What is the cost of living in Australia and how to manage your budget?

 It can be challenging to know exactly the cost of living in Australia when you’re not even in the country. And sometimes even when you’re already there! No more struggles here. Follow the guide to know all about the cost of living in Australia but also to manage your budget like an award-winning accountant. 

All you need to know about the cost of living in Australia

It’s not a secret: Australia is one of the most expensive countries to live in. Sydney is on top of the list of the costliest Australian cities, quickly followed by Melbourne and Brisbane. If you are on a budget, Perth and Adelaide might be a better choice. However, if the cost of living in Australia is very high, salaries follow the same rule: 4838$ AUD is the average salary.

     Generally, an individual will spend approximately 20 000$ AUD a year while a family will spend more than 50 000$ AUD yearly. Note that this estimation doesn’t include the entertainment, sporting activities, or health and emergency costs that are not covered by medical insurance. 

      Like in most countries, accommodation is the most expensive part of the budget of an Australian resident. Food and transport are the two other most costly aspects on the island. Let’s have a closer look at those sneaky three with the estimations below.

Accommodation costs when living in Australia: 

– Rental: from 165$ AUD to 440$ AUD per week.

– Shared rental: from 85$ AUD to 215$ AUD per week.

– Homestay: from 235$ AUD to 325$ AUD per week.

– Hostels and guesthouses: from 90$ AUD to 150$ AUD per week.

– On-campus: from 90$ AUD to 280$ AUD per week.

Other living expenses when living in Australia:

– Groceries and restaurant: from 80$ AUD to 280$ AUD per week.

– Public transport: from 15$ AUD to 55$ AUD per week.

– Gas and electricity: from 35$ AUD 140$ AUD per week.

– Phone and Internet: from 20$ AUD to 55$ AUD per week.

– Car: from 150$ AUD to 260$ AUD per week.

– Fitness Club: from 45$ AUD to 70$ AUD per week.

– Entertainment: from 80$ AUD to 150$ AUD per week.

– A pint of beer: from 8$ AUD to 16$ AUD.

– A pack of cigarettes: from 19$ AUD to 43$ AUD.

4 tips to manage your budget when living in Australia

If you are reading these lines, you’ve probably become an expert in the cost of living in Australia by now. Therefore, you might be ready for the most important part of this article: managing your budget in a place where there are always heaps of exciting things to do. 

1 – Set your money goals

Do you ever find yourself wondering where all your money went whilst you thought you had barely spent 200$ AUD over the week? We feel you. It can be very challenging to manage and save money if you haven’t properly planned how much you needed to save. And without savings, last-minute trips with friends or even parties can feel unreachable. Taking time to set your money goals is therefore an essential step to achieve your financial freedom.

    Ask yourself the following questions: how much do I need/want to save and for what? When will I need this money? How can I do that? Some of your options to help you reach your money goals could be to define a spending limit, to list the things you have bought (this is quite easily done with a bank statement), or even to pay all your bills on the same day to avoid additional fees due to a possible delay.

2 – See where your money goes and act accordingly

Once you’ve spent time defining your money goals, it’s crucial to see where you spend the most of your money and which fees could be easily avoided. As mentioned above, listing all the things you’ve bought this month could be a great way to determine what’s essential and what’s not.

    Here are some ideas of alternatives that can help you same money while living in Australia: 

 – Shop your clothes in op shops instead of big companies like Zara or H&M. Your wallet and the planet will thank you. 

 – Shop utilities in Kmart or op shops: they have plenty of objects for a very affordable price.

 – List all the ingredients you need before going out for groceries to avoid impulse shopping.

 – Go for your grocery shopping at the end of the day in markets and supermarkets: this is when they offer the best discounts. 

 – Plan and make your meals: you’ll then be aware of what you’re eating but you’ll also save a lot of time and money.

 – Pack lunch at work. 

 – Use the free BBQs in public parks to cook when it’s sunny (and save gas!).

 – Always compare services and prices to ensure you get the best deal.

 – If you’re a student or an entrepreneur, head to the nearest library: most of them offer free wifi!

 – Share your flat with other people.

 – Work in a hostel in exchange for free accommodation if you are a backpacker.

 – Try Couchsurfing when traveling: you’ll be able to sleep for free at a local’s place but also to meet a potential new friend. 

3 – Pay your debts

 If possible, try paying your debts as soon as possible. You could define a specific amount of money each month and dedicate it to your debts. Tracking your money regularly will considerably help you to save money for your debts. Applications such as PocketbookGoodBudgetGetReminded, or MoneyBrilliant can also be very useful. No surprises here: once you’ll have managed to pay your debts, you’ll probably see your mental load decrease and will finally be able to make new long-term plans.

4 – Spend money to save money

This can sound like a paradox but this is actually a very great way to manage your money. Here are some examples of how this strategy can help you saving money when living in Australia:

 – If your revenue allows it, buying a flat instead of renting one can be a great deal in the long run. Once you become an owner, you’re paying the property for yourself, not for someone you barely know. 

 – Buying a bike instead of using public transports. It’s generally quicker than trams and buses. Therefore, you will save time and money whilst staying fit!

 – Put money in a saving account (the same amount of money every month).

 – Buy a fuel-efficient car.

 – Find a place near the area you’ll spend most of your time avoiding public transport costs if you don’t want to buy a bike. 

 Do you want more information about life in Australia, visas, or student visa courses? Contact us at 03 9939 1711 or directly here

Study Destination is an education agency which offers free assistance for you to Live, Study & Work in Australia. Every year we help hundreds of people, just like you, who chose to pack their bags and start living the Australian dream, down under. Contact us today and ask one of our team members anything regarding your journey in Australia.