Average Monthly Expenditure

According to the most recent government statistics, the average expenditure for an average household in Australia is $1425. The spending is dependent on the territory, with the northern territories and the capital city having the highest average expenditure. 

Housing is the most money-intensive expenditure in Australia. On average, a four-member family (two parents and two children) spends $1900 on rent, $350 on utilities (gas, water, and electricity), $70 on the internet, $90 on phones, and $120 on public transport (assuming one partner uses public transport five days in a week).

Other expenses include groceries at $950, insurance at $240, motor vehicle maintenance and registration expenses at $220, and petrol at $80, which amount to a monthly budget of $4,030.

School Fees

If you have school-going children, the expenditure can increase significantly depending on the type of schooling you want your children to attend. If you choose a public school for your kids, the increase in expenditure may not be as significant. You will need to pay between $0 to $150 for excursions, voluntary contributions, and uniforms for both primary and secondary education. However, if you choose to take them to a private school, you will have to part with anything between $200 to $3000 for primary school and $250 to $4000 for secondary school per month.

Other Factors

The figures mentioned above represent the average cost of living for a family, which can vary widely from one family to another depending on various factors. For example, if both parents in a household have a car, vehicle maintenance would rise significantly while the cost of public transportation would drop.

Rent will also be dependent on your geographical location. Even in the same city, the prices can vary widely based on the suburb of residence. Rental prices can range from as low as $800 to $4000 monthly, meaning you have to choose where to live based on what you can afford or where your job takes you.

Safeguarding Your Income

Your ability to keep up with your homestead's expenditure largely depends on your ability to earn a living. Unfortunately, emergencies often strike without notice, leaving you unable to meet your financial obligations. 

The best way to ensure that you have a continuous flow of money to meet household bills, even after a temporary or permanent disability, would be to carry income protection insurance. An income protection insurance steps in after an injury that renders you unable to work and pays up to 70% of your pretax income. 

If you are not sure where to buy an income protection cover in Australia, an online comparison tool like iSelect can help. The comparison resource helps you compare local providers, making it easy to spot the cheapest income protection insurance deal from a list of available options. 

Keep Track Of Your Monthly Spending

If you are planning to increase your savings for a future project, you need to prioritise keeping track of your expenditure. Keeping track of your expenditure starts by downloading your bank statement to understand how you spend money. Some banks go as far as classifying your expenditures from the most basic to the least essential expenditure, which can help you make better decisions when cutting down your spending.

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