What is Budgeting?
Budgeting is a system of saving. It’s sitting down and figuring out your expenses and where you may be going wrong with your spending. You may want to start a budget to save for that overseas trip you have wanted for years or just to be able to pay your bills and not live from paycheck to paycheck.
Whatever your reason, a budget is a great way to cut your costs and help you achieve your financial goals.
The great thing about a budget is that it still allows you to indulge in certain things without completely cutting them out of your life. All you need to do is to be smart with your spending and realise when you want something but don’t actually need it.
The most important thing when planning a budget is to be realistic. There is no point allowing yourself $50 dollars for food in one week when you know you will actually need to spend $100. Be realistic with your spending, that way you won’t confuse your budgeting system and you won’t disappoint yourself with a less than expected end figure of your savings.
When you are planning for your budget, allow plenty of time to sit down and go it thoroughly. You need to include all of your expenses and how you plan to minimise them. Remember to put in all of your expenses from the weekly grocery shopping to public transport tickets; everything adds up.
6 quick budgeting tips to help you stay on track:
- Start with small goals; you will achieve them faster and it will encourage you to keep going
- Pay the important things first (eg debts/bills) to decrease stress and focus on your goals
- Contribute towards an emergency fund every week; you never know when you might need it
- Plan for the week ahead, eg meals so that you aren’t stuck last minute and have to buy something
- Look out for bargains and shop around to compare prices before buying something
- Be a little flexible every now and then with your budget and treat yourself to something occasionally
If you’re in the need for budgeting services, or are looking for an accountant that understands your needs, The Quinn Group can help. Call us on 02 9223 9166 or submit an online enquiry here.