Building wealth is NOT about your coffee habit

Because here’s the uncomfortable truth: earning more doesn’t lead to financial freedom.

Pay rises often trigger lifestyle creep. Yesterday’s luxuries quietly become today’s ‘essentials’, and somehow there’s still nothing left at the end of the month. Advice to skip the oat lattes and avocado toast is not only patronising – it’s clearly not working.

A recent WeMoney survey found that almost half of Australians are living payday to payday with no emergency buffer, and more than one in three say they’re ‘just surviving’.

The problem is more about the different pressures, habits and beliefs we have about money than a lack of discipline. That’s why budgeting matters. Not as a restriction, but as a way to create choice, confidence and momentum.

How you approach your money matters far more than the specific method that you use – and that approach will look different for different people.

It can be useful to think of budgeting frameworks as tools, not rules. 

It’s possible you’ve heard of this one. In its simplest form, it suggests splitting your income into:

• 50% essentials – housing, food, bills, insurance, transport.

• 30% living – fun stuff, joy spending, holidays, dinners out, whatever lights you up.

• 20% future you – debt repayment* or savings or extra super contributions.

That 20% is where buffers grow, emergencies feel less scary, and future options open up.

*Note that in this context we mean debt for assets that grow in value, like property, and not credit card or ‘buy-now, pay-later’ debt

Is this realistic for everyone? No. Especially with housing costs where they are right now. The value of this framework isn’t rigid percentages. It’s awareness. Once you see where your money goes, you can start adjusting in ways that fit your circumstances. Visibility alone is often the first step toward feeling more in control.

For most households, the biggest costs sit in the essentials category with housing, energy and food the top three. They’re essential – but they’re not always fixed.

This isn’t about deprivation. It’s about small, strategic shifts that stretch your dollars without turning life into a joyless exercise.

You don’t need to do all of these things. One small change is enough to begin. Your money should work for you, not the other way around.

• Compare and switch. Review bills like energy, phone or internet and check for a better deal.

• Negotiate. Ask your bank or insurer for a better rate.

• Shop smarter. Use rewards programs, price-tracking  resources, and don’t forget about meal planning to help you make the most of what you have.

• Tap into rebates and concessions. Check government sites for energy, childcare or transport rebates that you may be eligible for.

These changes are about reclaiming agency. Prices are not sacred and you are allowed to question them.

If you suspect you’re overspending, the goal is clarity, not self-criticism.

Start by choosing a few areas to focus on. These are usually ‘wants’, not essentials – and that’s okay.

Some people find it helpful to:

• Review bank statements to spot patterns

• Unsubscribe from marketing emails or unfollow tempting brands. Starve the algorithm.

• Plan ‘guilt free’ money and spend it intentionally

• Pause before non-essential purchases (and ask yourself ‘is this a habit?’) 

Budgeting and planning your spending isn’t about saying no to everything. Pleasure belongs in a budget too.

If there is one mindset shift that makes a long-term difference, it’s this: treating future you as someone worth prioritising. That doesn't mean saving huge amounts or being perfect. It means building consistency, taking small steps to improve financial wellbeing and reducing financial stress.

Small beginnings matter. You have options. Everyone can do something. You could:

• Automate a transfer to savings each pay cycle

• Use round-up tools that save spare change

• Sell unused items and re-direct the money 

Having an emergency fund, even if you start small, can seriously calm the nervous system – and may stop you relying on credit too. Celebrate progress, not perfection – consistency beats intensity every time.

For many people, aiming toward around 20% over time can create real change. This shift puts future you on the priority list.

Debt carries a lot of emotional weight. For many women, it’s wrapped up in stress, guilt or perhaps a sense of ‘I should have known better’.

But not all debt is the same. Debt attached to credit cards and buy-now, pay-later schemes can feel heavy because it usually comes with high interest and little long-term benefit. Other types of debt, like a home loan, can be different, because the numbers might be larger, but it can play a positive role in your financial life over the longer-term.

The key isn’t avoiding all debt – it's understanding what you owe, why you owe it, and having a plan. Getting clear and organised can immediately reduce the mental load, free up cash over time and build your confidence with money. 

Speaking to your lender about your interest rate is a strong first step. You could be paying a higher rate simply because you have not asked for a better offer. 

You might also think about:

• If an offset account could work for you – where any savings reduce the interest charged on your loan

• Making additional repayments, even small ones

• Increasing repayment frequency

The largest amount of interest on a home loan is paid in the early years, when the balance is highest. That means extra repayments made sooner can have a disproportionately positive impact over time. Even modest adjustments can help you get ahead.

If you are carrying debt that isn’t helping you build long-term security, the goal is progress, not punishment. When you have multiple debts, there are two widely used approaches. Both work. The right one is the one you’ll stick with.

• Snowball
  This is about momentum. You make minimum payments on all debts, then put any extra money toward the smallest balance owing first. Paying something off quickly can create a sense of achievement that keeps you going. Once that debt is cleared, you roll the payment into the next smallest one. And so on. (Hint: look online for worksheets and tables that will help you set this up)

• The numbers approach
  This focuses on the maths. You still pay the minimums on everything, but direct extra money toward the debt with the highest interest rate. This reduces the fastest growing balance and can save more money over time. 

Neither approach is “better”. One prioritises motivation, the other efficiency. What matters is choosing a strategy deliberately, rather than spreading yourself thin and feeling stuck.

Budgeting and getting in tune with your finances isn’t about perfection. Attention, a little self-compassion and some planning can create real stability over time.

If you want somewhere to start, here are five small things you could try.

1.        Audit your defaults

Subscriptions and automatic payments, especially larger costs like electricity, car and home insurance, deserve regular review. If it renews automatically it’s worth checking on – loyalty may be costing you more than switching.

Money mindset: Small leaks matter. Attention protects wealth.

2.        Treat saving as self-respect

Build saving into your system, like rent or electricity, rather than something you do only if there is money left over.

Money mindset: Future you deserves consistency.

3.        Track your treats for a week or two

Notice which treat genuinely brings joy, and which is just a habit or convenience. Building visibility can change behaviour without force.

Money mindset: Awareness creates better choices

3.        Build accountability that feels supportive

Set alerts, track a simple goal, or loop in someone you trust. Enlist a cheerleader for support. Celebrate milestones, even small ones.

Money mindset: Progress builds momentum.

4.        Make sure your super is working quietly in the background

Your employer pays super on top of your wages, currently at 12%. It’s your money, taxed at a lower rate and compounding over time. Check in at least twice a year. When you can, add a little extra.

Money mindset: Long-term thinking is powerful.

You don’t have to do all five. Pick one that feels manageable.

If spreadsheets make you want to lie down, start with just one tool that shows where your money actually goes.

• Moneysmart: free government budgeting tools

• Frollo: tracks spending and savings goals

• WeMoney: insights, debt support and spending analysis

• Buddy: simple budgeting and expense tracking

• Up: saving tools and round-ups

• Finder: compare and switch to better deals

Whatever mix you choose, remember this: budgeting isn’t about restriction. It’s about freedom.

Freedom to make choices that align with your values, your household and your future. A little attention – and a lot of self-compassion – can deliver peace of mind and real stability.

And if you ever want support or help connecting your budget to your super, our Coaching team is here, already included in your membership.

• Talk to a coach