Australian Budget App: Top Tips to Budget the Australian Way!
In today's fast-paced world managing your finances can be overwhelming, especially with the cost of living pressures and interest rate
increases impacting your budget.
Fortunately, Australian budget apps are a great
help for homeowners wanting to take control of their spending and achieve their financial goals and we're going to cover
all the ways they will save you time and money.
For many years we have relied on overseas apps from the US and New Zealand to countries further afield, but this has
often left us vulnerable to data privacy, reliability, access and security issues.
However, with a good selection of locally grown Australian made Budget Apps with their unique features giving us
budgeting strategies that align with the Australian lifestyle and economic landscape, we have choices.
Not to mention local content, local lupport, onshore data storage and strict Australian laws that these buget apps have
to abide by.
Unfortunately though, many Australian websites are still guilty of pushing non-Australian budgeting apps in their
reviews and "top budgeting app" lists, so this article is taking a very Austrlaian approach to budget apps.
7 Tips to Budget the Australian Way with a Budget App
Let's kick things off with a
quick list of tips to help start your budget and make sure you understand why you are
budgeting in the first place and what to expect. After all, a budget app is just a tool, so we'll start with general
budgeting first.
#1 Budget App Tip - Track Income and Expenses
One of the fundamental steps to effective budgeting is understanding your financial inflows (income) and outflows (expenses). Australian budget apps provide intuitive tools to track your income, including wages, investments, and government benefits. Additionally, you can categorise your expenses to gain insights into where your money is going, all in good old Aussie lingo that we understand (because it is a holiday not a vacation and we don't mind wearing thongs on our feet!).
#2 Budget App Tip - Set Realistic Financial Goals
Whether you're saving for a home deposit, planning a holiday, or aiming to reduce debt, Australian budget apps can help you set clear and achievable financial goals. By seeing what it takes and how much you can save, along with a few cool charts to visualise your progress, you'll stay motivated and focused on your financial well-being.
#3 Budget App Tip - Create a Budget Plan
Once you've identified your financial goals, it's essential to develop a budget plan that aligns with your income and expenses. Australian budget apps offer templates and customisable features to create a budget that suits your circumstances. Best of all they will help you get it done in under five minutes (looking at you
MoneyFormula Personal Budget App and your five minute approach!) so you get to go and play instead of bury yourself in lines of spreadsheets and bills. Then by sticking to your simple budget, you can gradually build financial stability.
#4 Budget App Tip - Categorise Expenses
Australian budget apps include great features such as budgeting categories, expense tracking, and financial forecasting. These tools can really help you identify areas where you can cut back on spending and make informed decisions about your finances. So if the cost of living pressures are getting a bit much, a quick budget app spending review will help you target hot spots you can cut back on.
#5 Budget App Tip - Leverage Australian-Specific Features
Many Australian budget apps incorporate features tailored to the local market, such as integration with Australian banks and financial institutions, the use the Australian dollar & Australian date format and using common Australian terms for your expense categories. This can make it easier and less frustrating to manage your finances over the long term. Less frustrating is good!
#6 Budget App Tip - Monitor Your Progress
Regular monitoring your finances is crucial for successful budgeting. Australian budget apps provide real-time insights into your spending habits, allowing you to identify areas where you may be overspending or falling short of your financial goals. By staying informed, you can make necessary adjustments to your budget and stay on track. The
MoneyFormula Personal Budget App will automatically adjust your goals as you fall behind or get ahead so that you always have the latest facts at your fingertips.
#7 Budget App Tip - Don't Forget Professional Advice
While Australian budget apps are valuable tools, they may not be enough for complex financial situations. If you're facing significant financial challenges or have specific questions about budgeting, you should consult with a qualified Australian financial advisor or accountant. They can provide personalised guidance and help you develop a comprehensive financial plan.
Barefoot Investor, Envelope, 50/30/20 all benefit from an Australian Budgeting App
Whether you are following the good old Australian Barefoot Investor, or one of the many different ways to
budget, from envelope method, 50/30/20, give every dollar a job through to simple budgeting, there are
some
great benefits to picking an Australian Budgeting App to help you on your journey.
With the Barefoot Investor in particular, look out for
budget apps that let you customise all your bucket names to the familiar Fire Extinguisher, Splurge, Daily Expenses, Smile and Mojo, like the
MoneyFormula Personal Budget App, or better still, go one step further and let you tweak your barefoot bucket names if you have set up your own (I for one confuse Smile and Splurge all the time!).
