29 Nov 2024
Australia has become home to a large Filipino community because of its strong economy and high quality of life. At the end of June 2022, an estimated 320,300 Filipino-born people lived in Australia. For many, the country’s opportunities for career growth and a better life are the driving factors for relocation. However, while Australia provides many opportunities, it is the tenth most expensive country globally.
For Filipinos residing in Australia, this creates a unique challenge. Balancing the cost of living in one of the world’s priciest countries while continuing to send money to Philippines from Australia to support loved ones requires smart money management. Here are some smart money management tips to help Filipinos make the most of their income in Australia.
Given the high cost of living in Australia, budgeting is essential. Start by tracking your income and expenses, from rent and utilities to groceries and leisure activities. A helpful rule to follow is the 50/30/20 approach. Divide your income by allocating 50% to essential expenses, 30% to discretionary spending (wants), and 20% to savings or paying off debt. This method helps you maintain a balance between spending and saving.
Knowing where your money goes can help you identify areas where you can cut back. Small savings here and there can add up over time, allowing you to allocate more for savings for making a money transfer from Australia to Philippines.
Rent is one of the most significant expenses for anyone living in Australia, especially in major cities like Sydney or Melbourne. To manage this, consider living in more affordable suburbs or smaller cities where rent is cheaper but still provides access to good transportation and amenities.
If you’re comfortable with shared housing, consider renting with others to split the costs. This not only helps you save on rent but also reduces utility bills. Side areas offer affordable housing, allowing you to save more or send more money home.
Car ownership is expensive in Australia, with fuel, insurance, and maintenance costs. Public transportation is efficient and much more affordable. Use buses, trains, or trams to travel. Many cities in Australia also offer discounts for students or workers with travel cards.
For shorter distances, walking or cycling is a free and healthy alternative.
It’s easy to overspend on dining out, unnecessary subscriptions, and entertainment, especially in a country with as many attractions as Australia. Analyze your monthly spending and identify areas where you can cut back. For instance, cook meals at home instead of eating out frequently, or go for free or low-cost entertainment options like parks and public events.
Reducing luxury expenses like daily coffee runs or streaming services can free up more money for savings or sending money to families in the Philippines.
Even in a high-cost country like Australia, there are ways to save on everyday items. Take advantage of sales, use discount codes, and explore loyalty programs supermarkets and retailers offer. Buy in bulk for non-perishable goods to save over time. Consider purchasing generic brands, which are often cheaper than name brands but offer the same quality. Small changes in your spending habits can make significant savings, leaving more room in your budget for other priorities.
Many Filipinos in Australia regularly send money back home to their families. However, sending remittances can be costly if you know transfer fees and exchange rates. Use money transfer services with low fees and competitive exchange rates to get the most value from your remittances.
Platforms like ACE Money Transfer allow you to make an online money transfer from Australia to Phillipines securely and cheaply. Compare different services before sending money to ensure you're not losing too much to hidden fees. Also, try to send larger amounts less frequently, as this can reduce the overall cost of transfers.
One effective way to manage your spending is to use cash instead of credit or debit cards for everyday purchases. When you pay with cash, you're more likely to be mindful of how much you're spending, which can help prevent overspending.
Using a card often makes spending feel less tangible. It's easy to make spontaneous purchases without much thought when using a card since you don't physically see the money leaving your wallet. However, when you're paying with cash, you're more aware of your spending. By setting a cash budget for things like groceries, entertainment, or dining out, you’re forced to stick to a limit.
This strategy also helps avoid the temptation to rely on credit cards, which can lead to debt if not paid off in full each month.
Earning while living abroad is not just about making ends meet; it's about building a future for yourself and your loved ones back home. With the right strategies, such as budgeting, using cash to curb impulsive spending, and choosing reliable services to send money online to Philippines from Australia, you can enjoy the Australian lifestyle while also securing your financial well-being.
Now is the time to take action! Start implementing these smart money management tips today. Remember, every small step can lead to significant savings and financial growth. When you want to send money home, choose ACE Money Transfer for its ease and affordability. Make your hard-earned money work for you and your family in the best way.
Paying with cash makes you more aware of your spending, reducing the temptation for impulsive purchases. It helps you stick to your budget and avoid accumulating debt from credit card use.
It’s always a good idea to have an emergency fund with enough money to cover 3 to 6 months of expenses. Keep it in a separate account so it’s there when you need it. It can be helpful in certain emergencies like a medical emergency or a sudden job loss. This will give you peace of mind while living abroad.
It depends on your financial situation and how long you plan to stay in Australia. Renting is usually more flexible, especially if you’re unsure how long you’ll stay. However, buying a house could be a good investment if you plan to live in Australia long-term and have enough savings.
Yes, there are plenty of investment options for expats in Australia. You can invest in stocks, property or even start a retirement fund.
Currency exchange rates can vary, so it's smart to keep track of them and send money when the rates are more favorable.
