How much money should I have after bills? A realistic guide for Australian households

After paying rent, utilities, groceries, and phone bills, how much should be left? If you’re staring at your bank account wondering where the money went, you’re not alone. In Sydney, with rent averaging $650 a week and electricity up 20% since 2023, many people are left with less than $200 after essentials. That’s not a budget-it’s survival mode.

What ‘after bills’ really means

When people ask how much money they should have after bills, they’re really asking: How much can I actually spend without going broke? This isn’t about luxury. It’s about breathing room. After your fixed costs-rent, loan repayments, insurance, utilities, groceries, transport-you need cash for three things: emergencies, savings, and life.

Let’s break it down with real numbers. Say you earn $65,000 a year after tax. That’s about $5,400 a month. Your bills might look like this:

• Rent: $2,600
• Utilities (electricity, gas, water): $300
• Phone and internet: $120
• Car loan or public transport: $250
• Groceries: $700
• Health insurance: $150
• Other (subscriptions, pet care, etc.): $200

Total bills: $4,320. That leaves you with $1,080. Now, what do you do with it?

The 50/30/20 rule isn’t working for most Australians

You’ve probably heard of the 50/30/20 rule: 50% for needs, 30% for wants, 20% for savings. Sounds simple. But in Australia today, that rule falls apart fast.

If you’re paying $2,600 in rent on a $5,400 income, you’re already at 48% for housing alone. Add utilities, transport, and food, and you’re hitting 80% before you even think about savings. That leaves almost nothing for wants or emergencies. The rule was designed for a different economy-when rent was cheaper and wages rose faster.

Forget the rule. Focus on what’s real: you need at least $500 after bills to avoid stress. If you’re below that, you’re one flat tire or medical bill away from debt.

What to do with your leftover money

That $1,080 leftover isn’t free money. It’s your buffer. Here’s how to split it if you’re starting from zero:

1. Build your emergency fund first. Aim for $1,000 in the first month. Then add $200-$300 a month until you have three months’ worth of bills saved. That’s $12,960 for our example. This isn’t optional. If your car breaks down or your fridge dies, you shouldn’t have to borrow.
2. Pay down high-interest debt. If you have credit card debt at 20% interest, pay that before saving for a holiday. Every dollar you pay off saves you 20 cents a year in interest. That’s a guaranteed return.
3. Start small with savings. Even $50 a month into a high-interest savings account adds up. $50 a month for a year is $600. That’s enough to cover a dental bill or replace your phone.
4. Only then, spend on wants. Coffee, takeaways, streaming subscriptions-they’re fine, but only after the safety net is in place.

Many people skip step one and go straight to spending. That’s why 42% of Australians can’t cover a $1,000 emergency without borrowing, according to the 2025 ASIC Financial Capability Survey.

What if you have less than 0 left?

If you’re down to $150 after bills, you’re not failing-you’re just in a tough spot. The fix isn’t more discipline. It’s more strategy.

• Negotiate your bills. Call your energy provider. Ask for a better rate. Many Australians save $80-$150 a month just by switching plans or asking for a discount.
• Use the government’s Energy Bill Relief. If you’re on a concession card, you’re already getting help. If not, check if you qualify. The program gives up to $350 a year in rebates.
• Swap subscriptions. Do you really need Netflix, Stan, Apple Music, and Amazon Prime? Keep one. Cancel the rest. That’s $50-$70 back every month.
• Buy groceries in bulk or at discount stores. Aldi and Costco aren’t just for big families. A $30 weekly shop at Aldi can replace a $50 shop at Woolworths with the same quality.
• Track every dollar for 30 days. Use a free app like PocketGuard or just a notebook. You’ll be shocked where the money goes. One person I know found they were spending $180 a month on takeaway coffee. That’s $2,160 a year.

Real examples from Sydney households

Meet Maria, 34, a nurse. She earns $62,000 a year. After rent ($2,400), utilities ($280), transport ($200), and groceries ($650), she had $1,400 left. She put $800 into savings, $400 toward her credit card, and $200 on her partner’s birthday gift. She sleeps better now.

Then there’s James, 28, a barista. He earns $48,000 a year. After rent ($2,800), bills ($500), and groceries ($550), he had $350 left. He used $200 for his phone bill, $100 for a new pair of shoes, and $50 for a takeaway. He’s now $3,000 in credit card debt. He doesn’t feel broke-he just feels tired.

The difference isn’t income. It’s what they did with what was left.

What you should aim for

Here’s a simple target: After bills, you should have enough to cover one major unexpected cost without stress. That’s usually $1,000-$1,500. If you’re there, you’re doing better than half of Australians.

Once you hit that, your goal shifts: Build three months’ worth of bills in savings. That’s your real financial freedom number.

Don’t compare yourself to influencers who talk about ‘financial independence’ at 30. That’s not the goal. The goal is to not panic when your washing machine breaks. To not dread the phone ringing. To not have to choose between medicine and rent.

Next steps: Start today

Don’t wait for the ‘right time’. Start now.

1. Look at your last bank statement. Add up every bill you paid last month.
2. Subtract that from your take-home pay. What’s left?
3. If it’s less than $500, pick one bill to cut or negotiate this week.
4. Open a separate savings account-even if you start with $20.
5. Set up an automatic transfer: $20, $50, whatever you can. Do it the day after payday.

It’s not about being rich. It’s about being safe. And safety doesn’t come from a big salary. It comes from knowing you’ve got a cushion. One you built yourself, one bill at a time.