{"id":6951,"date":"2023-07-21T12:10:51","date_gmt":"2023-07-21T02:10:51","guid":{"rendered":"https:\/\/nimble.com.au\/blog\/?p=6951"},"modified":"2026-03-19T13:51:12","modified_gmt":"2026-03-19T03:51:12","slug":"budgeting-for-single-income-households","status":"publish","type":"post","link":"https:\/\/nimble.com.au\/blog\/budgeting-for-single-income-households\/","title":{"rendered":"Budgeting for single income households"},"content":{"rendered":"

The Australian housing market poses significant challenges for single-income and dual-income households as they grapple with the burden of mortgage repayments and other expenses. According to a research study conducted by Canstar, homeowners repay an average of $584,836 for their home loans, leading to a monthly loan repayment of $3,883. For the average single-income household in Australia, this translates to approximately 135 hours or 18 days of work every month dedicated solely to covering their mortgage expenses. Unfortunately, this can leave little room for meeting other essential household expenses, creating a difficult financial situation. However, it’s important to note that this figure may vary significantly depending on the specific circumstances and profession of each individual single-income household.\u00a0<\/span><\/p>\n

Canstar’s editor-at-large, Effie Zahos, expressed concern about the implications of this financial strain. With 82% of their monthly working hours devoted to mortgage repayments, single-income households face limited resources to cover other crucial expenses such as groceries, electricity bills, and insurance premiums. These basic necessities already demand a substantial portion of their income, which can leave little for discretionary spending or saving for emergencies.<\/span><\/p>\n

The cost of living crisis exacerbates the situation further, with a notable 7.9% increase in the cost of food and non-alcoholic beverages over the past year. This can put immense pressure on families struggling to make ends meet, as the average monthly grocery expense alone amounts to three days’ worth of wages. Additionally, the average monthly electric bill of $162 would require almost six hours of work to pay off.<\/span><\/p>\n

Apart from groceries and electricity bills, other household essentials like home and contents insurance impose additional financial strain. The average monthly premium of $187 necessitates nearly an entire day’s worth of wages, and can leave single-income households with limited funds to allocate to other important aspects of life.<\/span><\/p>\n

However, the impact of the financial struggle goes beyond monetary constraints; it affects the very essence of life\u2014time. With most of their working hours spent on bills, single-income households have little time left to pursue interests, hobbies, or spend quality time with loved ones. As Effie Zahos rightly emphasises, time is indeed the most valuable asset, and the cost-of-living crisis robs families of the opportunity to invest in activities that bring joy and fulfilment.<\/span><\/p>\n

To navigate this cost-of-living crisis, single-income households can implement effective budgeting strategies:<\/em><\/strong><\/p>\n