Okay, let’s talk budgets. Not the fun kind like “what’s the budget for snacks at the footy?”...

The boring adult kind: “where is all my money going and why do I keep crying when I tap my card at Woolies?”

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A budget doesn’t have to feel like punishment. Done right, it’s less “I’m on a sad money diet” and more “I finally know why my card keeps declining.”

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Here’s how to do it without hating life.

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Face the Truth

Step one is basically turning the lights on after a big night out: it’s not pretty, but you’ve gotta do it.

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• Go through your bank statements for the last 12 months and write down every dollar in and out: rent, bills, food, petrol, Uber Eats, random Kmart candles.

• Once it’s all down, time to rip off the Band-Aid: add up your income, subtract your expenses, and see if you’re rocking a surplus or sliding into deficit.

• Got a surplus? Nice work, onward to glory. Running short? Time for some detective work to see what costs you can trim (spoiler: probably not the electricity bill).

• Don’t judge yourself, this is purely science.

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Pick Your Priorities

Trying to run your budget like someone else runs theirs is like wearing their glasses. You’ll look ridiculous and walk into things. Design your budget to suit your life.

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• Non-negotiables: rent, food, keeping the Wi-Fi alive.

• Priorities: paying off debt, saving for Europe, emergency fund for when your washing machine finally walks itself out the door.

• Nice-to-haves: streaming subscriptions, cocktails that cost more than your first car.

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The 50/30/20 Rule (aka the 'Training Wheels' budget)

If you like formulas (or at least pretending you’ve got your life together), try this:

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• 50% Needs – rent, mortgage, groceries, bills.

• 30% Wants – brunch, fun, your sneaker collection.

• 20% Savings/Investments – the “future you will thank you” pile.

It’s just a guide, so if your rent alone is chewing 60%, don’t stress, just shift the others.

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Work Backwards

If you’ve got a target in mind, say you want to hit 20% savings, then flip the maths around.

Start with your total income for the year, shave off that 20%, and what’s left is your “spending pot.”

From there, slice it into 12 for monthly or 52 for weekly so you know exactly what you’ve got to play with.

Think of it like reserving the best slice of pizza before your mates get to the box.

Savings first, fun later.

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Outsmart Yourself With Automation

Humans are hopeless at willpower. That’s why chocolate is sold at the checkout.

So don’t rely on it.

• Use different accounts for savings. Out of sight, out of Afterpay.
• Pay yourself first - Auto-transfer to savings the second you get paid.
• Bills on direct debit so you don’t “accidentally” spend rent money on concert tickets.

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Check In (without becoming obsessed)

A budget is not a one-time deal, like that kayak you never use. It needs a bit of tinkering.

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• Look back each month. Did you nail it? Or did Uber Eats get half your pay again?
• Adjust as life changes (new job, new rent, new obsession with weird dolls).
• Celebrate small wins, like the first time you pay for petrol without checking your balance first.

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The bottom line

A budget isn’t about cutting out the stuff you love. It’s about making sure you’re choosing what matters, not just funding impulse buys you can’t even remember.

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👉 Good news - we've got a very handy Budget Template to help you on your journey.

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As always, if you need help with budgeting reach out to our team - we love budgets.  

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– The team at PAL (making accounting slightly less boring since way back when)

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Disclaimer: This article is here to give you general info only, not professional advice specific to your unique situation. While efforts are made to ensure accuracy, the content may change over time. We can’t take responsibility for any decisions based on the contents of this article, so be sure to chat with your accountant or advisor first!

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