Living Expenses
Income and Expenses Guide
Everyone's financial situation, including income and expenses are different however when considering your budget you may need to factor in the following (as a rough guide):
Income
Casual or part time work
Centrelink payment
Savings
Money from parents
Student loan
Scholarship or award
Partner's income
Other income
Expenses
One off costs/start up - like deposits, bonds.
Accommodation
Food
Transport
Utilities
Health & Medical
Dependents
University
Entertainment
Personal
Credit/Loans
Managing Your Bills
Get a calendar! Write down the due dates of bills and keep the notices in one spot so they don't get lost in a pile of notes on the kitchen bench.
If possible arrange to make regular small payments rather than waiting for the large bill to be presented. For most utilities (electricity, phone, gas, water) you can get a payment card and make regular payments (say $20 per fortnight) at a post office. Or ask the service provider if you can arrange to have regular payments automatically deducted from your bank account.
Paying the Rent
It doesn't matter if you're renting on your own or sharing with others, coming up with the weekly rent payment can be a huge effort. But out of all your expenses paying rent should be regarded as a number one priority. We all need somewhere to relax, study, sleep and feel safe and comfortable. Falling behind on your rent can jeopardise all that and can add volumes to your stress load, so do your best to keep it under control. When you get paid, set aside your rent money straight away. Or better still, pay it the same day to reduce the temptation to spend the money on something else. Ask if you can have the money automatically debited from your account (the day after you get paid so you know that the money will be available).
Keep track of when the rent is due and write it on the calendar.
If you fall behind in your rent do something immediately. Contact the real estate to advise them of what's happened. Provide a clear explanation and offer a realistic payment plan and timeline of when you'll have the payments up to date. Most real estates (and land lords) will give you a bit of breathing space to catch up on the payments if you give them an explanation and stick to an agreed catch up payment plan. If the real estate agrees to your payment plan it's a good idea not to abuse their generosity - make sure you make the catch up payments on time and always let the real estate know if there's going to be any delay.
Remember, each person on the rental agreement can be held fully liable for the rent repayments. That means that if one person skips town the real estate/landlord can pursue you for 100% of the payments. Therefore it's wise to keep a check that all flat mates are contributing to the rent and paste receipts on the fridge so everyone can see that the rent is up to date. (Make sure you get a receipt every time you pay the rent. You may need to show it as proof if there are any concerns about your payments.)
If you want more information about your rights and responsibilities as a tenant or you find your self in serious difficulty in relation to your tenancy contact the following services for advice:
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Tenants Advice and Advocacy Service (Northern area) - Phone 9884 9605
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Tenants Union of NSW - Phone 9251 6590
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Department of Fair Trading Tenancy Enquiries - Phone 9377 9100
Also check out "The Renting Guide" produced by the Office of FairTrading and an excellent web site with lots of helpful information for tenants provided by the Tenants Union and Advocacy Services.
Saving on the net and phone
Savings Tips on the Net
Do a search on the Internet to locate a range of sites that provide information and advice for living on a budget. There are a number of useful sites available. One interesting site that provides ideas and money savings tips is www.simplesavings.com.au. To access the entire site (including over 1700 tips, hints and daily updates) you can become a member of the "savings vault" for $27. If you are not a member you can still access the free monthly newsletter and other information including fact sheets at no cost.
Internet Connections
There is a range of options available if you want to access the Internet.
If you have your own computer, shop around for a good quality low cost Internet Service Provider (ISP). There are so many packages available that selecting the right ISP can be confusing.
Before you join up make sure you shop around - talk to your friends, family and colleagues to find out which ISP they are using and how satisfied they are with the service received. When you do sign up make sure you read carefully all the conditions of the ISP agreement. If there is a term or condition in the agreement that you don't understand make sure you ask for an explanation. For example many ISP plans include a limited number of MB for downloads. Do you know what that means? Will you be able to carefully monitor the amount of downloads you have used so that you don't go over your limit and end up paying a lot more? Don't sign up for anything unless you fully understand the conditions.
You may like to consider a plan that offers a minimum monthly fee plus clearly states a maximum fee charged, regardless of the amount you download. For example some ISP offer budget plans that start at $10 per month with the monthly fee capped at a maximum of $25.00 regardless of how much you exceed the download limits. A plan such as this may be useful in that it provides flexibility while also ensuring that you wont get caught unknowingly with a large bill.
