Let me ask you this, do you know how much you spend on entertainment each week or on utility bills per year?
How much money do you need to put aside for that big overseas trip or that new car you want? Creating a budget might be just what you need to see how much extra cash you could have at the end of each pay period. Having it in writing might help you stick to your budget and not live pay cheque to pay cheque.
is an estimation of income and expenditure for a set period of time. We generally know what our income will be but some have no idea of our expenses. The word budget often comes with negative connotations and can be a constant reminder that we don’t have enough money for the things we want. Despite this, a budget can be a very helpful tool in the management of your finances and if used properly helps you to attain your goal of an overseas trip, a new car, or just managing to pay the rent or home loan every fortnight.
When setting your budget, especially for the first time it is vital to be realistic and set appropriate targets, sometimes this is easy, rent or home loan figures don’t change and utilities don’t vary a lot. Creating your budget isn’t supposed to be stressful or about placing heavy restrictions on yourself but knowing where your money is going. Perhaps write down what you actually spend in a week and what you would like to spend each week and how much you would like to save each week, how can you get those figures more closely aligned? It might be as simple as having one less take away coffee or one less meal out each week..
We have a very useful tool in the office called the Fortress Wealth Hub (FWH). I’ve just started using it, yes, I have an old excel spreadsheet budget (somewhere) and I know I could tell you exactly what I spend each fortnight on my home loan and what I need to put away for other bills such as insurance, rates, water etc but where is all my surplus money going each fortnight?
The FWH is helping me realise where some of my income is going. The FWH data feeds from my bank account/credit card etc directly into the software, it then breaks up each transaction into a category (i.e entertainment, groceries, loans) and creates a budget based on my last month’s spending (I can also see a amongst others a yearly budget). I can then see what categories I’m spending most of my money on, whether it be eating out or spoiling my dog Rupert! I have the ability to change the budget value I want to spend each month and can see how I’m tracking to that figure. It truly is helping me see where I’m spending too much money…
Like I said, having a budget isn’t supposed to be stressful, it’s supposed to help eliminate some of that stress and perhaps create a more balanced lifestyle ads you see where your money goes. My only suggestion is be realistic when setting your budget, don’t be too hard on yourself or you won’t stick to it!
If you want any more information on the Fortress Wealth Hub or need some help budgeting call the office today on 07 4646 4970 or firstname.lastname@example.org
Written by Brooke Taylor, Practice Officer of Fortress Financial Solutions
Corporate Authorised Representative of Magnitude Group Pty Ltd ABN 54 086 266 202, AFSL 221557.
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