What will a budget do?
Creating and sticking to a budget will help you better understand your spending habits, identify where you are over-spending and ultimately organise a functional savings plan to give you more power over how your money is used.
When you take the time to review your spending and savings patterns you can pinpoint any left over money or funds that were otherwise ‘wasted’ on unnecessary items that can instead be put aside to assist you in reaching your goals sooner.
The team at Ethica love to organise budgets and seeing clients reach their savings goals. Talk to the team today by booking a complimentary initial consultation (value $440). Give us a call on (07) 5433 5577 or complete the form below.
Setting a budget
When you have financial obligations and future aspirations reliant upon a fixed income, it is important to set and stick to a budget so that you can meet your requirements and achieve your goals. There are particular times in your life when reviewing your budget is important, for example:
- When children are born
- When children are ready to go to school
- When you purchase a property or additional investments
- When you plan for holidays
- When you want to upgrade your cars
- When your working circumstances change
Here is a guide to getting started with budgeting:
- List all your fixed costs – the regular things that you must pay for like your mortgage, phone, insurance, groceries, school fees, car rego, petrol etc.
- List all your non-fixed costs – may include meals at restaurants, new clothes etc.
- List those out-of-the-blue costs that happen every now and again like holidays, car repairs, children’s birthday parties and dentist fees etc.
- For one month, list everything you actually spend. This sounds boring and painful, but doing this will give you a clear understanding of what you actually spend your money on. Many people are surprised at how much they spend on little things.
- Identify areas of spending where you can cut back in order to save more.
- Work on sticking to your new budget.