In a world of cash-less transactions and tap and pay, it is becoming increasingly easy to spend away your hard-earned money.
Taking control of your money and having money left over to put into savings is possible.
Understanding how much money comes into and out of your household is important and means you can be prepared for any future bills and put money aside for any future goals you may have.
With just a few easy steps, you’ll find yourself with a budgeting plan that works!
Do you have a budget? Do you keep track of how much you spend and what you spend it on?
1. How much do you earn?
You need to establish how much income comes into your household after tax.
2. Work out your expenses
Taking a look at all your expenses can be a shock, but this is a great way to stop any surprise bills popping up and allows you to look at areas where you may be able to save money.
If possible, allow a buffer of at least $50 per week to allow for any out of the ordinary expenses such as new tyres for the car or an unexpected vet bill.
3. How much is left?
Break both your income and expenses down to a weekly, fortnightly or monthly figure.
Your income less expenses is what you have left to spend.
If you find that you are spending more than you earn or simply want to spend less, it’s time to look at effective ways to cut back.
- Could you refinance your mortgage to a lower interest rate?
- Are you getting the best deal on your insurances?
- Are you using that gym membership?
- Write a weekly meal plan to cut back on your grocery bill
- Take your own lunch to work
- Compare your current gas and electricity bills against other providers
- Is there a cheaper mobile phone or internet plan available?