According to recent data collected by The Australian Securities and Investments Commission, the average Australian has a savings target of $11,234. Of those savers, the top three savings goals were saving towards a holiday, saving up a rainy day fund for emergencies, or saving towards buying or renovating a home.
Further research by Suncorp also found that the average Australian is saving $427 a month, while young people aged 25 to 34 putt away $533 a month into their savings accounts.
Sadly, most Australians are having to dip into those hard-earned savings just to keep up with the cost of living. The most recent Household Financial Comfort report by ME bank found that many Australians dip into their savings accounts to pay bills and other necessary living expenses, and that around a quarter of Australians have less than $1000 in cash savings.
Trying to set up a budget, and stick to it, to achieve a financial goal can be tough for renters. Unlike homeowners, you aren’t paying down a mortgage on a house that will one day become your asset. In addition to that, many renters are spending more than 30 per cent of their disposable income on rent, while trying to stay on top of rising living costs in an environment where wage growth is stagnant. It’s tough going out there for everyone.
We’ve put together a list of ways you can save money while renting. Or even if you own a home.
1. Get a housemate
If you have a spare rom an don’t mind sharing your space, getting a housemate to help split the utility bills and rent can be a great way to get ahead. Just make sure you have a thorough interview process to ensure you get a compatible roomie.
2. Try a side hustle
Around one in four Australians have online side hustles that are bring in extra cash flow. Whether you’re ready to turn your crafty pastime into Etsy store or you’re simply interested in driving for Uber or picking up odd jobs on Airtasker, there’s a side hustle for everyone. Just think about what other skills you have, and how you can monetise them.
3. Rethink the car
If you live in a city where the public transport network is reliable and can get you everywhere you need to go, then it might be time to reconsider if you really need a car. You’ll save yourself money on registration, petrol and insurance, not to mention the upkeep in-between. Take this one step further and swap trains or buses for a bike – good for the environment your health and your wallet!
4. Sell up
The Gumtree Secondhand Economy Report found that the average household has around $5,200 worth of unused items laying around. Spend a weekend cleaning out your entire home, and locate any items that are in good condition but you no longer need or use. You can sell these items on Gumtree or eBay and set yourself up with a little extra cash that could get you over the line to pay for flights on your next holiday.
5. Start a supper club
Catching up with friends over dinner or drinks is always fun, but the bill can quickly add up. Instead, stock your kitchen with delicious drinks and nibbles and invite everyone over for a monthly catch up. Ask everyone to bring a dish of something yummy and make a night of it.
6. Hire out your space or car
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All the advice in this story is general in nature and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.