Most importantly - shop around. As a starting point check out the following ISP to compare plans and prices:
Phones
Its worthwhile giving some thought to how often you use the phone and for what purpose. If you use your mobile for the majority of calls make sure you shop around for the best deal and call plan to suit you. To help you compare mobile contracts and deals checkout an independent web site at www.phonechoice.com.au
If you decide that you don't want the extra expense of renting a landline and phone for your home (the standard monthly rental is around $27 for the line plus $4 for the phone) contact your phone company and ask about an "in contact" phone. This is a landline phone connected to your home enabling you to receive incoming calls and to make emergency calls to 000. No other types of calls can be made from the phone. The great advantage of this type of service is that there is no rental fee and no call changes (but you can still receive calls from family and friends, and you can ring out in an emergency.)
Some conditions may apply so contact your phone company for more information.
If you have a landline phone you can keep on top of phone expenses more easily by paying for a monthly phone bill (rather than the standard 3 monthly). Making a monthly payment will help you manage your money more easily than getting landed with a big bill every three months.
Other ideas for managing your landline phone include asking your phone company to bar outgoing calls to international numbers and 1900 information services (these can cost from $0.55 cents a minute to over $12.00 a minute).
If you live in a share household dividing up the phone bill can be very tricky. Some phone companies are aware of the difficulties for shared households and are able to provide a separate bill to each customer using a PIN system. Each time you make a call you enter your private PIN so the call is charged to your personal account. Contact your phone company to check out if they offer this or another similar service. There may be a fee for this service.
Remember if the phone is registered in your name you are responsible for any outstanding bills and the phone company can take action to recover an outstanding debt against any one person whose name appears on the bill. Regardless of weather there are two people registered as the account holder, if one person skips town then the other person may be held wholly liable. So watch out! If you want to know more about your rights and responsibilities in relation to outstanding debts contact the Consumer Credit Legal Centre on phone 9212 4111 or on the web at www.cclcnsw.org.au
Free SMS
Although SMS seems like a cheap way to communicate - all those 20 cent messages soon add up. You might be able to save a few dollars by sending SMS via the Internet. There are a couple of Australian web sites that enable you to send SMS for free. Some have special terms but mostly they just want you to register your name and email address. Type "free sms" into your preferred search engine to locate the different sites available.
Transport
Car parking
If you plan to park on campus make sure you display a valid parking ticket. There are various types of parking permits available including monthly, six monthly and yearly passes. Visit the Student Enquiry Service to obtain more information and an application form.
Remember don't park in restricted areas or unmarked bays. If you do you are very likely to cop a parking fine. Campus security is vigilant and likely to catch up with you if you're doing the wrong thing. A parking fine of $70 can have a significant impact on your budget.
If you don't want to pay for parking on campus then you can park for free on the public roads around the perimeter. You'll need to arrive about 5-10 minutes earlier to give yourself time to park the car and then walk onto campus. You will save money and also enjoy a nice stroll through the campus and can check out the lovely natural environment and some great artworks and sculptures around campus. For safety at night catch the campus courtesy bus from the entrance of the library to where your car is parked.
Private Transport
Have you considered car-pooling? You can share the ride, split the travel costs and also help the environment. Talk to your friends or classmates to find out if they are interested in car-pooling, or place an ad around campus to find a travel buddy.
Public Transport
Using public transport can be a cheap and convenient option for travelling around town and getting to university. If you use public transport give some consideration to the type of ticket you purchase. There is a range of ticket and fare types available so do your homework to find out which ticket provides the best value for money, depending on your circumstances.
For example if you catch the train you can save a great deal of money by purchasing a weekly, monthly or yearly tickets or travelling at off peak times if possible.
If you use buses regularly it might be wise to purchase a Travel Ten. You save time and money by purchasing a ticket that entitles you to travel up to ten times. You can use it to travel on almost any state government bus, on any route as long as you don't exceed the travel distance (number of sections) on the card. There are five Travel Ten tickets to choose from, based on travel distance.
