How to Maintain a Budget

by

How to Maintain a Budget: A Practical Guide for Australians

Introduction

Managing money effectively is one of the most important financial skills you can develop. For Australians facing rising living costs, housing pressures, and fluctuating interest rates, having a clear and realistic budget is essential. A well-planned budget helps you understand where your money goes, save for the future, and reduce financial stress.

In this article, we’ll cover practical strategies to create and maintain a budget, highlight common budgeting mistakes, and explore useful tools like Notion to make money management easier.

1. Why Budgeting Matters

Australia is one of the world’s most liveable countries, but it’s also one of the more expensive places to live. Whether you’re a student, professional, or family household, a good budget can help you:

✔ Track expenses – Identify where your money is really going.
✔ Save more effectively – Put aside money for travel, property, or retirement.
✔ Reduce debt – Stay on top of credit cards, loans, or mortgages.
✔ Feel in control – Lower financial stress and improve peace of mind.

👉 Example: According to the Australian Bureau of Statistics (ABS), the average Australian household spends over $1,500 per week on living expenses. A budget ensures you know exactly how to manage those costs.

2. Steps to Create and Maintain a Budget

Step 1: Calculate Your Income

List all your income sources:

  • Salary or wages (after tax)

  • Side hustles or freelance work

  • Government benefits or allowances

  • Investment income

👉 Be realistic and use net (take-home) pay, not your gross income.

Step 2: Track Your Expenses

For at least one month, track every expense to see where your money goes. Categorise into:

  • Fixed expenses (rent, mortgage, insurance, phone bills)

  • Variable expenses (groceries, transport, utilities)

  • Discretionary expenses (dining out, entertainment, shopping)

👉 Pro Tip: Many banks in Australia (like CommBank and NAB) now offer automatic expense categorisation in their apps, making it easier to track spending.

Step 3: Set Financial Goals

Budgeting works best when tied to clear goals. Examples:

  • Pay off a $3,000 credit card debt in 12 months.

  • Save for a $10,000 holiday fund in two years.

  • Build a 6-month emergency savings fund.

👉 Break down goals into monthly saving targets to make them manageable.

Step 4: Choose a Budgeting Method

There are different budgeting systems to suit your lifestyle:

✔ 50/30/20 Rule

  • 50% needs (rent, bills, groceries)

  • 30% wants (dining, shopping, travel)

  • 20% savings and debt repayment

✔ Zero-Based Budgeting

  • Assign every dollar of income a purpose (no “leftover” money).

✔ Envelope Method (Digital or Physical)

  • Divide money into “envelopes” for categories (e.g., $600 groceries, $200 entertainment). Once it’s gone, no more spending in that category.

👉 For Australians with irregular incomes (freelancers, gig workers), the Zero-Based method works well to give every dollar a job.

Step 5: Monitor and Adjust Regularly

Your budget is not static—it should evolve as your life changes. Review it:

  • Monthly: Check if you stayed within limits.

  • Quarterly: Adjust categories (e.g., higher electricity bills in winter).

  • Annually: Update goals, income, or expenses.

👉 Example: If your energy bill rises by 15% due to seasonal changes, shift money from discretionary spending to cover it.

3. Recommended Budgeting Apps for Australians

1. Notion (Highly Recommended for Flexibility)

Notion is not a dedicated budgeting app, but it’s incredibly powerful for customised budgeting.

✔ Create a personalised budget tracker with income, expenses, and savings categories.
✔ Use pre-made budget templates available in the Notion community.
✔ Sync across devices for real-time updates.
✔ Combine budgeting with goal tracking, habit building, and planning in one app.

👉 Perfect for Australians who want a flexible all-in-one tool that goes beyond just budgeting.

2. PocketSmith

A New Zealand-based app, popular in Australia, designed specifically for forecasting your financial future.

✔ Connects to Australian bank accounts.
✔ Helps predict cash flow weeks or months ahead.
✔ Great for people juggling multiple income streams.

 – Check the link: https://www.pocketsmith.com/

3. Frollo

An Australian-made budgeting app that automatically categorises transactions.

✔ Uses Open Banking to connect securely to banks.
✔ Shows insights into spending habits.
✔ Helps track savings goals automatically.

 – Check the link: https://frollo.com.au/

4. YNAB (You Need A Budget)

Although U.S.-based, YNAB is popular globally and works well in Australia.

✔ Follows the Zero-Based Budgeting method.
✔ Encourages proactive money management.
✔ Great for people committed to strict budgeting discipline.

 – check the link: https://aus.youneedabudget.com/?utm_source=google&utm_medium=organic&referrer=google.com

4. Common Budgeting Mistakes to Avoid

Even with the best apps, many Australians struggle with budgeting because of these mistakes:

❌ Underestimating small expenses – Coffee, snacks, and subscriptions add up quickly.
❌ Not accounting for irregular expenses – Car registration, insurance, and holiday costs.
❌ Being too strict – Unrealistic budgets lead to frustration and giving up.
❌ Failing to review regularly – Life circumstances change, so should your budget.

👉 Solution: Leave some flexibility in your budget. Allocate a small “miscellaneous” category for unexpected costs.

5. Practical Tips to Stick to Your Budget

✔ Automate savings – Set up automatic transfers to a high-interest savings account.
✔ Use separate bank accounts – One for bills, one for everyday spending.
✔ Plan groceries – Meal planning saves hundreds monthly.
✔ Limit card payments – Use cash or debit for discretionary spending to stay disciplined.
✔ Review subscriptions – Cancel unused streaming services or memberships.

👉 Example: Cutting down on just two $5 coffees per week saves $520 a year—money better invested or saved.

Conclusion

Maintaining a budget doesn’t mean living without joy—it means being intentional with your money. For Australians, effective budgeting is especially important given the rising costs of housing, groceries, and utilities.

By following clear steps—calculating income, tracking expenses, setting goals, and choosing the right budgeting method—you can gain control over your finances. Tools like Notion, PocketSmith, or Frollo make budgeting easier, helping you stay consistent and motivated.

💡 Key Takeaways for Australians:
✔ Use apps like Notion to customise and track your budget.
✔ Stick to a budgeting method (50/30/20 or Zero-Based).
✔ Automate savings and adjust regularly.
✔ Avoid common pitfalls like ignoring irregular expenses.

When you treat budgeting as a long-term habit instead of a short-term fix, you’ll be better prepared to achieve your goals—whether that’s buying a home, traveling the world, or retiring early.