Wednesday, June 28, 2023

Back to Basics: Charity

Inspired by Ramit Sethi's new tv show on Netflix, I'm going back to basics and reviewing my budget (or as he calls it, my "Conscious Spending Plan"). 

I've reviewed my income already, so I know what I'm working with each month at a minimum. I will take home ~$32,628 NZD this year and have a minimum of $2,509 per month of income. 

Budget categories:

  • Rent - fixed; $10K, 31%
  • Groceries - variable; $500/mo, 18%
  • Internet/Electricity - both fixed (internet = $70/mo) & variable; $150/mo, 6%
  • Eating Out - variable; $150/mo, 6%
  • Charity - variable
  • Cell phone - fixed
  • Medical - variable
  • Misc - variable
  • Savings - variable

I've already covered my Rent, Groceries, Internet/Electricity, and Eating Out.

Today I'm focusing on my Charity spending.

I have previously covered my obsession with Charity Lotteries like the NZ Heart Foundation Lotto. That is the main, consistent way I give right now. I auto-buy lotto tickets and these are either $30 or $10 a pop. 

I also donate to various funds as they crop up, e.g., a friend's kid needs surgery or a friend starts a go fund me to help establish a new charity. Usually $50 each time.

I've donated $302.50 thus far this year, an average of $60.50 per month. I budget $30 per month or 1% of my income to charity. 

 

Verdict: I will bump this up to $60 per month (2% of my income) since that seems to be what I'm donating on average. 


Next up: what I spend on my Cell phone.

Monday, June 26, 2023

I Got a Promotion...But It's Not Very Exciting

A few months ago, I had my annual review and got a promotion. I've now come to find that it came with a few surprises!

Background

Some details - you can skip if this is boring! - I've been working at my employer and with my boss for 15 years. Each year we'd have an annual review, but in 2014, I also started a part-time PhD and she was my supervisor. Our annual reviews for my job became reviews for my PhD instead. 

I therefore went ~9 years without an annual review. When I asked about raises during our annual budget discussions (part of my job is to create an annual budget for the project I manage for my boss), she'd say, Oh, doesn't [employer] give automatic raises? 

And they do, but they are ~1% or something. Not even cost of living! And they have never factored in my job performance or expansion of my duties. This is a huge thing, because I've successfully managed our project to be one of the most impressive in its category in NZ, according to our funders and stakeholders. The project provides immense value for the $$ it costs. My duties have grown from just organising meetings and writing quarterly progress reports to:

  • chairing those meetings and presenting at them, 
  • creating research project ideas from scratch, 
  • designing annual budgets, 
  • supervising a 4 person research assistant team, 
  • having almost full control over a multi hundred thousand dollar budget each year, 
  • negotiating contracts, 
  • interviewing and hiring assistants, 
  • handling all researcher requests for information or help, 
  • migrating our entire data archive to Google Drive and then again to DropBox,
  • creating a communications plan,
  • creating a media strategy,
  • creating an open access guide,
  • creating layman's term summaries of our research, 
  • starting and managing our Facebook project account,  
  • coleading our outreach group (and organising events), 
  • stakeholder engagement,
  • and much much more.

And I did all of this working at 0.8 full time equivalent, then 0.5 FTE when I started my PhD, then 0.3 FTE when a colleague really needed the time/funding and I needed the help. She left, but my FTE never increased back to 0.5.

At this point, during meetings with our funders, I know MUCH MUCH more than even the co-leaders of the research project. 

My Current Role

Essentially I've been doing a solid 20x more work at 0.3 FTE than I did when I was 0.8 FTE pre-PhD. My income has shrunk massively even while my workload has increased. I've just dealt with it because I 1.) love my job - it never feels like work! 2.) my boss lets me take as much time off in the US to spend with family as I need/want, and has NEVER said no to me for ANY request, and 3.) my research assistant team was supposed to take care of more work for me, but they are also students and mostly do not have the time in the time-frame the work needs to get done, graduate and leave, or just don't do as much as I assign/expect them to. 

