Am I Missing Something? (Salary/Cost of living)

[Gimme5]

Hi there. You might be interested in this article.

Land of expensive milk and honey - National - NZ Herald News

Cheers.

[Eleisha]

It's no secret how expensive New Zealand is but the difference in the price of milk surprised me, probably because Kiwis produce so much of the stuff it you'd think they'd be giving it away by the bucket full.

You know what would be really interesting? to compare the price of junk food in all those countries.

[RachaelK]

My partner's family is into dairy farming in NZ and I asked him about that once a friend who returned home to NZ after a while away wrote to tell us how much a block of cheese is, which is a fairly good measure of pricing there I guess. Anyhow - what he was saying is that BECAUSE they produce so much milk, they've become large suppliers to China where they get top $$ for each 'milk solid' (a measure of milk when they sell it from the farms) and therefore they can't sell it for any less in NZ or everyone producing it would send all of the milk to China for the better prices. Not scientific or fact checked but I found it interesting and thought it made sense.

[NZCowboy]

The price of dairy products in NZ reflects the true global market, unlike other countries with agri subsidies. As NZ is the worlds largest exporter of dairy products, the price on NZ shelves is governed by the global market, not the local subsidised market.

[Darla.R]

Having an extra 15% added on for goods and sales tax doesn't help the price much does it? It will be a brave government in New Zealand that takes GST off food, at the very least they should take it off dairy products.

[suslik]

It's an old thread, but given that I found it helpful, then I'll add my 2 cents also - for whoever comes round next =)

I've lived in NZ for 3 years, on a salary of approx 35K a year, minus taxes. My husband's pay is about the same, so 70K together - pretty humble even by NZ standards, but definitely "liveable".

To break it down into weeks, 70K a year makes about 1000 dollars a week to cover

200 rent (1 bedroom apartment)
25 gas (hot water and cooking)
25 power (well-insulated passive solar building)
25 internet and phone
150 food (2 people, lots of dairy, veggies and fruit, but no alcohol or trash food)
75 car (petrol, comprehensive insurance and wof for 2 cars)
100 everything else (video rentals, going out etc)

That leaves about 400 dollars for putting away into savings account, each week. Over a year, that makes for 20K of savings.

Overall, I think we've lived a very comfortable life so far in NZ. We spend lots of time outdoors, not so much time working, no time whatsoever in traffic jams/buses/trains and the neighbors have been great everywhere we've rented.

We're VERY thrifty though. Our rent alone (200 pw) is probably, by some people's standards, outrageous - and I mean outrageously low. We hunted for a "perfect rental" for months because we weren't willing to pay more. Even in winter our power bill never exceeds 25 pw because our hot water is on gas and the house is well insulated and passive solar. Pretty much all our clothes come from Salvation Army because I'm good with a sewing machine. We drive a '95 Subaru Legacy which cost 2000, can go pretty much anywhere, doubles as a campervan if we stick a mattress in the back and can tow a trailer if needed. Our mountain bikes are second-hand (200 each), our kayak is second-hand (300). All our lightbulbs are eco, we keep the apartment at 18C in winter and shut off the living area for when we're sleeping and don't need to heat it. We actually prepare our own meals, sometimes down to baking our own bread. And we haven't been back to Europe in 2 years - specifically because of how much it costs.

So can you comfortably live off 100K a year? I think so.

[topcat83]

Great reply, susklik.
I think it all depends what you expect from life - and as you say, you can live remarkably cheaply if necessary.
We spend more than you - but we are aiming to get to the point where we can live frugally without me working (hubby is already retired). So it's a lifestyle block with rainwater and solar electricity.
Sad day tomorrow - the pet sheep finds a home in the freezer But it's all part of being self-sustainable. Not sure if I'll ever be able to try alpaca chops though

[anski]

Originally Posted by topcat83

Great reply, susklik.
I think it all depends what you expect from life - and as you say, you can live remarkably cheaply if necessary.
We spend more than you - but we are aiming to get to the point where we can live frugally without me working (hubby is already retired). So it's a lifestyle block with rainwater and solar electricity.
Sad day tomorrow - the pet sheep finds a home in the freezer But it's all part of being self-sustainable. Not sure if I'll ever be able to try alpaca chops though

Oh dear you may have to become a vegetarian.

