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ULTIMATE BUDGETING GUIDE

How to cut costs and stay on track

CREATING A FINANCIAL PLAN AND STICKING TO IT

YOUR GUIDE TO ACHIEVING FINANCIAL WELLNESS WHILE RENTING

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We know how challenging it can be to navigate Australia's competitive rental market while staying financially healthy. With the increasing cost of living, we are all feeling the pressure on our budgets. As Australia’s number one site dedicated to renters, we believe in supporting you in any way we can, which is why we're excited to launch this guide to help you achieve financial wellness while renting.

Did you know that about a third of Australians rent, and that the fastest-growing group of renters are highly educated, well-paid, and choose to rent?

Renting offers flexibility, affordability, and a lower barrier to entry than homeownership, making it a smart choice for many Australians. At Rent.com.au we're motivated to constantly develop technology and create tools that make renting better for everyone, this guide is just one small example of that.

In this guide, we'll share practical tips and insights to help you take control of your finances and make the most of your rental experience.

We've included advice on creating a financial plan, breaking down the factors that can affect your credit score, and exploring rental options like build-to-rent that

can drive meaningful change for renters.

We hope you find this guide helpful and informative. And don't forget to check out our blogs on Rent.com.au and RentPay.com.au for more tips and insights into the Australian rental market, as you continue on your journey to financial freedom.

Jan Ferreira Chief Operating Officer

Creating a financial plan: How to set goals and achieve financial wellness while renting

Renting a home can make it challenging to feel in control of your finances. With rent, utilities, groceries and other expenses to consider, making ends meet can be tricky. To achieve your short and long-term financial goals, it’s important to have a financial plan in place.

Let’s break it down: What is a financial plan?

At its core, a financial plan is a roadmap for managing your finances. It helps you assess your current financial situation, set goals for your future, and create a plan of action to achieve those goals.

A financial plan can be as detailed or simple as you’d like it to be. A basic plan could include budget and savings, or you could take it one step further and include investment strategies, retirement or debt management plans.

It should also help you achieve security in your life, especially while renting, as it’s there to help you stay on top of your finances and plan for future expenses.

Step 1. Assess your current financial situation

Before building a financial plan, you should know where you stand. How much money do you make? What assets do you have? Have you checked your credit report

and score? Consider using a budgeting tool to track expenses and income.

Step 2. Set financial goals

Setting financial goals can help you stay motivated and focused. When setting financial goals, make them SMART; Specific, Measurable, Achievable, Relevant, and Time-bound. Here are some examples of financial goals you might set while renting:

» Save for a down payment on a house within the next five years

» Pay off credit card debt within the next two years

» Build an emergency fund that covers six months of living expenses within the next year

» Start investing in a retirement account within the next six months

Step 3: Create a plan to achieve your goals

Once you understand your financial situation and goals, create a plan to achieve them and include specific actions, timelines, and milestones. If your goal is to save for a house, your plan might consist of setting aside a monthly amount, reducing expenses, and researching home-buying programs. Here are some tips for creating a plan:

» Prioritise your goals: Decide which financial goals are most important and focus on that goal first. Once you've achieved that goal, you can move on to the next one.

» Cut costs: Look for ways to cut your expenses so you can put more money towards your goals. This might include cutting back on eating out, cancelling subscriptions you don't use, or downsizing your living situation.

» Increase your income: Look for ways to increase your income so you can put more money towards your goals. This might include taking on a side hustle, negotiating a raise at work, or selling items you no longer need.

» Create a budget: Creating a budget can help you stay on track with your expenses and ensure you're putting enough money towards your goals. Use your income and expense lists from Step 1 to create a budget you can realistically stick to.

» Automate your savings: Set up automatic transfers from your main account to a savings account to save money without thinking about it.

» Track your progress: Set monthly or quarterly reminders to review how you’re going. Spreadsheets and budgeting apps can help you track your progress.

Step 4: Reassess and adjust as needed

Your financial situation can change quickly, so it's important to reassess and adjust your plan as needed. This might mean tweaking your budget, changing your financial goals, or finding new ways to increase your income. Be bold and make the necessary changes to keep your financial plan on track.

It’s also worth considering unexpected expenses and emergencies in your financial plan. This might include medical bills, car repairs, or job loss. Make sure to have an emergency fund to cover these expenses and adjust your plan accordingly.

How does your rental situation affect your financial plan?

Consider your tenancy. Does it change things? For example, if your lease ends soon, factor in the cost of moving, a new rental bond, and potential rent increases.

You should budget for a possible pet bond or a higher rent if you have a pet. If you don’t have a car, factor in the cost of public transportation or ride-sharing services.

Stay motivated and accountable

Find a support system, whether a friend, family member or financial advisor, to keep you on track and provide guidance and encouragement. Celebrate your progress and milestones along the way, and don’t be afraid to adjust your plan if necessary.

