It doesn't matter what is regarded as good salaries or not, the main thing is every single job has a particular salary range and this will also depend on where the organisation is and the size of it. For instance in a small organisation it is not unheard of to have an EA position paying somewhere between $35k and maybe $50k, but in a larger organisation maybe you might earn up to $80k. The general range however is probably somewhere between $45k and $55k. So to then say well I've been told I would need at least $80k to survive and I won't accept a job for any less than that, is not going to help you as employers won't pay significantly over the maximum point for the salary range. As a guide if they say the salary range is $45k - $55k you can most likely expect to be offered on the lower to mid end of the range. So understanding the likely range for your type of position is your first step. So ask employment agents or do a Google search and find some salary ranges. Also www.Seek.co.nz will be able to tell you some of this information. This is your first starting point.
Second you will want to put together a mock up budget for yourself. You will have to look at your own lifestyle to work out what is working for you because every person is different. One person likes using their clothes dryer all of the time and another has their heating on all day every day. So their electricity bill won't be a true reflection necessarily. Where will you live? Some places are cheaper than others. What child care options do you have / need? Again, this will likely be quite different. So in summary think of the following when you do your mock-up budget. I have always found it useful to do a running budget so that I can effectively see which fortnight is the most expensive. Most salaries are paid fortnightly and you will have a range of weekly, fortnightly, monthly and annual expenses.
As time goes on I will gather information from a range of different people to try and give a wider view.
As a starting point:
Work out your fortnightly salary and then check www.ird.govt.nz to work out what the salary after tax would be (http://www.ird.govt.nz/calculators/tool-name/tools-p/calculator-paye.html?id=homepage). You will likely be an M tax code. Include 3 - 4% for Kiwisaver. Kiwisaver is the cheapest way to save for your retirement. It is a government scheme and one that your employer will contribute to.
Have a look on TradeMe (www.trademe.co.nz) to see what the average rent in the area you are likely to stay will be.
As a guide for expenses (an example of a mum and dad plus a primary school child and college age child living on the Kapiti Coast in Wellington). This example shows that the couple takes the train to the city where they work (about an hour each way). They purchase a monthly ticket each which works out cheaper than i.e. a 10 trip ticket or a daily return ticket. They do not have parking costs where they leave their car (park and ride) and work close enough to the train station that they do not require any additional bus travel in the city. They do not smoke. They drink limited alcohol and only when a social occasion asks for it. They have 2 cats, but with minimal vet fees associated with them. Their Honda Fit roughly works out about 11c per km for fuel.
Please note this is purely an example of one particular situation and another person's situation might look quite different. This family does not receive any working for family supplements as their salaries are above the threshold and they deliberately decided that they will not make use of things like that.
- Rent: $400 per week (Rent is usually advertised per week and might look quite different depending on where you live)
- Fuel: $80 per fortnight (estimated) (amount will depend on your car, how much you drive, etc)
- Groceries: $250 - $300 per week (estimated) (this amount would assume toiletries and cleaning supplies) (Visit www.countdown.co.nz and do a virtual online shopping exercise as that will give you a good idea what things might cost. Main shops are Pak 'n Save (generally seen as a cheaper option), Countdown and NewWorld.
- House and car insurance: $112 per month (actual amount will depend on your own situation)
- Electricity: $150 - $250 per month (they use a clothes dryer from time to time, but do not use central heating and do not use a dishwasher) (In the winter an additional cost for firewood for the wood burner would need to be factored in)
- Other than the initial set-up cost for Freeview, they do not have TV costs as they do not have Sky TV.
- Monthly train ticket:$271.80 per person per month (this will depend on how far you need to travel - check the relevant public transport websites based on where you might live)
- Internet and landline: $100 per month (estimated) (amount will depend on the package you choose)
- Mobile Phone: $20 per month per person (top up value package through 2 Degrees) (Amount will depend on package, provider and your own usage).
