So in an effort to really walk in the shoes of those I am trying to understand, I am going to put my money where my mouth is!
Let’s not just talk about the plight of those living just on a CentreLink income let’s experience it…..
Let’s suppose I am 40 years old and am a family of 4 living on New start and my children are 13 and 15 years old.
My income would be approximately $1,231.80 per fortnight plus rent assistance of $78.40 per fortnight.
We rent a modest 3 bedroom dwelling for $300 per week rent
So before I even begin, my total fortnightly income of $1,310.20 has been reduced to $710.20 because of my rent.
Can I live on that and most importantly can I live on that successfully?
As a financial coach I have learned that in order to live successfully on a small income I need to put away for upcoming expenses and live on less so I can save for the unexpected.
This can seem impossible but it is necessary and I have seen those in such a situation achieve this but it takes focus and determination – so here goes….
In order to successfully afford all of my known expenses I would need to put the following away every fortnight:
Bills $184 please see the information box below to see what bills are covered by this
Mobile $20 because I am on a $39.99 per month mobile plan
Health Insurance Extras $33.95 because I am on a $67.90 per month plan
Fuel $120 because I need to put around $60 per week fuel into my car
Food $300 so I will need to keep my food/grocery shopping to $150 per week
Extras $32.25 because we all know that there are other expenses besides food, fuel and bill
Savings $20 because I want to start having a fund for emergencies – they happen to everyone
So could I do it?
It sounds possible on paper doesn’t it and that is because our live’s don’t depend on it but what if we actually try and live on:
A total Lifestyle Budget of $704.25 per month:
$600 per month Food
$64.25 per month put aside for any extras in the budget
$40 per month saved
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