Having a budget just makes your life easier, whether that's by helping you achieve your finance-related goals or just keeping you on track each week. We've listed some handy tips to help get you started!

Take stock of where your money goes

Do you actually know where your money's going? Whether that's on bills, clothes or takeout, make a list of your outgoings. Track your spending over a set period of time - it could be a week, a fortnight, or a month. Make a list of everything you know you've purchased over that time, this could include things like bills, groceries, subscription services, transport costs, or loan repayments. Take a peek at your bank statements to see if you've missed anything. Some banking apps will help you do this by automatically assigning your purchases to categories such as groceries, entertainment, bills; this can make things much easier. However you do this, setting out your expenses and seeing where your money is going allows you to have a clear picture of your spending habits and you'll be able to create a better budget.

Set some goals

Figure out why you want a budget: do you want to get your finances in better shape or are you saving for a big goal such as a deposit for a house or a trip away? By setting some goals, you'll be able to determine where you want your money to go. Set a savings goal and work out how much you can save each payday; that way you'll be able to calculate the length of time it will take to reach your goal.

Figure out your spending limit

The money you have left over after you've paid off your expenses and put aside for your savings goal, should be your spending money. This money can be set aside for certain things like eating out, hobbies and any entertainment costs. Make sure you keep track of your spending money to ensure you're not going overboard.

Automate your finances

Keep track of where your money goes by automating your banking instead of manually transferring your money over to your accounts or to other people. By setting up different bank accounts for different areas such as savings and bills, you'll be able to more easily keep track of where everything is going, especially if you have your money going out automatically. For ideas to help reduce spending, see simple ways to save money.

Review your budget regularly

Things always change, whether you get a pay rise and can spend more, or you have a large bill and need to tighten your belt for a while. It's vital that you adjust your budget in order to include any changes that you come across.

If you're looking for a simple budget planner tool, Money Smart has one which can help you easily organise your finances. If you're struggling financially, make sure you visit a financial advisor or have a confidential chat with one of our Sonder team members who can help provide support and advice.

If you have any questions or need extra support, we're here to help you anytime in any language. Simply start a chat with us via the home screen of the Sonder app.

Information sourced from: Moneysmart.gov.au

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All content is created and published for informational purposes only. It is not intended to be a substitute for professional advice. Always seek the guidance of a qualified professional.

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