- Before / after school care for the primary school child: $190 per week (this will depend on the child care options available to you)
- Life Insurance: $48 per month (this will depend on your own situation)
- Water rates contribution: $35 per quarter (this will depend on your usage and what the arrangement is with your landlord)
- Do you smoke and consume regular alcohol? The above does not make provision for that.
- If you have dogs you will also have an annual registration fee.
- Do you buy your work lunches every day? If so add an extra $10 - $20 per day (approximately).
- Do you buy your coffee each day at work? If so add an extra $5 (approximately) per coffee
- Do you drive to work and need to pay for parking? If so add an extra $20 per day (approximately)
- Annual car costs:
- WOF (Warrant of Fitness): Approximately $50 (depending on the age of your car could be twice a year, but otherwise once a year).
- Car registration: Approximately $200 per year (it all depends on your type of car).
- Replace tyres: Approximately $600 (this will depend on your car and the brand you choose)
- Car service: Approximately $350 per year (this will depend on the type of service that is needed and where you take it).
- Primary School costs (Year 5) (Please note this may very well vary from school to school)
- School donation (stipulated as voluntary): $70 per year
- School stationery: $60 per year (approximately)
- School activity fees: $200 per year (estimated and depends on what the school opts to incorporate)
- After school activity: $100 per term per activity (approximately and depending on what the child may choose to do)
- In the above example, this child does not need school uniform or special school shoes other than usual running type of shoes.
- School bag: $35 - $50 approximately
- Lunch box and waterbottle
- College age child (Year 9) (This will vary from school to school) (this list may not be complete as this is a new situation for the family above):
- School donation: $100 per year
- School stationery: $163 (includes a specific type of calculator for math)
- Chrome book: $500 (this is a bring your own device school)
- School uniform plus shoes: $630 (second hand options are sometimes available)
- School bag: $35 - $50 (approximately)
- Sport shoes for PE: $120
- School activity / subject fees: $146
- Other sport costs (not sure as yet as the child has not yet decided what she would like to do).
- Bus ticket: $151 per term
- Holiday care for the primary school child: $41 per day plus any additional activities that may incur a cost.
- Do you have children needing pre-school care? Full time daycare could cost between $250 and $300 per week but actual cost will depend on your choice of childcare and whether they are at the age where they will qualify for the 20 hour free scheme (conditions may apply with this).
- Do you want somebody coming to clean your house? It may be approximately $50 for 2 hours and the cleaner will only do based on what is agreed and can be managed within that time.
- The above example does not make provision for:
- Medical costs (they do not have a medical insurance policy). Please note that you will need to register with a GP and allow time for them to have you registered. GP costs vary from practice to practice, but it is usually cheaper once you are registered and I think for children up to 13 is free for a GP consultation.
- Dental costs (children under 18 has free regular dental costs)
- Clothing
- Hair cuts: This could be as little as $10 - $30 at some of the cheaper places to well over $100 at the more specialised places and will also depend on the type of hair treatment you are booking
- Saving for holidays, Christmasses and birthdays
- Entertainment
- Vet fees if you have animals
- Credit card or other debt repayments
- Bank fees when applicable
- Moving in costs (for rental properties):
- Bond up to 4 weeks' rent (this will be refunded when you move out providing there are no outstanding rent amounts and no damages to be covered)
- Letting fee 1 week rent plus GST (this is usual for agents to include this)
- Cost of setting up (visit websites of Briscoes, Farmers, Big Save Furniture and Warehouse to get an idea of what the likely costs for household setting up costs might be, there is also Trade Me where you might get an idea on second-hand options).
- Furniture
- Crockery and cutlery
- Linen (bedding and towels)
- Electronics and appliances
- Car
I would also suggest you request a number of savings accounts linked to your current account and then re-name them to what you might be saving up for. For instance I would work out what annual school costs or annual car expense costs might work out per fortnight and put that amount away each fortnight in a savings account named "school costs" or "car expense" costs. This way it is much easier to meet those bigger expenses and you will easily see how you are tracking and even earn a little bit of interest on top of that. Doing this each fortnight means you will not end up spending it.
Thanks so much for this - enormously helpful.
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