Partly thanks to my hard work, dedication, and attention to detail, the project has now advanced well beyond what anyone else is doing in the world for the particular subject matter we deal with. I am the go-to for all questions and information relating to the project and one of ~5 people that are asked about the project's subject matter for everyone in this research space across the entire country. This is quickly turning into "the world," because I gave a presentation in the US last year and people from Asia to Europe to South America to Australia have started to come to me to ask questions and get my advice.

The Promotion

I think the above shows that I've proven my worth. I think my boss caught on because she mentioned reviewing my salary several times over the past 8 months. 

Great, I thought - I'll plan to go to 0.5 FTE and get a pay bump. I even costed it out with the finance folks. But that didn't go as planned. She is very concerned about me finishing my PhD, so the meeting became all about my PhD. She didn't listen to me when I showed how much more work I was doing for less pay - she told me that HER boss had told her that 'you just have to get it done, just fit it in' and that was her toxic advice to me. She also said that 'we do so much extra stuff that we don't need to do' in the project. My reaction was to feel sorry that her boss treated her that way and said that to her, and that the 'extra stuff' we do is actually why we're continually funded and touted as a successful project!

Her response to my request for an increase in my FTE was to throw a promotion at me where I stayed at 0.3 FTE (so I could get my PhD done, by her reasoning) and give me a $20K raise (if I were full time; it is much less at 0.3). She also said I shouldn't do any of my work at my job until I turned in my thesis in December and that doing research in my PhD counted. I don't think she understands what my absence actually means for the project... I literally do everything and people rely on me for instructions about what to do next and how to do it, and then I review everything before it goes out. 

I guess that means nothing is going to get done for 6 months, and I'll have a huge backlog in January 2024!

My Reaction & the Missing Details

Gosh, how toxic was that meeting, in hindsight?

The promotion suggestion was said so casually...it wasn't, I think you've earned it, I think you've grown and are ready, I think you're now capable, it was - 'I hear that you are asking for more money and can't afford to go full time on your PhD but I don't want you working more so here's a quick solution to make that happen.'

A very weird feeling. It wasn't satisfying AT ALL. When I promoted one of my research assistants recently, it was super fun telling him how awesome he was and how he is a credit to our project and how he'd earned the position through hard work. I got nothin'.

Missing Details

In any case, I received my contract and it lists all these extra duties, like giving lectures and just stuff I'm not interested in in the slightest. I need every spare second I have to get my job done in the 0.3 FTE that I'm allotted, how am I supposed to ADD more duties to the list?! There is absolutely no time.

Whatever. I need a job in the next week, so I'll take it, but when I'm allowed to work again (post-PhD), I'm going to let her know I am not interested in doing any of the additional stuff she listed. We never talked about any of it. 

She also didn't tell me that the position I was moving to completely changes my status with my employer! I'm moving from professional staff to academic staff. They have completely different rules. 

For one, academic staff have a 40 hour work week. In my current role, a full work week is 37.5 hours. This changes the # of hours in my 0.3 FTE role. 

Academic staff do not have sick leave. They don't log it at all. I guess they just take days off sick when they need to?

The amount of annual leave you earn per pay period slightly with academic roles. 

I knew about none of it, so when the contract came through, I had to ask the hiring admin tons of questions, delaying the process.

I wonder what else changes? Who the heck knows. I guess I'll find out.

Sunday, June 25, 2023

I've Made Contact! (with my Internet/Electricity Provider)

As part of my detailed budget review, I went over what I'm paying for internet and electricity. It is one of the only pseudo-subscription services that I receive and could possibly negotiate lower. 

I've was looking to keep the open term status of my contract and mid-range or lower fibre broadband prices while also lowering my electricity costs. 

My next steps were to:

  1. Track my energy usage throughout the day for two weeks using the Contact Energy app. 
    • Calculate averages of energy used per hour to be able to properly estimate the cost of plans with variable prices depending on the time of day.
    • Ask if my flatmate would be amenable to switching the times we use the hot water heater, dishwasher, clothes washer and dryer.

