The first step to getting on top of your finances, is figuring out a Budget that works for you. Budgeting in your twenties isn’t about living like pauper and putting all your money into your savings account or planning for retirement. Set goals, have fun, but know your budget. Whether you are trying to get on top of your expenses or saving for something big, it all comes down to knowing how much you can spend before your next pay day.

The Budget

Working out your budget is simple, your income, minus all mandatory expenses. get a little creative and add in some savings goals before you start Shouting Rounds at the bar or hitting the nearest Westfield on a Saturday morning.

Here’s a basic template for what you should be considering.

If you want to go a little more in-depth, ASIC has a pretty decent budget planner on their website. Do a little digging and there are tonnes of apps out there to help you manage your budget better.

The Plan

Once you’ve worked out where your money is going, you can start to look at what to do with your left over pay. If you take the example above, we have $116 left over to spend on food, clothes and booze. Not a whole lot if you’re buying lunch everyday or you want to go out with some friends. Knowing your budget lets you plan you week accordingly. Are you doing overtime this week? Is rego or car Insurance due?

There will be plenty of time to grow up and start being a real adult, start saving for that house deposit and all that. Right now lets just focus on your weekly budget and keep everything in order so you can continue to enjoy being a twenty something.

So what are some easy ways to start cutting down on unnecessary spending?

• Start packing your lunch for work – if you buy lunch every week day, thats $10 – $15 on lunch, thats $50 – $75 a week. Same goes for coffee & breakfast in the mornings.
• Stop shouting rounds at the bar. Shouting rounds is a very easy way to chew through your leftover cash. Pay for your drinks and the mental math isn’t so hard to keep track of.
• Turn off mobile data when you’re close to your data limit for the month.
• Pay your insurance yearly if you can afford to. Insurance companies usually charge more to pay your insurance monthly.
• Are you the only one paying for communal entertainment? I’m talking about netflix, stan, heyu and all those subscription services that you and the housemates use. Can you cut down on some or can you share the load?
• Don’t pay for tinder plus, grindr xtra, eharmony or any of those ‘premium’ features on dating apps.
• Find restaurants to go out with friends that serve good food at reasonable prices. Fancy restaurants are for your 30’s & 40’s when you can redraw on your house payment. The urban list has lists for fine dining on a budget.

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