Living on a single income is a reality for many families. While it mightn’t be the ideal financial scenario, there are ways to plan to help you, so you don’t struggle. The following suggestions are a good place to start if you’re looking to make things work while living on a single income.
What’s your budget?
The first thing you’ll need to work out is a budget. Go through all your expenses from the past month and assess what are necessities and what are luxuries that you could cut down on. Set up your weekly or monthly budget and do your absolute best to stick to it. It might be easiest to pay all your bills on a specific day or week and then save any leftover funds for those luxuries.
This process will also give you a good idea of exactly where your money is going. Spend some time researching if you are able to save on some of your bills. Will switching electricity or gas companies put more money in your pocket or could you combine all your family’s mobile phone plans into one?
Rainy day fund
It is important to put some money aside in case of an emergency. This might be for when your car breaks down or if a hospital visit is needed. Try to kick start savings as soon as possible and then add to it each pay cycle. It’s a good idea to have this connected to a debit card just in case you need to access the funds in a hurry.
Bulk buy and grow your own
A great way to save time and money is to buy in bulk. Generally, the more you buy, the cheaper the overall price becomes. Always keep an eye out for specials and try to buy home brands where possible. Buying in bulk also saves you multiple trips to the supermarket.
You can also grow your own produce if you have the room. Fruits, vegetables and herbs can all be grown in an extremely cost-effective manner and is a great hobby for young and old.
Pay down your debt and invest the money you save
Depending on your personal situation, reducing your debt may help as you may pay less interest. This could potentially have a positive effect on your finances both in the short and long term. Also, if you have less debt, it may make saving more money for future needs easier. If you need advice in this area, it’s always a good idea to speak to a financial adviser or accountant, who specialise in these areas.
How else can you supplement your income?
Figure out if you’re able to use your skills and any spare time you have to earn a bit of money on the side, no matter how small it might be. Any additional money making opportunities will obviously have to fit in with your schedule but as an example, you might be able to buy and sell products online, become a tutor, walk dogs, babysit, attend marketing focus groups or distribute flyers.
What benefits are you entitled to?
As a single income family, you may be entitled to some government benefits and subsidies. These can provide a regular payment to you and allow you to breathe a little easier. Family Tax Benefit A and B are a great place to start and you may get access the Single Income Family Supplement.
If you’re a senior and have retired, there are a number of options available to you.
If you have met a condition of release, you may be able to access your superannuation. There are certain criteria you need to meet, but if you’re eligible, you can potentially subsidise your income with funds from your superannuation account.
There are also a lot of benefits available to senior card holders – these range from concession rates for medications to energy supplements. Make sure you’re making the most of these benefits here.
There’s lots of information available about how you can make living on single income work for you, so make sure you do your research and figure out what works best for your unique situation.
This article was previously prepared and published by AIA Australia Limited ABN 79 004 837 861 (AIA Australia) prior to Resolution Life’s acquisition of AIA Australia’s Superannuation & Investment life insurance business on 1 July 2023.
Living on a single income is a reality for many families. While it mightn’t be the ideal financial scenario, there are ways to plan to help you, so you don’t struggle. The following suggestions are a good place to start if you’re looking to make things work while living on a single income.
What’s your budget?
The first thing you’ll need to work out is a budget. Go through all your expenses from the past month and assess what are necessities and what are luxuries that you could cut down on. Set up your weekly or monthly budget and do your absolute best to stick to it. It might be easiest to pay all your bills on a specific day or week and then save any leftover funds for those luxuries.
This process will also give you a good idea of exactly where your money is going. Spend some time researching if you are able to save on some of your bills. Will switching electricity or gas companies put more money in your pocket or could you combine all your family’s mobile phone plans into one?
Rainy day fund
It is important to put some money aside in case of an emergency. This might be for when your car breaks down or if a hospital visit is needed. Try to kick start savings as soon as possible and then add to it each pay cycle. It’s a good idea to have this connected to a debit card just in case you need to access the funds in a hurry.
Bulk buy and grow your own
A great way to save time and money is to buy in bulk. Generally, the more you buy, the cheaper the overall price becomes. Always keep an eye out for specials and try to buy home brands where possible. Buying in bulk also saves you multiple trips to the supermarket.
You can also grow your own produce if you have the room. Fruits, vegetables and herbs can all be grown in an extremely cost-effective manner and is a great hobby for young and old.
Pay down your debt and invest the money you save
Depending on your personal situation, reducing your debt may help as you may pay less interest. This could potentially have a positive effect on your finances both in the short and long term. Also, if you have less debt, it may make saving more money for future needs easier. If you need advice in this area, it’s always a good idea to speak to a financial adviser or accountant, who specialise in these areas.
How else can you supplement your income?
Figure out if you’re able to use your skills and any spare time you have to earn a bit of money on the side, no matter how small it might be. Any additional money making opportunities will obviously have to fit in with your schedule but as an example, you might be able to buy and sell products online, become a tutor, walk dogs, babysit, attend marketing focus groups or distribute flyers.
What benefits are you entitled to?
As a single income family, you may be entitled to some government benefits and subsidies. These can provide a regular payment to you and allow you to breathe a little easier. Family Tax Benefit A and B are a great place to start and you may get access the Single Income Family Supplement.
If you’re a senior and have retired, there are a number of options available to you.
If you have met a condition of release, you may be able to access your superannuation. There are certain criteria you need to meet, but if you’re eligible, you can potentially subsidise your income with funds from your superannuation account.
There are also a lot of benefits available to senior card holders – these range from concession rates for medications to energy supplements. Make sure you’re making the most of these benefits here.
There’s lots of information available about how you can make living on single income work for you, so make sure you do your research and figure out what works best for your unique situation.
This article was previously prepared and published by AIA Australia Limited ABN 79 004 837 861 (AIA Australia) prior to Resolution Life’s acquisition of AIA Australia’s Superannuation & Investment life insurance business on 1 July 2023.