[anski]

Originally Posted by suslik

It's an old thread, but given that I found it helpful, then I'll add my 2 cents also - for whoever comes round next =)

I've lived in NZ for 3 years, on a salary of approx 35K a year, minus taxes. My husband's pay is about the same, so 70K together - pretty humble even by NZ standards, but definitely "liveable".

To break it down into weeks, 70K a year makes about 1000 dollars a week to cover

200 rent (1 bedroom apartment)
25 gas (hot water and cooking)
25 power (well-insulated passive solar building)
25 internet and phone
150 food (2 people, lots of dairy, veggies and fruit, but no alcohol or trash food)
75 car (petrol, comprehensive insurance and wof for 2 cars)
100 everything else (video rentals, going out etc)

That leaves about 400 dollars for putting away into savings account, each week. Over a year, that makes for 20K of savings.

Overall, I think we've lived a very comfortable life so far in NZ. We spend lots of time outdoors, not so much time working, no time whatsoever in traffic jams/buses/trains and the neighbors have been great everywhere we've rented.

We're VERY thrifty though. Our rent alone (200 pw) is probably, by some people's standards, outrageous - and I mean outrageously low. We hunted for a "perfect rental" for months because we weren't willing to pay more. Even in winter our power bill never exceeds 25 pw because our hot water is on gas and the house is well insulated and passive solar. Pretty much all our clothes come from Salvation Army because I'm good with a sewing machine. We drive a '95 Subaru Legacy which cost 2000, can go pretty much anywhere, doubles as a campervan if we stick a mattress in the back and can tow a trailer if needed. Our mountain bikes are second-hand (200 each), our kayak is second-hand (300). All our lightbulbs are eco, we keep the apartment at 18C in winter and shut off the living area for when we're sleeping and don't need to heat it. We actually prepare our own meals, sometimes down to baking our own bread. And we haven't been back to Europe in 2 years - specifically because of how much it costs.

So can you comfortably live off 100K a year? I think so.

We live comfortably on far less than that, but we do not pay rent. However homes still cost; rates, insurance, & maintenance adds another $5,000 a year approx.

We have savings we can dip into if required but without it can still manage overseas trips by exchanging homes & cars with others so only up for the airfare & any extra entertainment. We have booked to see Tower of Power play at a local State Fair tickets $10 each.We also were in town the day they gave a free 4 hour jazz concert with top US musicians.

So far on our present trip (USA) I have to say how much cheaper groceries are. We seldom eat out because I need to watch my husband's health & also to keep costs down.

Yesterday I shopped in the local Safeway supermarket & was advised I could join their savings club to receive savings. So I joined just an easy process no id etc. My grocery bill came to US$186 but by shopping wisely & using my club card I saved $63.50 I was astonished.
We eat healthy & discounts applied to lots of fresh fruit & veggies, artisan bread, etc.

Just to give an example 1 gallon of milk (3.78Litre) costs US$3.79 about NZ$4.60 I usually pay almost NZ$4 for 2 litres in NZ, They also have the biggest range of milk from No Fat, 1%, 2% & up to full cream.
A large cooked chicken normally $9.99 was $4.99, just amazing.

I have a US issued Visa debit card so by transferring a lump sum into the account (when exchange rates were in our favour) to hopefully cover our stay here also helps by shopping in local currency & avoiding extra charges on our NZ cards when paying.
They were selling NZ wine Nobilo, Cloudy Bay & Kim Crawford cheaper here also!

Large Maytag washing machines & matching clothes dryers (available in Electric or Gas) were $1,500 the set.
So when Americans move to NZ & complain it is expensive I can see why.

[Weta]

Originally Posted by suslik

I've lived in NZ for 3 years, on a salary of approx 35K a year, minus taxes. My husband's pay is about the same, so 70K together - pretty humble even by NZ standards, but definitely "liveable".

Obviously 'liveable' is subjective and your lifestyle suits you and where you are at in your life. However, I would hazard a guess that most expats come to NZ for the lifestyle, they didn't quite anticipate that this would be the lifestyle of a student or old aged pensioner living in a one-bedroom apartment.

You must be earning a good bit of interest on that spare sixty grand of savings you have sitting in the bank.