The Most Expensive Year of Your Life

Research shows that age 31 is the most expensive year of your life.

And it is coming up on me fast!  

A British Credit checking firm, ClearScore, surveyed 3000 people and discovered that age 31 is the most expensive year in people’s life. They found that the average person will spend $81 955 that year. That means people will spend twice the average income. Statistics New Zealand shows that the average wage is approximately $49,000.  

At age 31 people are buying houses, getting married, going on honeymoons, and having babies. These things might sound fun and exciting, but you need to consider where this money is coming from.  

If you have saved for these expenses, well done to you! If you take on debt to cover these living expenses, you have to consider that this dept will lock you into needing an income to cover the cost.  

You are enslaving yourself to servicing debt.

So I am not up to my 31st year on this planet yet. I am already seeing an increase in expenses with the purchase of a house, and the ongoing maintenance cost of owning a car.  

These two items are by far the most expensive things I own to date.  

What you have to remember with buying a house or a car, is that the outright cost of the items is easy to budget for. Check out any mortgage calculator online, such as the one on  

The costs that are not budget for are the one that you don’t know are there. The cost you have never had to pay for until the real bills come in. Think about maintenance costs, hiring builders and plumber, electricians, lawyers, and accountants.  

Now, everyone should be able to minimise some of the cost associated with these trades. There are things that you can do yourself, and not calling in the professionals. (selling your house, for example, can be done quite by yourself, saving thousands!)  

When you are in your 20’s you don’t need to worry about maintaining your house, and you drive an old car until the day it dies. That all changes once you get yourself a house.  

You start caring about maintenance and upkeep. And will find yourself spending anywhere from $300 every other week.  

On top of that, there is the insurance involved with owning a house with a mortgage. This can be anywhere from $1500 to several thousand a year.  

Then comes on top of council rates or land tax.  

Other things that can hit the bank hard are either the kids, or pets, or both. They love to soak up every last dollar you bring in. Oh and since you now make a real income, no more two-minute noodles for dinner.

So the weekly grocery shop may increase, as you try to feed your family healthy meals.  

Then there is your social life. You’re not dead yet. You should have far more energy than 40 and 50-year-olds. And far more disposable income than those younger than you to fund it.  

None of which are things to complain about, there are life’s expenses.   Now you know your expenses may increase when you move into your thirties, you can appreciate why it is a great time to save in your 20s.  

1 dollar saved is equal to 2 dollars Earned

I use the rule 1 dollar saved is equal to 2 dollars earned. This is especially true when you are in your twenties. Using the rule of 72, your 1 dollar saved will become 2 after 18 years (72/4). And if you can get a more competitive interest rate of around 8%,  it would take 9 years for that dollar’s value to double.

So to sum it up;

You should save money while you’re in your twenties!

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4 thoughts on “The Most Expensive Year of Your Life”

  1. I’m 31 and this definitely has not been my most expensive year. However, I bought my house a couple years ago, am single, and have no children, so that’s why. For me, 31 has been the year that I’ve made the most money in my life, and I’ve mainly avoided the lifestyle creep by putting my extra made money toward paying down debt and investing rather than accruing more.

    • Well done for buying a house! The research was an average, so for some people it will be earlier in their live, and for others it will be later.


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