
Get exclusive money-saving offers and guides
Straight to your inbox
Updated
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Living expenses are a type of spending that probably takes up the bulk of your monthly expenditure. From grocery bills and rent charges to utility costs and loan repayments, these expenses are absolutely essential. Beyond this, there are living expenses that are completely unpredictable: think hospital bills or urgent home repair fees. Ultimately, you should be able to cover these costs as they arise. Sounds like a lot of pressure? This guide will help you better understand your living expenses, how to budget for them and how to save on them.
The Finder app hunts down personalised ways for you to save. You could save on your bills, mobile plan, credit card, insurance and more. Pop in your phone number below to get your download link.
By submitting your phone number, you agree to the Finder privacy policy and terms of use
Living expenses are costs that you can't simply remove from your budget. In other words, this form of spending is reserved for providing you with a basic standard of living, including food, water, clothing, electricity and healthcare. By understanding which aspects of your spending are living expenses, you could easily cut non-essential expenditure and save more. Here are some common types of living expenses for you to consider.
In contrast to this, expenses related to branded goods, unnecessary phone upgrades, a Netflix subscription or even high-end brands of cheese are not considered living expenses. As a result, you should reduce the portion of your budget allocated to such items.
That ultimately depends on your personal budgeting preference. A good place to start is with the 50/30/20 budgeting rule, where you allocate 50% of your income to living expenses, 30% to non-essential spending and 20% to savings.
Alternatively, if you feel too restricted by this allocation, you could always tweak the allocation to one that you're more comfortable with. For example, the 80% spending and 20% savings model is another popular model where your living expenses and non-essential spending should take up no more than 80% of your monthly income. The sub-division can be done to your fancy, as long as you allocate enough to your living expenses.
Keeping track of your living expenses can be impossible. With so many bills, expenses and products to monitor, it's easy to lose track of your spending. A budgeting app, like the Finder app, is a great tool to manage your money. It allows you to connect all of your bank accounts like your credit cards, transaction accounts, home loans, savings accounts and investments, into a single dashboard. This means you can get an overview of your finances at any time, anywhere. You can also track the amount you've spent on living expenses, regularly check your credit score for free and shop around for better deals, all in the one place.
Try carpooling, sharing an apartment with roommates or bulk buying groceries with your neighbours.
Move to a place with lower rent, eat at home instead of going out or shop at discount stores. Similarly, you may want to try out peer-to-peer retail marketplaces, use a second-hand car, turn to public transport or purchase generic brands.
Be mindful of your utility bill and limit unnecessary water and electricity usage. Alternatively, you could also try limiting unnecessary shopping sprees and downgrading your phone plan. Besides this, you should always keep an eye out for a good discount. Take advantage of discounts on petrol, coupons and store-specific membership discounts.
Living expenses could get out of hand when an emergency occurs. If you're not prepared to cover unexpected costs, you may end up making expensive choices on a whim or even sacrifice certain basic comforts. For peace of mind, allocate a set portion of your salary to an emergency fund, which should only be touched during urgent times.
You can get international roaming on most of Telstra’s postpaid mobile plans for just $10 a day.
Today's best Finder Daily deals include: 50% off car essentials at Catch, half-price meat thermometers, eBay Plus tech sale.
With bonus Qantas Points and a range of complimentary insurance covers, the Westpac Altitude Platinum - Qantas is worth considering if you want more frequent flyer points.
Considering switching from regular air conditioners to solar air conditioners? Find out how.
From costs and finance options to what materials you’ll need, learn about bathroom renovations in this comprehensive guide.
There’s no shortage of cooling options when camping, working or four-wheel driving, but what are the best portable fridge freezers in Australia?
Discover great destinations for campervan relocations for your adventure across Australia.
One in four (25%) Australians are worried about how they will pay the rent or mortgage after Christmas, according to new research by Finder, Australia’s most visited comparison site. Find out how the Finder App can help save you money in 2021.
Compare $500,000 life insurance policies, costs and cover here.