Marty, a 22yo aspiring actor in Auckland

About MoneySecrets: MoneySecrets offers a peek into the financial lives of our fellow Kiwis. The story below was written using pseudonyms to remain anonymous. When commenting, please remember that the writer has laid bare their financial life, which can be a scary thing to do. Please be kind, and enjoy!

INTRODUCTION

I’m a 22yo graduate navigating "adult life" in Auckland.

I work sporadically as an actor by night, and help to run a shared workspace by day. Two jobs, but both support me in their own way. I’ll soon be moving into a new day job as a Teacher Aid.

I make enough money to support my dream: to build up my reputation as an actor and work in the film and theatre industry full time. My day job keeps the income flowing, and acting keeps the soul flowing. But this combination means that my bank accounts don’t always look too healthy.

When navigating life with an unstable income, your relationship with money changes. From my point of view, it's quite a rollercoaster. For example, I just landed an acting gig. That means that I need to find cover for my day shifts, and I only end up working three days a week. Being on hourly pay means lower income that week.

Acting income is really variable - the jobs are either feast or famine. During “famine” weeks, my income does not meet my expenses. I'm typically pretty tight money-wise each month, and not making much extra... for now. In the long run, I think it'll work out.

While I am young, I am taking risks and trying to make the life I want. When you build your way up, acting pays well. So at some point I hope it will be enough to knock my debt, and then some.

FINANCIAL GOALS

My current goal is to have around $10,000 in savings (I have $1,500 right now). My savings were larger (approximately $6,000), but I lost my old job during Covid and lived off savings for five months. I would like to have enough saved to support myself in case of stress.

My relationship with money is a bit rocky right now. I am still recovering from a recent shock as I write this. From unexpected taxes, to car trouble, to unexpected house moves, the costs build up, and before you know it, savings are down the drain. Now I feel I should tread carefully and watch my spending in all aspects.

I am currently trying to apply the “Barefoot Investor” approach to build my accounts. That means 60% of income for essentials, 20% for other spending, and 20% for savings.

Assets

My assets are pretty standard for someone my age. I have a car, a laptop, a TV, a Fujifilm camera, and some furnishings in my flat room. My camera allows me to always have a creative outlet wherever I go.

I also own some signed limited edition artworks from Japan, and some New Zealand-based limited edition prints. Japanese pieces are growing in value at the moment. The NZ ones might stay put value-wise, but with art you never know. I’m proud of this artwork.

I think my Kiwisaver is with Kiwi Wealth, but not sure what type of fund.

Debt

I’m slowly paying off my student loan. I’m not anxious about this debt - it is constantly chipping away.

The "IRD sting" was quite out of the blue. My two rounds of Covid wage subsidies were sent to me untaxed, so I had to pay some of it back, in total around $800 of taxes that I had to repay. Plus, it is my first year as a paid actor, and there is tax to settle there too. These were unexpected expenses for me. Plus, with my savings taking a hit after losing my job, I had to ask my family to help me stay afloat, which is a luxury and privilege not many have. I am one of the lucky ones. With less money in the bank and asking for help, all ego regarding my finances is long gone.

Income

My day job pays me around $500-$600 a week (after tax, student loan, and kiwisaver deductions). I’m paid hourly.

This income covers my rent, car, food, and everything I need. But I don't have much extra spending money.

Now I made a silly move and asked to work four days a week (to have a day to focus on acting work). Not the most brilliant move money-wise, but wellbeing-wise a total no-brainer for me. As long as I have enough to live and chase my dream, I will be ok, I'm pretty stubborn, and I know I could potentially do other day work that offers decent $. However, my goals are priceless and not worth compromising for some extra spending money at my age.

When it comes to acting income, it can be all over the show. I think of this income as a bonus. Some are just $200 day rates, or some can be much, much more. You never know what types of gigs you'll get. My agents take a 10% cut, and then I am taxed on the remainder. Acting work makes me excited on all fronts, but since I am starting out, the money isn’t much. I know it will improve - the current financial pressure might bend me, but it won't break me.

Expenses

I live in a flat in Morningside. Me and my flatmates split the costs monthly.

I try to keep a little aside for things like clothing as the seasons change, and the rest is spent on my social life. Things like drinks, theatre/film tickets, and food. I love food, both consuming and cooking, and when you have little spare change, eating well feels just a little bit better because you have to get creative.

Remaining income

After expenses, I try to build my savings. Working towards a goal of $10,000.

Inviting feedback from readers

Any budgeting advice for inconsistent earners would be amazing. I welcome any feedback or advice! In fact, I could really use some!