This is where I come in; I have condensed the world wide web’s tips and advice into one page. So without further ado, here are the budgeting tips that work for me….
Have a budget
I know what you are thinking, “seriously Carly, your budgeting tip is to have a budget?” but you would be surprised how many people do not have a budget. I am willing to bet that you don’t. Having a budget is so important! It allows you to set intentions of where your money wants to go and keeps you accountable.
USE that budget
Again, sounds like common sense but no one freaking does it! Budgets don’t belong buried somewhere in your bedside table or deep within your Google Drive. Use your budget, refer back to your budget and review your expenses and see if they line up with your budget.
Stop making mindless purchases!
This was 100% me 12 months ago. I would buy stuff because:
- It was on sale
- It jumped into my trolley without me realizing
- I was bored
- I had ‘extra’ money at the end of the week
- I didn’t check if I already had it at home
- “I deserved it”
- And well… just because
And then I went 6 months without making a single purchase on clothing/apparel and it completely reset my mindset from impulsive to intentional. Now nothing (and I mean nothing) manages to move into my home without me really considering that purchases (I like to try and set a three-day rule). My other rule is, one-in-one-out…..
Adopt the one-in-one-out rule
I cannot even remember where I read this (probably The Financial Diet) but I now swear by it! If I want to buy something and bring it into my home then I have to remove something from my home to make room for it. This serves multiple purposes:
- Stops my tiny apartment from getting cluttered
- Makes me stop and think – “do I really need it?”
- 8 times out of 10 I won’t make the purchase. And for the 2 times I do make the purchase, I know it is something I really want and am purchasing intentionally.
Put yo smartphone to work
If you are just using your phone for Instagram and texting then your phone isn’t exactly a very ‘smart’ phone. But your phone’s smarts to use. The current money apps I swear by are:
- Acorns AU – does all the heavy lifting for me by saving and investing my money
- Daily Budget – allows me to track my daily spending, it’s impact on my budget and more…
- CommBank – home to the majority of my finances. My favourite part of this app is the portfolio section where I can see how my financial status is tracking.
- Stocard – I can pop all my loyalty cards in here and make sure I am getting all the benefits/rewards for every dollar I spend.
Live by the 7 Baby Steps (particularly the Debt Snowball Effect and Emergency Fund)
One day I will be able to write a money-focused article without including Dave Ramsey, but today is not that day. His 7 Baby Steps and the Debt Snowball Effect and Emergency Fund, in particular, are the bomb diggity for setting yourself up for money success.
I have pulled the 7 Baby Steps from his website, but jump across if you want more information:
- $1,000 cash in a beginner emergency fund
- Use the debt snowball to pay off all your debt but the house
- A fully funded emergency fund of 3 to 6 months of expenses
- Invest 15% of your household income into retirement
- Start saving for college
- Pay off your home early
- Build wealth and give generously
Step 2 is arguably the hardest for those with debt, especially if you have six-figures of debt (aka. me) but Dave Ramsey has made the 7 Baby Steps super simple for anyone to follow.
Finally (and possibly the easiest)…
Review your bank accounts monthly
This is a perfect opportunity for you to reflect on your spending and notice any unused subscriptions you are still paying for.. Hayu I am looking at you.
I hope these tips helped. They are super simple that anyone can do and I promise you will notice knock-on effects almost immediately. Any saving is something to celebrate and it will increase your financial stability in the long run.
Thanks so much for reading,