Budgeting basics: how to plan your monthly money

Start with money that actually arrives

A useful household budget begins with income available to spend. Gross salary is not the same as the amount that reaches your bank account, so use the relevant after-deduction figure.

Separate needs, goals and flexible spending

Group housing, utilities, food, transport, insurance, debt payments and other recurring commitments. Then list savings goals and flexible spending separately. This makes it easier to see which amounts are fixed and which can move from month to month.

Remember irregular costs

Vehicle servicing, annual subscriptions and other occasional bills can distort a monthly view. Converting annual costs into monthly amounts can make them easier to plan for.

What a positive balance means

A positive amount after planned outgoings is money that has not yet been allocated. A negative amount means the planned spending exceeds income and the assumptions need to change.

Try the related calculator

Calculator results are estimates. Review the assumptions and limitations shown on the calculator page.