  2. Call Contact and get answers to my questions.

  3. Switch to a better plan, whether that is at Contact or elsewhere. Depending on what I find during my investigation in #1 and the answers I get in #2, I'm leaning to either Contact Low User + (Good Nights or Dream Charge) OR switching to Electric Kiwi's Low Usage MaxMover plan with Broadband.

#1 is in progress. As for #2, I've now heard from Contact, my provider, and gotten the answers to most of my questions:

  • what the rates are for Dream Charge. Their website doesn't list them at all.
    Answer:
    $0.206 per kWh (7am-11am)
    $0.142 per kwh (11pm-7am)
    $0.90 daily charge
    $0.0013 per kWh (Electricity Authority Levy)


  • if me switching from my All Day Economy to Low User, Good Nights, or Dream Charge will result in me losing my Broadband bundle special pricing of $70/mo. It may go up to $75/mo.

    Answer: I will keep my $70/mo broadband rate.

  • if changing pricing plans will cost anything. I read somewhere that it will cost $27.
  • if there is a 'metering change.' Of so, it will cost $200. 
  • if connecting a Smart Meter will cost anything (required for Good Nights and Dream Charge plans) - I read it was $27 for a remote connection somewhere, but I'm unsure if this is already connected or not.

    Answers to the above 3 points: no fees will be charged for switching plans

  • if the Low User plan comes with any fixed-term contract obligations

    Answer: the plans are not fixed

  • if I can combine Low User and e.g. Good Nights into the same plan

    Answer: I can.

  • if the Low User plan will continue to be a good deal. NZ is doing away with Low User plans over the next few years, and while it currently looks like it would save me money, in the very near future it likely won't

    Answer: there's no data on this yet.

  • what our usage is throughout the day/night.

    Answer: see #1, above. This is in progress.

Great! I pretty much got the responses that I wanted to get, so I'll probably stick with Contact Energy.

A future post will focus on our energy usage patterns.

Saturday, June 24, 2023

Back to Basics: Eating Out

Inspired by Ramit Sethi's new tv show on Netflix, I'm going back to basics and reviewing my budget (or as he calls it, my "Conscious Spending Plan"). 

I've reviewed my income already, so I know what I'm working with each month at a minimum. I will take home ~$32,628 NZD this year and have a minimum of $2,509 per month of income. 

Budget categories:

  • Rent - fixed at $585/mo; $10K, 31%
  • Groceries - variable; $500/mo, 18%
  • Internet/Electricity - both fixed (internet = $70/mo) & variable; $150/mo, 6%
  • Eating Out - variable;
  • Charity - variable
  • Cell phone - fixed
  • Medical - variable
  • Misc - variable
  • Savings - variable

I've already covered my Rent, Groceries, and Internet/Electricity.

Today I'm focusing on my spending on Eating Out.

So far this year, I've spent ~$900 on eating out, an average of $179 per month. I budget $125 per month (5% of my income), so I am definitely going over!

This one fluctuates a lot with my moods. Some months it is below budget, and some it is way, way over. I do a lot of Uber Eats and pizza delivery at the end of a really long week working on my PhD. 



Verdict: Between my increased stress due to trying to finish up my PhD and inflated prices, I'll increase my budget to $150 (6% of my income) and see if I can cut back when and where I can on this one.


My next category is one of my faves: Charity.

Thursday, June 22, 2023

Shopping Around for Internet + Electricity in NZ

As part of my detailed budget review, I went over what I'm paying for internet and electricity. It is one of the only pseudo-subscription services that I receive and could possibly negotiate lower. 

It turns out that this process is a *HUGE* headache. They do NOT make it easy to compare plans and prices. 

Current Status

I'm currently with Contact Energy, on an open term Broadband bundle where my electric plan is Standard Economy User and my Broadband plan is $70/month. It was a special online deal that I received when I signed up in a tizzy when my last flatmate announced at the very last minute that she had cut off our internet and electricity several weeks before her move out date (still not sure why she did this????). I had to scramble to find a new plan that covered both electricity and internet in a few days so that my work-from-home schedule was not interrupted. An open term electricity + internet bundle plan was the easiest solution because I did not have time to price compare.


