Useful tips for planning a budget and saving.


Useful tips for planning a budget and saving.


Before you try to structure a budget, you need to understand what type of spending you do. The 3 types of expenses are fixed, variable and impulsive. Fixed costs cover things like rent and your mortgage payments. Generally, these do not change frequently and can be calculated for an extended period. As we all know the costs of everything goes up over time, however, these costs do not fluctuate on a regular basis. Variable costs are mandatory expenses that fluctuate in value from bill to bill. These expenses include things like water bills, electricity bills, and phone bills. The final category is impulsive spending, these spendings are crucial to separate as they are the ones that get out of hand. Examples are food expenses, fuel costs, and Friday night schnittys at the club. Once you have identified which costs are in which category you can start to automate your costs.


Structure and categorize your accounts

Internet banking has many tools that can help provide structure and consistency to your budget. once you have your expenses categorized and valued make sure that you have an account for your fixed and variable expenses (bills), impulsive spending (spending’s) and savings.


Automate as much as you can

Automatic transfers set up on a regular basis should be able to keep your accounts maintained well enough so that you do not have to access your bank account and adjust things regularly. With your accounts make sure that you have covered the following basics.



The first stop for your money and so, this is where your regular pay for work should go. Ensure that this account operates with a safety net (an amount of money to help cover unexpected expenses). This account also must be able to transact from online. This will allow you to pay your bills such as electricity, insurance, and water. If you have a mortgage instead of an interest accruing account think about using a mortgage offset account.



Feel free to use a different bank to run this account. This will protect you from accessing your savings. With 2 days wait on transfers you will not be able to overspend without having a few days to think about how much you really need those shoes. This account should also be the only account that has an access card. Ensure your automated transfer for spending money happens on a weekly basis, the shorter the period the easier it is to budget.



This is the simplest account to manage. Now that you have calculated how much you spend on your fixed, variable, impulsive, and emergency funds the remainder should be transferred off into your savings. This account should be protected, therefore, access needs to be limited. This account should be a mortgage offset if you have debt, or if you do not have debt a high-interest account with low fees.


Please note this Document contains information that is general in nature. It does not consider the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

GEM Planning Pty Ltd ABN 15 112 148 366 is an Authorised Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFS License No. 232706