don't have any frugal friends in real life which I do find challenging, as I'm an extremely social person.

My weaknesses:
One has always been books, but I only purchased 3 books this year. I will not be buying any books next year. I have been spending a lot of time at my local library these past few months and they have an excellent selection so this shouldn't be hard.
Music, I know I will struggle without a music subscription as I typically listen for 2 hours a day, so Spotify Student ($6 per month) is not out of the question next year, but I will try my best to avoid it.
Cosmetics & skin care, I can spend a couple hundred a year on this, but I have avoided wearing makeup for the most part this year and am hoping to not buy ANY next year, just using up what I have on hand. Beauty is a true weakness of mine and I must train myself to overcome it.
Junk food, I can spend ridiculous amounts of money on junk food when I am stressed, at least half my grocery budget, but I will be buying no junk food in 2021. I haven't bought any this month which I am proud of, but I have been given lots of chocolate as presents lol

I will update how I am going with my goal every month. Thank you for reading!

[Quadalupe]

Welcome and good luck! Sounds like you have well thought out plan so far. A few remarks:

- Groceries budget is a little high for one person. I don't know how expensive Aldi is in Australia, but in The Netherlands, it's quite cheap. If you stick to staples, legumes and vegetables that are in season, you should be able to lower your grocery bill somewhat. See also https://wiki.earlyretirementextreme.com ... E_Cookbook and budget bytes for inspiration. Also reduce meat intake, since meat is expensive as well.
- Good call on the dining budget. Investing in your relationship with your boyfriend is also important! Maybe one dinner outside the house and one date night dinner per month would also be negotiable?
- Regarding spotify: you could check if your boyfriend/friends can share a plan with you. And of course there is also youtube as well. If you download some songs from YT you can build a small collection that you can also listen to without an internet connection.
- Utilities: you can look into getting a cheaper internet plan and lowering the thermostat so your gas bill becomes lower. Or consider dropping your internet plan altogether and get unlimited 4G mobile internet (I saw some at https://www.whistleout.com.au/MobilePho ... s-compared), which you can use to tether
- Junk food: in 2021 you'll become stressed again. What will be your plan to prevent stress eating junk food when that happens?

Just some food (heh) for thought!

[basuragomi]

Honestly, you might benefit most from a food bank. Without any savings/investment income you are effectively in the bottom 2-3% of earners in the country. You are well below the poverty line. The food bank systems are designed to help people in your position and you are an ideal candidate - a young person (woman?) in need, but slated to transition to a higher-paying job. Your university may also have resources to help.

This is also a good time to learn to make your own junk food - candy and pastries are vastly cheaper when you make them yourself. Ice cream, cookies and puffy deep-fried things not so much. Making it yourself also helps control binge-eating temptations.

Could you claim a plot in the garden (if you have one)? That might be an option to grow otherwise expensive herbs.

[jacob]

Or there's this: https://earlyretirementextreme.com/cook ... han-4.html

My grad student diet (90% of the above) was inspired by reading an account (I think it was in the Affluenza book or maybe Luxury Fever?) about how hedonic adaption works for one's diet as well. The benefit was that I spent almost no time cooking or shopping or thinking about food which left me time for studies instead. Also, whenever I was able to eat something else (visit, celebration, ...) the lower hedonic set point meant I really appreciated even a piece of bread with a slice of cheese on it.

[madziebee]

Hello and thank you!

- Food is very expensive in Australia. The average weekly spending on food here is $122 per week for a single person (source: https://moneysmart.gov.au/australian-spending-habits). I spend the least amount of anyone I know, with my frugal friends making it on $200 per month. I only eat the cheapest fruits and vegetables, buying most of my vegetables frozen to save money. I don't eat any meat and my typical dinner is the cheapest pasta with some pasta sauce and kidney beans. My boyfriend does eat a lot of my food also, so alone I could maybe make it on $100 per month, but he drives me around a lot to make it even.
- Unfortunately the friends I know with Spotify already share it among them so there's no space for me haha I could try the Youtube thing but I'm not very comfortable with downloading music illegally.
- I live in group housing with other people that control the internet. I do think it's ridiculously expensive, but I pay VERY cheap rent so it's okay. The average cost to rent a room where I live is $1000 a month so I'm extremely lucky where I am. I don't know anyone else that pays rent lower than $720 a month for a room. Our house has no cooling/heating so there is no thermostat haha we just suffer
- My way of coping atm is to eat dried fruit and nuts and exercise. I also like to take a bath once a week for 'self care'.

