Article creating a budget
Series: Self-help activities

Creating a budget

4 min read

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Do you need help setting a budget?

Creating a budget can help you understand your financial situation and regain control over your money. You can work towards a more stable financial future by setting aside money for expenses and creating a plan to meet your financial goals. If you have incurred significant debt from gambling, it may feel overwhelming, but it may be important to address it through repayment arrangements. By taking these steps, you can reduce stress and begin focusing on other important areas of your life.

Does your family member or friend need help setting a budget?

Creating a budget can help your family member or friend understand their financial situation and regain control over their money. You can help them work towards a more stable financial future by working with them to set aside money for expenses and create a plan to meet their financial goals. If they have incurred significant debt from gambling, it may feel overwhelming, but it may be important for them to address it through encourage them to address it through repayment arrangements. By taking these steps, they can reduce stress and begin focusing on other important areas of their life.

Does someone need help setting a budget?

Creating a budget can help people to understand their financial situation and regain control over their money. You can help the person you’re concerned about work towards a more stable financial future by working with them to set aside money for expenses and create a plan to meet their financial goals. If they have incurred significant debt from gambling, it may feel overwhelming, but it may be important for them to address it through you can encourage them to address it through repayment arrangements. By taking these steps, they can reduce stress and begin focusing on other important areas of their life.

How can budgeting help?

Budgeting is a great tool that can help you to manage your finances effectively by understanding your spending patterns, identifying areas where you can make changes, and setting realistic financial goals. By prioritising bill payments and setting aside a designated amount for entertainment, including gambling, you can better control your spending and avoid financial stress. Budgeting may also allow you to allocate funds towards savings, investments, or other long-term goals, such as a vacation or gift for a loved one. Overall, budgeting can help you to take control of your finances and make informed decisions about your spending habits.

How can people set a budget?

Follow these steps to get started. It’s a good idea to use the frequency with which you receive wages/benefits as the timeframe for your budget. For example, if you get paid fortnightly, set up a fortnightly budget.

1. Record income

Record how much money is coming in and when. If you don’t have a regular income, try to work out an average amount.

Make a list of all the money coming in, including:

  • how much
  • where from
  • how often (weekly, fortnightly, monthly or yearly)

This money could be from wages, pension, government benefit or payment, or income from investments.

2. Add up expenses

Regular expenses are your 'needs' - the essential items you need to pay for in order to live. These include:

Fixed expenses, for example:

  • rent payments
  • electricity, gas and phone bills
  • council rates
  • household expenses, like food and groceries
  • medical costs and insurance
  • transport costs, like car registration and maintenance or public transport
  • family costs, like baby products, childcare, school fees and sporting activities

Debt expenses, for example:

  • personal loan repayments
  • credit card payments
  • mortgage repayments

Unexpected expenses, for example:

  • car repairs
  • medical bills
  • extra school costs
  • pet costs

To make sure all expenses have been recorded, it’s a good idea to look at bills and bank statements. Include a brief description of the expense, the amount and the date of the payment.

3. Set a spending limit

The money left after expenses is spending and saving money. Spending money is for 'wants', such as entertainment, eating out and hobbies. It’s a good idea to make a plan for what to do with your spending money. This will help you to see where all of your money is being spent and keep within your limits.

4. Set a savings goal

People who have a savings goal can use their budget to work towards it. Once you know how much money you have for 'wants', you can work out how much of it you’d like to save. Having some savings can create a safety net for unexpected expenses. Even a small amount set aside regularly can make a difference.

5. Adjust the budget

A budget needs to work for you and your lifestyle so it's important to adjust it as things change. For example, if your ‘needs’ expenses start to increase, you may need to reduce your spending on some of your ‘wants’, or change your savings goal. Or if you receive a pay rise, you might be able to increase your savings or pay off some debt.

6. Make budgeting easier

To help make budgeting easier, consider setting up separate bank accounts. Some people have:

  • a transaction account for bills and expenses
  • a transaction account for spending
  • a higher interest savings account

Budgets can then be automated by setting up direct debits and a regular transfer to a savings account on pay day.

How can people find an online budgeting tool?

There are lots of free budgeting apps and online budget planners. You can find free tools, tips and guidance at the MoneySmart website, which was created by the Australian Government to help Australians take greater control of their money and finances. Here, people can set up their budget and save it online or use their Excel budget spreadsheet.

A counsellor or a financial counsellor can also help you if you are having trouble creating a budget. Financial counsellors can provide free advice on budgeting, managing debt, and simplifying debt repayments. You can learn more about financial counselling in our section on How Financial Counselling Can Help With Gambling or find a financial counsellor in your state or territory.

There is also a free National Debt Helpline that operates from 9:30am to 4:30pm, Monday to Friday. Call them on 1800 007 007.

You might also like to see our section on Managing Money for more information about ways you can take control over your finances, and protect your assets.

It’s common to feel overwhelmed when coming to terms with the impact of your gambling. Remember that there is help available if you need support to talk about your feelings and manage these emotions.

Do you want more help?

To find out more about creating a budget, you can start an online chat with us or call the Gambling Helpline on 1800 858 858 – free, confidential, 24 hours a day, 7 days a week. These services are available to support anyone affected by gambling harm, including family members or friends.

You might also like to encourage your family member or friend to see our section on Managing Money for more information about ways they can take control over their finances and protect their assets.

It’s common for people to feel overwhelmed when coming to terms with the impact of their gambling. Remind your family member or friend that there is help available if they need support to talk about their feelings and manage these emotions.

Do you want more help?

To find out more about creating a budget, you or your family member or friend can start an online chat with us or call the Gambling Helpline on 1800 858 858 – free, confidential, 24 hours a day, 7 days a week.

These services are available to support anyone affected by gambling harm, including family members or friends like you. It’s not only the person who gambles that can be affected, but the people close to them too. It’s important to take care of yourself when you’re supporting someone else. Check out the family and friends section in our peer support community to connect with people who understand.

You might also like to encourage the person you’re working with to see our section on Managing Money for more information about ways they can take control over their finances and protect their assets.

It’s common for people to feel overwhelmed when coming to terms with the impact of their gambling. Remind the person you’re concerned about that there is help available if they need support to talk about their feelings and manage these emotions.

Do you want more help?

To find out more about creating a budget, you or the person you’re working with can start an online chat with us or call the Gambling Helpline on 1800 858 858 – free, confidential, 24 hours a day, 7 days a week.

These services are available to support anyone affected by gambling harm, including family members, friends, and professionals like you. It can be hard for professionals to support people with gambling issues. To learn more about how you can help, go to our section on How Professionals Can Help.

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