Build a household budget around the money you actually use
A useful budget connects everyday spending with bills that arrive less often. Start with your records, then make the plan specific enough to check against what happens next.
On this page
- Track spending
- Review recent account, card and recorded cash spending, including less frequent costsASIC MoneySmart: track your spending
- Financial counselling
- Free and confidential support is available through not-for-profit community servicesASIC MoneySmart: financial counselling
Gather the figures before setting limits
Look through recent account and card transactions, including cash spending you recorded separately. Group purchases into categories that mean something to you, such as housing, groceries, transport and health. Check unfamiliar charges and subscriptions rather than assuming every recurring debit still belongs in the plan.
Review several months where possible. A short snapshot can miss annual or quarterly costs and make an ordinary month appear cheaper than it is. ASIC MoneySmart: track your spending (opens in a new tab).
Put income and commitments in one view
Record income and expenses, including regular bills and debt payments. Keep the period attached to every amount: a weekly cost and a monthly cost are different inputs. A budgeting tool should convert those periods explicitly rather than silently treating them as the same.
Include occasional costs as well as routine spending. If income varies, label any average as an estimate and revisit it when your working pattern changes. The plan should show whether expected spending exceeds expected income, without presenting an estimated remainder as guaranteed spare cash. ASIC MoneySmart: how to do a budget (opens in a new tab).
Check what the transactions tell you
A spending record is evidence for the next version of the budget. Use it to distinguish essentials from costs you may be able to change, and look for a manageable adjustment rather than changing every category at once.
Continue recording cash purchases as well as card payments. Set reminders for larger bills and include the money being put aside for them. If you share household costs, agree which expenses the shared record covers. ASIC MoneySmart: track your spending (opens in a new tab).
Revise the plan when circumstances change
Compare the plan with actual spending regularly. Update it when income, prices, commitments or goals change. A savings amount can be tested as a scenario alongside other expenses; it is not a requirement to reach a particular target regardless of essential costs. ASIC MoneySmart: how to do a budget (opens in a new tab).
Get support when the budget cannot cover the bills
Financial counselling in Australia is available free and confidentially through not-for-profit community services. Counsellors can help people understand their situation, deal with bills and creditors, and find other support. Check the linked source for current hours and other services. The National Debt Helpline number listed by MoneySmart is 1800 007 007 (opens in a new tab).
Financial counselling is different from fee-charging debt-management services, and it does not replace legal advice if legal action is involved. ASIC MoneySmart: financial counselling (opens in a new tab).