Tips to stop overspending & start saving

Managing finances can feel like a daunting task, but taking control of your spending and starting a savings plan is not just possible — it’s empowering. Let's explore some practical tips inspired by the story of Sarah and Liam, and their journey to regain financial stability.

Sarah & Liam’s financial struggles.

Sarah, 36, and Liam, 38, have been married for 13 years. They started with very little and haven’t made much financial progress since. Currently, they’re facing $227,785 in debt, including their mortgage, car loans, student loans, credit cards, and medical bills. With a combined annual income of $137,000, they’re struggling to balance debt repayments and living expenses for themselves and their daughter.

This is a reality many Australians face, but with the right strategies, financial freedom is achievable.

Ready to start saving?

1. Set a clear budget for yourself.

The foundation of financial stability is having a budget. Start by tracking your income and expenses for a month to see where your money is going. Once you know your spending habits, divide your income into categories:

• Needs (50%): Rent/mortgage, groceries, utilities, and debt repayments.
• Wants (30%): Entertainment, dining out, and non-essential purchases.
• Savings (20%): Emergency fund, retirement, and long-term goals.

Sarah and Liam realised they needed to prioritise their goals over impulsive spending. By setting a monthly budget and sticking to it, you’ll have a roadmap to guide your financial decisions.

2. Align your spending with your goals.

What do you want your money to do for you? Whether it’s building an emergency fund, saving for retirement, or affording occasional family holidays, your spending habits should reflect your aspirations.

For Sarah, cutting down on impulse purchases helped her align her spending with her vision of financial stability. Consider pausing before buying non-essentials and asking, “Does this align with my goals and my budget?”.

3. Automate your savings.

Create good saving habits; automation is a game-changer when it comes to saving. Set up automatic transfers to your savings account as soon as your salary is deposited. This “pay yourself first” approach ensures you’re consistently building your savings without even thinking about it.

For example, Liam set up an automatic transfer of $500 per month to their emergency fund. Over time, this became a habit, helping them grow their safety net effortlessly.

4. Reduce temptation.

Unnecessary subscriptions and constant exposure to marketing can derail your financial progress. These simple steps can make a huge difference:

• Unsubscribe: Cancel streaming services or memberships you rarely use.
• Declutter your inbox: Unsubscribe from promotional emails and mailing lists that tempt you to spend.
• Be aware of social media ads: Be mindful of how often influencers and ads push you towards impulse purchases.

By unsubscribing and reducing exposure to marketing, Sarah and Liam found it easier to stay focused on their financial priorities.

5. Review & adjust regularly.

Financial planning isn’t a one-time task. Review your budget and spending habits regularly. Celebrate small wins — whether it’s paying off a credit card or saving for an exciting purchase! Adjust your strategy as needed to stay on track.

Some additional support goes a long way!

Getting your finances under control starts with intentionality and small, consistent changes. By setting a budget, aligning spending with goals, automating savings, and reducing temptations, anyone can enjoy financial freedom.



At Ascent Accountants, we’re here to help you navigate your financial journey. Let’s make your money work for you. Reach out today to get started!