Home Southbank is reinventing renting in Australia

Home Southbank is Australia’s first premium apartment building designed specifically for renters, combining the service and amenities of a great hotel with the contemporary comforts of home to create a unique lifestyle experience.

At Home, you’ll find a state-of-the-art co-working hub, pool, world-class gym, yoga and Pilates studio, private dining room and more. Plus, our Resident Service team are always on hand to help – whether that means signing for a package or fixing a leaky tap. You’ll also enjoy exclusive resident events and workshops covering everything from cocktail mixing to art talks to footy screenings.

Our spacious two- and three-bedroom apartments –starting from $830 per week* – are perfect for couples, families, friends and those who enjoy some extra space. Clever and flexible layouts maximise liveability while ensuring open, inviting shared spaces.

In each apartment, you’ll find plenty of natural light and sweeping views – as well as ample storage space and a spacious kitchen complete with a Bosch cooktop and oven. Located minutes from the CBD and near the National Gallery of Victoria, ACCA and the theatre district, you can enjoy the best Melbourne offers – right on your doorstep.

Key Points:

» Home is reinventing renting in Australia

» Home Southbank combines the service and amenities of a great hotel with the comforts of home

» Home comes complete with co-working hub, pool, gym, Pilates studio and pet friendly living including pet spa and curated events calendar

» Spacious one, two and three bedroom apartments available from $715 per week*

» Home residents can enjoy all Melbourne has to offer on their doorstep

Home Southbank residents can enjoy:

World-class gym

Heated indoor pool

Wellness spaces

Yoga and Pilates studio

Co-working hub

Residents’ lounge

Curated events

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The ultimate guide to budgeting for renters: How to cut costs and stay on track

Want to get ahead? Staying on top of your finances is crucial. But it's not about having a big salary; it's about smart budgeting and creativity, one month at a time. Let’s look at some practical tips to help you build an emergency fund, reduce unnecessary subscriptions, and cut costs.

BUILD AN EMERGENCY FUND GET CANCEL HAPPY

Building an emergency fund is a great step towards achieving financial freedom and peace of mind. It provides a cushion for unexpected expenses derailing your budget, like car repairs or medical bills. By setting aside a portion of your monthly income, you'll have the means to cope with unexpected financial challenges without relying on high-interest credit cards or short-term lenders.

This helps you avoid costly debt and gives you a sense of financial security and independence. The ideal emergency fund amount varies based on your circumstances and risk tolerance, but most experts recommend saving up three to six months' worth of living expenses.

We've all been there - signing up for a subscription or service, only to realise later that we don't need or want it. But how many of us take the time to cancel those subscriptions and cut back on our monthly bills? Be merciless and evaluate which subscriptions are worth keeping and which can go - take a closer look at your streaming services, audiobooks, paid services, and gym memberships.

Reducing your subscriptions can reduce your monthly bills and save some serious money. Start cancelling them today and watch your bank account grow. You'll see how much money you can save with just a little effort.

LOOK FOR WAYS TO REDUCE YOUR RENT

Your rent is likely your biggest expense, so finding ways to reduce it can significantly impact your budget. Consider moving to a less expensive apartment or negotiating with your landlord for a lower rent. You can also look for roommates to split the cost of rent and utilities. If you can’t reduce your rent, consider other ways to reduce your housing expenses, such as lowering your utility bills.

USE PUBLIC TRANSPORTATION OR BIKE INSTEAD OF DRIVING SHOP SMARTER

To cope with the escalating cost of living, many of us are searching for effective ways to cut back on grocery expenses. One of the simplest methods is to explore local options like butchers, greengrocers, discount chemists, and independent supermarkets that offer competitive prices on fresh produce and other essential items.

Another way to save is to take advantage of discounts on items with a long shelf life or that are non-perishable. Stocking up when these items are on sale means you don't have to pay full price when you need a refill. Lastly, purchasing in bulk and dividing meals into freezer-friendly portions is better for your wallet as you pay less per gram... and always have a meal ready to go.

Transportation can be a significant expense, but there are ways to reduce it. Use public transportation instead of driving or biking to work or other destinations. This will help you save on petrol, car maintenance, and parking fees. You can also consider carpooling with friends or coworkers to split the cost of transportation.

TAKE ADVANTAGE OF DISCOUNTS AND PROMOTIONS

Finally, remember to take advantage of discounts and promotions whenever possible. This might mean signing up for the rewards program at your grocery store or using coupons when you shop. You can also look for deals on entertainment and other activities, such as using Groupon to save money on local events and attractions.

technology for

How it works

Prioritising your finances and using innovative solutions like digital payment platforms can increase your financial stability and flexibility, reduce stress, and make managing rent payments more convenient than ever. Let's see how digital platforms are changing how Australians pay rent, and how you can get them to work to your advantage.

