Your practical guide to managing money

Managing your money can feel pretty overwhelming, especially when the cost of everything seems to be going up. It’s easy to feel like you’re the only one struggling to keep up, but you’re definitely not alone. 

While we can’t control the economy, we can take small, practical steps to feel more in control of our own finances. It’s not about cutting out everything you enjoy – it’s about understanding your money, making it work for you, and building habits that reduce stress in the long run.

The basics: Get to know your money

Set some goals

What do you want to achieve with your money? It doesn't have to be a big, long-term goal like buying a house. It could be saving for a weekend away, or a new phone or laptop. Having a clear, measurable goal can make saving feel more doable and motivating.

For example, if your goal is something vague like ‘save more money’, make it more specific, such as: ‘save $50 a fortnight for the next three months to buy a new pair of headphones’. Get more tips on setting goals that work for you. 

Track your spending

Taking an honest look at where your money goes can be eye-opening. Start by downloading your last couple of bank statements and doing a spending audit. You might be surprised by how much of your money goes towards things like takeaways or subscriptions. Some banks also offer automated category tracking and can regularly update you on your spending habits.

Start an emergency fund

An emergency fund is money set aside for unexpected costs, like a sudden car repair or a dental bill. It’s a buffer that helps you to avoid panicking and going into debt when life throws you a curveball.

Aim to save enough to cover three months of essential living costs. That might sound like a lot, but even putting aside $20 a week adds up over time. Learn more about setting up an emergency fund.

Find ways to save

Review your providers

Call your internet, phone and energy providers and ask if you’re on the best deal. Many will offer discounts just to keep you as a customer. You can also visit the government-run site Energy Made Easy to compare deals from other companies. If you have a concession or health-care card from Centrelink, you can link it to your energy provider for a discount of around 15–17 per cent on each bill.

Review your subscriptions

It’s the era of streaming, and odds are you have a few subscriptions. But do you really know how much you’re spending each month? Subscriptions are a great model for businesses because it’s so easy for customers to write off $12 a month here and $9 a month there. But it all adds up. When you do your spending audit, highlight all your subscriptions and really question if they’re worth it. 

Consider how often you use the service – if you’re only watching Netflix once a month because you prefer whatever is on Disney+, then it’s probably time to cancel that subscription. You could also see if you could share the cost of some services with friends or family.

Plan your food shop and cook at home

Learning to cook a few of your favourite meals can save you a huge amount of money. Sites like Budget Bytes and RecipeTin Eats have great, cheap meal ideas. Try doubling up on ingredients and saving half for the next day’s lunch, or cook a big batch of something to portion out for the week. 

Before you head to the shops, check what you already have and make a short meal plan for the next few days. Write a list based on what you actually need, and try to stick to it. Shopping when you’re hungry or rushed makes it way easier to overspend.

If you’re a fan of using LLMs like ChatGPT, one way to save money and learn how to make some new dishes is to send a photo of what’s in your pantry or fridge and ask: ‘What should I have for dinner tonight?’

Explore ways to earn more

Sometimes, the best way to improve your financial situation is to increase your income. But this doesn’t necessarily mean getting a second job.

Sell things you don’t need

Decluttering your space can make you some extra cash. You’d be surprised what people will buy on platforms like Facebook Marketplace or Gumtree. Old clothes, books, furniture or even plants can find a new home and put some money in your pocket.

Use your skills online

Use your network of friends and family to try and get odd jobs or freelance tasks. If you have skills in video editing, graphic design, or even just assembling flat-pack furniture, see if you can turn them into an income stream. Check out our guide to casual and freelance work.

Ask for a raise at work

This can feel daunting, but if you’ve been working hard and taking on more responsibility, you may deserve a pay rise. Most employers expect this conversation to happen. Here are some tips:

• Do your research. Look up the average salary for your role and experience level on sites like Seek or Glassdoor. If you’re close with your co-workers, it’s okay to ask if they’d like to share their pay rates with you. Just understand that it’s also okay if they’d prefer not to.

• List your wins. Write down specific examples of how you’ve contributed to the team and the business. Have you improved a process, completed a big project or taken on new duties?

• Get in there. Ask your manager for a dedicated meeting to discuss your performance and career growth. Don’t try to have the conversation in a busy hallway or in the lift.

Rehearsing what you want to say can help you to feel more confident. Even if the answer is ‘no’, you can ask what you would need to do to earn a raise in the future. It shows you’re committed and proactive.

Spend smarter, not just less

Understanding how spending tools like credit cards or Buy Now Pay Later (BNPL) services work can help you to make informed choices and avoid debt.

Credit cards aren’t a perfect solution

A credit card lets you borrow money from a bank to make purchases. If you pay the full balance back on time each month, you won’t be charged interest. But if you only make the minimum repayment, you’ll be charged interest on the remaining amount, which can add up quickly. 

Missed payments can also attract late fees and negatively affect your credit score, which could make it harder to get loans in the future. Learn more about how credit cards work.

Before you get a credit card, think really hard if it’s the right choice for you. Are you good at meeting deadlines and managing money? If not, this isn’t the best option for you. Get some more info about the pros and cons of credit cards.

What to know about Buy Now, Pay Later (BNPL)

Services like Afterpay and ZipPay let you split payments into smaller instalments. While they can be convenient, they make it very easy to overspend. If you miss a payment, you’ll be hit with late fees. Read more about the risks of BNPL services to stay informed. If you do still want to use BNPL services, it’s a good idea to use only one service at a time and to set yourself a strict spending limit.

Look after yourself when money is stressful

Money stress is real, and it can take a toll on your mental health. But you’re not alone, and there are ways to look after yourself.

Talk about it

It might feel awkward, but talking about money with friends or family can be a huge relief. Chances are, they’re feeling the pressure, too. You could suggest ways to chill for cheap, like having a potluck dinner at home, playing board games or going for a hike. 

Sharing your goals can also create a support system to help you stay on track. If you need some tips, check out our guide to talking to someone you trust.

Know it’s okay to be stressed

Learning to manage your finances is a skill that takes time and practice. There will be good weeks and bad weeks. Be kind to yourself throughout the process. The goal is progress, not perfection. 

Want to know more?

Just Ask ReachOut, our AI tool that gives you reliable, anonymous answers to your questions, generated from ReachOut articles and resources.

Ask ReachOut