Settlement Guide: 5 tips for household budgets

While Australians enjoy some of the most liveable cities in the world, the cost of living is high. Here are some tips on how to effectively manage a household budget.

Piggy bank with combination lock, side view Source: AAP

1. Set realistic financial goals

The best way to start saving is by budgeting and knowing where your money is going.

New Home in Moving Box Source: AAP

2. Save, save, save

It is good to set aside a proportion of your income to achieve your goals.

Image 3. Have different bank accounts for different expenses

Keep your savings accounts separate from general transaction accounts to isolate money for different needs.

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4. Plan for unexpected bills

Keep money aside as a contingency to pay for unforeseen expenses.

Terrified woman escaping from expenses

5. Make sure family goals are aligned

Regularly review your family budget plan and your savings plan.

Young Couple on Fire Escape Source: Getty Images

ASIC’s MoneySmart has publications, audio and video recordings in 26 languages, including Arabic, Dari, Dinka and Swahili.

ASIC also offers different online resources and can assist in finding free financial counselling.