Sticking to a budget

1. Identify wants vs needs

'Needs' are essential items, like accommodation and electricity. 'Want' you can live without, like that second cup of coffee, or even a flash new car. By reducing spending on 'wants', the savings can quickly add up.

2. Create buckets

You might find it helpful to set up a separate account to help you save for a home loan or big-ticket item.

3. Reduce access

Restricting access to your savings account, such as having no debit card attached to the account, will make it more difficult for you to dip into your savings. it's also possible to restrict easy online access to your account too.

4. Set spending

Making a list of all your regular expenses - like groceries, bills, loan repayments and entertainment - will help you to set aside a realistic spending limit to cover necessary expenses. Set the spending plans for each of your pay cycles to help you keep track of money in and money out.

5. Picture yourself

Finding photos that represent your goal, such as photos of a home or nice backyard and sticking them to your fridge so you see them every day can help keep you motivated. It can be helpful to have a constant reminder of what you're working towards.

Talia is saving for a deposit to buy a home.

To help her save, she creates a spending plan.

Talia identifies how much her bills, groceries and travel expenses cost her each month and puts this amount into an account for everyday expenses. Talia makes another separate account for fun activities such as going for lunch with friends. She creates one final account for savings, this account has no card attached to it so it's harder to take money out of it.

Now Talia can see her budget clearly, and by making some sacrifices, cutting back on takeaways and shopping, she will see a big increase in her savings account over time.