Current Electricity Prices

Fixed daily electricity charges: $1.987/day; $57.62 in my last bill

All Day Economy charge in cents per kWh: 18.8 (total based on usage); $78.40 in my last bill

Electricity Authority Levy in cents per kWh: 0.14 (total based on usage); 0.58 in my last bill

GST on all of the above: 15%

Last month my flatmate and I used 417 kWh and it cost $157.09 (including GST). This will undoubtedly go up as we use more electricity in the winter to power our water heater more and the heaters in our rooms at night (and sometimes during the day). 

This sort of usage qualifies us for "Low User" status, but we currently are not on a Low Usage plan, for whatever reason.

I do not know what a normal winter month for my flatmate and I will look like yet as I don't have that data available.


Other Considerations

Switching companies

Contact has terrible customer service ratings, so switching may be ideal just to ensure I'm with a better company. However, I don't want to deal with the hassle of switching unless some good savings are guaranteed.

Contract Terms 

I'm going to stay on open term (no 24 month contracts for me!) because I have no idea if I'm staying in NZ post-PhD. It is likely that I stay, and while I'm in NZ, I'd like to stay in my current apartment if I'm living in Auckland, however, I just can't predict the future and what it will bring. I need flexibility for now. My rental contract is also periodic (not annual) now, so this also makes sense in that regard.

Broadband Bundles

Our current prices are as follows:

Unlimited fibre broadband (at ~300 Mbps/100 Mbps speeds): $70/mo (including GST) with an online deal if I bundle it with electricity. $70/mo is smack dab in the mid-range of normal for NZ, based on my research into fibre broadband prices. There are options for faster fibre broadband out there but I'm pretty happy with what I receive currently, so I feel no need to lifestyle inflate at this time.

Speedtest.net results for my current internet connection (200 Mbps download; 96 Mbps upload):


Summary of What I'm Looking For

I'm looking to keep the open term status of my contract and mid-range or lower fibre broadband prices while also lowering my electricity costs.

 

Comparing Prices

Using NZ Compare, Contact Energy's website, and PowerSwitch, I've found the following power+internet open term bundles to compare: 

  • Contact Energy. The easiest option is to stay at Contact Energy. To qualify for their broadband service, I would need to receive electricity from Contact. I qualify for several of their other electricity plans because I apparently have a Smart Meter (?). In that case, I could switch to one of these other plans:

    • Low User: This has a lower fixed daily price but higher charge per kWh.
      Fixed daily charge: 0.90/day;
      Variable charge: 22.6 cents per kWh
      Broadband price may increase to $75/mo. (?)
      Under this plan, my last bill would have been $139.06 (including GST) as compared to $157.09.
    • Good Nights: Free electricity from 9 pm - midnight each night. Broadband price may increase to $75/mo. (?)
    • Dream Charge: Cheaper rates from 11 pm - 7 am each night. Broadband price may increase to $75/mo. (?)
        I'm currently unsure:
    • what the rates are for Dream Charge. Their website doesn't list them at all.
    • if me switching from my All Day Economy to Low User, Good Nights, or Dream Charge will result in me losing my Broadband bundle special pricing of $70/mo. It may go up to $75/mo. 
    • if changing pricing plans will cost anything. I read somewhere that it will cost $27.
    • if there is a 'metering change.' Of so, it will cost $200. 
    • if connecting a Smart Meter will cost anything (required for Good Nights and Dream Charge plans) - I read it was $27 for a remote connection somewhere, but I'm unsure if this is already connected or not.
    • if the Low User plan comes with any fixed-term contract obligations
    • if I can combine Low User and e.g. Good Nights into the same plan
    • if the Low User plan will continue to be a good deal. NZ is doing away with Low User plans over the next few years, and while it currently looks like it would save me money, in the very near future it likely won't
    • what our usage is throughout the day/night.

