Business & Finance What is a 'good salary' in Australia in 2022?

[MWPP]

Interesting thread and question. I think the key word is “good” rather than great

What’s “good”? (Rather than say, very good or great ). IMO it’s not living paycheck to paycheck or being reliant on government support despite increasing interest rates and rental vacancies being low. It’s not living so comfortably that you spend outside of your means , but also not being under financial stress or expected financial stress even taking into account a few more rate rises and/or rent rises depending on the situation.

I reckon that’s 100k for a single and 150k combined income for a couple here in Melbourne. In Perth it would be 80k/120k respectively (not less than that as the rental vacancy rate is so low in Perth and rent is expensive and prices in Perth have now gone up , after I leave go figure haha ) Eg My Perth mortgaged place is rented out for $100/week more than the rent I pay here despite the Perth home being worth 750k less.

If we take away the last part about predicted financial stress it would be more like 70k/120k (Melbourne) / 65k/100k (Perth)

 

[the_interloper]

I earn 7 figures because I’m a guy on the internet

 

[Roo096]

I earn 7 figures because I’m a guy on the internet

you're a pr0n star?

 

[the_interloper]

you're a pr0n star?

I wouldn’t earn two figures in that profession for many reasons

 

[phantom13]

I wouldn’t earn two figures in that profession for many reasons

Yeh my only fans didnt get nearly the uptake i was hoping for when it launched...

 

[the_interloper]

Yeh my only fans didnt get nearly the uptake i was hoping for when it launched...

I've heard blokes do well out of Onlyfans, though apparently they are professional punters who put their tips on there (racing tips that is)

 

[Engimal v3]

I think $80k is a good salary. When I passed that mark, I felt like I was living pretty comfortably. However it all depends on circumstance (e.g. living with housemates, mortgage vs renting, location etc.). In saying that, household costs were certainly a lot cheaper when I was earning $80k.

 

[Taylor]

I think if you can save $200 a week after your expenses without needing to skip meals, miss out on social events or engage in your community then you're on a "good" income. Your expenses will be determined mostly by the subscription cost to live where you do in order to participate in your community.

It feels like a figure that some people will think isn't a lot to save ($10,400 a year) but also people who dream of having such an excess.

I'm quite worried that the percentage of households with just a month worth of savings is in single digits.

Debt is the killer.

 

[Nothing]

I earn 7 figures because I’m a guy on the internet

Unfortunately 2 of them are after the decimal point.

 

[spinynorman]

Covid saw me in a period of long term unemployment for the first time, and I finally came out of it with a bit of credit card debt and finally a job that was $70k. I was saving modestly through that but a small March holiday and change in my rental situation in April meant I was basically back to where I was and living pay cheque to pay cheque.

I recently changed housemates (replacing one who was erratic in his payments to me, making it very difficult to properly budget) and jobs, now to $100k. I feel I can finally pay off my credit card and save, while also helping my father out, as he’s badly misjudged his budget in retirement. He did comment to me that it took me ten years to get to six figured where it took him 40 years to get to the same - inflation will do that, but I also acknowledge most people haven’t got to that level. But then I’m probably the last of my (professionally successful if personally behind, all mid-30s and childless) core friendship group to hit that threshold, so it’s easy to lose that perspective when those around you are doing so well.

 

[Gralin]

Having a good salary is one thing what you do with it is another you don’t need to earn 6 figures to get by.Being able to budget is such an important skill to have one which kids should be taught at school.

You can't budget your way out of rental costs and other essentials.

We don't teach financial literacy at school properly but we also assume anyone struggling is to blame for their situation

 

[Cruyff14]

I think if you're on 100k or more you're doing pretty well.

I think 80-90 is solid and 70+ is decent enough.

 

[Billy ray]

If you can keep your housing costs whether its mortgage repayments or rent to 30% or less of your income you are doing great. 30-40% doing good.
Many would be currently 40-60% I imagine which is not good.

 

[adammania9]

If you’re a single bloke, no kids and make 100k, you have unlimited money. Even 80k is very comfortable

 

[tenderwarrior]

You can't budget your way out of rental costs and other essentials.

