No matter what your financial situation is, being good with money is a core life skil
l. Whether you have a little or a lot, there are some basic practices that can help you take control and stay on top of your finances.
Maybe you are saving up for your first house and are looking for some surefire ways to cut back your expenses. Perhaps you have your first job and want to learn how to accurately budget. Or you just need help putting some realistic financial goals in place.
Whatever your financial situation, this site can help you build good money customs for your day-to-day life and for the long-term. It provides a step-by-step guide you can work through to assist you develop important financial and life skills.
l. Whether you have a little or a lot, there are some basic practices that can help you take control and stay on top of your finances.Maybe you are saving up for your first house and are looking for some surefire ways to cut back your expenses. Perhaps you have your first job and want to learn how to accurately budget. Or you just need help putting some realistic financial goals in place.
Whatever your financial situation, this site can help you build good money customs for your day-to-day life and for the long-term. It provides a step-by-step guide you can work through to assist you develop important financial and life skills.
HOW IS YOUR BUDGET?
Budgeting
is the process of balancing income and expenditure so that you can manage your finances for a defined period. Doing a budget is simply a matter of noting down all of your income and all of your expenses, and then subtracting your expenses from your income to see what you have left. This is your “disposable income”.Budgets are often thought of as something necessary for individuals or families on modest incomes or for those paying off debt. However, everybody can benefit from a budget, even the most affluent.
A budget can show if you are living beyond your means and spending more than you are earning. You’ll be able to see where your money is going and where you could cut back. You can use a budget as a tool to help you save for a financial goal like a car or overseas trip. You can also use a budget to prioritise debt repayments.
TAKING THE FIRST STEP
You can start a budget by simply writing down your income. Remember in
come can come from many sources, not just your salary or wages. For example, you might also receive dividends from shares you own, rent from an investment property, or board from an adult child. If you receive a government payment, you should also include these payments as income. The next task is more time consuming: listing your expenses. Writing down your expenses will identify what you are spending in the major expense categories, such as housing, groceries, transportation, utilities, medical/health, insurance, clothing, entertainment, education, travel, etc. It may sound arduous, but the effort can be worth it.
