A recent discussion about the cost of going out between my group of friends, whose ages ranged from 28 to 50 prompted me to write this. The need to let off some steam is our given right in this wonderful country and has been internationally recognised as one of the best holiday destinations to do so in the world.
The true cost, I mean the financial expense for the regular person to go out has to be considered when someone starts thinking about buying a home. It's not an impulse buy, with a "she'll be right, mate" attitude to the single most important purchase in your life. It requires self discipline and some sacrifice and a lot of responsibility. If this isn't you, please reconsider, the long term benefits outweigh the the short term memories ( or memory loss) of a fun night out. I am also not saying one should give up your social life entirely, but reconsider your priorities and adjust it to meet some life goals. Anyway, let's crunch some numbers.
Depending on your income and social circles, your disposable income used on this type of social recreation can vary. I will use a base line example of people on an average income.
Transport(taxi-Uber-flying pegasus) $25.00
Entry Fees( can vary to nil based on venue) $20.00
Drinks( enough to get you into partying) $100.00
Food ( late night/early morning greasy) $15.00
Total expenses for one night $160.00
(disclaimer: the amounts can vary, but you will see the trend)
Now, you had such a great time you are going to do it again for second night in a row. So double that expense per week to $320.00, multiply that by 52 weeks which equals $16640.00! That is a fair chunk of a home loan deposit you are literally pi**ing away. Some people may argue, " who goes out every weekend"? I used to work in hospitality and I have met them. But, let's consider the quieter weekends are offset by extended long weekends and public holidays, so it kind of evens out. My easiest suggestion is to download the app, "Track my spend" on the ASIC money smart website and you will start seeing the cost of a heavy social life. I have an e-booklet which helps you get on track. Just message me and I will send you a copy.