We don't teach financial literacy at school properly but we also assume anyone struggling is to blame for their situation

'essentials' shouldn't be subjective though, but they often are. What are essentials? Rental costs are what they are, but some might be able to choose to down-size, share-house, live with family, move to a cheaper suburb/region..

 

[tenderwarrior]

If you can keep your housing costs whether its mortgage repayments or rent to 30% or less of your income you are doing great. 30-40% doing good.
Many would be currently 40-60% I imagine which is not good.

I work in the housing (and homelessness) sector and a 30% of rent to income ratio used to be the threshold but now for many if they can find something under 50% they are doing relatively well.. I just looked at mine (mortgage) and I am at 8.2%.. but talk about choice! my house has between 25-50% of the value of many of my peers and family/friendship group.. but I have very little debt (relatively speaking) which allowed me to work part-time for the majority of the past six-years. It turns out I hate debt more than I love having big new shiny things..

 

[Twoslabs]

I'm on 6 figures, Mrs Slabs gets around $50K for a two day a week job.

We have no mortgage, no other debt so based on that I believe we are on a "good" income.

"If" we were carrying $500K of mortgage I'd probably think differently

 

[Sinjin Smith]

As others say it depends on your lifestyle and where you are at in life. If you have dependants (kids) and a mortgage over 500k then you would need at least $150k income between the the parents. When we moved over here from Singapore we bought in Point Cook as I didnt want to borrow a huge amount. Four bedroom large house for two young kids and only borrowed a very small amount. After three years couldn't handle living there, getting to work was a nightmare and all our family/friends lived on the other side of the West Gate so we sold at a decent profit borrowed a bit more and now live within 12km North East of the CBD albeit in a smaller house.

Its hard not to say as a boast but we earn well above average, I recently got head hunted and took the job despite earning a decent income previously and was very safe in my job but the offer the company I now work for was too good to refuse, though trust me I'm still nervous and I am working much longer hours, more travel, less time with family but I see this job as really setting up my kids future. Furthermore (as I have recently posted) we shifted our home loan via a mortgage broker which earnt us a nice little lump sum plus saving a few hundred a month.

So yeah family, kids two cars you need well over six figures. Single, renting or low mortgage apartment and a car then 80k-100k would do it. Also I know a lot of people who's parents and grandparents help with mortgages and private school fee's so inheritance also comes into the equation.

 

[Gralin]

'essentials' shouldn't be subjective though, but they often are. What are essentials? Rental costs are what they are, but some might be able to choose to down-size, share-house, live with family, move to a cheaper suburb/region..

Essentials
Housing
Food
Utilities
Clothes
Medicine
People on lower incomes often have to pick which of the ones below housing they go without

as I said you can't always budget your way out of a situation and its at the point now where a lot of people are ****ed and all of your option listed above assume that people are paying for housing they don't need or they have the option to move

moving costs money and if you're on welfare you also need permission to move regions

down sizing for owners is generally financially a loss not a win when you take selling costs, stamp duty, moving costs into consideration, and the fact that smaller places aren't often that much cheaper

when you're talking 500k for 2 bedroom units 40kms out from the CBD, downsizing isn't cheap

I work in the housing (and homelessness) sector and a 30% of rent to income ratio used to be the threshold but now for many if they can find something under 50% they are doing relatively well.. I just looked at mine (mortgage) and I am at 8.2%.. but talk about choice! my house has between 25-50% of the value of many of my peers and family/friendship group.. but I have very little debt (relatively speaking) which allowed me to work part-time for the majority of the past six-years. It turns out I hate debt more than I love having big new shiny things..

