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Hi, I’m Max Hoang. I’m not a financial expert, and I don’t claim to be one. But I’m someone who has spent years living and working in Australia as a migrant, figuring out how to survive—and hopefully thrive—financially. Today, I want to share two incredibly simple personal finance rules that helped me gain control of my money, reduce financial stress, and start building toward long-term goals like financial freedom and early retirement.

This post isn’t about giving you financial advice or telling you what to do with your money. It’s about sharing what has worked for me. If you’re a working person in Australia, especially a migrant trying to make sense of finances in a new country, this post might give you a practical perspective that’s simple and realistic.

📌 Why Talk About Money?

Money is a sensitive topic. For some, it’s stressful. For others, it’s confusing. In many cultures, including mine, it’s even taboo. But here’s the truth: if you don’t control your money, it will control you. And that control often comes from a lack of clarity—not knowing how much you’re spending, how much you should save, or whether you’re even on the right track.

The good news is, you don’t need a finance degree or complicated spreadsheets to manage your money. You just need a system that works for you.

📘 My Personal Money Philosophy

As a full-time worker and family man living in Darwin, NT, I live with constraints—time, income, expenses, and goals. I don’t have time to analyze stock markets every day or follow complex investment strategies. What I needed was a simple, repeatable system that didn’t take over my life but still helped me move forward financially.

And that’s where these two rules come in:

1. The 50/30/20 Rule

2. Pay Yourself First

Let’s dive into each and see how I use them together.

🔍 What is the 50/30/20 Rule?

The 50/30/20 Rule is a popular budgeting method that helps you divide your after-tax income into three categories:

Category Purpose Example (from $5,000 income)

50% Needs Essentials like rent, groceries, bills, transport $2,500

30% Wants Lifestyle choices like dining out, movies, travel $1,500

20% Savings Emergency fund, investments, retirement $1,000

This method helps you prioritize your spending, ensure you save consistently, and still enjoy life without guilt.

✅ Why I Like It

• It’s simple – I don’t need to track every transaction.

• It’s balanced – I’m not depriving myself of fun.

• It’s scalable – Whether you make $3,000 or $10,000/month, the principle applies.

💡 How I Apply the 50/30/20 Rule

Let’s say I earn $5,000/month after tax.

🏠 50% Needs – $2,500

This goes to essential living costs:

• Rent – In Darwin, around $300/week per person, which is about $1,200/month.

• Groceries – ~$150/week = $600/month.

• Transport – Fuel = ~$150/month.

• Utilities & Insurance – The remaining $550 covers electricity, internet, phone, and car/health insurance.

By capping my needs at $2,500, I know I’m not overspending on essentials. It also keeps me grounded—reminding me that while needs are non-negotiable, they should still be controlled.

🍕 30% Wants – $1,500

This category is for fun spending:

• Dining out

• Netflix and Spotify

• Family trips

• My daughter’s weekend activities

But here’s the catch: I don’t always spend all $1,500. With a family, I’ve learned that limiting wants is actually powerful. For example, instead of dining out three times a week, we cook more at home. That extra money goes toward saving for bigger goals—like an overseas trip or a new car.

Remember: reducing wants doesn’t mean cutting joy—it means increasing purpose.

💰 20% Savings – $1,000

Now, this is where the second rule kicks in.

🔁 What Does “Pay Yourself First” Mean?

Most people spend first and save what’s left. But that’s backward.

Paying yourself first means:

Before you pay rent, before you buy groceries, before you pay Netflix—you put money into your savings and investments.

It’s a shift in mindset:

💡 You are the first bill you pay.

So from my $5,000 income, I take out $1,000 and immediately transfer it to my savings and investment accounts.

🧮 Breaking Down My Savings (That $1,000)

I split my savings into:

• Emergency Fund – 40% ($400)

This covers unexpected events: job loss, health issues, or car repairs.

• ETF Investment – 60% ($600)

I invest in ETFs (Exchange Traded Funds) monthly. It’s part of my early retirement goal.

🛑 Important: This is on top of the Superannuation my employer pays (currently 11%). I treat super as “long-term retirement,” but my investments are for early freedom—maybe even before 60.

🎯 Real-World Example: My Monthly Budget

Category Amount (AUD) Description

Rent $1,200 Shared unit in Darwin

Groceries $600 2 adults + 1 child

Fuel $150 Local driving

Bills & Insurance $550 Internet, phone, health, car

Savings & Investments $1,000 Emergency + ETF

Dining & Entertainment $400 1-2 meals out, family time

Travel Savings $400 Family trip fund

Kid’s Activities $300 Classes, events, fun stuff

Even with this plan, I’m not living a boring or restrictive life. We still go out, take trips, and enjoy quality time—but with purpose and planning.

💬 Why These Rules Work for Me

As a migrant in Australia, there are a few things I’ve learned:

• We often feel behind – especially financially.

• We may not have the same head-starts (like help from parents or inheritance).

• We need clarity and structure, not complication.

These rules—50/30/20 and Pay Yourself First—give me:

• A clear path to follow

• Flexibility to enjoy life

• Momentum toward future goals

They’re not magic formulas. But they are realistic, sustainable, and empowering.

⚖️ What If You Make Less or More?

This system scales.

• If you earn $3,000/month, your savings would be $600 (20%), and your needs would be $1,500.

• If you earn $7,000/month, you could save $1,400—or more.

You can also adjust the ratios to fit your goals. Some people do a 60/20/20 or even 70/10/20 if they’re aggressively saving.

The key is consistency.

🧠 Lessons I’ve Learned Along the Way

1. Don’t compare your budget to others. Everyone has different needs.

2. Small changes matter. One less takeaway meal a week = $100/month saved.

3. Automate savings. If it’s automatic, you won’t miss it.

4. Involve your partner. Financial goals are easier when shared.

5. Money ≠ happiness, but it gives freedom. And freedom is priceless.

💬 Final Thoughts

Money doesn’t have to be complicated. You don’t need to master the stock market, flip houses, or start a business to take control of your finances. Sometimes, the simplest rules—followed consistently—can change your life.

For me, the 50/30/20 Rule and Pay Yourself First have done exactly that.

They’ve helped me save with purpose, spend with intention, and feel less stressed about the future.

If you’re just getting started or feeling overwhelmed, try this approach. Tweak it to fit your life. And most importantly, keep going.

🔗 Let’s Connect

Thanks for reading! I’d love to hear your thoughts, feedback, or your own budgeting strategies.

📥 Leave a comment below

🌐 Visit MaxHoang.com.au

📲 Follow me for daily content about money, productivity, and family life in Australia

Tomorrow’s post:

👉 “5 Best Places to Visit in Darwin for Families on the Weekend”

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