Do you ever look at your bank account statement only to be surprised to see the money outgoings is higher than the incomings? For most us, this is not unfamiliar. Spending less than we make seems to be such a difficult task in this day and age. Luckily, we have some helpful budgeting tips that might just help you. Let’s face it; we could all be better savers.
Master your money – budgeting tips 101
Firstly, you need to know where your money is going. Set a goal to track your money for one week only, or better yet, for an entire month. You will be surprised by how the little things such as buying a coffee or an item of clothing can add up over time. Tracking your money will give you an overview of your spending patterns which will help you define the area you need to monitor most. Read about Cashflow Manager on our website for more helpful tips on how you can master your money.
Set your budget goals
It is much easier to discipline yourself if you set achievable goals. Do you want a holiday at the end of the year? Are you planning on breaking into the property market? Or do you simply just want an emergency fund? The goal here is to make sure we are spending less than we earn and our hard-earnt money is going towards things we want to achieve in life, not just a quick sweet tooth fix.
Categorise your spending
Most important budgeting tips: categorise your spending. This is very helpful as even though you might want to know how much you are spending on fuel, you may not be able to change it. The areas that are most important to monitor are the ones we can control. Like entertainment, clothes and travel. Work out where the areas are that you need to tighten the reins on and start categorising. There are many tools available these days that can collate your financial data automatically and do this for you. Our Cashflow Manager tool can help you here too, it is super easy to use and you will have full support from our Financial Advisors.
Put it away
The best budgeting tips to help your savings: save first and spend later. Put your money away as soon as you get it. A lot of people will spend their money first and then save whatever is left over. This will make your budgeting goals impossible to achieve as the saving amounts will be inconsistent each time. Commit to your saving goals, if you find that you are still running out then you are still overspending, and you need to revisit your spending categories.
Stick to your allowance
The best way to do this is to start paying by cash. Take out your weekly allowance from your bank (be sure to use your own bank to avoid fees). Having your allowance in front of your nose is the best way to keep track of your spending. If you don’t like the idea of carrying cash, then get an awards card or a credit card that will give some sort of points or rewards for using it. Be careful of hidden fees though and be sure to use a pre-paid option to avoid overspending.
We will leave it here today with these budgeting tips to help you get started. Our Financial Planners can take you through a much more thorough Budgeting Plan at no cost to you. We offer plenty of tools here to help you achieve your financial goals.
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