  • Nova Multisaver Fibre 300 + Power - Low User
    • Broadband is $69/mo.
    • Fixed daily charge: 90 cents/day
    • Variable charge: 24.044 cents/kWh
    • EA levy: 0.19 cents/kWh
    • Under this plan my last bill would have been $146.22, and my broadband would have been ~$1 cheaper.

  • Electric Kiwi Sweet Fibre 300 Power Bundle - MoveMaster Low User
    • Two months of broadband free, then $79.50/mo ($66.25/mo over the first year)
    • Hour of Power where 1 hour of off peak electricity is free
    • MoveMaster:
      • Fixed daily cost of 30 cents/day
      • Peak hours of 7 - 9 am and 5 - 9 pm: 0.3830/kWh
      • off peak shoulder hours of 9 am - 5 pm; 9 - 11 pm: 0.2681/kWh
      • off peak night hours of 11 pm - 7 am: 0.1915/kWh
      • EA Levy : ?? (assumed the highest rate I've seen - 0.19 cents/kWh)
      • Plus GST (15%)
      • I cannot calculate exactly how much my last bill would have cost because I have no data about how our usage changes throughout the day/night, however, they estimate that I'd save around $280 in electricity costs during the year. 
      • My Fixed daily cost in my last bill would have decreased from $57.62 to $8.70, which is a huge savings altogether. 
      • If I assumed ALL of my energy usage took place during the peak hours, my variable costs in my last bill would actually increase to $194.58. If I assumed it took place in off peak shoulder hours, my bill would decrease to $139.48; If in off peak night hours, $102.75. The real cost is likely somewhere in the middle there. This also doesn't factor in the Hour of Power which would make any electricity usage in a certain off peak hour free.

Overall Comparisons

Here is how all the prices (that I can calculate right now) stack up:


Clearly I should be able to get a better deal if I switch to Low User status, no matter which company I go with. However, as stated above, I don't want to have to switch companies if I don't absolutely have to. 

Therefore, I'm going to strike Nova off of the list completely - it looks like I can get as good of a rate as they offer from Contact (my current company) if I switch to a Low User status, meaning even if I switched to their company, I wouldn't save much over what I can get right now by not switching. 

I really like everything I read about Electric Kiwi. Their whole ethos is fantastic. If I am going to switch to anyone, I'm going to switch to them.

Next Steps

Given all of the above, I think the next steps are to:

  1. Track my energy usage throughout the day for two weeks using the Contact Energy app (10 June update: this is in progress)
    • Calculate averages of energy used per hour to be able to properly estimate the cost of plans with variable prices depending on the time of day.
    • Ask if my flatmate would be amenable to switching the times we use the hot water heater, dishwasher, clothes washer and dryer.

  2. Call Contact and get answers to my questions, above. (10 June update: I've written to them using FB messenger because their customer service doesn't offer a way to call and speak to them directly. I've let them know I am seriously consider switching and asked all of my questions. We'll see how long it takes them to get back to me. In the meantime, I'm tracking my electricity usage!).

  3. Switch to a better plan, whether that is at Contact or elsewhere. Depending on what I find during my investigation in #1 and the answers I get in #2, I'm leaning to either Contact Low User + (Good Nights or Dream Charge) OR switching to Electric Kiwi's Low Usage MaxMover plan with Broadband.


Once I've done my tracking, I'll create a post describing the trends, and once I call Contact I'll post a summary of their answers here. And then of course I'll post my decision.

Wednesday, June 21, 2023

Back to Basics: Internet & Electricity

Inspired by Ramit Sethi's new tv show on Netflix, I'm going back to basics and reviewing my budget (or as he calls it, my "Conscious Spending Plan"). 

I've reviewed my income already, so I know what I'm working with each month at a minimum. I will take home ~$32,628 NZD this year and have a minimum of $2,509 per month of income. 

Budget categories:

  • Rent - fixed at $585/mo; $10K, 31%
  • Groceries - $500/mo, 18%
  • Internet/Electricity - both fixed (internet = $70/mo) & variable
  • Eating Out - variable
  • Charity - variable
  • Cell phone - fixed
  • Medical - variable
  • Misc - variable
  • Savings - variable

I've already covered my Rent and my Groceries.

