Simple ways to stop spending in 2025 and a step by step guide on how to budget!

1. How do I even start creating a budget? 🤔💰

Start by tracking where your money’s going – no judgment, just curiosity! Once you’ve got the numbers, break them into needs (essentials), wants (fun stuff), and savings. The simplest formula? Start with 50% for essentials, 30% for fun, and 20% for savings or paying off debt.

Example: Sarah realized she was spending $400 a month on takeout coffees and lunches at work. Instead of cutting it all, she now meal-preps three days a week and still enjoys her fave soy latte twice a week. Boom – $200 saved without feeling deprived!

2. How much of my income should go towards essentials, savings, and fun? 💸📊

We love the 50/30/20 rule: 50% for essentials (think rent, bills, groceries), 30% for fun (brunch, shopping, Netflix), and 20% for savings or debt. But it’s okay to tweak it. If rent’s eating up 60% of your income because #SydneyLife, make savings a non-negotiable, even if you start with 10%.

Example: Emma, living in Melbourne, couldn’t hit the 20% savings mark straight away. So, she started by saving 5% of her income and increased it by 1% each month. Small wins turned into a healthy savings habit.

3. How do I avoid feeling restricted or deprived when following a budget? 🤷‍♀️💡

Budgeting doesn’t mean ditching everything fun – it’s about spending intentionally. Create a "fun fund" so you can still do the things you love, guilt-free.

Example: Jess budgets $150 a month for her ‘treat yourself’ fund – whether that’s a facial, wine night with the girls, or a cheeky Zara haul. Knowing she’s planned for it means she spends without stress.

4. How can I overcome impulse spending or emotional purchases? 🛑💳

Impulse spending often happens when we’re bored, stressed, or scrolling Insta. Here’s the trick: pause before you buy. Add it to a wishlist, wait 24 hours, and ask yourself, “Will I still want this tomorrow?” Nine times out of 10, you won’t.

Example: Amy saw a $200 jacket on TikTok and almost clicked ‘buy now.’ She waited 2 days and realized she’d rather put that money into her Europe trip fund. TikTok jacket: 0, Amy’s goals: 1.

5. How do I stick to a budget when my friends tempt me to spend? 👫💪

We get it – another birthday dinner, another group trip! Be honest about your money goals and suggest affordable alternatives. Your friends will probably thank you for it.

Example: Laura couldn’t afford yet another $100 bottomless brunch. So she suggested a picnic in the park with homemade cocktails – everyone loved it, and it only cost her $30.

6. What’s one small mindset shift to spend smarter in 2025? 🧠💡

Start thinking about your spending in ‘hours worked’ instead of dollars. If you earn $30 an hour, that $90 dress isn’t “just $90” – it’s 3 hours of your life. Ask yourself: “Is this worth 3 hours of work?”

Example: Kate almost bought a $150 handbag, but when she realized it was 5 hours at her desk, she decided to wait. She saved the cash and treated herself to a weekend spa day instead.

7. What do I do when unexpected expenses come up? 🚨💸

This is where an ‘OMG fund’ (aka emergency fund) saves the day. Start small – aim for $1,000 to cover car repairs, vet bills, or last-minute flights. Gradually build it up to 3 months’ expenses.

Example: When Chloe’s car needed an $800 repair, she didn’t panic – her OMG fund had her covered. No stress, no credit card debt, just peace of mind.

8. How do I get back on track if I’ve completely blown my budget? 🔄💪

We’ve all been there! Don’t beat yourself up – just hit reset. Review where things went off track, cut back for a week or two, and start fresh. A short-term no-spend challenge can give your budget a quick reset.

Example: After a big month of weddings, gifts, and flights, Georgia did a 10-day “no-spend detox,” where she only paid for essentials like groceries. It helped her reset her spending without feeling deprived.

9. How do I budget for big goals like travel or buying a house while still enjoying life now? 🌍🏡

Big goals are all about small, consistent steps. Break your goal into monthly chunks and automate those savings. Treat it like a bill you have to pay.

Example: Tash wanted $5,000 for her dream Europe trip in a year. She set up an automatic transfer of $100 a week into a “Europe Fund” account. It felt easy, and she still had room to enjoy her weekends.

10. How do I handle guilt around spending on myself? 😔💖

Spending money on yourself isn’t selfish – it’s self-care when done mindfully. Align your spending with what makes you happy and what truly matters to you.

Example: Sophie used to feel guilty about her $60 weekly pilates classes. But she realized it made her feel stronger, happier, and more confident. She cut back on mindless online shopping and kept her pilates guilt-free.

The 5-Step "Easy-Peasy Budget" Method

1. Step 1: Know Your Income

   • Write down how much money you bring in each month after tax. This includes your salary, side hustles, or any other income.
   • Example: Emma earns $4,000 a month after tax.

2. Step 2: Track Your Spending for 1 Month

   • Look back at your last month’s bank statements or use a budgeting app to see where your money went. Divide it into three categories:
     • Essentials: Rent/mortgage, groceries, bills, transport.
     • Wants: Brunches, shopping, Netflix, coffee runs.
     • Savings/Debt: Money going towards goals, like saving for a trip, or paying off credit cards.
   • Example: Emma realizes she spent $300 on UberEats, $200 on shopping, and $150 on nights out.

3. Step 3: Set Up Your Buckets

   • Use the 50/30/20 rule to guide your budget:
     • 50% for essentials (bills, groceries, rent).
     • 30% for wants (fun stuff).
     • 20% for savings or debt repayment.
   • If your numbers don’t align perfectly, that’s okay! Tweak the percentages to suit your life.

4. Step 4: Automate Your Savings

   • Treat savings like a non-negotiable bill. Automate transfers to a separate account on payday so you’re not tempted to spend it.
   • Example: Emma sets up $200 to go straight to her “Holiday Fund” as soon as she gets paid. Out of sight, out of mind – savings done!

5. Step 5: Check In Weekly (Not Daily!)

• Don’t stress by checking your budget every 5 minutes. Instead, set a weekly “Money Date” (grab a coffee or wine) to review your spending and see if you’re on track.
• Adjust as you go, and celebrate the wins – like hitting a savings goal or staying under budget.