The amount a person spends on living solely depends on their particular lifestyle or living standard. This living standard basically refers to a person's eating habits, clothing choices, luxury spending, etc. The person with a higher standard for living will have better and more luxurious items in their daily lives. Obviously, a person with a lower standard of living will not be caught up in the hoopla, and thus their living expenses would be less. It's a matter of common sense, you would think. But many people get in over their head and purchase what they cannot afford.

Geographic location is a great way to stick to a budget of sorts. Take Brisbane, Australia for example. Brisbane is one of the most affordable cities to live in, with low accommodation costs – especially compared to neighboring cities, Sydney and Melbourne. Many young people, including students, make their home in Brisbane due to its simplicity and budget-friendly atmosphere. This not only relates to the cost of housing and utilities, but also food and transportation.

The average lifestyle is maintained on an approximate yearly amount of 14,000 dollars. This number is especially true for students and bachelors. Obviously, people taking care of families or other people will have a higher cost of living. Multiple undetermined variables should be taken into account when estimating your “cost of living” budget. The “rainy day” fund is always a great idea.

However, what we see when using the model of Brisbane is that one can expect to spend less money on living. Since the clothing, food, transportation, entertainment and accommodation costs are lower, the city is ideal for those on a budget. Financial planners and other professionals in similar fields often advise against students owning vehicles because of the expenses. Public transportation is readily available for a relatively inexpensive cost. The cost of public transport is weighed against the constant upkeep of one's own vehicle, and the negative far outweighs the positive.

Limiting your expenses for living is often a matter of taste. But when it becomes a priority, it's important to strictly adhere to a budget. A person's particular standard of living should never be more than they can afford. But how do you know what you can actually afford? Many people often have an inaccurate idea of what they can and can't afford and end up leading themselves astray. So to get a proper grip on reality, the best place to start is to list your incomings (pay or government benefits) and your outgoing expenses. Be sure to include everything from groceries to petrol to money spent on leisure. Something that may assist you is a budgeting tool that requires you to fill in the fields and calculates your left over pay. However, if you don't have one of these lined paper and a calculator will do just fine! Once you've written your budget, use the next week as a test and write down all of your money coming in and going out. By the end of the week you will be able to see if what you've written is streamline to what is actually going on with your finances! You might be surprised by what you find.

The golden rule of good personal finance: never spend more than you earn or live beyond your means. Remember to accurately plan for extras and unforeseen circumstances, and you'll be living a comfortable, affordable life.