Here's a quick list of things to expect from a
good Australian budget app:
#1 Budget App Benefit - Real-time tracking or file imports
An Australian budgeting app can provide real-time tracking of your income and expenses, allowing you to stay on top of your finances and make informed decisions about your spending.
#2 Budget App Benefit - Automated categorisation
Many budgeting apps offer automated categorisation features that can save you time and effort. By automatically categorising your transactions, you can get a clearer picture of where your money is going. Better yet, some let you start off reviewing your own finances and expenses and then learn from your choices and automate the next round. The
MoneyFormula Personal Budget App is particularly good at this and stops some of those weird AI choices popping up you see in overseas apps.
#3 Budget App Benefit - Goal setting and tracking
Budgeting apps often include features for setting and tracking financial goals, such as saving for a home or paying off debt. This can help you stay motivated and focused on your financial objectives.
#4 Budget App Benefit - Investment tracking
Some budgeting apps allow you to track your investments, including shares, superannuation, and property. This can help you visualize your overall financial health and make informed decisions about your investments.
#5 Budget App Benefit - Integration with other financial tools
Many budgeting apps can be integrated with other financial tools, such as banking apps and credit card apps. This can provide a more comprehensive view of your finances and help you make better financial decisions. Or better still they provide all the functionality so you can just use the one product to manage everything; so you can focus on your Barefoot date nights instead of tedious budgeting tasks.
Why Australian Budget Apps Outperform Spreadsheets
I'm a bit of a convert from spreadsheets. I used to love spreadsheets to build my budgets (sad, I know) but there are limits to what you can do, and once you start using a budget app it can be hard to go back to them.
Here are a few things you will
struggle to do with spreadsheets and where the Budget App wins hands down:
Budget App vs Spreadsheets - Real-time updates
Australian budget apps automatically sync with your bank accounts, or allow you to easily import OFX, QIF and CSV files, providing up-to-date information on your income and expenses. Spreadsheets require manual input, which can be time-consuming and prone to errors.
Budget App vs Spreadsheets - Categorisation expenses
Budget apps offer pre-defined categories and allow for customisation, making it easy to track your spending habits. Spreadsheets can be cumbersome to organize and may not provide the same level of insight.
Budget App vs Spreadsheets - Financial forecasting
Australian budget apps use algorithms to predict future spending and income, helping you make informed decisions. Spreadsheets require manual calculations and may not provide accurate forecasts.
Budget App vs Spreadsheets - Goal setting and tracking
Budget apps allow you to set specific financial goals and track your progress towards them. Spreadsheets may not have built-in features for goal setting and tracking.
Budget App vs Spreadsheets - Mobile accessibility
Australian budget apps are designed for mobile use, making it convenient to manage your finances on the go. Spreadsheets may be less user-friendly on mobile devices. The better Australian budget apps, like the
MoneyFormula Personal Budget App, let you work on any device from mobile to desktop and automatically keep everything in sync between devices - something I could never do with my spreadsheets!
Do I really need a Budgeting App?
For many of us the whole budgeting and finance tracking raises the question of "is it really worth it?" and
"do I really need a budgeting app?"
If you tried a spreadsheet it probably didn't end too well and if you tried pen and paper journals it would have been really painful.
With today's personal budget apps things don't have to be time consuming or tricky, you can be up and running in a few minutes
and you can just get the answers you need with minimum effort. So the bigger question is, "What are the risks if I don't use a budget app?".
No Budget App Risk - Lack of Financial Oversight
Without a budgeting app, it's easy to lose track of your income and expenses. This can lead to overspending and financial instability.
No Budget App Risk - Increased Debt
Not tracking your spending can contribute to accumulating debt, as you may not be aware of how much you're borrowing. And once you are in debt you need the budget app debt strategies and goals to help you crush it quickly.
No Budget App Risk - Missed Financial Opportunities
Australian budgeting apps often offer features like savings goals and investment tracking. By not using one, you may miss out on opportunities to grow your wealth. Simple goals like making extra repayments into your mortgage can make a huge difference, but only if you keep them up over the longer term. Tracking the impact and seeing the future savings in a budget app can be a huge motivator and save you tens of thousands of dollars.
No Budget App Risk - Difficulty Making Financial Decisions
A budgeting app can provide valuable insights into your spending habits. Without this data, it can be challenging to make informed financial decisions. Knowing the impact of a rate rise on your current mortgage can help you tweak your budget before it hits, or if you manage your buckets and money flows in a budget app to plan for holidays or large expenses you will have the money when you need it instead of having to dip into debt.
