5 Quick Fixes to Boost Your Budget Now
Simple strategies to stay on top of your budget
Updated by Steve Stemp on 11/4/23
Feeling overwhelmed by managing your money? You’re not alone.
In fact, a 2023 survey by the Australian Securities and Investments Commission (ASIC) found that nearly half of Australians find dealing with money stressful and time-consuming.
With so much financial advice available, it’s easy to feel paralysed before you even start.
The good news is that effective budgeting doesn’t have to be complicated.
By implementing a couple of straightforward strategies, you can take control of your expenses and reduce that financial stress starting today.
Plan for the Long Term
Time needed: 5–10 minutes.
The first step is to anticipate those larger, infrequent bills that can derail your monthly budget. Take inventory of all expenses that come quarterly, semi-annually, or annually. This includes:
- Utilities: Electricity, water, gas rates.
- Car costs: Registration, insurance, servicing.
- Personal: Driver’s licence renewals, professional memberships, school fees.
- Home: Council rates, home insurance.
Go through your bank statements to create an annual total for these expenses. To build in a safety net, add a 10–20% buffer to this total. This extra amount helps cover bills that are higher than expected.
Once you have your buffered annual total, divide it by 52. This gives you a manageable weekly amount to save.
Pro tip: Many Australian banks offer low or no-fee online savings accounts. Set up a weekly automatic transfer for your calculated amount into this separate account. This “set-and-forget” method keeps the money out of sight and out of mind, ensuring it’s ready when those big bills arrive.
Plan for the Unexpected
Life is full of surprises, and not all of them are pleasant. An emergency fund is your financial safety net for unexpected costs like medical bills, urgent car repairs, or last-minute travel.
If you don’t have savings yet, start small. Set up another automatic transfer—even a small amount each week—into a dedicated emergency fund account. Once you reach a balance that covers 3–6 months of essential living expenses (a common goal), you can pause these transfers and redirect the cash to other goals.
Expense Checkup
Awareness is the key to control. Take 15 minutes to review your bank transactions from the last month. Ask yourself:
- Subscriptions: Are you paying for streaming services, apps, or magazines you no longer use?
- Recurring bills: Could you get a better deal on your phone, internet, or insurance? It’s often worth comparing providers annually.
- Daily spending: How much is going towards coffee, eating out, or impulse buys?
Seeing the real numbers can be enlightening. For example, you might realise that a daily takeaway coffee and weekly food delivery add up to $150 or more a month. Once you see the total, you can consciously decide if you’d rather redirect that money towards something you value more, like a cooking class or extra savings.
Being mindful isn’t about cutting out all joy; it’s about aligning your spending with your priorities.
Avoid Restrictive Budgets
When creating a budget, it’s tempting to be overly ambitious. However, setting unrealistic savings goals or severely limiting your discretionary spending can backfire.
Psychological studies have shown that feeling deprived can lead to what is known as “goal disinhibition” or the “what-the-hell effect,” where strict rules lead to overindulgence later. If your budget feels like a punishment, you’re less likely to stick with it long-term.
Spend Your Way
The solution is to build flexibility into your plan. The concept of “guilt-free spending” is powerful. Allocate a specific, reasonable amount in your budget for fun, enjoyment, or convenience—no strings attached.
This approach tricks your brain into feeling empowered, not deprived. You can spend this money on whatever you want without derailing your financial goals, making it much easier to maintain your budget over time.
Budget Tips and Resources
For a robust and trustworthy tool to create a detailed budget, the Australian Government’s Moneysmart website offers a free Budget Planner. It’s an excellent resource to help you get a complete picture of your finances.
For more articles on managing cash flow and planning for unexpected expenses, explore the Cash Today blog.