Gen Z worker on average salary reveals she’s ‘no longer broke’ after ‘money hack’ trick to budget her income
Hannah Koumakis, a 24-year-old Gen Z worker from New Zealand, has shared her budgeting tips that have helped her save money and avoid financial struggles. In a viral TikTok video with over 1.1 million views, Koumakis explains how she manages her monthly paycheck by dividing it into 16 different accounts for various expenses such as rent, groceries, clothes, and travel costs.
Despite earning a salary below the New Zealand average of $8,200 ($A7,580) per month or $97,300 ($A89,680) per year, Koumakis has been able to make her income work for her. She allocates $788 ($A725) each month for essential expenses like rent, bills, and groceries. Her biggest outgoing is $1,100 ($A1,013) towards the mortgage on her investment property, which she does not live in. She also sets aside $500 ($A460) per month for her church tithe.
Koumakis has allocated specific amounts for other categories such as petrol ($280/$A260), food ($250/$A230), entertainment ($50/$A45), shopping ($150/$A138), car expenses ($30/$A28), holidays ($70/$A65), insurance ($95/$A88), and miscellaneous costs ($80/$A74). She also saves money for specific goals, including a baby grand piano ($35/$A32), blessing others ($50/$A46), and short-term savings ($125/$A115).
If there is any money left over, Koumakis either puts it into her EFTPOS account or longer-term savings. Some of her accounts accumulate funds, meaning any leftover amount is transferred in full, while others only transfer the difference if she doesn’t spend the full amount.
Koumakis follows a strategy called “rentvesting,” where she rents a place she wants to live while also paying a mortgage on her investment property. She currently shares a rental with five housemates, paying $185 ($A170) per week in Auckland. Her investment property is located two hours away from her workplace, which is why she chose to rent it out.
Earlier this year, Koumakis revealed that she receives $200 per month in pocket money from her parents.
Overall, Koumakis’ budgeting system and discipline have allowed her to effectively manage her income, save money, and avoid financial difficulties despite her below-average salary.
Source: By Max Aitchison For Daily Mail Australia
