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If you want to get on top of your money this year, you’ve come to the right place.

This article will be showing you exactly how to budget step by step. In addition, you’ll get access to a simple and easy-to-use platform called Billroo

Different budgeting methods

There are many different budgeting methods available, however the most popular and easy to follow is the 50/30/20 and Pay Yourself First budgets. 

50 30 20 Budget

The 50 30 20 budget is a rough guide that you can use to do your budgeting. It helps you feel like you’re not missing out in any area of your life. The budget is designed to ensure all your needs are met, leaves room for enjoyment and ensures you are making progress towards your financial goals.

Budget breakdown: 

  1. 50% of your budget goes towards your needs, for example your living expenses like your rent or mortgage, groceries, transport, utilities etc. 
  2. 30% of your budget goes towards the fun stuff like eating out, going out with friends, travel, entertainment etc 
  3. 20% goes towards your savings or investments so that you can feel like you’re getting ahead with your finances every month.

Pay yourself first budget

The pay yourself first budget is when you set aside some money towards your savings or investments before you start allocating your money towards different expense categories. 

Warren Buffet summarises the pay yourself budget perfectly in his famous quote:

“Don’t save what is left after spending but spend what is left after saving”. 

Disclaimer

Don’t be afraid to use both budget methods or create your own. It’s important to find a budgeting method that works for you and aligns with your current financial situation.

How to set up a budget

Create your budget using Billroo, a free and easy-to-use platform and budgeting tool that helps you see where your money is really going. 

  1. In Billroo you can create your own budget either individually or with your partner. You can put down your income, investments, expenses and debt.
  2. Billroo allows you to easily import all your transactions with open banking. You can also categorise all of these transactions. 
  3. Once you’ve put in all of your different income streams and different expenses, you can start breaking down the data and see how your spending is actually going when you compare it to your budget. Is it more or less than what you expected? Is it aligned with your budget? Are there any improvements that you need to make? 
  4. You can compare your budget to the previous month. This will help you find areas to improve in your budget. 

Go to Billroo and sign up for free! Give us feedback on this tool, because we will keep iterating on this tool and making it better and better!

What is the 50 30 20 Budget?

The 50 30 20 budget is when you allocate 50% of your budget towards needs, 30% towards your wants and 20% towards savings and investments.

What are the different budgeting methods?

There are many different budgeting methods available, however the most popular and easy to follow is the 50/30/20 and Pay Yourself First budgets. 

What is the best budgeting method?

It’s important to find a budgeting method that works for you and aligns with your current financial situation. The 50/30/20 and Pay Yourself First budget are popular and easy to follow methods. 

What is the best Australian spending tracker?

Billroo is a free and easy-to-use platform that makes it easy to set a budget, visualise expenses and cash flow by category, and see where your money is really going.