50% of income going on housing is completely ****ed and it shows how big a problem we have with affordability in the rental market currently

and there are so many houses that are off the market because they are a n AirBnB or a holiday house/short term rental

or even just empty because they'd rather get no rent than less rent


above 30% on housing costs is still considered mortgage stress, the RBA is pushing a lot more people into that bracket now, and with how many people have investment properties they don't own, rent is going up as well because of it

affordability is at the point where there are no affordable properties for low income earners in most capital cities now

as I said, you can't budget your way out of that, you need to be earning enough full stop

 

[Billy ray]

i was thinking the last few days about maybe getting a casual job a few nights a week, like stacking shelves somewhere local.
i have the time, just need there to be a job like 3 hours 2 nights a week

extra cash always good and seems to be jobs available everywhere (albeit maybee not what i am after)

 

[tenderwarrior]

Essentials
Housing
Food
Utilities
Clothes
Medicine
People on lower incomes often have to pick which of the ones below housing they go without

as I said you can't always budget your way out of a situation and its at the point now where a lot of people are ****ed and all of your option listed above assume that people are paying for housing they don't need or they have the option to move

moving costs money and if you're on welfare you also need permission to move regions

down sizing for owners is generally financially a loss not a win when you take selling costs, stamp duty, moving costs into consideration, and the fact that smaller places aren't often that much cheaper

when you're talking 500k for 2 bedroom units 40kms out from the CBD, downsizing isn't cheap



50% of income going on housing is completely ****ed and it shows how big a problem we have with affordability in the rental market currently

and there are so many houses that are off the market because they are a n AirBnB or a holiday house/short term rental

or even just empty because they'd rather get no rent than less rent


above 30% on housing costs is still considered mortgage stress, the RBA is pushing a lot more people into that bracket now, and with how many people have investment properties they don't own, rent is going up as well because of it

affordability is at the point where there are no affordable properties for low income earners in most capital cities now

as I said, you can't budget your way out of that, you need to be earning enough full stop

Just to be clear, I am not disagreeing with you. Many do not have enough financial resources and need to make impossible choices daily.. but this thread is not about low income earners

The thread is about what is a good income. My point is that some on a good income struggle because they choose to live above their means. We live in a consuming culture which is insidious. We have all been brain-washed to a degree and it is a hard tide to swim against.

 

[tenderwarrior]

i was thinking the last few days about maybe getting a casual job a few nights a week, like stacking shelves somewhere local.
i have the time, just need there to be a job like 3 hours 2 nights a week

extra cash always good and seems to be jobs available everywhere (albeit maybee not what i am after)

I have been thinking about this too. It is a rather strange predicament with rising living costs and poverty seemingly coinciding with many businesses struggling to find staff to employ.. but that is a topic for a different thread perhaps..

 

[Billy ray]

I have been thinking about this too. It is a rather strange predicament with rising living costs and poverty seemingly coinciding with many businesses struggling to find staff to employ.. but that is a topic for a different thread perhaps..

yeh exactly my thinking - would seem to be win win

 

[MWPP]

My point is that some on a good income struggle because they choose to live above their means. We live in a consuming culture which is insidious. We have all been brain-washed to a degree and it is a hard tide to swim against.

This is partly true. There are people on good incomes who still live the same way they did when they weren’t on those incomes

Not saying I’m one of them by the way
Sure I don’t drink and still have the same , now 14 year old, Toyota Yaris that I have in uni with no plans to replace the car until I’m forced to (and even when I do, I’ll likely get something similarly low maintenance /cheap). But prior to covid especially I enjoyed eating out for brunch/dinner with friends, travel (mostly interstate for courses/conferences and the footy but some overseas trips) and yes, splurged for the 2018 GF (flights , accommodation, tickets , the works). I’m grateful that this was within my means as a young professional with no dependants, but I’m sure Boomers would say that I could’ve had an even nicer home in an even nicer suburb if I hadn’t spent on those things. Not at all true and it’s not like they necessarily sacrificed everything to be comfortable either . Anyway having faced some health setbacks already despite being relatively young (33) , I doubt I’m ever going to look back on my life wishing I had saved even more . I value those experiences , hobbies and family time and it’s impossible to put a money value on that.

I am another who worked very hard at school /uni and did well, but there are many others who also did and aren’t necessarily well off now. And conversely, there are people who didn’t work hard back then but ended up better now. The inequalities and the genuine struggle of others , living paycheck to paycheck because of the interest /rental situations are so sad.

 

[perthblue]

$80k is the figure that immediately sprung to mind though 70k-80k is 'good enough' IMO