Lifestyle Vs. Cost Of Living

It is a never-ending battle, on one end blaming bills and skyrocketing prices, and the other the consumer’s way of life. Often nothing can be done about it but it would be nice to revisit certain details to help Aussies manage their finances.

What we know so far is that the average Aussie home shells out more or less $400 on both food and transportation every week. In addition to that, $25 on bills, $35 on fuel, $60 on restaurant and fast food, $25 on vanity, $30 on alcohol and $20 on just interest alone.

The average Aussie finds ways to spend the cash they have without even trying to budget. Then, later on complains about the hard times and the high cost of living. From picking expensive coffee over just a regular cup to hiring a personal trainer or acquiring the latest gadget in the market, a lifestyle is a lifestyle. On top of all these, there is [the] international travel which has become a yearly regular for a lot of households. Mobile phones – they constantly, unnecessarily upgrade and subscribe to mobile plans that they never use.

The Cost of Living survey shows that a third of Aussies spend an average of $100 a month watching Austar and Foxtel, and $1200 a year watching rugby. Aussies also spend on lawn-mowing services. They spend on liquid soap instead of the regular bar soap. They also spend $10 billion on cigarettes every year, even if it is also known as cancer sticks.

It does not make sense. Aussies complain about electricity bills but forget it costs as much as cable contracts. Water and sewerage costs surprise them but not gym memberships, which are more expensive. This is why they should be thankful for the Australian Bureau Of Statistics. Every now and then they give them a realistic and objective perspective about the Australians’ lifestyle.

The detail in the latest consumer price index (CPI) regarding cost of living shows that they have perception challenges. The housing category, where water and sewerage, electricity, charges costs and property rates all consolidated, were the huge movers in the September Quarter CPI. Water and sewerage costs jumped 8.6 percent, electricity 7.8 percent, charges and property rates 5.2 percent.

Although in the CPI business some factors are seasonal, everything seems constantly increasing. For instance, the cost of education only rises at the beginning of the school year but it continues to go up on a yearly basis. Utility cost rises more in the quarter that begins the financial year, and pharmaceutical costs falls because the pharmaceutical benefits scheme subsidy picks up more as the year rolls on, which jumps again in the March Quarter.

Everyone seems to agree and complain of rising utility charges whatever the season may be. Everyone except Grant King, the CEO of Origin Energy who came up with the idea that the percentage of household income they spend on energy the past twenty-five years has been constant at two to three percent.

One thing is certain, if only Aussies learn to cut back on unnecessary expenses then even with the constant increase of the cost of living in Australia, they would still be able to save.