How to Budget To Save Money In Australia (Budget Calculator)

If you’re new to budgeting or wondering how to create a budget to save money in Australia in 2023, keep reading. I’m here to help – I’ve been doing it for over 10 years saving $15,000 a year thanks to budging!

Need help with budgeting? We’ll cover:

• How to create a budget – I have built an automated spreadsheet you can swipe too!
• The best budgeting method for 2023 even if you’re on an average income (it’s not 50/30/20)
• An example of a $65,000 salary budget in Australia
• Tips on how to budget and save money and keep your finances in check
• Importance of happy budgets – to stop you from giving up

BUDGETING AUSTRALIA – How to Create a Budget

Budgeting is key to managing your personal finances efficiently, especially when living expenses keep rising. With some careful considerations and smart money-saving hacks, you can save money. I paid off $30k of debt in 9 months on a $68,000 salary so saving money is definitely possible even on an average wage.

Building a budget – top tips

Creating a budget from scratch can be overwhelming, so use my fully automated Budget Calculator Spreadsheet to see your net position instantly and with total clarity. Built for Australia.

Include ALL your income in the budget

Start by calculating and adding your net income, which is your gross income minus tax and any other deductions like HECS. Include your:

• salary and wages income
• overtime income
• bonuses less tax
• any side hustle income you might have

Include ALL your expenses in the budget

Once you have a clear idea of your net income, update all your monthly expenses, including rent or mortgage payments, utility bills, groceries, transportation costs, and any other expenses. Be honest here!

My Budget Calculator Spreadsheet has spend categories already built in, all you need to do is add your numbers. It will do all the calculations for you. You will be able to see your financial position with total clarity and almost instantly.

Getting paid and bills due on different schedules?

No worries. My Budget Calculator Spreadsheet has a frequency converter built in which you can use for both income and expenses. This way, you can easily convert and input monthly, weekly, fortnightly and other payments to see your position with total clarity.

What budgeting method is the best?

Now let’s move on to budgeting strategies because there are many. I have been budgeting for over 10 years and never really felt the need to stick to a strategy.

Instead of choosing a method, I prefer to set a goal – realistic and time-restricted. Like I want to save $10,000 in 12 months. It is much more motivating to save more.

Martyna

Can I use the 50/30/20 budgeting method?

If you like and prefer to use a budgeting method, then, of course, you can!

Unfortunately, for most Australians, the traditional 50/30/20 budgeting method does not work in 2023. Here is why:

• The 50/30/20 method recommends that you spend 50% of your income on living costs such as rent or mortgage, bills, AND groceries. I’m paying 50% of my income on rent alone… See the problem?
• On a $65,000 salary, that’s $4,342 a month after tax which means $500 a week to cover rent, all your bills, and groceries. Putting rent at $200 a week… That is not realistic!

So, I’m going to show you a budgeting split that’s more in line with the current costs of living figures.

To Budget and save money, use my 75/15/10 split INSTEAD

The 75/15/10 budget split is a simple, effective and realistic way to manage your money. It involves allocating 75% of your income to essential expenses – because that’s the reality in 2023.

But you can still save money and you have a choice:

• allocate 15% to savings and debts, and 10% to your non-essential expenses – your wants.
• allocate 10% to savings and debts, and 15% to your non-essential expenses – your wants.

As mentioned before, if you set a specific goal for your budget, it can motivate you to tilt leftover money each pay toward your goal. Instead of perhaps spending leftovers on wants. And if you follow my strategies, tips and hacks in Supercharge, you will have leftover money to save. ↓↓↓

Example of budget on a $65,000 salary in Australia

If you’re earning $65,000 you might find it hard to make ends meet, especially when living expenses keep rising. In this budget example, we will look at how to set up a realistic budget on $65k in Australia using the 75/15/10 split.

Because with some careful budgeting and smart money-saving hacks, you can save money even on an average income – I paid off $30k of debt in 9 months on a $68,000 salary so saving money is definitely possible even on an average wage.

Martyna

Knowing HOW to do it is key and I share all my budgeting, money saving, debt pay off and side hustle strategies in Supercharge in my Supercharge Your Savings & Income program. My students save an average of $165 a week! ↓↓↓

The $65k Budget on a 75/15/10 split – let’s do the numbers

$65k after tax that’s $4,342. That means allocating $3,256 a month or $757 a week towards your cost of living expenses (rent, bills, groceries).

75% – money for needs

• Even if you assume $500 weekly payment for rent alone, you’ll have $257 a week left for essentials. If you are flat sharing, your rent will most likely be around $350-$400 a week so that’s already a good saving.
• Bills like electricty, water, gas, fuel and transport, insurance, registration, phone bill, groceries, hecs: $776 – I know savings and can tell you, there are savings to be made here which will get you ahead.
• And yes I spend $60 a week on groceries for my daughter and me – here is how I turn $70 worth of groceries into 50 dinner servings (I get paid fortnightly so have a $120 grocery budget for the period).

15% / 10% – money for wants and savings

• Then you have 15% or $650 a month and $150 a week
• 10% or $434 a month and $100 a week left.
• You can decide how to prioritise the split. You can put the 10% and 15% towards your wants or toward savings.

Wants covers things like subscriptions, gym memberships, going out, coffee, etc. Savings that’s money you can use to pay off debt, to save or to invest.

You can watch me do the full 70/15/10 budget breakdown on TikTok here.

The importance of creating a happy budget

I am all about teaching you how to create happy, balanced budgets with room for things you love. Why?

Because being too strict can lead to overwhelm and giving up. Many of my students mention this as the number one factor in giving up on budgeting in the past.

Yes, you might need to tilt your spending a little and change some of your spending habits. But by all means, include some of the things that bring you joy. Whether it’s travel, eating out, a yoga class or Netflix.

And with my save money on everything strategies and money-saving hacks, you will be able to find extra savings on those activities and purchases too!

Find savings on things you are spending money on

As mentioned, I’ve been finding savings for over 10 years. My friends call me the budget queen and I know EXACTLY how to find and hack savings on pretty much everything.

I’m saving $15,000 a year by hacking the hacks. You can find details on these and many more everyday savings in my Supercharge program. With an average student saving $165 a week!

I list just some examples of easy ways to save money here to help you realise that budgeting is the first step, and finding extra savings is the next.

How to save money using a budget?

Once you have your budget set up, look at:

• where your money is going
• can you shift, tilt or cut back some of the spending
• can you think of ways to spend and still save
• with every purchase be mindful of your goal, ask yourself: is this purchase getting me closer to my goal?

My budgeting philosophy is all about being mindful of spending habits and teaching you ways to save money without extreme sacrifices and overwhelm. ↓↓↓

INCREASE YOUR INCOME WITH SIDE HUSTLES

Want to save more money? My Supercharge program covers easy-to-do side hustles you can get started with today to boost your income. You can get started today with many of them including online and traditional side hustles like baby sitting, pet sitting or garden maintenance.

Remember, every dollar in extra earnings (or spending) can have a significant impact on your finances over time. You can use that extra money to help make ends meet, pay off debt or boost your savings and start investing.

Key Takeaways

• Creating a budget is key to saving money – get your budget calculator HERE.
• Start with making a budget with the 70/15/10 split method.
• Make sure to include things you love in your budget – your wants.
• Learn how you can save money on everything – join Supercharge and start saving!
• Increase your income with side hustles if you can.

READ MORE: HOW TO SAVE MONEY IN AUSTRALIA IN 2023