Managing finances as a single person can be both liberating and challenging. While you have full control over your money decisions, you may also face higher costs compared to couples. With the rising cost of living, it’s more important than ever to develop smart financial habits that set you up for long-term success.
No matter what stage of life you’re in, being proactive about your financial future can help you achieve greater financial security, independence, and peace of mind. Here’s how you can take charge at every life stage.
In Your 20s: Laying a Strong Financial Foundation
Your 20s are a time for exploration and growth—but they’re also the perfect time to build strong financial habits that will serve you well for decades to come.
- Create a budget that works for you – Track your income and expenses to gain a clear picture of your spending habits. Budgeting apps or spreadsheets can make this process easier.
- Start an emergency fund – Aim to save at least 3–6 months’ worth of living expenses to protect yourself from unexpected setbacks.
- Tackle high-interest debt early – If you have credit card debt or personal loans, focus on paying these off as soon as possible to avoid costly interest charges.
In Your 30s: Growing Your Wealth
As your career progresses, you may have more financial stability and opportunities to build wealth.
- Invest for the future – Whether it’s purchasing your first home or exploring investment options, now is the time to grow your financial assets. Look into government incentives like the First Home Owner Grant or the First Home Super Saver Scheme.
- Boost your superannuation – Making voluntary contributions to your super can have a big impact on your retirement savings over time.
- Protect your income – Consider income protection insurance to safeguard your financial security in case of illness or injury.
In Your 40s: Strengthening Your Financial Position
Your 40s are about securing your financial future and setting yourself up for the years ahead.
- Review your superannuation strategy – Check whether you’re on track for retirement and adjust your contributions if needed.
- Accelerate mortgage repayments – Paying off your home loan faster can save you thousands in interest and provide greater financial freedom.
- Ensure adequate insurance coverage – Having a solid plan in place for health, life, and income protection can provide peace of mind.
In Your 50s & Beyond: Preparing for Retirement
Retirement is on the horizon, so now is the time to fine-tune your financial strategy to ensure a comfortable future.
- Maximise super contributions – Take advantage of concessional and non-concessional contribution limits to boost your retirement savings.
- Eliminate debt where possible – Reducing outstanding debts before retirement can help ease financial stress.
- Consider downsizing or diversifying investments – Depending on your lifestyle goals, selling your home or adjusting your investment portfolio might be beneficial.
The Rising Cost of Living for Singles
Research from the Australian Financial Review1, based on data from the Australian Bureau of Statistics (ABS), found that in 2015-2016, singles spent around 3.5% more than couples to maintain the same lifestyle. Fast-forward a decade, and this financial gap has grown significantly. Experts estimate that the so-called ‘singles tax’—the extra costs associated with living alone—now ranges from 10-15%, driven by rising rent, utilities, and overall living expenses.
Final Thoughts
No matter your age or financial situation, taking control of your money is a powerful step toward a healthy, wealthy, and happy life.
At Evalesco, we’re here to help you create a financial plan tailored to your goals. If you’re ready to take the next step in securing your future, reach out to us today for expert guidance and support.
Source:
- Article – https://www.afr.com/wealth/personal-finance/the-singles-tax-stings-but-can-you-put-a-price-onhappiness/