For full information on the fare and ticket types available contact the Transport Infoline. A simple phone call will enable you to find out which fare suits your needs and saves you money. You can contact the Transport Infoline by phone on 131 500 or visit the Transport Infoline Web site.
Student Travel Concession Card
If you are a full time domestic student you may be eligible for a student travel concession card. There are two types of concession cards - one for state government travel and one for travel on private bus services.
The basic conditions of eligibility for a concession card state that recipients must be:
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A full time student, attending day classes
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Aged over 16 years (and under 30 years for the private bus service concession)
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Not be engaged in business or employment or receive remuneration (scholarships and Centrelink allowances are generally not counted as remuneration)
Application forms can be obtained from the Student Enquiry Service, Level 1, Lincoln Building. Complete a green form for a state government travel concession and /or a pink form for private bus services.
For more information about student concessions, fares or timetables contact the transport Info line on 131 500 or visit the Transport Infoline Web site.
Please note that International Students are generally not eligible for a student travel concession however there are some exceptions. For more information about eligibility international students should visit the International Office.
Health and Medical
If you're an Australian resident and you need to see the doctor, you can save money by accessing a doctor who bulk bills. You will need to take your Medicare Card along to access bulk billing services. (You can obtain your own Medicare Card and find out about your entitlements by contacting Medicare on 132 011 or check out the Medicare web site.)
The University Medical Service is a bulk billing practice and is conveniently located on campus at Level 2, Lincoln Building. Remember to bring your Medicare card to every consultation.
The University Medical Service also offers reduced (often cost price) immunisations and travel vaccinations. If you're travelling overseas and require vaccinations contact the medical service for a price list.
Health Care Card
Depending on your income and assets you may be eligible for a health care card. This card entitles you to free or discounted public health and dental services and reduced price pharmaceuticals. The eligibility rules and conditions are complex and can be confusing but if you receive Austudy, Abstudy or Youth Allowance you should contact Centrelink and enquire about obtaining a Health Care Card. If you don't receive a benefit but are a low-income earner you may also be eligible. Contact Centrelink on phone 132 490 to find out more or check out the health care cards info on the web site
Health Insurance
Have you considered obtaining health insurance and/or basic ambulance cover? International students are required (as a condition of your student visa) to have private health insurance for the duration of your stay in Australia. Interestingly most domestic students probably don't consider health insurance as a necessity. Perhaps this is because Australian residents generally have good access to public health services.
However, there is a range of health insurance programs available including some low cost options that students might like to consider.
Ambulance cover
Although none of us like to imagine that we will fall sick or be involved in an accident the unfortunate reality is that these things do happen. If one day you do require emergency transportation by ambulance you could receive a large bill from the ambulance service (the fee is $158 for the first 16km and increases by $4.04 for each additional km).
Most health insurance providers offer basic ambulance cover for a fee of around $60 per annum.
Before you join up check if you are already entitled to free ambulance services. People who hold a current pension card, health care concession card or a commonwealth senior citizens card receive free ambulance transportation (subsidised by the government). Also if you're a full time student under 25 years you may still be covered by your family's health insurance policy (certain eligibility criteria apply). Talk with your parents to find out if they have health insurance and check with the provider to ensure you know what your entitlements are under the policy.
Extras cover
If you are young, fit and healthy you might like to consider obtaining basic health insurance cover, often called "extra's cover". This doesn't cover you for private hospital but does offer cover for a wide range of health care services and emergency ambulance transportation. For a fee of around $35 per month, "extra's cover" will enable you to claim back some costs involved in maintaining your good health. For example dental, physiotherapy, massage, alternative health remedies etc. Health funds vary so be sure to obtain the full details, including waiting periods, from the provider before you sign up.
If you are interested in private health insurance check out the various providers and compare their prices and plans.
As a starting point try:
- choice magazine (compares insurance policies)
- HCF
- NIB
- Medibank private
Living
Electricity
Ensuring that the electricity bill is paid will keep your life bright! If your electricity gets cut off because you haven't paid the bill you are likely to end up with a much bigger expense because you will have to pay a reconnection fee.
You will be surprised how much you can reduce the cost of electricity just by taking a few simple steps to reduce your electricity consumption. Not only will you save money but you are also helping the environment. Check out the Integral Energy web site for tips and hints on how to reduce your electricity consumption and save. The site lists a heap of practical ways to save electricity and reduce your costs when cooking, washing and drying, using lighting and other appliances. There's also an electricity calculator where you can work out how much electricity you are using and how much it's going to cost you.
