Managing money on a sixty to eighty thousand dollar income has become tougher these days. With housing, transport, food and lifestyle costs creeping up, it often feels like your pay disappears before the week’s even over. But the good news is, you can still build a solid financial footing. It just takes a clear plan, steady habits and small steps taken regularly.
This article walks you through how to manage your money when your income is average, how to set goals that actually work, and how to start building wealth even when your budget feels tight.
Your Income and Where It Goes
If you’re earning around eighty grand a year, after tax you end up with roughly sixty-five grand in take-home pay. That gives you about twelve to thirteen hundred bucks a week to work with. From that, three big areas tend to chew through the most cash: where you live, how you get around, and what you eat.
Tackling these three spots gives you the best shot at having something left over to save or invest.
Housing: Your Biggest Weekly Cost
Rent usually takes the biggest bite out of your pay. A good rule of thumb is to keep it under thirty percent of your take-home income. That’s not always easy in the current market, but there are ways to make it work.
- Living with flatmates can save you hundreds every week. What you save can go straight into your emergency fund or investments.
- Consider more affordable suburbs. Pick the cheapest location your pride can handle. Every dollar you don’t spend on rent is a dollar you can put toward your future.
- Staying at home for a while isn’t for everyone, but it can seriously boost your savings if you’re able to swing it.
Bottom line: the less you spend on rent, the more freedom you have with the rest of your money.
Transport: Rethink the Car
For lots of Aussies, the car comes in as the second biggest expense after rent. Buying a new car on finance means paying interest on something that drops in value the second you drive it off the lot.
If you can avoid owning a car altogether, even better. You save on petrol, maintenance, rego, parking, tolls, insurance and loan repayments. If a car is a must, aim to spend no more than three months of your gross income. So if you’re pulling in five grand a month, look at something around fifteen grand. Go for something reliable and simple that gets the job done without bleeding your wallet dry.
Need a bigger car occasionally? Hiring one for those rare trips might cost less over the year than owning one full-time.
Food and Groceries: Quiet Costs That Add Up
Food can be a sneaky one. The way you shop can mean the difference between a manageable grocery bill and one that spirals without warning.
- Do a weekly shop with a list and steer clear of daily top-up trips to expensive metro stores.
- Pick supermarkets like Aldi or others that give you more bang for your buck.
- Cook at home and bring leftovers for lunch. A takeaway food court meal might cost you $25 each time.
- Cut back on delivery apps. Those fees pile up and the food’s almost always pricier than eating in.
- When possible, buy in bulk. If there’s a Costco nearby, stocking up on your regular items can save a heap over time.
It’s these little shifts that help build stronger habits and long-term financial wins.
Subscriptions, Lifestyle Spending and Soft Habits
Your gym, phone plan, streaming services and random splurges may not seem like much on their own, but together they can quietly drain your bank account.
Ask yourself: do I actually use this, and is it helping me reach my financial goals?
Cutting back on habits like smoking, gambling or regular big nights out can free up a massive amount of money. These aren’t easy changes, but they’re powerful ones if you’re serious about shifting gears financially.
Topping Up Your Income: Skill Up or Side Hustle
Managing money isn’t just about cutting back. It’s also about looking for ways to earn more.
You might want to use spare time to pick up a new skill, take a short course, climb the ladder in your current job or even launch a side hustle. These small steps can create bigger income opportunities that push you beyond what your day job pays.
Combine extra income with better spending habits and you’ll build real momentum.
Build Your Emergency Fund First
Before jumping into investing, focus on creating a buffer. Start with one month’s worth of expenses, and work toward three months.
It’s not for holidays or last-minute getaways. Your emergency fund is exactly that — for proper emergencies. Think of it as your financial seatbelt. If life throws you a curveball, you’ve got something to catch the fall.
Smart Investing Even with Small Amounts
Once your safety net is set, you can start investing bit by bit. Saving $200 to $300 a week adds up to around $1,000 a month. With a few months of discipline, you could have $2,500 saved — enough to start investing in something like a low-fee ETF.
Even modest amounts can grow over time. Doing something is nearly always better than doing nothing, especially when it comes to long-term wealth.
Habits Create Outcomes
Getting ahead isn’t just for people with six-figure incomes. It’s mostly about habits — showing up consistently, saving what you can, planning your next move and investing steadily.
You don’t have to give up all the fun stuff. The goal is to build some breathing room, create a bit of financial calm and give yourself space to grow.
Your Future Starts With a Decision
The cost of living might keep climbing. Your money might feel tight right now. But that doesn’t mean things have to stay the way they are.
If you decide to shift direction, even slowly, you can set yourself on a stronger path. Trim the costs where it makes sense. Stay out of lifestyle traps. Build your emergency fund. Learn something new. Invest when you can.
You might be earning an average income today, but your financial future doesn’t have to stay average. Manage Your Money wisely now, and your future self will thank you.
And remember, to truly Manage Your Money means more than just paying the bills — it’s about building a life that works for you.
