One of the simplest method of building wealth is to put together a Family Budget. This will often give you control over your money intentionally identify how you spend and save your money. It is said that with budgeting, you control your money and not your money controls you.
More and more Australians are getting into debt and budgeting is a good way to work toward debt management and free yourself of financial and family stress.
If you are finding it difficult to cover your living expenses at end of pay check, it may be time to look at some budgeting advice. You may have any of the following types of debt or situations which can be managed with regular monitoring and professional advice.
- Credit Card
- Personal Loans
- Excessive Living expenses
- Car Loans
Budgeting will allow you to identify ways to minimize unnecessary expenditure and opportunities to save money for investment and retirement purposes. Most importantly Budgeting will support you in tough periods to cover living expenses in the short term when unexpected events such as illness or loss of job occurs.
We can help you will help you get more control over your finances with a Budgeting and Debt Management Plan.
Budgeting - Some key points to consider
Working out how to achieve your financial goals is easy and you don’t have to earn a high income to do it. Whether you’re looking to get your affairs in order, buy a house, start a family or prepare for retirement, seeking quality advice from a qualified financial expert can help you achieve your goals sooner, and with more confidence. Now is as good a time as any to review your current financial situation and put a plan in place for the next 12 months. Sorting out your finances doesn’t have to be complicated, as even small savings can add up over the year.
Everyone has different goals and visions to achieve in their life. This will largely depend on what stage of life they currently are in. The life goals of a young student will often be different to a person entering retirement.
A financial Planner role is to ask meaningful and in depth questions to clearly understand your desires and ascertain what may be holding you back from achieving your goals. Some of the common goals you may budget for include:
1) Buying your first Car
2) To pay off your personal and business debts
3) Deposit for first home
4) Invest in a share portfolio
5) Start a business
6) Build enough funds for retirement
7) Have enough funds in case of emergency
Working out a realistic budget is a great way to take control of your finances. Although it may seem like a chore, it’s the crux o fa sound, sustainable and financial management plan. The principles of budgeting are simple.
1. Calculate your income less expenditure.
2. It’s easy to underestimate expenditure by overlooking occasional costs.
3. Grouping your spending into categories like home costs, clothing, food etc. can be helpful.
4. A great budget will anticipate large or unexpected purchases like replacing a fridge or paying for school excursions.
5. The best budgets are realistic and don’t work on ‘best case’ scenarios.
1. Have a savings and budget
It’s much easier to be a good saver if you have some sort of goal in mind.
Whether it’s a holiday, a house deposit or just saving for a rainy day, have an
amount in mind. To help you work out what that savings goal amount is, you
should be realistic about what you can afford to save each week, fortnight or
month. A well-planned budget will get you started on your savings path.
2. Earn your interest bonus
Good savings habits can reward you with bonus interest on some accounts. Be
disciplined and it will pay off in the long run by helping you save a little faster.
3. Set up a regular savings plan
Do you get your phone or power bill direct debited from your account? Well you
can apply the same concept to your savings account. With a direct debit
arrangement, each pay day you can make a regular automatic payment into your
savings account. It’s best to make your payment early in the month, because
transfers could take a few days to reach your account.
4. Compare savings accounts
You need to think about your needs and whether you want access to your savings
anytime, or if you’d prefer a longer-term savings plan. Think about whether you
want an ‘at call’ account to put your savings into or let it grow for a set term. A
term deposit means you put your money away for a longer term (months or
years) and receive a higher rate of fixed interest rate compared to a ‘at call
5. Track your savings goals
The final secret to successful saving is to keep track of your savings goal. This
can help you keep focused by tracking how your savings are growing.