Let’s face it, budgeting isn’t the most exciting task, but it is necessary to increase cash flow. By taking charge of your money, whether you have a little or a lot, you will ease money stress and be more in control. Below are some helpful budgeting tips to help you take control.
Tips you need to know
Have a look at your current income and expenses. I know it may sound simple but you need to spend less than you earn. A good way to do this is to find any areas in which you can cut back. For example eat out less, consolidate debts and find the best deal for credit cards and loans or cancelling unused memberships. There is always at least one area where people can cut down on spending. We can email you our budget spreadsheet which you are welcome to use. If you would like our spreadsheet contact us on 1300 QUINNS (1300 784 667) or email email@example.com.
Now you need to make a plan. You now know what you are spending your money on, where you can cut down and what is most important. You need to create a detailed plan allocating a set amount of money to various items (e.g. food, rent, bills, loan repayments, insurance etc.). It is good to do this as a weekly or fortnightly plan depending on how often you get paid. Make sure you also allocate an amount of money to savings so that you always have a back-up fund. Once again our budget spreadsheet is a great tool to use for this task.
Credit card debt is the number one obstacle to getting ahead financially. If you have a credit card debt, you need to make a conscious effort to pay this off, and ideally, get rid of the credit card all together. It may seem like it will take forever, but as long as you are making weekly repayments and not adding any more expenses onto the card, you will be on your way to a credit card free life. You can also transfer your balance to a new credit card for no fee or 0% interest rate to help reduce your payments.
Set up a separate savings account that doesn’t have a debit card attached. This will make you think twice before you dip into your savings, and make sure your savings stay put!
Set weekly, monthly, quarterly and yearly goals. If you don’t have goals, you don’t know what you are aiming for. Once your goals have been set, make sure that you check your progress to make sure you are on track. Another good thing to do is to make sure that everyone in your household is not only aware of your budget and financial goals, but are committed to them as well.
If you implement these simple budgeting tips, you will see a drastic change in your savings and will ease the stress that money can often cause.
The accountants at The Quinn Group can provide advice and guidance on how to build your personal wealth. Submit an online enquiry or call 02 9223 9166.