The power of budgeting

A budget can help you work out what you're spending money on and when... 

Are you aware you need to change your spending habits, but not sure where to start?

A budget can help you get back to basics and work out what’s going where and when.

Whatever your plans, a budget can help you to:

  • get more organised with your finances
  • cut down spending in areas you have a tendency to overspend, like clothes shopping or eating out―this can significantly help you cut your debt
  • save for a specific goal like going overseas or buying your first property.

Once you’ve set up your budget, it can be easier to keep track of your spending, change your habits and reallocate your funds to achieve different goals. 

How to build a basic budget 

First, work out your income. Include your salary, plus any bonuses and investment income. Then, divide your money into six main buckets:

  1. Living expenses—include rates, utilities, telephone, groceries, medicines, clothes, education, pets, child care and home maintenance.
  2. Transport—include petrol, vehicle registration, repairs, parking, and public transport and taxi fares.
  3. Loans, credit card and store accounts—include home loans and personal loans.
  4. Taxes, fees and charges—include taxes on any investments, and fees and duties.
  5. Insurance and superannuation—include life, health, super, home and contents, car, business and any other insurance.
  6. Leisure and entertainment—include holidays, eating out, takeaways, sporting memberships, movies, in-home entertainment, books, music and gifts.

For each bucket, indicate how much and how often you need to pay—weekly, fortnightly, monthly, quarterly or annually.

Managing and sticking to your budget

Once you’ve crunched the numbers you can start looking at areas you can make savings.

You don’t have to do it all by hand. There are plenty of tools to help you manage your finances:

  • A simple online tool like AMP’s Budget Planner Calculator can help you tally up your expenses and work out how much you have left over.
  • My AMP has a feature called Money Manager that gives you a bird's-eye view of your finances. Select the 'Manage non-AMP accounts' tab and follow the prompts.
  • The AMP Bett3r account is a smart bank account that helps you manage your money and save for your goals.

Like to know more?

Here’s a quick checklist to help you get started. And if you’d like to know more, you can:


Manage your money the smart way

The new AMP Bett3r Account is a smart bank account that helps you manage your money and save for your goals.

Find out more

Explore your goals

Try our online tool to explore, prioritise and create your own goals timeline.

Start exploring

Budget planner calculator

Use our Budget planner calculator to assess your current financial position and how much you may be able to invest. 

Start budgeting today

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Important information

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Any advice in this page is general in nature and is provided by AMP Life Limited ABN 84 079 300 379 (AMP Life). The advice does not take into account your personal objectives, financial situation or needs. Therefore, before acting on this advice, you should consider the appropriateness of this advice having regard to those matters. AMP Bett3r Account is issued by AMP Bank Limited ABN 15 081 596 009, AFSL 234517. Consider the terms and conditions available on request by calling 13 30 30 or at and whether this product is appropriate for you. Fees and charges apply.

Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any decision. Except where liability cannot be excluded, AMP does not accept any liability for any resulting loss or damage.