Interest rates are up. Groceries are costing more. Fuel is skyrocketing. We're all feeling the impacts of the rising cost of living. And that's why what worked for you last year might not be the right approach for your finances today.
It's time for a budget pulse check. This isn't about starting all over again from scratch. Think of it as a check-in, a moment to assess your money management with fresh eyes and consider where small changes could have big impacts.
What is a budget pulse check?
A budget pulse check is a quick review of how you use your money day to day. You look at your spending, your accounts, and your habits to see if they still align with your lifestyle and the current financial climate.
The goal is to make sure your money is still working for you, not against you. It's about identifying those areas where funds are slipping away unnoticed or sitting idle. From there, you can find and implement changes that make money easier to manage each week while getting closer to your goals.
Check where your money is going (the “audit”)
You get paid, and then it's gone. What's going on? Find out by performing an audit of your spending.
First, you'll want to look at your recent transactions and your subscriptions to things like streaming services, apps, and memberships.
Open your banking app and scroll through the past 30 days. Look for repeat charges.
Next, flag unused or underused services. That could be:
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A streaming service you haven't opened in weeks
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An app that charges monthly
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A gym or membership you got at the beginning of the year but don't have time for.
Sure, these costs are relatively minor on their own, but they add up.
Review your regular expenses
Your regular bills can change over time, and you might not even notice it. A quick check can highlight the areas where you might be paying more than you need:
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Review your utilities, insurance, and phone or internet plans for recent price changes
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Compare your current plans with others to see if a lower rate or better fit is available
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Ask your provider about plan options or discounts
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Set up bill smoothing so your larger bills are spread out into smaller payments over the year.
Revisit your banking setup
It's not uncommon for people to set up a bank account once and then never revisit the nuts and bolts of it. This could mean benefits are being left on the table.
So, take a close look at all of your accounts and ask if they still fit your needs. Look at where your savings is stored and what it earns. If your money stays in a low-interest account, it might not keep up with rising costs. A high-interest savings account or a term deposit can give your savings a better return, depending on how often you need access.
Check your habits
Your daily habits play a huge role in your long-term financial health.
For example, you might make quick purchases without much thought or planning – think Friday takeaway or online buys late at night. Or, you might rely on buy now, pay later services. These can quickly stack up into multiple repayments a month.
In addition to your spending habits, review your saving habits. Do you save regularly? Or only when money is left over?
Make small, realistic adjustments
You don't need to make big changes to ease the pressure on your budget. Small, consistent tweaks can make your money more manageable.
Try these changes:
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Cancel subscriptions you no longer use, or downgrade plans. If a service costs $20 a month and you rarely open it, that money can go somewhere more useful.
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Move any extra money you free up into more important areas. That could mean topping up your savings or covering rising essentials like food and petrol.
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If possible, set up an automatic transfer on payday so a portion of your income always moves straight into your savings account. Even small amounts compound over time.
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Use separate accounts for bills, spending, and savings. That way, you can see exactly what is available in each area.
Look ahead
You'll get more bang for your budget when you check in on it every now and again. Costs change. So, too, does your life and goals. Your money should support you through it all.
Why not set a reminder? You can check your spending, accounts, subscriptions, savings, and bills every few months and adjust what's needed. Remember, even little changes can have a positive impact on your financial future.