Being single can be empowering and rewarding, but it sometimes comes with financial challenges that aren’t always obvious. From utilities and rent to car costs and everyday bills, what feels manageable in a two-income or shared household can quickly become overwhelming when you’re covering the costs alone. With the right strategies and support, financial planning for singles can help turn these challenges into opportunities for stability and growth.
This added strain is often referred to as the ‘singles tax’. Which is the extra economic pressure that makes solo living more expensive than shared living. While the reality can feel unfair, the good news is that with the right strategies and the support of experienced Geelong accountants, financial advisors, and financial planners; living on your own doesn’t have to mean falling behind financially.
What Is the Singles Tax?
Firstly, to be very clear… the ‘singles tax’ isn’t a literal tax. It refers to the way single people miss out on the economies of scale that couples or households benefit from.
Many expenses like electricity, internet, car registration and streaming services cost the same whether one person or two are using them. With a partner, those fixed costs are shared, reducing the per-person outlay.
Couples also benefit from perks such as bulk grocery shopping, tax advantages, and combined income when applying for loans or rentals.
How Much More Do Singles Pay?
The extra cost of living solo quickly adds up. According to the Australian Bureau of Statistics (ABS):
- The average one-person household spends $2,835 per month.
- Couples spend $4,118 per month but that’s just $2,059 per person.
This means single Australians are spending an extra $776 each month or $9,312 a year compared with someone sharing costs with a partner.
Beyond day-to-day expenses, being single can also create hurdles when applying for a mortgage or rental. Without a second income, lenders and landlords may see solo applicants as higher risk unless they can provide several months rent in advance. Careful budgeting and financial planning for singles can make a significant difference in easing these pressures.
Smart Ways to Ease Financial Pressure
Living on your own can feel more expensive at times, but it also gives you complete control over how you spend, save, and plan for the future. With a few clever strategies, many singles find they can live comfortably and even enjoy more freedom on a single income.
1. Find a Housemate (If It Suits Your Lifestyle)
If you’ve got the space or are open to sharing, a housemate can instantly cut your rent and utility bills in half. It’s also a chance to add some social connection to your home life. For those who prefer privacy, consider shorter-term arrangements like renting out a spare room during holiday seasons.
2. Track Your Spending With Purpose
Tracking isn’t about restriction, it’s about awareness. By seeing where your money goes each month, you can redirect it towards things that genuinely matter to you, whether that’s travel, hobbies, or saving for your next goal. Even small changes, like cancelling unused subscriptions, can add up over time.
3. Compare and Negotiate Your Options
Being single means you only answer to yourself which makes switching providers and negotiating a lot simpler. From insurance and utilities to mortgages and bank accounts, regularly reviewing your options can save hundreds of dollars each year.
4. Shop Smarter for Groceries
Living solo doesn’t mean wasting food or overspending. Plan meals ahead, buy in bulk with a friend or family member, and use your freezer to stretch out fresh produce. Seasonal shopping is another easy way to cut costs while still eating well and of course if you have the space to grow a few things in the garden or in pots, that could save you money too… herbs are so expensive these days!
5. Explore Extra Income Streams
If you’ve got the time and energy, even a small second income can make a big difference. That might mean freelancing in your area of expertise, picking up a casual weekend shift, or turning a hobby into a side hustle. The added bonus? Extra income can be funnelled straight into savings, investments or your super as part of your financial planning for singles strategy.
How Geelong Accountants and Financial Advisors Can Help with Financial Planning for Singles
While these strategies can help with day-to-day savings, the bigger picture is just as important. Working with our professional Geelong accountants, financial advisors, and financial planners ensures you’re not just managing today’s costs, but building long-term financial security through tailored financial planning for singles.
At LBW Business + Wealth Advisors, our team can support you with:
- Accounting and tax planning tailored to your circumstances
- Budgeting resources that make living solo more manageable
- Investment and wealth management advice to build for the future
- Retirement and superannuation planning so you’re financially prepared down the track
- Structuring your finances to reduce risk and maximise opportunities
We understand the unique challenges single Australians face and provide clear, personalised advice to help you feel confident in your financial decisions.
Ready to Take Control of Your Finances?
Talk to one of our experienced Geelong accountants, financial advisors, and financial planners today. Call (03) 5221 6111 or visit www.lbwca.com.au to book an appointment.
