When we landed in Australia in May 2016, we had a plan for our savings. We thought they would last around nine months.
It was a careful plan. We had a young daughter with us, and nine months felt safe. It felt like enough. It wasn’t.
I’m sharing our experience because I don’t want you to discover the gap between your savings plan and reality the way we did.
If you’re planning a move to Australia, or you’ve just arrived, I’ll show you how to work out how long your savings could last, which costs to account for, and what we’d do differently if we were starting again.
What we planned, and what we got wrong
Before we moved, we did what many people do. We looked at what we had saved and worked out how long it would last. The answer was about nine months.
What we didn’t plan for was how long finding work would take. We thought nine months would be more than enough time for my husband to find a job. It took almost a year.
Nobody had told us that. The numbers on paper looked fine. The real world was slower than the numbers.
What it felt like to watch the savings shrink
If you’ve never watched your savings go down week after week, it’s hard to explain. It isn’t one big shock. It’s small, steady, and quiet. Money goes out for groceries, for bills, for the everyday things a family needs. Each time you check your balance, it’s a little lower than the week before.
The date our savings would run out kept getting closer, and the job still hadn’t come. That was one of the hardest parts of our first year. It wasn’t only the money. It was the waiting, and not knowing how long the waiting would last.
If you’re in that place right now, I’m not going to tell you it gets easy fast. But it does get clearer, and having a plan for the waiting helps more than you’d think.
How we stretched what we had
We didn’t have a clever trick. We just tightened our belt.
First, we cut back on groceries. We kept to what we needed and let go of the extras. Second, we cut back on eating out. It was money we couldn’t spare, so we let it go.
We also received some support from Centrelink during that time, and it helped stretch our savings a little further. I’m sharing this as our own experience, not as something you can count on.
Payments and waiting periods depend on your situation, so check with Services Australia for what applies to you. None of this made the situation easy. It just bought us time.
The part nobody warns you about
Here’s something I only understood later. Your savings plan has to cover more than your regular living costs.
When we finally found a place to rent, we knew that to be considered, we had to show we had enough savings in the bank. Agents and landlords often want to see that before they approve an application. It was another hurdle we hadn’t fully anticipated.
If you want the full story of what happened, read our article on how much money you need before you can rent in Australia.
There are two things to account for when planning your move. First, the upfront costs you’ll actually pay, such as your rental bond and rent in advance. Second, any additional savings you may need to demonstrate you can support yourself. Don’t automatically count both as money spent. But do account for both when deciding how much financial breathing room you’ll have.
If your savings are meant to last nine months, but a large amount goes towards your initial setup, you may have far less time than you expected.
A simple way to work out your own number
Here’s a simple example using made-up numbers. Your actual costs will depend on your city, household and circumstances.
First, take your available savings and subtract the upfront costs you expect to pay before settling in. Say you have $40,000 saved and expect to spend $4,000 on upfront costs. That leaves $36,000 for living expenses.
Second, estimate what a normal month will cost in your city. For this example, let’s say $4,000.
Third, divide your available savings by your monthly expenses. $36,000 divided by $4,000 gives you nine months. That is your estimated savings runway if you have no income during that time and your expenses stay at $4,000 a month.
Now consider a longer job search. Twelve months of living expenses at $4,000 a month would require $48,000, before upfront costs. That is $12,000 more than the amount left in our example.
You might not need twelve months. You might find work sooner, or have another source of income. But testing a longer timeframe helps you see the gap before you’re living through it.
Use our free Australia Moving Budget Calculator to estimate your initial costs, then our Australia Cost of Living Calculator to estimate your monthly expenses.
The aim isn’t to predict every dollar perfectly. It’s to understand how much time your savings could realistically buy you, and what you might need to change if the job takes longer than expected.
Working out how long your savings will last is one part of getting financially settled in Australia. If you’d like help understanding what to focus on next, our free Money Roadmap walks you through the key financial priorities, from getting established to building a safety buffer.
My unpopular opinion
Here’s something I don’t say often, because it isn’t always a popular thing to hear. If you’re planning a move, I’d rather you take a little longer and arrive with a bigger financial cushion than arrive early and run short.