One of the digital platforms we love is the RentPay app. It was designed by renters for renters and gives you more control, flexibility and security as you pay rent. It’s easy to use and only takes a few minutes to set up, so you can sit back, relax and know your payments are made on time, every time.

Make your rent money work for you

Convenience and time-saving benefits

Digital platforms offer numerous benefits, like the convenience of paying rent online. With RentPay, you can make your rent payments with just a few clicks and then set up automated payments. This ‘set and forget’ feature guarantees that your rent is always paid on time, providing you with peace of mind and allowing you to focus on other important tasks.

Rewards programs and savings buffers

Digital platforms like RentPay offer more than just convenience. They are a powerful tool for achieving financial goals. Paying your rent with RentPay using your credit card means you can earn thousands of reward

points each year. RentPay also helps you build up a savings buffer for unexpected expenses by allowing you to set up a recurring payment each time you pay rent. This feature can be a game-changer for renters seeking financial stability and flexibility.

Payments to match your pay cycle

RentPay offers flexible payment options, meaning you can pay rent weekly, fortnightly, or monthly, depending on your pay cycle. This flexibility is especially useful if your income or expenses vary.

In addition to convenience and financial benefits, RentPay and other digital platforms offer greater flexibility for renters. When moving to a new rental property, you can transfer your payments to the new property manager through the platform. This saves you the trouble of cancelling old rental payments and setting up new ones.

Security and protection

Digital payment platforms like RentPay offer greater security for renters. Transactions are encrypted and processed securely, protecting your personal and financial information.

Digital technology platforms have revolutionised the way renters pay rent. RentPay is an example of a platform that offers convenience, flexibility, and financial benefits. It’s an ideal solution if you're looking to gain control over your finances. To learn more, visit www.rentpay.com.au

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Using

financial stability and rent management: The stress-reducing solution you need

Who doesn’t love the sound of financial freedom? We all want the ability to live comfortably and make choices without being constrained by financial burdens. But paying rent often takes up the biggest portion of your budget, leaving little room for savings. However, with the right tools and strategies, you can effectively manage your rent payments and make progress towards your long-term goals.

The hidden costs of renting: How to avoid common financial pitfalls

Renting a home has many benefits - flexibility, convenience, and the chance to try different neighbourhoods before committing to a long-term purchase. But as with any major decision, you should consider the costs involved, both upfront and ongoing.

Upfront costs

When you first sign a lease, you’ll typically need to pay a rental bond, which is usually up to four weeks’ rent in most states and territories, as well as rent in advance, which can vary from two weeks to a calendar month. Depending on your local market's competitiveness, you may also be required to pay a one-time refundable application fee. These costs can add up quickly, so it’s important to budget accordingly.

To avoid financial strain, have an open conversation with the prospective property manager or landlord. If your local market’s not overly competitive, you may be able to negotiate on application fees. Finally, if you need to hire a truck to move your belongings, shop around for the best deal and book in advance to avoid paying higher prices on the day. It’s also worth considering alternative payment methods, such as paying the rent with a credit card that offers rewards or cashback.

Ongoing costs

Next, let’s talk about ongoing costs. Rent is a significant expense, but it’s not the only one you’ll need to include in your budget. Utilities like electricity, gas, and water are typically your responsibility. Internet and streaming subscriptions may also be additional expenses depending on your needs.

Planning for and reducing the ongoing costs of renting can help you avoid financial pitfalls and improve your overall financial health. One way to reduce ongoing expenses is to consider utilities when choosing your

rental property. Look for places with energy-efficient appliances and features to save on electricity bills.

Other ways to reduce ongoing costs include carpooling or using public transport to save on transport expenses and using shared laundry facilities instead of buying and maintaining your machine.

You can negotiate parking fees with your landlord or find cheaper off-street parking options. These simple steps can make your rental living more affordable and improve your financial situation.

Maintenance and repairs

One of the biggest benefits of renting is not having to pay for major repairs. While landlords are responsible for fixing major issues like a broken air conditioner, leaky roof or hot water system, more minor issues may fall into your care.

Read your lease carefully to understand who is responsible for what. Take care of your rental property to avoid maintenance costs, and report any issues to your landlord or property manager as soon as they arise.

Remember, knowledge is power when it comes to managing your finances. Take the time to research, ask questions and plan, and you’ll be well on your way to financial success.

The Afterpay Conundrum: Balancing convenience with homeownership

Afterpay makes shopping a breeze, but you might be wondering what impact (if any) your habits will have on your credit score. If buying a house is on the cards and you’re considering a home loan, here’s what’s up.

» Your credit score, income and expenses play a role in your loan eligibility

» Having an Afterpay account does not build credit, but you can’t hide Afterpay debt

» RentPay’s Scorebuilder feature can help build your credit score

What do lenders consider when you apply for a home loan?

