Ever feel like your money disappears faster than a pack of Tim Tams at a family gathering? You’re not alone. Budgeting can seem like an impossible task, one that’s filled with sacrifices and spreadsheets. But guess what? It doesn’t have to be that way.
If you’re tired of living paycheck to paycheck and want to start taking control of your finances, this guide is for you. Today, we’re diving into the Budget Right method, including my game-changing 70/10/10/10 rule, to help you build a budget that actually works.
Why Budgeting is the Secret Weapon to Financial Freedom
Budgeting is About Freedom, Not Restriction
I used to think budgeting was just for people with six-figure salaries and a love for Excel sheets. But after hitting rock bottom – struggling with debt, addiction, and even homelessness, I learned that budgeting isn’t about restriction. It’s about freedom. It’s about knowing where your money is going so you can finally start living life on your terms.
The Budget Right 70/10/10/10 Rule
Forget complicated formulas and boring financial jargon. This simple breakdown helps you take charge of your cash without feeling like you’re living on bread and water. Here’s how it works:
70% – Covering Your Essential Expenses:
This covers essential costs like rent, groceries, bills, transport, and daily necessities. To make sure this portion is well managed, track your spending, set spending limits, and look for areas where you can cut costs without compromising on quality of life. In my formulated spreadsheet, I provide an extensive list of expenses that you may overlook or not have considered, helping you gain a clearer picture of where your money is going.
10% – Saving For Your Future Self:
This is your future you fund. Whether you’re building an emergency fund, saving for a home, investing for long-term growth, or preparing for retirement, this portion is crucial for financial security. Many people may not have enough superannuation or pension funds to rely on, so it’s wise to take control and build your own financial safety net. Automate your savings and treat it like a non-negotiable expense
10% – Giving With Purpose:
Whether it’s charity, tithing, or helping a mate in need, this portion reminds you that money isn’t just about what you get – it’s also about what you give. Giving is a powerful way to use money as a tool for good. I strongly believe in the principle of sowing and reaping – what you give has a way of coming back to you. It also strengthens your connection to the community and allows you to make a meaningful impact in the lives of others.
10% – Splash Cash For Guilt Free Spending With Balance:
Yep, this is guilt-free spending money! Whether it’s a spa day, movie night, or a new pair of shoes, having money set aside for enjoyment is essential. Treating yourself is not a waste – it’s a way to maintain balance and prevent burnout. This Splash Cash cashflow allows you to enjoy life while still being financially responsible. Without it, budgeting can feel restrictive, which often leads to splurging or abandoning the plan altogether. The key here is to spend within your means – celebrate small wins, plan for experiences that bring you joy, and embrace financial freedom without guilt. Whether it’s dining out, a hobby you love, or saving up for a bigger treat, having designated fun money keeps you motivated and engaged in your financial journey.
5 Budgeting Hacks to Make Your Money Work for You
1. Track Every Dollar Like a Boss
Ever wondered where your money actually goes? You’re not alone. Start by downloading my free Budget Right Spending Tracker and log every dollar you spend. This isn’t just about recording what, when, and how much you spent – it’s about truly understanding your financial habits. In this spending tracker, you’ll also record how you paid, how you were feeling at the time, and how long you had to work to afford that purchase.
At first, this may seem like a lot of effort, but trust me, it’s worth it. When you review your spending habits, you start noticing patterns. This helps you recognise emotional spending triggers and understand the true value of your money. Over time, this awareness will empower you to make more intentional financial choices without feeling deprived.
2. Identify Your Spending Triggers
Do you find yourself shopping when you’re stressed, bored, or feeling pressured? These are spending triggers – emotional or situational cues that lead to unplanned purchases. Understanding why you spend is just as important as how you spend. Once you identify your triggers, you can put a fixer in place to redirect those emotions before they lead to overspending. Whether it’s calling a friend, going for a walk, or making a DIY spa night, having a plan can make all the difference. Download my free Budget Right Spending Triggers and Fixers PDF to start identifying your triggers and taking control of your spending habits.
3. Use the “24-Hour Rule” for Non-Essentials
Impulse spending is the silent killer of your bank balance. The next time you want to buy something outside your budget, wait 24 hours. This small delay gives you time to reconsider and determine if the purchase is truly necessary. More often than not, you’ll find that the urge passes, saving you from buyer’s remorse.
To make this even more effective, use this time to ask yourself a few key questions:
- Do I really need this, or is it just an emotional response?
- Can I afford it without compromising my financial goals?
- Will I still value this purchase a month from now?
Writing down your thoughts or discussing them with a friend can add clarity. You can also check reviews or compare alternatives to make a more informed decision. If after 24 hours you still believe it’s a worthwhile purchase, then you can confidently buy it, knowing it’s a conscious choice, not just an impulse.
4. Make Your Budget Fun
Yes, budgeting can actually be fun (promise!). Set mini savings challenges, use cash-stuffing envelopes, or reward yourself when you hit financial goals. The more enjoyable you make it, the more likely you are to stick with it. You can also gamify your financial progress by setting milestone rewards, like a small treat for every $500 saved.
Another great way to stay motivated is by creating a vision board – a visual representation of your financial goals. This could include images of a debt-free life, dream holidays, your future home, or anything else that inspires you to keep pushing forward. Seeing your goals daily serves as a powerful reminder of why you’re budgeting in the first place.
If paying off debt is your main focus, download my Debt Reduction Tracker, a great visual tool that helps you see exactly how much debt you’ve paid off. Watching your debt shrink over time is incredibly motivating and reinforces your progress. The more ways you can make budgeting engaging, the easier it becomes to stay on track!
5. Slash Unnecessary Expenses
Check your subscriptions (do you really need five streaming services?). Negotiate bills, buy groceries on special and use cashback apps. Small changes add up fast! Cutting back on unnecessary expenses doesn’t mean eliminating fun—it’s about prioritising value over impulse.
A great way to identify where your money is going is by grabbing some highlighters and your last three months of bank statements. Colour code your transactions into categories such as essentials (rent, groceries, bills), discretionary spending (eating out, entertainment), debt repayments, and savings/investments. This visual approach, outlined in my book Budget Right: Eliminate debt and improve your financial and mental wellbeing, makes it easy to spot areas where you might be overspending. Seeing it all laid out in colour helps highlight patterns – like that sneaky daily coffee adding up to hundreds a month! From here, you can decide where to cut back without feeling deprived, ensuring your money is working for you, not against you.
The Real Power of Budgeting? Peace of Mind.
Imagine waking up without financial anxiety. No more dodging phone calls from debt collectors or dreading the end of the month. Budgeting gives you control and control gives you freedom.
I know this because I’ve lived it. From drowning in debt to rebuilding my life, I’m proof that it’s possible. And if I can do it, so can you.
Want more practical budgeting tips? Subscribe to my newsletter (and get my budget spreadsheet for free) and follow me on Facebook and Instagram.
