When it comes to saving money in Sydney, the right approach will get you far. As one of the most expensive cities in the world, saving money is a no-brainer – some reports estimate that the average living cost in Australia for one person is almost $3000 a month, a figure that is even higher in Sydney. Not to mention, Sydney’s median property price at the start of 2020 was a significant $872,934.
Clearly, while saving money is important wherever you are, knowing how to save your cash in Sydney is a no brainer. With this being said, here are our top money saving tips based on your situation, expenses, lifestyle, and the city of Sydney itself.
If you want a quick rundown of the best ways to save money in Sydney, check out the below overview:
The Best Ways to Save Money in Sydney – Quick Money Saving Tips
- Get an Opal card – Sydney’s public transport system will get you wherever you want to go, quickly and cheaply.
- Keep the costs down during your weekend nights – buy from the bottleo instead of the bar, and go out during happy hour!
- Become a bargain hunter – eBay and Gumtree are always worth checking out.
- Keep your date night costs down by checking out the free Sydney art galleries, affordable pubs and occasional city events.
- You don’t have to leave a tip – unless you really want to.
- Ditch the car for a bike – in Sydney, bike lanes are popping up all over the place.
- Cut down on morning coffees – a daily $4 coffee adds up to $28 a week, or almost $1500 a year.
- Move your gym routine to your home – Sydney gyms can be expensive, but body weight exercises are completely free.
Cutting Expenses and Saving Money
In reducing expenses and saving money in Australia, a right approach will involve both changing your lifestyle, and sticking to a clear plan regarding what happens with your income as you receive it.
In addition to ongoing habits you can make and approaches you can take, there are a couple of rules or challenges that result in significant savings and a renewed approach to saving money.
Budgeting Tips: The 50/20/30 Rule
When it comes to financial advice, one of the most fundamental money saving rules is the 20/30/50 rule – this is the easiest and quickest way to see consistency, self-control and quick savings.
What is the 50/20/30 budget rule?
The 50/30/20 budget rule is a simple and effective percentage based approach to budgeting, eliminating the need for complicated budgeting categories.
It involves splitting your after-tax income into just three sections:
- 50% of your income is spent on needs
- 30% of your income is spent on wants
- 20% of your income is spent on savings and paying off debt
In this case, your needs will include all living expenses (rent, utilities, food, transportation, clothing, minimum repayments on debt). Wants will include lifestyle choices that range from movie tickets and holidays, to pets and gym fees. Finally, 20% of your income should be dedicated either to your savings or to paying off debt, if you have any.
Ultimately, the 50/30/20 rule is the best approach when it comes to how to save money in Sydney.