I know how that sounds. When you’ve made the decision to move, waiting can feel like losing time. Everyone around you might be saying the opportunity is there, so why not go now?
But a bigger cushion gives you something money can’t buy later: choice. It gives you more time to look for work, settle in and breathe while you find your feet. And once you’re here, there’s a second thing I’d consider. Be open to work that might not be your long-term plan.
I don’t mean giving up on your career or accepting work that isn’t safe or suitable for you. I mean considering whether a temporary or different role could bring in some income while you continue looking for the right opportunity.
When savings are running down, even a smaller, steady income can change how much pressure you’re under. It may not be the job you pictured when you moved. It could still be the job that gives you more room to breathe. This is what I’d consider based on our experience. Your family, skills, circumstances and options are your own.
What we'd do now
If we were starting again, here’s what we’d do, in the order we’d do it.
- Work out what a normal month costs in your city. Not the cheapest month, but a realistic one, including groceries, transport, phone, bills and the small extras. Use our free Australia Cost of Living Calculator to help estimate your expenses.
- Plan for more months than you think. If your plan says six, we’d aim for nine to twelve. Finding work can take longer than any plan allows, and we’re proof of that.
- Keep the upfront rental costs separate. The bond, rent in advance and the money you may need to show in the bank are not part of your monthly living costs. In Victoria, a bond generally can’t be more than one month’s rent, but the rules differ between states and territories, so check your local tenancy authority. Consumer Affairs Victoria explains the current rules there.
- Know what support exists before you need it. Many payments have waiting periods for people who are new to Australia. Don’t wait until you’re short to find out. Check with Services Australia early.
- Decide what you’d cut, before you have to. For us, it was groceries and eating out. Write your own list now, while you’re calm. It’s much easier than making those choices when the balance is low.
- Keep a small buffer for surprises. Even a small amount helps. Building it a few dollars at a time still counts.
This is simply what we learned. It isn’t financial advice, and everyone’s situation is different.
If you're already here and feeling stretched
Maybe you’re reading this after you’ve arrived, and your savings are going down faster than you planned. You’re not behind, and you didn’t fail. A plan made from far away is always an estimate. The real numbers only become clear once you’re living here.
Start with one small step. Write down what you have, what you spend in a normal week, and how many weeks that gives you.
If you’d like help looking at your financial position, try our free Australia First-Year Stability Check. It can help you think through your savings buffer, essential expenses and the breathing room you have right now.
Seeing the real number can feel uncomfortable at first. But it’s more useful than not knowing. Then look at what you could cut and pick one thing.
Just one. Small changes can help, especially when you make them early. And if you can, talk to someone who has been through it. Our first year taught us that plans sometimes need to change. Recognising that early gives you more room to decide what to do next.
Frequently asked questions
How much savings do you need to move to Australia?
There isn’t one number that works for everyone. It depends on your city, your family size and how long it takes to find work. Work out what a normal month costs where you plan to live, then plan for more months than you think. For us, nine months wasn’t enough.
How long does it take to find a job after moving to Australia?
It varies a lot. For my husband, it took almost a year. Some people find work faster, and some take longer. That’s why a bigger cushion matters.
Should I save for rent separately from my living costs?
Yes. Upfront rental costs, like the bond and rent paid in advance, are a separate one-off cost. Check your state or territory’s tenancy authority for the current rules.
Can I get Centrelink support when I first arrive?
It depends on your situation. Many payments have waiting periods for newly arrived residents, and the rules can change. Check directly with Services Australia for what applies to you.
What should I cut first if my savings are running low?
Start with the things that are easiest to pause. For us, it was groceries we didn’t need that week and eating out. Make your own list before you need it.
Final thoughts
Our plan for nine months of savings wasn’t careless. It was a plan made before we understood how long settling into a new country could take.
If there’s one thing I’d want you to take from our experience, it’s this: plan for the time it may take to find work, account for your upfront costs, and leave yourself some room for the unexpected.
You don’t need a perfect plan. You need a realistic starting point, a financial cushion where possible, and the willingness to adjust when things don’t go as expected.
We found our way through, and I hope our experience helps you find yours.
