Single in a small town with an average salary, average debt and big ambition; Janine Starks looks at some possible ways to break out and get ahead.

By Janine Starks* (email)

From my mail bag:

I'm a wage slave and always will be. Will I ever get ahead? I’m 28, single and work as a journalist in a provincial town.  My salary is $35,000 a year.  I have a student loan of $30,000, a credit card with $1,400 on it, and $1,800 owed to a family member.  On the plus side I have $5,000 in KiwiSaver (I contribute 8%), I’ve got medical insurance and I’ve cut up the credit card. After deductions I end up with $2,250 a month in the hand.  I’ve looked at my spending and each month $1,060 goes on rent, food and bills.  Then I have automatic payments of $200 on the family loan, $200 on the credit card, $30 on the mobile, $80 insurance and $200 to an account for unforeseen bills.  That leaves $480 a month, but I have no savings. If I stay in provincial New Zealand my maximum salary will be about $55,000.  It depresses me.  I want to buy a house, pay off the student loan, but I feel like I’m no good with money. Will I have to make a stack of money overseas somehow to get a lump sum?  Is KiwiSaver the answer?

Dear Wage  Slave:

I won't lie. Your salary doesn’t look great for a 29 year old.  Given you’ve only been writing for two years, and you say it’s a provincial town, that is some explanation, but it seems low to me.  \

I’m no expert in journalism – actually for your amusement, I don’t get paid at all for this column; it's charity work.  So that comment about your salary, is the pot calling the kettle black.  Feel free to have a chuckle about that one. 

My first thoughts are that you are actually very good with money, so don’t doubt yourself. You have APs set up, you put aside for major bills and quite cleverly arranged your car via a family member, you have a KiwiSaver and put in a really decent amount.  All brilliant stuff.  

No magic recipe 

You have to increase that income or lower your expenses.  In six to eight months both the credit card and car debts will be gone, so $400 a month will be yours.  That will free things up nicely. 

To be honest, you are doing so many things correctly, that any small changes are not going to be that material or quantifiable e.g. changing KiwiSaver providers.  The $400 extra, is certainly going to help, but I think you are writing to me because you want to review the really big picture and your future, and not be told that $400 a month is going to be life changing.  That money will be helpful and nice, but it won’t massively change your outlook.

To be honest, you are not living extravagantly, so I think your best option is to look at how your income can increase.  That will put you out of your comfort zone. 

The path less trodden

Spend some time having a long hard think about your job and the town you live in. 

You are 29 and single – if there is ever going to be a good time to make a big change, it will be now, when you don’t have too many ties.  You don’t have to scare yourself by leaping to London or Sydney, but what about investigating Auckland and Wellington first, and taking smaller steps.  Even if you don’t end up with any more money in the hand (which is likely for your first job with higher rents etc), the career progression is immense and faster. 

If you want to come home to that small town one day, and have a more senior job there, you best and fastest route is to leave for five years, save like crazy for a house deposit, push for promotions and wait for your bosses job to come up at home. 

Another alternative is to look at other more commercial industries which could use a good writer.  Journalism is notoriously badly paid, but there are communications and marketing jobs where they give there right leg for a good writer.  Ad agencies, banks, large corporates all need literature written and good comms people to handle the press.

The flip side, is to say that you couldn’t bear to leave the job or the town you live in.  That is also totally understandable.  In which case you need to think of creative ways to increase your income at home. Eg setting up a freelance writing service for local businesses; helping a local marketing agency in your spare time; doing some freelance work for a national magazine (start pitching yourself).  You could look at your housing situation once your income has risen and take in flatmates to get on the property ladder. 

A leap of faith

 Jump online, look at the job situation in other cities, look at the rents, think about local writing opportunities and weigh it all up.  Any big change in life brings a lump to the throat and it’s not easy to push yourself to do it.  Funnily, being single gives you the opportunity to do it, but it's sometimes harder because you have to be more self motivated and there is no one to help egg you on. 

I’ve done lots of these moves myself and I can honestly say, it never gets easier. I grew up in Nelson, and I knew I couldn’t get anywhere if I stayed.  I moved to Christchurch, then Wellington.  The move to the north island was horribly scary, but it turned out to be a brilliant place.  I then went to the UK for 5-6 years with my husband and returned home to start my own business.  Without that experience, I couldn’t have jumped off the wage ladder.  However, I’m not encouraging you to follow my path into business – the wage ladder is a great place to be, and a lot less risk, but you deserve to be making decent money.

*Janine Starks is Co-Managing Director of Liontamer Investments. Opinions in this column represent her personal views and are not made on behalf of Liontamer.  These opinions are general in nature and are not a recommendation, opinion or guidance to any individuals in relation to acquiring or disposing of a financial product.  Readers should not rely on these opinions and should always seek specific independent financial advice appropriate to their own individual circumstances.