Making the Most of a Low Income

Earning less than $40,000? Read on for some tips that will hopefully help you in controlling your finances.

Track your spending
- Learning how much you spend will make you more conscious of where your money is going and how you can cut down on some expenses.
Pay your bills in instalments
- Rather than paying bills annually, you may be able to pay them in monthly instalments instead. Or, if you have a good budget in place, it may be worth paying yearly if it will work out cheaper than paying monthly.
Save money on your grocery shop
- buying canned beans, vegetables, and cheap staples like rice and pasta to make budget friendly meals. Cutting out meat can be cost-effective as well as being good for the environment and your health.
Can you find cheap accommodation?
- Can you move back in with family or friends to save on rent and utilities? Can you live in a share house to split the payments? Cutting down on living costs will be the best way to cut out spending quickly.
Have an emergency fund.
- A cash buffer, or emergency fund, should be a priority to build up if you are on a low income. Having a buffer means if you do have any unforeseen expenses come up you will be able to pay with cash instead of having to dip into credit or get a personal loan. Any amount of cash is better than none, but aiming for at least 1-2k or ideally three months of expenses will leave you in the best position possible.

Check if you are eligible for government benefits and payments.
- Centrelink
- Housing, aged care and disability services
Check for state government grants, concessions and assistance.
- Depend on the state in which you live in, each state varies.
See if you can pick up a second job for additional income.
- This one is self explanatory, see if you can find extra hours on week nights or weekends for additional income.

See if you are eligible for the no interest loan scheme (NILS)
- No interest loans are provided for individuals and families on low incomes for essential goods and services for up to $1,500. This may include things such as fridges, washing machines, car repairs and medical procedures. The repayments are set at an affordable amount over 12 to 18 months.
Have a look at the good insurance company for cheaper insurance
- They offer affordable and simple insurance policies for people on low incomes, in conjunction with some of Australia’s largest insurance companies.
See if you are eligible for the low-income superannuation tax offset (LISTO)
- If you earn $37,000 p.a. or less, you may be entitled to a LISTO. This means that the Australian Government will contribute up to $500 to your super balance per year. There is nothing you need to do on your end, if you are eligible the ATO will pay the money into your super.
See if you are eligible for the Saver Plus Program
- Saver plus is a financial education program for families and individuals on a tight budget to develop-life long savings habits. If you reach your savings goals you can have your savings matched by up to %400 by ANZ for education items for you or your children’s education expenses.
- To be eligible you must:
  - have a health care care or pensioner card AND an eligible Centrelink payment.
  - Be in school yourself OR have a child in school
  - Have regular income from work
  - Be 18+ years old