Thank you for your suggestions!

[madziebee]

I've never looked into food banks. I should add that I have approximately 60k in savings and investments so I can definitely afford to spend over my budget, but I know I can remain under if I try and I don't want to touch any of my savings. With these savings I would feel like visiting a food bank is stealing. My university does do free meals which I have never redeemed.

I want to quit junk food mainly because the sugar has caused me over 20 cavities in my life and I want to avoid any more dental work.

Unfortunately I do not have a garden, but my boyfriend's family does and they give me free food sometimes.

Thank you for your feedback

[madziebee]

Thanks Jacob!

I definitely agree about hedonic adaption, my boyfriend is horrified that I eat oatmeal, a sandwich and pasta everyday. He has grown up with extravagant cooks in the family lol. But I don't object when he cooks for me haha

[madziebee]

Janurary Update
My goal was to spend only $1000 in January and I spent $933.19 AUD

Janurary Expenses:
Rent $593.86
Utilities $6.30
Groceries $125.25
Transportation $20.80
Dining out $57.40
Health care $11.20
Miscellaneous $118.38
Total: $933.19 AUD

I was on University holidays all throughout January so it took lots of discipline to stick to my budget. I really tried to reduce my grocery bill and I am very proud of myself. Me and three of my friends had birthdays this month, which is why I blew my miscellaneous budget big time. That's okay because I don't have anything on this month and my partner and I won't be getting each other monetary gifts for Valentine's Day. I was offered a permanent job after my contract ended so it's going to be very nice to have extra savings.

January Income:
Government Assistance (for my studies) $1525.14
Job $458.70

Government Assistance was higher than normal due to coronavirus. I put about $1000 into savings this month which felt really good. I am back at University now doing research, so it will be interesting to see the difference in my expenses when I'm on holiday compared to when I'm not. I'm very happy to say I haven't bought any junk food so far in 2021. It was very hard at first, I definitely had withdrawals for a couple of weeks, but now the cravings are gone and I've been cooking lots of delicious meals instead. I've also considerably reduced my alcohol intake. January was a great month and I look forward to seeing what February brings.

Thanks for reading

[Der Leiermann]

Great job on keeping the Groceries at such a low level. It is quite ridiculous how expensive groceries are in Australia. DW and I spend multiples of that, but it’s also a conscious choice for us. I am always amazed at US levels of grocery spending.

[madziebee]

Great job on keeping the Groceries at such a low level. It is quite ridiculous how expensive groceries are in Australia. DW and I spend multiples of that, but it’s also a conscious choice for us. I am always amazed at US levels of grocery spending.

Thank you! It is ridiculous aha it's nice to talk to another Aussie on here

[madziebee]

February Update
My goal was to spend only $1000 in February. It didn't go quite to plan.

February Expenses:
Rent $593.86
Utilities $272.87
Groceries $104.32
Transportation $9.86
Dining out $157.59
Health care $11.20
Miscellaneous $401.15
Total: $1550.85

February Income:
Government assistance (for my studies): $1425.14
Job: $639.45

The adjustment of going from a coursework University student to a research student was a difficult one. It was very hard for me to adjust to a 9-5 daily schedule, especially as I spent the majority of 2020 studying in bed and taking as many breaks/naps as I liked. Staying alert for 8 hours surrounded by other people wasn't easy at first. I have adjusted now, but I would say it took all of February. There were numerous social events throughout the month for the new research students and I ended up spending many evenings at the pub (hence the large dining out expense). My electricity and gas bills for the last 3 months were due also (utilities). Miscellaneous is high because I bought new running shoes and pants (necessary) and a pair of earrings (unnecessary). I am very proud of the grocery budget at least. March will be better.

[madziebee]

At the start of March my lifelong best friend died suddenly and very unexpectedly. Due to coronavirus, I couldn’t travel to see them this past year. I am overcome with grief. I have stopped tracking my expenses. I have stopped caring about anything.

[Green Pimble]

I'm so sorry to hear that madziebee.

I have been reading your journal as another Aussie living in a major city and was going to comment last time you posted, but now I have nothing of value to add. I don't think you need to track expenses, or do anything at all, other than grieve. Be kind to yourself.

[madziebee]

Thank you Green Pimble, I will be back in time.