Today I'm focusing on my Internet/Electricity spending. 

Another variable one! I opted for a no-contract internet and electricity account, so it is likely not the best deal...I'm just not sure how long I'll be in NZ/my place as my future post-PhD is up in the air and my dad is sick, so I like the flexibility. I could look into changing but every single time I do they make it so darn difficult. I need zero interruptions to my internet in order to work from home, so I'm wary to try to change this. However, I could definitely investigate alternate internet and electricity plans. Then I could call up my current provider to see if they can offer better rates than I'm getting now if they may lose a customer if they don't, and if it doesn't go my way, switch.

Internet is $70 a month and electricity varies from ~$140 - $180 since January 1 this year. In total, it averages $240 per month, though I expect electricity will go up over the coming winter months as we use our heaters (I only have data from this company since December 2022 when I received my first normal bill after joining in November). I split this whole cost with my flatmate, so my share is around $120 per month on average, and I budget $150. This is 6% of my income.

 

Verdict: I will keep this budget the same. I currently don't see a need to change my budget allocation.

The next category I review is one I already KNOW will be problematic - Eating Out.

Saturday, June 17, 2023

Back to Basics: Groceries

Inspired by Ramit Sethi's new tv show on Netflix, I'm going back to basics and reviewing my budget (or as he calls it, my "Conscious Spending Plan"). 

I've reviewed my income already, so I know what I'm working with each month at a minimum. I will take home ~$32,628 NZD this year and have a minimum of $2,509 per month of income. 

Budget categories:

  • Rent - fixed; $10K, 31%
  • Groceries - variable
  • Internet/Electricity - both fixed (internet = $70/mo) & variable
  • Eating Out - variable
  • Charity - variable
  • Cell phone - fixed
  • Medical - variable
  • Misc - variable
  • Savings - variable

Today I'm focusing on my grocery spending. 

Agh, the inflation on food prices these days!! It was made worse by the recent NZ floods which wiped out a ton of veggie and fruit here in NZ. There haven't been zucchini in the grocery store for months.

In any case, I don't restrict myself on groceries. EVER. If I want something, I want it and I get it. This is the one area of my budget where anything goes. It is part of my deal with myself about meal planning and cooking for the week. With ADHD, I have to be super careful about making habits that I want to encourage in myself easy to create and maintain. I have to remove the friction, if you will. Building rewards in each tiny step helps get me to keep doing them consistently.

Luckily for my health and sodium intake, meal planning, grocery shopping, and cooking for the week every weekend has become a really good habit. I actually know how to cook some of my favorite meals now! I actually look forward to eating things that I cooked! As someone who knew me ten years ago, this is not a small miracle. It is a FEAT of extraordinary proportions.

I've also figured out a recipe (haha) that entices me to do each of the smaller steps of cooking and satisfies my ADHD needs:

  1. Meal Planning. What do you want to eat in the future?? What an impossible question...!

    I generally sit down throughout the week when a craving hits me (or, in the rare absence of any cravings, on Wednesday evening) and decide what dinner I want to eat next week. I then look up a bunch of recipes to get a feel for the type of ingredients or techniques to use and combine the bits of each that I like. I usually add extra veggies to everything. If something seems too hard, I remove it or find a quick solution (my fave is just to buy packet rice because I am incapable of making rice that isn't too mushy or too hard).

    This step allows me to listen my body and reward it by satisfying my cravings, as well as be super creative with recipes. I don't have to follow them to the letter - I can feel things out and experiment (within some boundaries and guidelines).

  2. Grocery shopping. I've taken the pain out of this in a few ways: 

    • I order click and collect. If the order is >$50 (which is ALWAYS THESE DAYS), click and collect is free. No more wandering around the store looking for things or standing in line for an hour. It saves me SO much time (and likely, money, as I can easily price compare as I online shop and don't pick random things up on a whim)!

