From tracking your spending to setting goals, here are five easy steps to stop you from living pay-to-pay and start putting you in control.
You earn enough to get by – the bills are paid, there’s room for fun – but somehow there’s never much left over. While your workmates are booking flights to the Greek islands, you’re just trying to make it to the next payday.
Sound familiar? You’re not alone. Plenty of people earning an income that should be enough still find their money disappears faster than they’d like.
That’s where a budget comes in. It’s not about cutting back, it’s about clarity – seeing what’s coming in, where it’s going, and how to make it work for the things that matter most to you.
We spoke to Karen Hoffensetz, Financial Wellbeing & Gambling Project Officer at the South Australian Financial Counsellors Association, to find out how to make budgeting simple, practical and (dare we say!) surprisingly satisfying.
With Karen’s advice, we’ll take you step by step through setting one up – from tracking your spending to setting goals – so you can stop living pay-to-pay and start feeling in control of your money.
Step 1: Record your income
Before you can build a budget, you need to know exactly what’s coming in. Karen says your “income” includes everything that regularly lands in your account – your take-home pay after tax, any government payments, or side-hustle income.
She suggests checking your payslip if you’re not sure what’s what. “It’ll show your gross (before tax) and net (after tax) pay, plus things like super and HECS repayments,” Karen says.
If your income changes week to week, Karen recommends taking an average over a few months. Use that figure as your baseline for planning.
This is also a good time to check whether you’re being paid correctly – especially if you do shift work or have casual hours. Understanding your payslip means you know exactly what you’re earning, not just what lands in your account.
Step 2: Track your spending
Karen says the next step is understanding your spending habits. That starts with a simple (and slightly uncomfortable) truth: most of us have no idea what we actually spend.
“Your first task is to track it – all of it – for at least a week or two,” Karen says. “If you can stretch it for longer you will get a clearer picture of where your money is really going.”
That means every coffee, every late-night Uber Eats order, every little tap that doesn’t feel like “real money” at the time.
Your banking app already does most of the heavy lifting – every tap leaves a trail. Karen suggests checking your app’s transaction history or spending breakdown to see where your money’s actually going.
You can use whatever works for you to record your spending – a spreadsheet if that’s your jam, a budgeting app if you prefer something automated, or the free MoneySmart Budget Planner, an Australian Government tool with built-in prompts and support to help you get started.
Step 3: Work out your expenses (AKA your “needs”)
Once you know where your money’s going, Karen says it’s time to work out what you actually need to cover each pay cycle.
Start with the essentials – rent, bills, groceries, transport, insurance and debt repayments.
“Go through your bank statements and add them up,” Karen says. “Then factor in irregular costs that can sneak up on you, such as car servicing, rego, or insurances.”
It is also a good idea to put extra money aside for “emergencies” such as medical bills (both human and pet), unexpected car or appliance repairs or urgent home repairs.
These are your “needs” – the non-negotiables your income must cover first. Add them together so you know exactly how much of your pay is already spoken for before you decide what to do with the rest.
Karen says seeing your fixed costs laid out like this can be surprisingly eye-opening.
Step 4: Set your spending and saving goals (AKA your “wants”)
Here’s the part most people skip – deciding what to do with what’s left once the essentials are covered.
Everything else – streaming services, eating out, new clothes – falls under wants. “They’re not bad,” Karen says. “We all need fun and comfort. But being aware of the difference helps you make better decisions when money gets tight.”
Instead of letting it vanish in random purchases, Karen recommends deciding how much to put toward fun, short-term spending and how much you want to put towards savings.
“If saving feels out of reach, don’t panic,” she says. “Just start small – even $10 a week builds momentum. The point is to start the habit. It can build from there later.”
And if the idea of cutting fun things out to stay within your spending budget sounds awful, start small there too. Karen says tiny tweaks can make a big difference over time – like keeping one takeaway night a week instead of three, buying a coffee every second day, or swapping one streaming platform for another when needed instead of having five at once.
Step 5: Review and adjust
Karen says your first budget won’t be perfect – and it’s not meant to be. “Think of it as a living document you’ll tweak as life changes.”
When your income or expenses change – maybe you get a pay rise, or your rent jumps – adjust your budget to match. The aim isn’t perfection, it’s awareness and control.
Karen recommends checking in on your budget every few months – or anytime life shifts, like a new job, higher rent or another big expense – to make sure it still fits where you’re at.
When you start to see where your money goes – and your savings start to stack up – you’ll feel the calm of knowing you’ve got a buffer between you and the next car repair, fridge replacement or surprise bill. And maybe, one day, even enough for your own trip to Greece.
Hacks to make budgeting easier
Once your budget’s set up, Karen has some simple tricks that can help keep it running smoothly. She says everyone’s different, so the trick is picking the one that works for you:
- The bucket strategy
Open separate accounts for different purposes – one for bills, one for everyday spending and one for savings. On payday, move money into each account so the essentials are covered before the fun starts. It makes it easier to stick to your limits and avoid dipping into savings by accident.
- The savings-first method (aka “pay yourself first”)
Transfer a set amount or percentage into your savings account the moment you get paid, then cover expenses with what’s left. Automate it if you can – that way, you’re saving without thinking. It’s the easiest way to build a buffer or grow your emergency fund without feeling deprived.
- The 50/20/30 method
If it all seems too hard, this simple formula is for people who want to budget but hate spreadsheets: 50 per cent of your income goes to needs, 20 per cent to savings or debt, and 30 per cent to wants. Tweak the numbers to suit your life – it’s a guide, not a rulebook.
If you’re in debt and struggling to get your finances back on track, help is available. The South Australian Government offers free financial counselling that you can find through the Affordable SA website. Alternatively, contact the National Debt Helpline on 1800 007 007 or visit ndh.org.au for free and confidential financial counselling, or the Mob Strong Debt Helpline for Aboriginal and Torres Strait Islander people (1800 808 488). See other cost-of-living options available to South Australians here.
