LGT 3 March Budgeting and how to stick to it - Anne

If you want to save or money is tight here are my tips:

·       Make a budget

·       Track everything you spend

·       Have a separate bills account

·       Don’t use a credit card unless you are already a good budgeter

Budgeting – puts YOU in control
Why budget – save for something, pay back debt, live within means

If you've created a budget, you know exactly how much money you have coming in, and how much is going out.

Once you've created your budget, it's important to stick to it.

Creating a budget: there are many on the website or you can make your own spreadsheet www.moneysmart.gov.au < tools and resource <calculators and aps < budgeting and saving calculators < budget planner. There is also an ap you can download to track daily spending it is easy to use and Anne suggests you do this for as long as you can. You will get a much better understanding of where your money goes and will automatically start saving – just by paying attention!

Start with the “pay back debt budget”, then the “save for holiday budget”

Sticking to budget:

1 Be realistic – start by including EVERYTHING can make cut backs later.

2 Use your accounts wisely bills, mortgage, savings, Wages/income. If possible direct deposit into accounts each pay. Or transfer before spend.

3 To begin use cash for discretionary expenses, or things that you could live without, each week. It's much easier to turn down a $60 pair of shoes when it will take the last of your week's cash than it is when you just have to swipe a credit card.

4 Give up something and put money towards saving eg make your lunch, wine only on weekends, carpool, etc

5 If you have a credit card. Try and pay back credit card in full each month. If debt pay back as quickly as possible (highest interest first) – talk to bank re lowering interest rate. If you pay only the minimums on all your cards, you'll be paying a lot more in interest than you may realize.

6 keeping track of everything you spend will help you stick to your budget. Once you have control and a sense of what you can afford in your budget you can allocate an amount eg $50 cash for coffees etc and not account for each one - check you don’t spend any more

7 Remember that life is unpredictable, allow some extra money for variable expenses. And, be gentle with yourself if you go over your budget sometimes. It can be hard to get back on track ­if you let yourself get too frustrated over a mistake or two.

Free credit file mycreditfile.com.au. < personal < free

BEWARE/AVOID:

·       Payday lenders.

·       marketing that says "?? days interest-free"

·       Financial advisors may be paid a commission for recommending product

·       Credit repair agencies

·       The “My Budgets”