A helpful guide to budgeting and
managing your money
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Budgeting basics | Managing inflation | Staying on track | | Financial plan
Managing your money doesn’t have to be complicated. Whether you're just starting out or trying to stay on track during a cost-of-living crunch, this guide brings together practical tips, proven frameworks and helpful tools to help you take control of your finances, even when life gets expensive.
Budgeting basics
A good budget is the foundation of financial wellbeing. It helps you understand where your money goes, set goals and make smarter decisions.
Try the 70-20-10 rule
This simple framework breaks your income into three buckets:
- 70% for must-haves like rent, groceries, bills and loan repayments
- 20% for wants like dining out, entertainment and shopping
- 10% for savings or debt repayments
Note: If 10% feels out of reach, you could start with 5% or whatever you can manage. The key is consistency – even small amounts add up over time.
Track your spending
Use buckets to organise your expenses
Managing money during inflation
When prices rise but your income doesn’t, budgeting becomes even more important. Here’s how to stay financially resilient when the cost of living goes up.
Understand what’s driving costs
According to the Australian Bureau of Statistics1, housing costs rose 5.6%, food prices increased 3.1% and electricity jumped more than 33.9% in the 12 months to September 2025. These increases can put pressure on your budget - especially if you’re already stretched.
Review your spending habits
Looking for areas where you can reduce or pause non-essential expenses can make a difference. Even small changes, like switching to in-season produce or cutting back on subscriptions could help.
Build in flexibility
Some months will be more expensive than others. If you have a surplus, save it for times when costs spike. Just make sure flexibility doesn’t become an excuse for overspending.
Staying on track with your financial goals
Setting goals is one thing. Sticking to them is another. Here are a few ways to stay motivated and accountable.
Make your plan visible
Celebrate milestones
Include fun in your budget
Assessing and adjusting your financial plan
Your financial situation will change over time. And your budget should too.
Review regularly
Understand your credit score
Get help when you need it
Ready to take control of your money?
Sources: 1 Australian Bureau of Statistics: Monthly Consumer Price Index Indicator
Contributor | Therese McGrath, Chief Financial Officer
Therese brings over 25 years of international experience in finance, strategy, and operations. She joined Pepper Money in January 2018 as Chief Financial Officer. In this role, she provides the leadership and financial and operational management necessary to ensure Pepper Money achieves its strategic goals and objectives. Read more.
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