No Budget App Risk - Increased Stress:
Financial uncertainty can lead to stress and anxiety. A budgeting app can help you gain control of your finances and reduce stress. There's nothing worse than having no idea where you finances are at, with money coming and going and having no real plan to fix things. The right budget app can change all that in minutes.
Risks for Australians Using Overseas Budgeting Apps
When budget apps first became popular the only choices were mainly from large overseas providers; normally a large US or European company.
Now with some good Australian Budget Apps on the market, the need to use an overseas app is optional (and of
course we should support locally grown first - go Aussie!).
But if you choose to go with something other than an Australian made, built, owned, hosted and supported budget app you
need to keep the following in mind:
Non-Australian Budget App - Data Privacy Concerns
Overseas budgeting apps may not adhere to Australian data privacy laws, putting your personal financial information at risk.
Non-Australian Budget App - Understanding of Australian Finances
Foreign apps might not be designed with the specific financial context of Australia in mind, potentially leading to
inaccurate recommendations or limitations.
Non-Australian Budget App - Currency and Date Formats
Using an overseas app might not let you customise to Australian dollars, date formats, Australian English spelling
or customise expense categories that are targeting overseas audiences leading to a less than ideal experience
Non-Australian Budget App - Lack of Local Support
If you encounter issues or need assistance, you may have limited access to local support, potentially delaying problem resolution.
Non-Australian Budget App - Compliance Issues
Foreign apps may not be fully compliant with Australian financial regulations, potentially exposing you to legal or financial risks.
Non-Australian Budget App - Generally Cost More
Foreign apps quoted in foreign currencies suddenly become expensive when you convert to Australian dollars and add international fees.
An Australian Budgeting App that Ticks all the Boxes
My journey off of spreadsheets got me to try a whole heap of Australian made budget apps out there.
I tried
PocketBook (free but no longer around),
MoneyBrilliant (also free, and also no longer around),
Frollo (nice, but limited functionality),
WeMoney (couldn't get past the 100 point ID check),
PocketSmith (I was originally tricked into thinking it was Australian - turned out it is actually from NZ and all data stored overseas) and
MoneyFormula (Australian made, owned and supported and still going strong)
At the end of the day the budgeting app you use is a personal choice and very much based on what you need. There is no
one app that will be good for everyone, so test them out and see how you go.
So why am I currently using the
MoneyFormula Personal Budget App?
#1 MoneyFormula App - Australian-Focused
MoneyFormula is designed specifically for Australians homeowners, understanding the unique financial landscape and regulations.
#2 MoneyFormula App - All Modern Devices at once!
MoneyFormula is great as it lets me go from mobile to laptop to desktop to mobile at any time; with all functionality available on all platforms and everything kept in sync.
#3 MoneyFormula App - User-Friendly Interface
MoneyFormula is designed with a user-friendly interface, making it easy for anyone to use, regardless of their financial knowledge. It has been specifically designed as a budget app for the Australian homeowner and not some over-complex financial planning tool for advisors that is then offered to the public.
#4 MoneyFormula App - Local Support
With MoneyFormula, you can access local support if you encounter any issues or need assistance, ensuring prompt help.
#5 MoneyFormula App - Australian formats
MoneyFormula is Australian through and through, from currency to date format, spending categories and spelling.
#6 MoneyFormula App - Barefoot Investor Option
If you are following the Barefoot Investor approach you can customise the whole budget app in one click to do it Barefoot style. Also cover She's on the Money and their own MoneyFormula approach.
#7 MoneyFormula App - Data Privacy & Compliance
As an Australian app, MoneyFormula is fully compliant with Australian laws with all data store in Australia, reducing your risk of legal or financial issues.
#8 MoneyFormula App - Comprehensive Features
MoneyFormula offers a wide range of features, including budgeting, tracking, goal setting, and investment tracking, to meet your financial needs.
#9 MoneyFormula App - Cost-Effective
MoneyFormula is priced locally and offers a competitive pricing structure, making it an affordable option for Australians looking to improve their financial management.
#10 MoneyFormula App - Strong Reputation
MoneyFormula has a strong reputation in the Australian market, backed by positive reviews and testimonials from satisfied users.
Australian Budget Apps - What Next?
PLEASE NOTE: The information in this article is general in nature. It does not take into account your personal objectives, financial situation or needs. Please speak to a qualified financial adviser if you need specific advice on your finances.
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