Cash-strapped Australians are cutting back on spending as the cost of living rises, and even those living in wealthy areas are making sacrifices too.
One example is Jessica from Double Bay, who is making sacrifices despite living in Sydney’s richest suburb, which has an average income of $354,000 a year.
“I’ve cut back on my travels a bit,” he said.
“And I prefer to go to friends’ houses and stop going to nice restaurants for special occasions like birthdays.”
But Australians living in the western suburb of Parramatta, where the average income is $65,000, are making very different sacrifices – one even admits he has stopped buying tomatoes.
Small business owner Joyce Hammerton is of retirement age but still runs her honey stall in Parramatta’s Centenary Square.
She said it is “difficult” when interest rates rise, explaining that she sacrifices luxuries to make ends meet.
“I haven’t dyed my hair this month. I’ll do it when I can, but I’ll do it myself,” she said.
Jessica is from Double Bay and is cutting back despite living in Sydney’s richest suburb, which has an average income of $354,000 a year.
Joyce Hammerton, a small business owner who runs a honey stall in Parramatta, said it was difficult when interest rates were rising.
Ms Hammerton revealed that she and her husband are using the fireplace instead of ducted heating to warm their home this winter.
She has also been wearing her husband’s sweatshirts to keep warm because she gave hers to the homeless.
“I was generous and then I realized I didn’t have money to go buy new clothes,” she said.
Mrs. Hammerton and her husband look for special offers to save money at the grocery store.
“I check all the catalogs to see where I can save and if it’s too expensive, like $10 a pound for tomatoes, we won’t have cheese and tomato sandwiches this week,” she said.
The mother said it’s “really very difficult” for many people right now.
“One of my sons works three jobs trying to make ends meet and he has three children… his wife works too,” he said.
“In the meantime, I am lucky enough to have only a small mortgage. I am of retirement age and receive a pension, but my husband is still working.”
The couple doesn’t go out very often, but when they do, they prefer affordable options, like “going to the beach.”
“We both read secondhand books from a book club, rather than going out and buying new books,” she said.
‘We don’t have Netflix or any of those TV subscriptions that you have to pay for, so if I really want to watch a movie, I go to the cinema.’
She believes the Albanian government needs to do more to help people.
“Put your things in order,” he said.
“There are so many people struggling. I consider myself well off compared to so many others who don’t have clean clothes or a place to shower.”
Australians from all walks of life are cutting back on spending as the cost of living rises, and even those living in wealthy areas are making sacrifices too.
The median income is $94,000 in Newtown
Gai Hawthorn, board member of Penrith Community Kitchen and chief executive of Penrith CBD Corporation, said it was “very sad” to see so many middle-class families struggling.
He said the number of people coming to the kitchen has tripled in recent months, with many queuing for relief food and hot lunches from 11.15am on weekdays.
“The people who come to the kitchen are you and I, not the underprivileged people we normally help,” Hawthorn told Daily Mail Australia.
He said even dual-income families are being hit hard by the rising cost of living.
“People used to eat breakfast every morning on the way to work, drink coffee during the day and buy their lunch, but that has all dwindled,” he said.
‘I think it’s just a sign of the times that things are tough for just about everyone right now.
“During the Covid pandemic, we all received fantastic support from the government, but now it’s like everyone is spending every penny they earn.”
In Sydney’s eastern suburbs, Jessica is also being “very careful” about what she spends.
“I always have to make sure, before I put my bills, my taxes, my stratum and all that in the first place, that whatever is left is what I have to spend,” he said.
“I’m very conscious because I haven’t had a career in business and I just don’t want to get into trouble,” he said.
She said she has stopped going out as much and now prefers to spend a quiet night with friends.
“It’s not such a difficult thing to do, just have some wine and go to people’s houses,” he said.
“I think it’s a lot of fun, you’re with who you want to be with, not crowds. I think everyone likes that after COVID too.”
Tahni runs a clothing store in Double Bay and rents a room in Rose Bay for $300 a week.
She said she’s lucky compared to her friends who pay much more to live in places that are “falling apart,” but she still needs to watch how much she spends.
The 21-year-old revealed she started meal planning to cut down on her grocery bill after moving out of her family home on the New South Wales south coast.
“I feel like when I first moved here, I got carried away when it came to buying things,” she said.
“I used to think ‘I’ll cook whatever I want’, but now I have to think about it.”
She also said she was “blessed” and “lucky” to have a supportive family who helped pay for her gym membership and allowed her to “take advantage” of her TV subscriptions.
“I don’t think I would pay them if I didn’t have my own,” he said.
And you might think that young people in wealthier areas go out every weekend, but Tahni said most of her socializing takes place at work or at the gym.
“I’d rather just lay low for a couple of weekends and then have a really nice dinner or something,” she said.
Local musician Evie works two jobs even though she still lives with her parents and her friend Tom rents a place in Sydney Olympic Park.
Meanwhile, in Granville, where the average income is $51,000, a young mother of two admitted she has stopped buying designer brands.
The mother, who preferred to remain anonymous, said she learned to manage her budget very well.
“I’m fine, but it’s much more difficult than it was two years ago,” he said.
“I don’t use branded things anymore… I spend the money I earn on my children.”
She said meal prepping has helped her cut back on her expenses, leaving her with more money to pay her mortgage, bills and health insurance.
“Now I plan what I’m going to cook, whereas before I would go to the supermarket and buy whatever I saw,” she said.
‘If I see those ‘special’ tickets on something, I’ll buy them and then plan a meal right there so I can use them.
“And instead of buying a kilo of tomatoes, I’ll buy three or four.”
One in five Australians is working a second job to help them cope with rising living costs and around 44 per cent of renters are struggling to pay their bills.
Some said they had to go without food, clothing, showers, toiletries and basic necessities just to keep a roof over my head.
Meanwhile, others had fallen behind on their bills and were worried about ending up living in their cars.
Tom rents a place in Sydney Olympic Park, but says he is “quite comfortable”.
Asked if she made any sacrifices to save more, she said: “Like cooking instead of eating out.”
“Obviously, if I had a lot of money, I would buy a lot of things.”
While local musician Evie said she works a second job as a waitress, although she still lives at home with her parents.
She explained that she tries to be quite frugal because she still has expenses even though she doesn’t have a mortgage.
“I have a little more flexibility,” he said.
“But since I’m a musician, I buy equipment all the time and use fuel to get to far away places.”
