Budgeting made easy

March 14, 2023 by Con Zagas

We can all agree that ongoing interest rate increases have caused us to be a bit more conservative in our spending. Larger repayments mean less change in our pockets for other expenses. 

It’s times like these when taking action and proactively managing your finances that can make a difference.

Having a budget or plan for your day-to-day finances can help elevate some stress. There’s no rule on how it should be done as long as it works for you. 

Here are some tips you can use to help you with your budget*

• Have a clear goal in mind.
  Are you looking to save for a property, Build your wealth, pay down your mortgage or other debts, upgrade your car or get into a more comfortable position? It’s important to be clear on your goals to implement a plan.
  
  
• Look back at your previous expenses.
  Go through your accounts, determine your expenses, and where you can make some cuts. If you have a streaming service or gym membership, you don’t use; maybe it’s time to pull the plug on those expenses.

• Pay yourself first
  After establishing your goal, it’s time to take action. Instead of waiting to see what’s left over to put towards your goals, make your goal the first thing you pay for. Take a percentage of your take-home pay that works for you and put that towards your goal, then budget the rest after. This will ensure you always have your goal as a priority.
  
  
• Pay your immediate fixed expenses.
  What are your immediate monthly expenses? Start from there and determine what needs to be paid for immediately. This could be your mortgage repayment or rent, monthly bills, gym memberships, or phone bills.
  
  
• Plan ahead.
  What are the less frequent expenses? Start planning and consider what you have coming up. This could include quarterly or yearly expenses. A good rule of thumb is to divide the annual amount by 12 months. You can start allocating funds to those expenses each month, so you don’t have any surprises.
  
  
• Roll with it!
  One of the more important steps is to roll with it! Life isn’t perfect, and a perfect budget often doesn’t exist. You might have something happen, such as a car not starting, an urgent medical bill, or a home repair that came out of nowhere, and you haven’t planned. These things happen. Don’t let this get you down. You might need to reallocate some funds.
  
  
• Helpful tools.
  There are plenty of tools you can use to help with your budget. Here are a few recommendations that we have used**
• YNAB (You need a Budget) - An excellent budgeting tool with a unique philosophy. Plenty of helpful information to get you started.
• Frollo - an Australian-based budgeting app that also manages your portfolio. The benefit is that it safely syncs with your accounts to get real-time updates on your spending.
• Excel or Google Sheets - If you have the time and know how to, you can build your budget on a simple spreadsheet.
• Your bank's app - Many banks now have inbuilt budgeting apps as part of their internet banking. These are great features to help keep track of spending and set limits on your expenses.

*The tips provided are general advice only. We recommend speaking to a financial planner for specific budgeting needs. You can contact your lender directly for assistance or speak to a financial counsellor for any hardship.

** App recommendations are apps we have personally used, and we do not receive any financial incentive. 

Business updates

We have been meeting with some lenders this week to discuss their products and services.

Thanks to Nicole Hayes from Great Southern Bank & Chris Franze from Heritage for the catch-up and coffee.

Get in touch today to book your free home loan health check.