Friends
Hang out with people who are also on a budget! They know how tough it is and will also be conscious of saving money. They may have ideas about how to save money, cheap eats and places to shop.
Food
Make a food plan. A good healthy diet with plenty of fresh fruit and vegetables is essential to keep your mind and body fit for study. Don't compromise a healthy diet to save money. If you do, the chances are it will end up costing you money, not to mention your time and health, in the long run. If you don't eat a healthy diet you won't function as well, your grades could fall and you are more likely to become sick and therefore unable to study or work.
Generally, it's actually cheaper to eat a healthy diet!
Take a few minutes to consider and plan ways to reduce the cost of food purchases and you may be surprised at how much you can save. When you are on a student budget, every cent counts.
Avoid purchasing food on the run. It seems obvious but purchasing food from the supermarket works out considerably cheaper than purchasing food on the run. Bring your lunch from home (last night's left overs are great) and heat it in the microwave at the SAM building or in the Women's room. Most of us are in a rush in the mornings so it's a great idea to prepare your lunch the night before. Sounds like an effort but think of the money you'll save - which you can spend on more interesting or important things.
Bakery discounts. At most larger supermarkets you can purchase bread and bakery products at a reduced price (often up to 50%) about an hour before closing time. Think about buying bulk loaves and storing them in the freezer for convenience.
Buy in bulk. You can often make significant savings by buying in bulk. Why not team up with one or two friends in order to do a bulk buy shop? It may take a little bit of extra planning and some effort dividing the goodies into smaller bags but you can save heaps. (You are also making a small contribution to helping the environment by reducing the consumption of plastic packaging.)
With a few plastic containers in hand you can easily divide up items such as a 10 kg bag of rice, the larger box of cereal or the bigger tray of biscuits. Remember to consider carefully which products will be useful to you and if you'll be able to consume them before the use by dates.
Discount supermarkets. You can usually shop at the larger discount supermarkets for a lot cheaper. Next time you go shopping why not check out an Aldi supermarket. Aldi have received good reports from consumers who are impressed with the price and quality of the groceries available. Franklins and Bi-Lo are other options.
Fruit and vegetables. You can often save money by purchasing fruit and vegetables from a market rather than at the grocery store or supermarket. Fruit and vegetable markets usually offer a variety of products, which are in season, and are therefore a lot cheaper and fresher. Consider joining together with a group of friends to buy in bulk. There are markets operating at Flemington (near the Homebush Bay Olympic venue) and at various sites throughout Sydney. For more information and location details check out sydneymarkets.
Foodshare. The foodshare program is a community project that enables participants to purchase a large box of fruit, vegetables and groceries (valued at around $35) for only $15 and 2 hours voluntary work of the participant's choice. Families may purchase additional units on the same basis. The project provides benefits to all involved. It's a great way to make a contribution to the community and also obtain a box of healthy and nutritious food. By participating in the Food Share Project you'll also meet new people and make new friends.
There are foodshare project groups located across the city, north, south and western suburbs. Checkout the foodshare web site or call the main office in Alexandria on (02) 9310 2722.
Text Books
For almost all of your university subjects you will need to purchase textbooks. They are a very important component of any tertiary course but can be very expensive. Depending on your program of study you may have to spend between $100 and $500 per semester on textbooks.
In an effort to save money some students choose not to purchase the required textbooks for some subjects. With good intentions students often believe that they will access the books in the library or borrow them from a friend. However it's worth giving some thought to how effective and practical this will be for you. If you're on campus often and have plenty of time to access the reserve section in the library then you should be fine. However if you are running from class to work or to pick up the kids it can be very difficult to complete a subject without owning the required texts.
At your first lecture or tutorial ask your academic which books they regard as essential reading for the subject. The academic may be able to suggest which books are a priority to purchase at the commencement of the subject and which ones can be purchased in the later stages or perhaps accessed in the library.
For cheaper texts check out the second hand bookshop (Bookschwop -located in the SAM building) or ask around for students a year ahead who might be interested in selling their books.
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