First up. Know where your money’s going
Before you can get your spending under control, you need to understand where your money is going in the first place.
Easy ways to track your spending
There’s no one-size-fits-all method, but here are a few solid options:
- Budgeting apps: Quick, easy and they do most of the work for you.
- Spreadsheets: Great if you like total control (and colour-coding).
- Bank statements: Old school but effective. A regular scan can reveal spending patterns you didn’t even know you had.
If you need more help, take a look at our guide to tracking your spending.
Spot the patterns
Once you’re tracking your outgoings, start sorting them into categories. You’ll quickly spot where your money’s really going – like, how many flat whites are we talking each week?
Here’s a simple breakdown to get you started:
- Essentials – rent, bills, groceries, travel
- Discretionary spends – takeaways, subscriptions, midweek dinners
- Impulse buys – the “I’ve had a long day and deserve this” category
Once you see the patterns, you can decide what to keep, cut back or swap for a cheaper option. Easy.
Understand what triggers overspending
We all have our spending weakness. Whether it’s boredom, stress or social FOMO, recognising what sets you off is key to staying on budget.
Common triggers:
- Stress shopping after a rough day
- Spending out of boredom
- Feeling pressure to keep up socially
Once you know your triggers, you can start replacing the habit with something that doesn’t burn through your bank account.
4 simple steps to smarter spending
1. Create a budget you can actually stick to
The best budget is one that fits your life, not one that makes it miserable.
Here’s how to build one that works:
- List all your income and expenses.
- Split your spending into fixed costs (like rent and bills) and variable costs (like food, fun and splurges).
- Decide how much you want to save or put towards debt.
- Whatever’s left? That’s your spending money for the month.
Pro tip: Try the 50/30/20 rule. It splits your income into:
- 50% for needs
- 30% for wants
- 20% for savings or debt
Need help fitting bigger purchases into your monthly plan? Spread the cost over 6 weeks or 3 months with Zilch without breaking your budget.
2. Set financial goals that motivate you
Having a goal makes it way easier to stay focused, especially when that flash sale hits your inbox.
Your goals could be:
- Building an emergency fund
- Paying off a credit card
- Saving for something big, like a holiday or a new laptop
Make sure your goals are SMART (Specific, Measurable, Achievable, Relevant, and Time-bound). And remember, Zilch can help you stay on track by letting you pay in chunks, not all at once.
3. Stop impulse buys before they start
Impulse buys = budget busters. If you’re prone to the odd “treat yourself” moment, try these tricks:
- Wait 24 hours before buying non-essentials
- Unsubscribe from promo emails (out of sight, out of mind)
- Don’t shop when you’re stressed or emotional, it rarely ends well
- Make a list before you shop and stick to it
4. Use Rewards to stay motivated
Getting rewarded for good spending habits? Yes, please. Zilch gives you up to 5% back in Rewards when you Pay now. It’s a nice way to make your money work a little harder and stretch your budget a bit further.
Take charge, one step at a time
Managing your spending isn’t about going without – it’s about being intentional with your money so you’re in control.
Start by understanding your habits. Set a budget. Choose your goals. Curb the impulse buys. And don’t forget to take advantage of smart tools like Zilch to help along the way.
Remember, every small change adds up to something big.