Introduction

We've completed hundreds of sessions with NDIS participants that want to manage their money better but they didn't have a place to start. People have often worked with financial counsellors and coaches to make a budget but following that budget just didn't work.

On top of this, it's extremely difficult to make ends meet when you're on the Disability Support Pension (DSP). Centrelink makes this just enough money that it covers the basics but it doesn't leave much room for quality of life.

In this article we try to make sense of how a DSP could be budgeted to consider all of the major bills and expenses as well as account for things like entertainment, hobbies and having a social life.

This is just an example and everyone's bills and priorities will be different depending on your personal circumstances.

What Keeps Us Within Our Budget?

1. Budgeting Every 2 weeks

"When I have money in my account I just spend it" - We've heard this hundreds of times. SpendAble users get comfortable with money just sitting in their account because they know it has a purpose in the future.

If my Electricity Bill is $200 every 2 months, I should be putting away $50 every fortnight I get paid.

If you can put away some of your money each time you get paid and give it a purpose it makes you less likely to spend it impulsively.

2. Don't Get Tempted To Use Bill Money To Buy Something Now

If you manage to save some money for your future electricity bill it can be tempting to buy yourself some Uber Eats or a new video game. This is ruining your future budget.

Make sure you are putting money into your budget for hobbies and things you like. Once you've spent all of your hobbies/fun money then you need to show a bit of self control and stop.

3. Reducing Impulse Spending

"I just buy things impulsively because it makes me feel good". We hear this a lot and it's one of the hardest things. By understanding your limits on your budget it can be easier to say no. If you know you don't have the money for it, it is a simpler choice because you don't want to do yourself harm in the future.

SpendAble's debit card has some cool features and tricks to help reduce impulse spending too

What Is Our Budget?

Income

If you're on the DSP and living independently then you probably receive $1,362 per fortnight:

• $1047.10 - Disability Support Pension

• $83.20 - Pension Supplement

• $14.10 - Energy Supplement

• $149.00 - Rent Assistance

• $68.70 - NDIS transport allowance

You may earn more through a small job or with some other benefits.

Key Expenses

Because Centrelink sets the rates with the bare minimum required, the expenses are tight. We've managed to get them to $1,361. Each fortnight it looks like this:

• $540 - Rent

• $58 - Utilities

• $125 - Transport (Public, Uber etc)

• $260 - Groceries/Supermarket

• $19 - Doctor Fees

• $19 - Dentist Fees

• $32 - Medication

• $140 - Eating out/Takeaway

• $15 - Subscriptions (Netflix, Disney)

• $27 - Mobile Phone

• $46 - Clothes

• $18 - Homewares and Cleaning

• $29 - Gifts for others

• $19 - Hobbies / Miscellaneous

• $15 - Savings

What's Missing From The Expenses

1. A car: It's expensive to own and maintain a car. If you are living in the right area, you could use car shares (GoGet have a pensioner discount) or share a car between friends. We also wrote an article about budgeting with a car here.

2. Foxtel: At $69/month it is not a cost effective option for entertainment. We like to stick to 1-2 subscription services each month and change them when we are sick of the content.

3. A Centrelink Cash Advance/Loan: Although getting the money early is great, it restricts the budget in the future even further. You might need it for a one off expense, but getting it to have the money might not be the smartest move for you.

4. An expensive phone plan: You should be aiming for your phone and the plan to cost you $700/year or $55/month. There are plenty of great value $25/month plans like Aldi, Amaysim or Kogan. You should aim to buy a phone for $800 and keep it for 2 years.

5. Not splitting bills: For housing, it's important that everyone in the household pays their way for Rent, Utilities and things like the internet. The bills in this are split between 2 people, either a housemate or a couple.

That's Great But I Still Struggle To Go From a Spreadsheet to Real Life

The problem with cash and debit cards is that it is too hard to track where you are spending your money and how that relates to your budget. The problem with your budget spreadsheet is that it is too hard to check each time you want to buy something

If you have a budget but you don't check it every time you make a purchase then you will continue to struggle with this.

SpendAble has a fully automated budget system that allows users to program in their budget and then see how much money they have each time they spend.

How Would I Set This Up In SpendAble?

First of all, our team is here to support you to get started so you won't have to do it alone. The process goes:

1. We set up your card and account

2. We set up wallets for the expenses you have in your budget

3. You deposit your money and we send it to each of the wallets

4. Whenever you want to buy something you check your SpendAble app and select a wallet and pay

At any time you'll be able to see how much you have for each budget category so you can make decisions instantly.

I Want To Improve My Money Handling, What Should I Do?

If you're and NDIS participant and want to:

• Set a clear and achievable budget

• Reduce impulsive spending

• Save money for the future

Get your SpendAble NDIS-funded subscription and feel a life with less stress and more purpose when you manage your money.