We all reach this time of year and start thinking about ways to make improvements or adjustments in our lives – New Year’s resolutions, if you will. Do we always stick to the resolutions we make? That’s debatable. But is it a helpful tool in allowing us the space to reflect on our daily habits and bring awareness to the forefront of our minds? Absolutely.

Improving your financial health through budgeting is as classic a ‘New Year’s Resolution’ as you can get — and for good reason. During the holidays, many of us go a little overboard with presents, hosting, and travel expenses. By January 1st, that financial squeeze kicks in, propelling us into a “save, save, save” mindset.

If you’re someone who’s always striving to get better at budgeting, we’ve got some simple tricks to make the process more manageable and less overwhelming. These tips will help you kick off the new year with the confidence and determination to stick to your resolution of building better financial health.

Here are our realistic tips to start the year on the right foot and set yourself up for financial abundance —

Tip One // Take The Time To Familiarise Yourself With Your Finances.

First, set aside some time to understand your financial situation. Grab some scrap paper — or, if you’re feeling fancy, start a spreadsheet or use an app — and record all sources of income. Then, categorise your expenses into fixed costs (like rent and utilities), variable costs (such as groceries and petrol), and discretionary spending (like dining out or shopping). Don’t forget to include irregular expenses, such as car registration, insurance, and (ahem) Christmas gifts.

Tip Two // Set Yourself Some Clear and Realistic Goals and Write Yourself A Game Plan.

Get specific with your savings and spending goals for short-term, medium-term, and long-term needs. For example, a great short-term goal might be saving $1,000 for an emergency fund within three months. Saving for a holiday works well as a medium-term goal, while planning for a home deposit is an excellent example of a long-term savings goal.

Tip Three // Follow the 50 / 30 / 20 Rule (Or Figure Out A Ratio That Works For You Better).

The 50/30/20 rule works like this:

Allocate 50% of your income for needs, such as housing, groceries, and transport.
Set aside 30% for wants, like entertainment and hobbies.
Reserve 20% for savings and debt repayment.

If these percentages don’t quite work for you, feel free to adjust them until you find a ratio that suits your budget, wallet, and financial goals.

Tip Four // Take Advantage Of Budgeting Apps.

There’s an abundance of great Australia-based budgeting apps, such as Frollo, Goodbudget, and WeMoney. Some are free, others require a subscription; some help you invest, while others link directly to your bank accounts — or don’t, depending on your preference. In short, there’s a budgeting app tailored to your specific needs. These tools can be invaluable in ensuring your money is working to build a strong and abundant financial future.

Tip Five // Make It Easy For Yourself By Automating Your Savings.

Set up automatic transfers to a high-interest savings account every payday. Automating your savings ensures you’re setting money aside before spending it, helping you build consistency and stay on track with the financial goals you set in tip one.

Tip Six // Separate Your Bank Accounts!

Create separate bank accounts for specific purposes, such as bills, savings, and your short-term, medium-term, and long-term financial goals mentioned in tip two. This approach makes it much easier to manage your money, avoid overspending, and visually track your progress toward saving.

Tip Seven // Make It A Habit to Review Those Subscriptions.

Let’s be honest—how many times have you checked your bank account only to find funds missing, then realised you forgot to cancel that 30-day trial of a streaming service? We lose so much money by holding onto subscriptions we don’t even use. Make it a point to track and review services like streaming platforms, gym memberships, or delivery subscriptions, and cancel the ones that are unused or unnecessary.

Tip Eight // Consider Making It A New Year’s Resolution To Eat In More.

We often spend a lot on eating out, which can be a nice treat or occasional outing, but when it becomes a regular habit, it can become a huge financial drain. It’s usually healthier to eat at home too, not to mention cosier. This January, try meal planning, buying in bulk, and shopping with a list to see how much you can save on your monthly spending.

Tip Nine // Start Building An Emergency Fund… Today.

No matter who you are, where you live, or how you move through your day-to-day life, we ALL need an emergency fund. It’s the cash reserve you can tap into when life throws you a curveball… or five. Car accidents, hospital visits, vet bills, job loss — you name it, this fund can come to your rescue. Aim to save three to six months’ worth of living expenses. This buffer will truly protect you from financial stress during those unexpected, messy life situations.

Tip Ten // Limit Your Credit Card Use.

Yes, this is probably the most obvious one, but hear us out. High interest rates on unpaid credit card debt can seriously derail your financial progress. Avoid unnecessary debt by using your credit card only for planned expenses that you can pay off in full each month.

Tip Eleven // Life Changes – So Should Your Budget.

Set aside time to revisit your budget monthly or quarterly to ensure it still aligns with your current goals, circumstances, pay rate, and debt. It’s okay if adjustments are needed — budgets are ever-evolving, and it’s helpful to remain adaptable.

Tip Twelve // Invest In Your Abundant Future.

Once your budgeting is on track and your emergency fund is built up, start focusing on growing your wealth by contributing to your super and investment portfolios (we’ve got a great blog on investing — check it out here). You don’t need to dive in headfirst and invest large amounts of money; start small to gain your bearings, and seek financial advice if needed.

Tip Thirteen // Keep Taxes In The Forefront Of Your Planning.

Keep your financial records organised throughout the year to make tax time easier. Familiarise yourself with the deductions you're entitled to and consider setting aside money for any expected tax bills. Lucky for you, we have the perfect tool — a bespoke tax checklist designed to help you maximize your tax benefits. Grab it now to start your New Year off on the right foot.

Tip Fourteen // Make Sure To Reward Yourself.

Sometimes, great opportunities come our way before we’ve had the chance to financially plan for them. It’s okay to step off the budgeting track and treat yourself occasionally, just don’t let it take you too far off course or become too frequent. Allowing for small rewards and spontaneity is important to stay motivated and celebrate your milestones.

YouGov conducted a study on budgeting and found that three in four Australians struggle with it. If you feel like you’re constantly trying to budget but find it difficult to achieve your financial goals, it’s worth talking to a financial advisor. That same study revealed that over 70% of Australians experience negative emotions and/or behaviors due to financial stress, including lack of motivation, poor sleep, and binge habits. Let’s not be part of that percentage this New Year. Start the year strong by implementing these strategies and seeking help when needed. FRE.DM Wealth is the perfect place to start — reach out to us today so we can help get your finances in order and set you up to take on everything the new year has to offer. Let’s make this year your most financially abundant year yet.

New Year, New Budget: A Curation of FRE.DM Wealth’s Best Budgeting Tips