    • I strategically reserve the Cityhop car after hours when it is 60% off at the same time as my grocery order pick up time. That way I'm not lugging many pounds of milk and oil and butter etc up and down hills, and don't need to time my grocery run between rain storms. Plus I get to drive a car, which I absolutely love doing. To get the 60% discount on the car I have to reserve it for 2.5 hours, which means I can use that time to go do other errands and go to the mall for a massage. What a great reward just for grocery shopping!

  3. Cooking. Well, to put it bluntly, there are not a lot of great ways to reduce the pain of this. Cooking for just yourself SUCKS. There's no way around this that I have found.

    Despite doing it almost weekly for years and seeing the convenience and benefits of it on a daily basis, I still hate taking the time to cook one meal for the week. But I do try to make it more pleasurable - I watch my fave podcasts or tv shows while cooking. This is more of a fake reward as I can do this anytime, but there are certain podcasts on Youtube and certain tv shows that are more amenable to me not needing to watch the screen carefully to follow along while chopping veggies or tending to the pan on the stove. I pretty much only watch/listen to Pod Save America while cooking every Sunday night now, when I can take out my politics-induced anger out on the veggies I'm chopping up.

On to spending - I've spent $2,459 on groceries since January 1 this year. Averaging it out, that's about $491 per month (this includes all items for the household and my hygiene routine so it's not all food...). I currently budget $400/month (15%), so I'm definitely going over. 



Verdict: I can't do much about inflation and I'm wary of upsetting my carefully planned, fragile cooking habit, so I'm just gonna roll with it and increase my grocery budget to $500 per month. This is $6000, or 18% of my annual income.


In my next post, I'll go over my spending on Internet and Electricity.

Wednesday, June 14, 2023

Back to Basics: Rent

Inspired by Ramit Sethi's new tv show on Netflix, I'm going back to basics and reviewing my budget (or as he calls it, my "Conscious Spending Plan"). 

I've reviewed my income already, so I know what I'm working with each month at a minimum. I will take home ~$32,628 NZD this year and have a minimum of $2,509 per month of income. 

Budget categories:

  • Rent - fixed
  • Groceries - variable
  • Internet/Electricity - both fixed (internet = $70/mo) & variable
  • Eating Out - variable
  • Charity - variable
  • Cell phone - fixed
  • Medical - variable
  • Misc - variable
  • Savings - variable

My first focus is on Rent.

This amount should be obvious because it is fixed, but it is not obvious. My monthly rent is variable because I budget monthly but pay rent weekly, as is the custom here in NZ. Also, I rent out my parking spot / car park and my flatmate pays me for the primary bedroom.

For a 2 bedroom in Auckland CBD, I pay my landlord $585 per week. My flatmate pays $325. My car park tenant pays $65 per week. At the end of all of those calculations, my rent is $195 per week.

Some months I pay $780 and some months I pay $975 - it depends how many Fridays (when rent is due) fall within each month.

It averages out to $845 per month, because there are 52 Fridays in 2023. Factoring in all of my rent hacks, I will pay a total of $10,140 in rent in 2023. This is about 31% of my overall income. Ramit suggests 28% or less is ideal, but concedes that it can go up to 34% in areas with a high COL. Auckland definitely fits that bill - it is the 27th most expensive city in the world.

I've just received word that my landlord is NOT increasing our rent this year so I have another year of the same rent price locked in until June 2024.

 

Verdict: I am pretty happy with this set up. Thirty-one percent isn't too terrible for Auckland. I feel like I've hacked my rent as much as I can for now.

Also, there is wiggle room to cut my rent even further if I increased the car park rent and brought in a couple when my current flatmate leaves. However, my car park tenant has been faithfully paying for a few years now and I am happy to reward him with stable rent. If he leaves, I will increase the rent to $75 per week as that is the lower end of the going rate in my area right now. 

A good flatmate is worth more than any amount of money, so I'm not hurrying her out anytime soon. However, if she moves, I'll increase the rent on the 2nd bedroom to $330 per week for a single person and $360 per week for a couple and see who shows up.

Next - a deep dive into my Grocery spending.