» Your credit score: Your credit score is a significant factor when applying for a home loan and can make or break a deal. The higher your score is, the more likely you will have your home loan approved.

» Your income: What you earn determines your loan affordability. Most lenders will consider your savings and other assets, such as a car or other properties you own.

» Your expenses: A bank might ask you to list your monthly expenses, including what you spend on essentials like groceries, debt repayments and utilities. They may also request information about lifestyle spending, such as streaming services or Buy Now Pay Later (BNPL) services like Afterpay.

Does Afterpay affect my credit score?

Afterpay says their service does not affect your credit score. Their website says they “never do credit checks

or report late payments”. That said, this doesn’t mean your Afterpay habit won’t affect the outcome of your home loan application.

While Afterpay might be chill about not reporting late payments, you can’t hide any Afterpay debt from a lender because they will ask for bank statements, and any outstanding balance may factor into their decisionmaking process.

But will using Afterpay build my credit score?

It's important to note that BNPL companies like Afterpay are not considered credit providers, as they are not regulated under the National Consumer Protection Act 2009 or NCCP Act. Using Afterpay responsibly and making timely repayments won't impact your credit score.

But it’s also worth noting that having an Afterpay account won't help you build credit. While making payments on time is essential to avoid any negative impact, it won't count as positive credit behaviour as it's not reported to credit bureaus. This contrasts with credit cards and other loan repayments, where positive behaviour is reported and can help improve your credit score over time.

What happens if I miss an Afterpay repayment?

It's important to know that lenders can review your repayment history when assessing your home loan application, so missed or late Afterpay payments can impact your credibility. Additionally, late payment fees charged by Afterpay will appear on your bank statements and could raise red flags with potential lenders.

Pay off your Afterpay debt on time and in full to avoid any negative impact on your creditworthiness. If you're struggling to make payments, contacting Afterpay and discussing alternative arrangements rather than risking harming your credit score is better.

Pro tip:

Avoid using a credit card to pay off your Afterpay balance, as this could be seen as a sign that you're not managing your finances responsibly.

How can I build my credit score as a renter?

Regular repayments should count towards your creditworthiness - especially if you aim to become a homeowner. That's why we created Scorebuilder, a feature of RentPay.

Each month you hold an open Scorebuilder line of credit, we’ll report your account status to one of Australia’s largest credit reporting bodies. If you’re diligent about paying back what you borrow, your credit score may improve.

Supercharge your savings without even noticing

Do you have a goal that seems out of reach? Maybe you want to take a dream trip, buy a home, or start your own business, but you're unsure how to make it happen. While cutting back on discretionary spending is one way to save money, it's not the only option.

In fact, there are countless ways to put aside cash without feeling deprived. Let’s look at some of the most effective saving methods. Whether you're a seasoned saver or just starting to think about your financial future, you won't want to miss these tips.

Round up your purchases and watch those savings grow

Saving money has become even easier in recent years. Today you can round up your everyday purchases to the nearest dollar and automatically transfer that spare change into your savings account.

Moreover, many banks allow you to customise the parameters according to your preferences, saving a few cents or dollars each time you buy your morning coffee or anything else. This simple and convenient method can help you achieve your financial goals quicker than expected.

Get up close and personal with your bank statements

Are you unknowingly spending money like it's going out of style? Those pesky subscriptions, apps, and recurring charges can add up quickly and leave you wondering

where all your money went. But don't worry; you can take control of your finances by getting up close and personal with your bank statements.

Take a close look at your monthly statements to identify any recurring charges and subscriptions you may have forgotten about. Even small charges of $5 here and $10 there can add up to hundreds of dollars each year. By cancelling unnecessary expenses, you'll free up extra money to put towards your financial goals and priorities. So, grab a cup of coffee and take some time to review your statements.

Meal prep your way to savings and success

If you want to save money and time, meal prepping can be a game-changer. By planning and preparing your meals in advance, you can avoid expensive takeaways and restaurant meals that can quickly add up over time. Imagine spending a lazy Sunday afternoon cooking up a storm and having your meals sorted for the entire week: no more rushed lunches or last-minute takeaway dinners. Plus, meal prepping can help you make healthier choices and stick to your dietary goals.

You can say hello to a healthier and wealthier you by saying goodbye to that endless spending cycle. So why not give it a try? Your wallet and your body will thank you for it.

Slash your bills

and

boost your

savings effortlessly

Do you want to avoid overpaying for necessities like electricity, heating, and transportation every month? The good news is that you can save big by reviewing your utility bills and finding better deals.

While it may sound like the least exciting way to spend your afternoon, investing just an hour or two of your time can lead to years of savings without much effort. With better deals from your providers, you can say goodbye to those outrageous bills and hello to extra cash in your pocket.

So take charge of your bills and demand a better deal. It's an easy and effective way to boost your savings and improve your financial well-being.