As a family of four, we’ve come to realize that managing a household on a budget doesn’t just happen—it’s something we plan for and work at every day. Living in Melbourne’s western suburbs offers some financial breathing room compared to being closer to the city, but it still comes with its costs. For us, it’s not just about what we spend; it’s about ensuring our home is safe, comfortable, and filled with small moments that make it all worthwhile.
We don’t live extravagantly, but we take joy in the little things. Every Saturday, we head out for a simple meal at a local restaurant, and on Sundays, we enjoy a cozy home-cooked dinner. My husband works hard to support us, and I do my best to manage our expenses so we can live within our means and still enjoy the things that matter most.
1. Rent
Rent is usually the largest expense for most families, and it’s no different for us. Living in the western suburbs helps keep the costs manageable, but it’s still a significant part of our monthly budget. When we chose our house, we focused on finding a place that was in a safe neighborhood, close to good schools, and within our budget.
- Monthly rent: $2,930 (for a 4-bedroom house)
2. Utilities
Utilities can add up quickly, but we’ve learned how to manage them by being mindful of our energy usage. In the summer, we use the air conditioner sparingly, and in winter, we bundle up before turning on the heater.
- Electricity: $90/month
- Gas: $80/month
- Water: $50/month
- Internet: $90/month (We both work from home, so a good internet connection is a must.)
- Phone: $78/month (We share a 100 GB data plan with Optus, which is more than enough, though we’re looking for a cheaper option.)
3. Groceries
Feeding a family of four can be tricky, but we’ve found a balance. We shop smart, look for deals, and plan meals to avoid unnecessary spending. We’re not big on snacks or drinks, but we make sure everyone is well-fed with simple, balanced meals.
- Groceries (weekly total): $300–400
- Monthly groceries total: around $1,500
4. Transportation
Since we work from home, we don’t use our car much during the week. However, weekend outings, regular maintenance, and insurance still contribute to our expenses. We also use public transport on occasion, especially for trips into the city.
- Fuel: $80/month
- Car maintenance: $500/year
- Insurance: $1,700/year
- Public transport: Zone 2 daily fares are $7/adult and $3.50/kid, though this varies depending on usage.
5. Primary Schooling
Education is one of our top priorities. We’re lucky to have access to good public schooling, but there are still extra costs for uniforms, school supplies, and contributions. We try to save where we can, buying second-hand uniforms and alternatives from Kmart and Big W.
- School uniforms: We used the $400 government bonus to cover some costs, along with second-hand purchases.
- Booklist: $130/child
- School contributions: $140/child
6. Health and Insurance
Staying on top of health-related expenses is important for us. While we have private health insurance (partially subsidized through work), there are still some out-of-pocket costs for visits to the doctor or dentist.
- Private health insurance for family of four: $350/month (after company subsidy)
7. Entertainment and Leisure
We don’t need fancy entertainment to keep us happy. A simple dinner out on Saturdays and the occasional family outing to the park or beach is all we need to unwind and reconnect. It’s nice to focus on these little pleasures without feeling the need to splurge.
- Dining out and snacks: $200/week
- Family activities (movies, parks, etc.): $0–100/month
8. Income Tax
Income tax is one of the larger expenses we factor in when managing our household budget. It affects the take-home pay we can use for our other essential costs. Knowing our tax bracket helps us better plan for the year ahead.
- Income tax: This will depend on your income and the tax bracket you fall into, but it's important to consider this in your budget. You can calculate your tax using this tool: Australian Tax Calculator 2024-25.
Finding Balance
We try to focus on buying what we need and prioritizing what truly matters—our family’s happiness and future. We have bigger dreams, like sending our kids to private secondary school, buying a home, and saving enough to travel and eventually retire comfortably. Balancing all these aspirations with our day-to-day living expenses can be challenging, but it’s part of the journey.
At the end of the day, we’ve learned that it’s not about having it all—it’s about making the most of what we have and enjoying the simple, meaningful moments together.gether.