Generation Z homeowners side with baby boomers on controversial advice: “Set your priorities right”

A young Australian has urged would-be homeowners to “get their priorities right” if they are serious about buying property, with some having already given up on the dream of home ownership as property prices across Australia hit new highs.

But Zali Gillings said Yahoo Finance She was proof that cutting back on “ridiculous” spending on luxury items could be the solution. She and her fiancé bought a three-bedroom house in Adelaide two years ago after a financial “wake-up call,” but not without significant sacrifice.

“To be honest, we lived on the bare minimum for a good year and were able to significantly increase our savings as a result,” says the now 25-year-old.

Baby boomers are often criticised for telling people to spend less on avocado on toast or in their coffee, but Gillings says that's exactly what people should be doing.

“Let’s say you have five streaming subscriptions that cost $20 a month,” she said.

“Or if you buy a coffee every day, you think, 'That's only $5,' but you book a coffee every day for a year and the subscriptions and then you get your nails for $60.”

“I don’t think people realize how much they’re actually spending.”

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The couple had been saving for years, but it was only after speaking to a mortgage broker that they realized how much their monthly expenses were.

Over the course of the following year, they went through rigorously and eliminated everything that was not absolutely necessary.

Eating out? That was over. A little pampering at the hair salon? Out of the question. A little retail therapy? Unless it was required for work.

Gillings and her fiancé even agreed not to give each other Christmas or birthday presents and told their family not to expect anything from them either.

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“We thought, 'We're just not going to participate in the giveaway this year and we're not expecting any gifts,'” she said.

“Some people would say that’s crazy, but we didn’t need it.

“Stop complaining about the cost of living”

The young worker pointed out that there are people who are caught up in the rising cost of living and cannot do without small luxury items.

But their message is not aimed at these people. At the people who spend money carelessly and still complain that they “never have any money”.

“[Yet] They still go every week for manicures, haircuts, eyelash extensions and things like that,” she said.

“Go out to eat, vape, smoke… you want to complain about the cost of living, baby, I really don't think you understand how much money you could save here.”

How did she manage to give up her shopping addiction? She had to pass a test every time she went shopping.

“For example, if I wanted to get my eyelashes done, I would think, 'Would someone rather give me a set of eyelashes or would someone rather give me $120?' And I would always choose the money,” she said.

“That tells me you don't need those eyelashes. That's more money for the house.”

But are these little luxuries enough to get a home?

Some argue that giving up your daily caffeine intake or your monthly haircut is not enough to buy a home.

Others point out that foregoing these purchases would take away the last spark of joy they have left in a sometimes bleak world.

However, it can be surprising how much small transactions make.

If you bought a cup of coffee every day for $6 (which is pretty expensive) and ate avocado toast at a cafe for $17, you would spend almost $8,400 per year.

If you pay $18.99 per month for Netflix, $22 for Binge, and $16 for Stan, that's almost $700 per year.

These amounts alone won't buy you a home, but Gillings says it can be helpful to take a long-term view of these small transactions and think about how you can make them work for you.

“Most people say they can't save money, even though they could if they just set their priorities right,” she said.

According to research by Finder, 74 per cent of Australians have held on to certain comforts despite the cost of living crisis. Whether it's entertainment (20 per cent), dining out (18 per cent) or takeaway coffee (18 per cent), there are many little things that people just can't live without.

“On the one hand, a quarter of people do without non-essential items just to make ends meet. On the other hand, many are not prepared to give up certain things that bring them joy,” says Chris Jager, shopping expert at Finder.

“The data suggests that the gap between rich and poor in Australia is widening. Some are being forced to take drastic measures while others remain unaffected.”

How long does it take to save up the down payment for a house?

Exactly how long people in popular Australian jobs need to save for a home deposit was revealed in a new study this week.

A Parliamentary Library analysis released by the Greens, based on Australian Taxation Office wage data, Reserve Bank lending and CoreLogic house price data, found that a nurse earning $112,900 a year would not have enough money for a home loan by 2035 at today's interest rates.

Even accountants, the highest-paying top job at $144,800, would have to save a down payment or spend 39 percent of their income on a mortgage by 2031.

A child care worker would need until 2055 – a whopping 31 years – to save up a deposit.

“For far too many Australians, the dream of owning their own home has been shattered,” said Max Chandler-Mather, housing policy spokesman for the Greens.

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