Planning your budget

Planning your budget

A budget allows you to plan for how you’ll spend and/or save your money each period and also keep track of your spending patterns. Though making a budget may not sound like the most exciting activity, it’s important for keeping your finances in order and gives you better idea of your financial situation.

Planning and monitoring your budget will help you identify unnecessary expenses, gain more control over spending and allows you to adapt quickly if your financial situation changes. Creating a budget can also decrease your stress around finances.

There a number of tools that can assist with the process of keeping a budget. The government provides a great tool for getting an understanding of your cash flow at a point in time – Budget Planner (moneysmart.gov.au). This budget template is free and very easy to use. You simply have to enter your earning and spending for each category and it will return a budget summary and spending breakdown for you.

Tips!

•  Ensure you have everything you need ready when creating your budget. Most importantly, this includes all bank statements.

•  Complete the budget and goal setting process with all concerned parties to ensure that everyone is on the same page.

•  Ensure your budget is achievable, the worse thing you can do is set yourself a strict budget and become despondent. Always provide money for unplanned expenses.

•  Finally, remember the end goal of creating a budget is to allow you to take control of your hard-earned money and to manage it better for you to achieve both your short-term and long-term financial goals and to make you feel more confident in the financial decisions you make.

The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

KMT Partners support you, your family and your business with accounting, financial planning, business management, compliance and advisory services. Please do not hesitate to contact us if you need any assistance.

 

You may also be interested in:

5 financial lessons we should learn from COVID-19

The COVID-19 pandemic has forced us to rethink and reposition our finances. Although the risks of this crisis are new, the idea of a crisis affecting people’s finances is not. That’s why financial literacy is vitally important – it equips us with the knowledge and skills we need to manage money effectively… read more

 

Share this: