So you just spent your last $20 on a new pair of sick sunnies but you don’t get paid for another week? What a nightmare! A budget helps you to track how much money you’re spending. It will show you how much money you have to spend or save, so you don’t end up in a financial pickle.

The money you earn is called your income, and the money you spend regularly (on things like your phone, rent and food) is called your expenses. If you subtract your expenses from your income, whatever’s left over is your disposable income (the money left over for you to save or splurge).

Once you work this out, it’s easy to start saving money for that big purchase you have in mind and make sure your money doesn’t run out between pays.

Where to start?

There are some great tools out there to help you work out a budget, if you don’t want to do it manually. Check out Money Smart’s Budget Planner which will work out your income, expenses and disposable income in a handy graph. 

If you’re worried about overspending, these days many online banking apps have breakdowns of where your money is going. You can find out more about budgeting on the Youth Central website.

Find out more in our ‘How do you save money?’ article!

What if I’m in debt?

If you are in debt, try speaking to a financial counsellor. They will give you advice to help you manage your money, and it’s free! Check out Financial Counselling Australia to find a counsellor near you, or call 1800 007 007 to speak to one on the phone.