Budgets & Savings

Do you have a budget?

Probably one of the most underrated tools within your household is a budget. It does not have to be fancy, colourful or many pages of an excel spreadsheet.

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The main points you need for your budget are:

-        Income: PAYG or Self-Employed income, rental income, dividends, commercial income. Put the net figure here for more accurate amounts.

-        Fixed expenses: Groceries, phone/internet bills, clothing & grooming, insurances, medical expenses, vehicle expenses, property costs (rates, water, electricity, repairs & maintenance), strata fees/land tax, childcare/education costs, pet costs, current mortgage, personal loan or credit card repayments.

-        Discretionary expenses: dining out, takeaways, pay tv, subscriptions, alcohol & cigarettes, entertainment.

Once you have these figures, you can see what your net monthly surplus is (income minus expenses). You can use this surplus of funds for anything you wish.

What are short-term and long-term savings?

Short-term savings can be for expenses such as travel, emergency funds, wedding costs or a new car.

Long-term savings can be used for a home deposit, starting a business or retirement planning.

What if you don’t have a monthly surplus?

If you’re looking at the numbers and all your money is being put toward your expenses, it may be worth reviewing your ‘discretionary expenses’ to see if you can cut back on things such as pay tv, subscriptions or dining out.

Find that you’re still struggling with saving or have savings you wish to put toward something special? Reach out to us, as we can refer you to a financial planner who can assist with your short & long-term goals.