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Six simple steps to start budgeting right now
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Ever feel like your pay disappears the minute it lands?
One minute you’re cruising along, everything well in hand, the next, every bill in existence decides to say hi. If you’ve ever checked your bank balance a few days before payday and wondered where it all went, you’re in good company.
Budgeting isn’t about cutting out everything enjoyable or becoming obsessed with spreadsheets (shudder). It’s about having a plan for your money before life throws a surprise at you. A simple, realistic budget planner can give you breathing room, confidence, and far fewer last-minute scrambles.
Let’s break down the most effective budgeting methods for everyday Australians, so you can choose one that actually fits your life.
Because you can’t control what you can’t see.
When you can see your numbers in one place, budgeting becomes less emotional and more practical. This is especially helpful if you’re paid weekly or fortnightly, giving you clear oversight on your regular expenses and the occasional unexpected surprise.
By using a budget planner, you can clearly map out:
Whether it’s a spreadsheet, an app, or a printable budget template, the best budget planner is the one you’ll actually use.
For a budget planner tailored to you, the Beforepay app has got you sorted. Use preset categories to create and customise your budget, then watch as the app keeps track of your money automatically, letting you know if you’re under or over budget.
The 50/30/20 budgeting method gives you structure without overthinking or needing to track every single cent you earn. It’s an excellent way to start budgeting if you are new to it, or if you prefer a more simple, concise method of planning.
All you need to do is split your after-tax income into three separate categories:
50/30/20 is easy to understand, quick to set up, flexible, and clear. It can also help you spot if/when essentials are eating into more of your pay than you’d prefer, especially if you convert your pay to percentages.
While it is a fantastic household budget planning tool, it’s important to consider its shortcomings. The BIG one is how expensive the cost of living is—sometimes 50% of your income isn’t realistic to cover all your essential expenses. Additionally, having a budget planner with less detail can give smaller overspends a chance to slip through, as your budget may not explicitly state what you’re spending your money on.
It may take a little extra work, but assigning every dollar to an expense or purpose can ensure nothing slips through your budget. This is a perfect option for people who want (or need) structure and clarity from the top down.
Zero-Based Budgeting means your income minus expenses equals zero; not because you have nothing left, but because every dollar is already spoken for.
How it works:
Your first Zero-Based Budget may take a bit of time to create, but will take less and less as you become more familiar—especially if your expenses are relatively unchanging over pay cycles
Zero-Based Budgeting is a phenomenal way to expose hidden money leaks, as it requires you to focus on where every dollar is going. It can also help to provide clarity, and potentially ease stress, by knowing just exactly what is being paid and how.
It’s important to remember to add in a ‘flexible spending’ buffer (if possible), just in case you have any sudden costs that come up or have forgotten to add an expense. It helps add extra peace of mind.
For more information on Zero-Based Budgeting, Investopedia has you covered.
The Envelope System allocates a set amount of money to specific spending categories. Once that money is gone, spending in that category stops until next payday. This enables you to set a firm limit on things that you tend to overspend on.
If you’ve ever uttered the phrase, “I just don’t know where my money goes”, this might be the budget planning option for you.
You can do this with physical cash and an actual envelope or digitally, using separate accounts or app categories.
How it works:
The downside to the Envelope System is that it’s less flexible if financial priorities change between pay cycles—and why it’s awesome for more discretionary spending, rather than essentials.
It can be difficult to do any planning on a budget. However, Pay Yourself First makes saving the first priority, rather than an optional extra. As soon as you’re paid, you move a set amount of money into savings then live on the rest. It’s a great budget planning method for those who value consistency and want to see their savings grow regularly.
How it works:
By paying yourself first you can build strong savings habits fast, without needing to constantly check your budget or adjust amounts. On the flip side, this type of budgeting doesn’t highlight potential overspending, as it’s all in one big money pool. Additionally, it’s not the best thing to use if your finances are already stretched, as it doesn’t give you precise control of your funds.
But if you are feeling a bit financially stretched, Beforepay Pay Advance can help ease the tension, with short-term loans that lessen the shock of unexpected expenses.
A Bare-Bones Budget is often a temporary measure designed to cut all unnecessary expenses for a short period of time. You focus on the essentials first (and in some cases, only), then use the remainder for goals, savings, and discretionary spending.
You can think of it like a reset button. It’s practical, realistic, and works well with a weekly or fortnightly budget planner, especially when dealing with sneaky sudden costs.
A Bare-Bones Budget template strips things back to basics. For example:
Once essentials are covered, you add small buffers for emergency funds, lifestyle spending, and savings, if possible. And the savings don’t have to be large amounts; just $10 a week can lead to a significant cash buffer over time.
Life will always throw surprises. Budgeting doesn’t stop that, but it helps you handle those surprises smoothly.
When picking the right budget planner, ask yourself:
Or you might even create a new one that's entirely your own. Budgeting isn’t about perfection. It’s about creating a system that supports your real life.
And if you want to combine your newfound budgeting knowledge with tips for boosting your savings in 2026, we have just the blog for you.
Disclaimer: Beforepay Group Ltd, ABN: 63 633 925 505. Beforepay allows eligible customers to access their pay and provides budgeting tools. Beforepay does not provide financial products, financial advice or credit products. The views provided in this article include factual information and the personal opinions of relevant Beforepay staff and do not constitute financial advice. Beforepay and its related bodies corporate make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this blog post and do not accept any liability for any loss whatsoever arising from the use of this information. Please read our Terms of Service carefully before deciding whether to use any of our services.