Managing your money is paramount to your financial success. Many Australian’s spend more money than they earn, and most of them don’t actually know it. Working to a budget ensures that you know what your income and expenses are, and you live within your means. This assists you in saving for the future, whilst still enjoying life today.
The key to any budget is to ensure it is realistic, and all income and expenses are accounted for, this means data collection. Keeping receipts, and accounting for small expenditures (e.g. coffee & a cake) ensures that your budget will be accurate. One more thing, make sure your budget includes a savings component, as if you decide to save whatever is left over, you will more than likely find there isn’t much there.
Another important aspect to any budget is to have goals to strive for. These goals may be small or large, but they must be YOURS. Also celebrate success in whatever way suits you, whether it is a weekend away, or dinner at a favourite restaurant, this will help motivate you to continue.
Remember, budgeting should not be about pinching pennies, instead it is about making conscious choices to spend on things that you value – and avoid spending on things you don’t value.
The advisors at FFBD are avid budgeters and can assist you in coming up with a budget that will assist you in reaching you goals.
