17th August 2011
By BMO Financial Solutions ParaPlanner Vanessa Stevenson.
Yes, that unpleasant word, Budget. But it doesn’t have to be all doom and gloom. You can structure your budget to suit your needs and ever changing circumstances and remember, a budget is one of the most powerful ways to control your money.
It can be hard at times and there is always temptation around the corner but here is some advice to help you stick to your budget.
Everyone can benefit from having a budget. The purpose of a budget is not to make you go without or to force you to save. It simply allows you to manage your money in a more controlled and effective way and to understand where you are spending your money.
Here are some tips to help you stick to your budget.
1. Be realistic - If your budget is too strict, it will be harder for you to stick to it.
2. Spend less than you earn - If you have a cash deficit, review your expenses and cut back where you can.
3. Include your goals - If you are planning an expensive holiday (or other savings goal such as home renovations or a new car), include these expenses in your budget and start saving.
4. Review your progress - Check how much is left in the bank each month and how much you have spent. Compare this with your budget to see how you have fared. If your budget differs from reality, you may need to make some adjustments.
5. Reward yourself - Managing your money in an effective way takes practice. When you are comfortable that your budget is accurate and you are able to stick to it, reward your hard work and treat yourself!
Remember, if something does happen that turns your budget upside down – don’t panic. Staying calm and working out how to manage unexpected circumstances is the best way to regain control of the situation.
We can help you set up your budget, call us today to arrange an appointment, 4662 3722.
This document provides general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your particular investment objectives, financial situation and individual needs. Principal Wealth Management Pty Ltd is a corporate authorised representatives of Charter Financial Planning Limited, ABN 35 002 976 294, AFS Licence No. 234665, member of the AMP Group.
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