Single and feeling the cost of living crunch? Here’s how to save money

No one has been left totally unscathed by the current cost of living crisis, but young, single Australians have been among the hardest hit.

Lucy Banks, a single mother of two, says she’s been feeling the crunch. The 32-year-old is an OnlyFans content creator, and runs two businesses on the side. She’s grateful to enjoy the flexibility of being self-employed, which means if she has a big bill coming up she can work more hours and earn a bit more. “The only limits are my own,” she says.

Many single Australians are struggling as the cost of living rises. But there are ways to streamline your budget.Credit: Nathan Perri

But she also acknowledges that because her work largely relies on people having disposable income, she’s been forced to lower her prices to maintain customers.

Jessica Brady is a qualified and licensed financial adviser and founder of The Greenhouse, an online financial literacy program to help people build a better relationship with money and learn how to grow their wealth.

She says couples can often tap into economies of scale, where some bills, especially those attracting fixed charges like water, don’t naturally halve just because someone lives alone.

“Particularly for women, on average we earn less, and we know that more and more people are living alone post-COVID, so when you have to fund those bills yourself it’s an enormous amount of your pay.”

Instead of creating a budget, which can have restrictive connotations, Brady advises clients to create a cash-flow plan. This means doing a spending audit, ideally over a 12-month period to account for annual expenses, such as car registration. Once you’ve worked out where your money is going, you can allocate funds each month using automatic transfers, and find areas where savings can be made.

Molly Benjamin, founder of Ladies Finance Club, suggests starting small with budgeting if you feel overwhelmed. “Choose one category, like your grocery shopping and see how you can hack it. Once you’ve nailed it, move on to the next.”

Both Benjamin and Brady say that calling your utility providers – internet, mortgage, electricity or gas – to negotiate a better rate is an undervalued but often successful way to reduce essential costs.

When it comes to groceries, meal planning is often the first thing people suggest to save money, but if you’re single, eating the same meal five days in a row can be boring. Benjamin suggests a “soup swap”, where each person in your group cooks a different dish, then does an exchange (of course, this can be done with any type of food). She also suggests having meat-free days, learning how to store food properly so it lasts longer, and shopping online to avoid impulse purchases.

Having honest conversations about money with friends, family, and those you are dating is key.Credit: iStock

Once you’ve mapped out your key expenses, it’s time to look at what’s left over. Work out what your financial goal (or goals) is, and put a portion of your paycheque towards this every time. This can be hard if you’re single, says Benjamin, since you’re the only one keeping yourself accountable.

Banks says having a clear goal is key. “Once I have a figure in my head, I get obsessive over it. Would I rather see an extra $100 in my bank account, or spend $100 on a new pair of sneakers?”

“Write it down, set it as your phone background. Keep your goal front of mind, and it’s amazing how you will get turned off making unnecessary purchases.”

Finally, the fun part: spending that remaining bit of money. For many singles, especially those living alone, this means socialising. But this can be expensive.

Brady says it’s about being open with friends about your financial situation. “When we leave uni and start working, there can be a societal expectation that everyone has their money sorted. But there’s an enormous amount of invisible financial stress that is impacting almost everyone.”

She encourages people to share their savings goal with friends, and suggest cheaper alternatives to going out, like a roster of who cooks dinner within a friendship group each week.

“My clients who got themselves out of debt, the main predictor of whether they could or not was whether they were prepared to have honest conversations with their friends and families about the realities of their money,” she says.

Brady also recommends “spreading economies of scale” by sharing items with friends. For Mardi Gras, she borrowed an outfit from a friend, and another friend recently lent a car for a weekend away. Gumtree and Facebook Marketplace are also handy, as well as “libraries” that lend everything from lawnmowers to board games (In Sydney, there’s The Sydney Library of Things, and in Melbourne, The Sharing Shed).

If you’re dating, a similar open approach to money also applies.

Banks has recently begun seeing someone who is in a similar financial position. She said they had conversations early on and will cook at home when money is tight. “I’ve been in relationships where one person is a spender, and one is a saver, which is so stressful.

“One of the main things couples fight about is money – so why wouldn’t you be open from the beginning?”

Benjamin suggests non-expensive dates that aren’t stingy, such as long walks, visiting galleries or looking for happy hours in your local area. She stresses that your investment should be your time, rather than your money, especially if you find that you don’t want to see the person again.

“If you’re single, and you want to date, you have to budget,” says Benjamin. “People should respect you being upfront.”

Brady agrees. “A good person you’re trying to spend time with will be open to listening to your plans. If you don’t tell them, you’re accidentally sabotaging yourself. I don’t think this sets up a relationship well.”

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