Life in the Big City
Author: Rachel Owen
Moving from the country to Melbourne for a job can be life-changing, but also overwhelming.
You will have to contend with higher rent, longer travel time, parking and public transport, the cost of dining out and the temptations of endless shopfronts.
A few quick tips that factor in the cost of living and lifestyle change can save you from spending beyond your means.
Budget to Save
Living in the city is more expensive. Domain’s March quarter report has shown median rent is now $380 a week*.
Dining out is costly too, and an increase in travel time can make it a quick and tempting shortcut. Planning in advance how much you wish to spend on dining out and socialising can help you maximise your control of your financial situation.
Likewise, with purchases; a non-stop array of shopping outlets can present offers that seem too good to pass up. Being strict about how much disposable income you can afford is a wise move.
Comparing your salary against your weekly rent, travel, food and living expenses will help you calculate how much you can save each week towards achieving your short and long term goals, and even for your retirement.
Manage your time and be organised.
In Melbourne, it is advisable to allow forty-five minutes to an hour to get to work. A well planned schedule can help you avoid spending money unnecessarily.
Transport can be a nightmare. Parking is limited and can be quite expensive. Depending on where you work, public transport may or may not be the cheaper option. A little research will help you determine a quick, cost-effective way to travel, be it walking, riding, driving or taking public transport.
Finally, prepping your meals in advance can minimise the costs of eating out.
With the costs incurred by living in the city, it is important to safeguard oneself against unforeseen events that may impact on one’s ability to earn a living. For example, Income Protection Insurance will cover a loss of income in the event of illness or injury, insuring that you have the funds needed for rent or mortgage payments as well as weekly expenses.
Managing your finances can be tricky and making the most of them in the midst of a big transition can be even trickier. It is important to seek the advice of a financial planner as they help you set goals and make plans to achieve them, outline what areas you need to spend less on and most importantly, ensure your insurances are right for you.
*Su-Lin Tan, April 7 2016, Bad news for tenants as rents rise across most capital cities, Australian Financial Review, http://www.afr.com/real-estate/bad-news-for-tenants-as-rents-rise-across-most-capital-cities-20160406-gnzn6d
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This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person.
You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser,
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