Most people asking this question aren't reckless with money. They're working, paying their bills on time, and still finishing the month with nothing left over. They want to know whether that's normal or whether something has gone wrong.
The honest answer is that there is no single dollar figure that means you are spending too much. Someone bringing home $70,000 who puts a little aside each month is doing better than someone on $200,000 who spends every dollar of it. So the real question isn't "how much do I spend". It's "what happens to my money at the end of the month".
Three things can happen
At the end of a normal month, one of three things is true. There is some money left over. You roughly break even. Or the money is gone before the next payday and you are topping it up from savings or the credit card.
That last one is the signal worth paying attention to. About half of Australian workers say they are living pay to pay (ADP, People at Work 2025), so if that is you, you are in a very large group. It rarely means you are bad with money. It usually means the spending has slowly grown to match the income, which is one of the easiest things in the world to let happen.
A simple way to check
A guide a lot of people use is to pay yourself first. Decide on an amount that comes out each payday before the lifestyle spending starts, and see whether the rest still covers the essentials.
Let's say you bring home $5,000 a month. You decide the first $500 goes into savings before anything else. If you can still cover the rent, the food, the bills and the rego out of the remaining $4,500, then you are going forward. If you cannot cover the essentials without dipping back into that $500, that is the number telling you the spending is running ahead of the income.
What you spend it on is your call
None of this is about cutting everything back. A coffee and lunch out every day, a bigger car, a holiday you have been saving for, all of it is valid. It is your money and you decide what matters to you. The point of checking is not to feel guilty. It is to see clearly where the money is actually going, so the decision is yours to make instead of one that happens by default.
The free Financial Fitness Check is 9 quick questions and about 5 minutes. No sign-up. You get an honest score across five areas — cash flow, savings, debt, super and protection — and your three next steps.
Take the free Financial Fitness CheckCommon questions
- How do I know if I am spending too much?
- There is no single dollar figure that means you are spending too much. What matters is what happens at the end of the month: whether you have money left over, break even, or run out before the next payday and top up from savings or a credit card. Regularly going backwards is the signal that your spending is running ahead of your income.
- How much of my pay should I be saving?
- A common guide is to pay yourself first — set aside an amount each payday before your lifestyle spending starts, then check whether the rest still covers your essentials. Even a small amount works to begin with. If you cannot cover the essentials without dipping back into that saving, your spending is running ahead of your income.
- Is it normal to have nothing left at the end of the month?
- It is very common. About half of Australian workers say they are living pay to pay (ADP, People at Work 2025). It usually means spending has slowly grown to match income rather than that someone is bad with money.
This guide is general information, not personal financial advice.