Women wondering why they don’t have enough savings for a house deposit could do well to look in their cupboards for the answer. A survey has revealed women will spend more than $57,800 on shoes in their lifetime – almost $3400 more than the 10 per cent deposit needed for an average $544,000 mortgage in Australia.
So, if you don’t buy any shoes from the time you are say 15 until you are 70 then you will have a 10% deposit for a house at 2013 prices by the time you are 70.
If you average the cost of shoes across those 55 years the ‘straw-shoe obsessed woman’ is spending $1050.91 per year on shoes when obviously the silly woman should be spending $3143 per month on a mortgage ($544 000 – $57 800 at 6% interest for 25 years ignoring stamp duty, mortgage insurance etc). Now, a mortgage is supposed to be 30% of your income to ensure financial stability. So in order to be paying over $3000 per month our shoe obsessed straw woman needs to be earning about $5343 per month or $2672 a fortnight after tax. Which using this handy calculator comes to a yearly income of $102 000 before tax. So our shoe obsessed straw woman also works in middle to upper management. Hopefully her clients/employers/employees don’t mind her coming to work barefoot.
But we must be strong. No shoes or no house deposit!
Average pairs per year aside, if you think about the (admittedly pop) psychology of shoes, it’s easy to understand why they’re a staple in a woman’s pick-me-up artillery. They don’t mind if we’re still carrying a little extra winter padding, they will fit our foot anyway. They make us look taller and appear more powerful. And depending on just how sparkly and fabulous darling they are, they may even make us feel less sad for a few blissful moments.
Compare this to taking $200 out of your pay packet and popping it aside for a house deposit that never seems to add up, and it’s little wonder the short-term gain of buying a new pair of heels wins out over long-term renting pain.
If we did put away $200 per fortnight how long would it take to save up a house deposit anyway? Using this calculator if we had started putting $200 a fortnight (at 4%) into the bank we will have saved $56 675 by January 2021. So you can see why saving for a home loan can get discouraging.
But really not buying shoes? Surely there are other things you could choose not to buy? Like a house for a start. Not everyone has a dream of owning their own house. To say that women frivolously buying shoes is the only thing between them and home ownership is really crap. Structural inequality might have a little something to do with it too. Also, for the majority of women just try and get one of those $100K per year jobs (I don’t have one) without being well turned out with nice shoes and see how far you get.
Isn’t it strange how you never see articles about men not spending money at the races or at the pub or buying power tools or fixing up classic cars or motorbikes or on hobbies or sports (or women for that matter). It seems that women only ever spend money on shopping – and should just stop because house – and men can spend whatever they damn well please because women are saving up for all the houses or something.