Where is all your money going?

Financial experts generally recommend saving at least 20% of your after-tax income. The average Australian savings rate fluctuates but saving 10-20% is considered healthy. Even saving 5-10% consistently is far better than saving nothing — the key is making it automatic.

The 50/30/20 rule suggests allocating 50% of after-tax income to needs (housing, food, transport), 30% to wants (dining, entertainment, holidays) and 20% to savings and debt repayment. It is a simple framework but may need adjustment for Australia's high cost of living in major cities.

The most effective strategies are: pay yourself first (automate savings on payday before spending), use separate accounts for different purposes, track every expense for one month to identify leaks, and set specific savings goals. Apps like Up Bank, Pocketbook and YNAB are popular with Australians.

The 30% rule suggests spending no more than 30% of gross income on rent. However in Sydney and Melbourne, many households spend 35-40% due to high rents. If you are spending over 30% on housing, focus on reducing other discretionary expenses to compensate.