Summary: An annual income of AUD 85,000 for a couple living in Perth, Australia, can cover basic living expenses but depends on various factors like lifestyle, housing choices, and personal financial commitments. This article delves into the cost of living, housing, utilities, groceries, transportation, healthcare, and lifestyle considerations to determine the sufficiency of this income.
Factors Influencing the Sufficiency of AUD 85,000
When evaluating whether AUD 85,000 per year is sufficient for a couple living in Perth, Australia, several factors come into play. These include the cost of living, housing, transportation, utilities, groceries, healthcare, and entertainment. Let's explore each aspect in detail.
Cost of Living in Perth
The cost of living in Perth varies widely, impacting the sufficiency of an income. Various factors such as housing, utilities, groceries, transportation, and healthcare can all affect what a couple can afford.
Housing
Rental expenses are crucial considerations for many individuals in Perth. A two-bedroom apartment in the city center might range from AUD 2,000 to AUD 2,500 per month. Outside the city center, prices can drop to AUD 1,500 to AUD 2,000.
Utilities
Basic utilities like electricity, heating, cooling, water, and garbage for an average apartment might cost between AUD 150 and AUD 250 per month.
Groceries
Grocery costs can also be significant. A couple might spend AUD 600 to AUD 1,000 per month on food, depending on their dietary preferences and shopping habits.
Transportation
Public transport in Perth is available, with a monthly pass costing around AUD 150. If a couple owns a car, they need to consider additional costs such as fuel, insurance, and maintenance.
Healthcare
Australia's public healthcare system, Medicare, is available, but private health insurance can be an additional expense if chosen.
Lifestyle Considerations
Rising costs in dining out, entertainment, and other leisure activities can also impact the couple's budget. Dining out can range from AUD 20 for a casual meal to AUD 100 or more for a fine dining experience. Entertainment and leisure activities can also add to the monthly expenses.
Summary and Conclusion
Based on the cost of living in Perth, an annual income of AUD 85,000 can be considered sufficient for a couple to cover basic living expenses and enjoy a decent lifestyle. However, it entirely depends on their lifestyle and financial goals. Creating a detailed budget will help in assessing the income's alignment with specific lifestyle and financial aspirations.
Is it enough for a couple? The answer largely depends on the individual's expectations and lifestyle. A 25-year-old on this income might find it sufficient, but it could be challenging for someone in their 40s, especially with family responsibilities. A school teacher, for example, might earn more in a similar white-collar role.
Further Insights into Mortgage Stress
Mortgage stress can be defined as paying more than 30% of your income toward your mortgage, making it essential to beware of such financial burdens.
It's crucial to ensure that a couple's income covers their mortgage, utilities, groceries, and other necessary expenses without causing undue financial strain. Planning ahead can prevent mortgage stress and ensure a more comfortable lifestyle. If you are experiencing mortgage stress, consider consulting a financial advisor for personalized advice on how to manage your finances better.