‘Budgeting” has to be one of the least appealing words in our vocabulary, but if you’re looking to take control of your finances you need to budget. It’s that simple. While most people squirm at the concept, it doesn’t have to be that painful. In fact, if done correctly, creating and sticking to a realistic budget will not only make life easier, it can help you create even more money! Developing a budget is not hard: simply calculate all of your weekly, fortnightly and monthly outgoings, set them against your income, and prioritise all expenses from most important to least important.
Essential and unavoidable spending, such as utility bills, rent and food should be placed at the top of your list. New clothes, a night out with friends and take-away lunches should be at the bottom. This should give you a rough idea of how much you are ‘overspending’ each month depending on how you structure your budget. As a rule of thumb, you should be able to save approximately 10 per cent of your income. Often the hardest part of budgeting, particularly with long term goals such as paying off a loan, is maintaining your motivation. To keep yourself on track, set regular targets and monitor your progress. Start off with weekly goals, move onto monthly then finally to quarterly targets.
Be sure to track your progress and don’t miss out on seeing your hard work transform itself into real results.
Treat yourself- If you’ve never saved before, you may find it difficult to stick to your goals. For some people, seeing their bank account grow each month is enough to keep them on track, but for others the temptation can be too strong. If you find yourself battling with the urge to spend your hard-earned cash then here is a little trick to help you keep your spending in check. Treat yourself, spend your money and don’t look back! Rewarding yourself with a purchase every three months is a great way to keep the budget fresh. If you are looking to buy new clothes or having a lavish night out with friends, save for it by putting a few extra dollars away each week for your own personal fun fund.
If you’d like to talk to John, he can be contacted on 0749722081 or 0410433919. You can also email him at jwhitten@ihl.net.au or look him up on the net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).
