Zofia Zayons has canceled her subscription to the gym, physiotherapy sessions and streaming services and stopped eating out.
“Right now, the only thing I can take advantage of is my time,” Ms. Zayons of Hobart said.
With a rise in interest rates after buying his first home last year, and the supplier warned him that the electricity bill would double, Zayons decided to find additional work.
Outside of her full-time role as a space manager, Ms. Zayons, 29, is doing moonlight in a wine bar and as a freelance communications officer for a government agency.
With little time between shifts at her three jobs, Zofia Zayons plans her meals in advance, desperate to avoid eating out. (ABC News: Sebastian Baltyn)
“I’m managing [working three jobs] but I’m tired … and I know what I’m doing now is not sustainable forever, “he said.
“My next steps are not a little clear on how I will continue to manage the future.”
With little time between shifts at her three jobs, Ms. Zayons plans her meals in advance, determined to avoid eating out.
Adapting to rising costs while maintaining a stagnant salary, Ms Zayons said she had also started buying some frozen vegetables instead of fresh ones and thought twice before turning on the heating.
“Don’t really expect that after studying two college degrees, to pursue studies in your field, [and] having worked for five years and you have to take on extra work is a bit frustrating, ”he said.
Broken plans
Lucas Walsh, director of the Center for Youth Policy at Monash University, said young people were coming of age at a time of rising house prices, safer labor markets and inflation. credentials, where more and more qualifications were needed to ensure a particular level of earnings.
All of this, Professor Walsh said, made it harder for them to plan for their future.
Watch Sulistiyanto talking on the phone with family in Java that he would like to visit. (ABC News: Brant Cumming)
“Not being able to plan creates a level of uncertainty that attaches to anxiety,” he said.
Markers of adulthood, such as moving from education to the workforce, securing a home through ownership or rent and forming a family were breaking down, Professor Walsh said.
“These markers are being eroded by things like inflated housing prices and the fact that less secure work makes it harder for young people to get loans,” he said.
While Professor Walsh said it was too early to understand how the current cost of living crisis was exacerbating these trends, he was sure of one thing.
“When we see economic recession as the global financial crisis, we see that young people are affected immediately and disproportionately in relation to other age groups,” he said.
For culturally and linguistically diverse communities, Professor Walsh said the impacts of an economic recession could be exacerbated.
“If you’re of first- or second-generation migrant background, you’re more likely to experience racism and exclusion, and that leads to employment,” he said.
Reducing luxuries
Mira Sulistiyanto, 25, in Adelaide, wonders if she should take a financial risk and go back to college to graduate next year to improve her skills.
Sulistiyanto, who currently works full-time in the international development sector, said she was concerned that reducing her working day and accumulating more HECS debt would not be a smart idea in the current economic climate.
Mira Sulistiyanto says she has tried to reign in spending on “luxuries” like taking trips with Uber. (Photo: Mira Sulistiyanto)
“I think there are some important questions about whether the growing economic pressures are causing a deterrent element for people to pursue studies and the possible consequences of that,” he said.
The rising cost of living is also ending other parts of your life.
Sulistiyanto said she usually traveled to Indonesia as often as possible to visit family in Java because it was incredibly important to her.
But it was becoming difficult to justify the costs of the trip, he said.
“Since the pandemic, and then with these growing economic pressures, this is starting to seem impossible, but definitely increasingly out of reach.”
Sulistiyanto said many of his social circles felt the same way.
Mira Sulistiyanto is weighing whether she can justify the cost of the trip to visit the family. (ABC News: Brant Cumming)
A sense of financial fear floated above the conversations he had with friends as they talked more and more about money and shared tips on how to save.
Ms Sulistiyanto said she had tried to reign in spending on “luxuries” such as taking trips with Uber, eating out and reducing takeaway orders.
He used useful tricks from his friends, such as planning groceries a week in advance and splitting his income into “cubes” in his bank account to save money.
Do we stay or do we go?
In Wyndham Vale, on the west coast of Melbourne, Vinu Shankar Ganesun and his young family recently moved into their newly built home.
But as costs continue to rise, Mr Ganesun and his wife Akila, who emigrated from India six years ago on skilled worker visas, are beginning to consider whether they should stay in Australia.
“[If we’re] it’s not better compared to where we come from, it raises this migration issue, ”Ganesun said.
“We get closer to the family [in India] and at least that’s how we feel most comfortable? “
Vinu, Akila and their two children will decide where it is best for them to live if the costs continue to rise. (Supplied by: Shankar Ganesun Wine)
Ganesun, who runs his own business consulting firm, said new immigrants like him were in a unique situation when it came to cost-of-living pressures.
Ganesun not only supports the family in India and covers the costs of the trip so that they can visit each other, but he is trying to build a life from scratch in Australia.
“[It’s] kind of like traveling in two lanes, ”he said.
“Many times you also have broader responsibilities, especially if you have younger siblings, so you’re also a little financially responsible for them.”
With his wife driving more than 110 miles each day to work in early childhood education and the family eating a plant-based diet, Ganesun said fuel and grocery costs had risen sharply.
He said it was difficult to reduce fuel costs because public transport in his area was inaccessible.
Akila greets her young daughter after returning home from work. (ABC News: Rhiannon Stevens)
Ganesun said the price hike meant he still had to start paying a lot since he started his own business last year.
“I’ve been busy getting to the end of the month and haven’t reached the level of substantial savings when I feel like I can now start investing in my super,” he said.
“The cost of living only affects savings, and that has a long-term impact on our financial goals.”
Needs assessment versus pleasant to have
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Laura Higgins of ASIC’s MoneySmart, which offers free tools and services to help people make financial decisions, said there were many things people could try if they wanted to improve their financial situation.
The best place to start was to make a list of all the expenses, Ms. Higgins said.
“Understand all your financial commitments, be really honest about it and understand where your money is going,” he said.
Laura Higgins, ASIC MoneySmart (ABC News: Donal Shiel)
He said it was important to assess needs compared to nice things and consider where changes in spending and priorities could be made.
“How much money you’re spending on groceries versus takeaway and going out to restaurants; sometimes adjusting your spending and changing your balance can make a big difference.”
Transportation was another area where it could be saved. Higgins said car sharing or cycling were things people could consider to reduce fuel costs.
“[Even] once a week, these behaviors can make a big difference over time, ”he said.
Cost sharing and downsizing: Everything could be considered, from finding a roommate and sharing bills to eliminating online subscriptions, Ms. Higgins said.
For those who feel overwhelmed, Ms. Higgins suggested contacting the National Debt Helpline at 1800 007 007 or accessing other online MoneySmart resources.
“Making some changes can be a good thing and can be quite empowering, and change the way people feel about their financial situation,” he said.