Investing
Budget Planning
Many people squirm at the thought of budgeting, however once they’ve taken a little time to identify and document what their essential living expenses are, the process can be both rewarding and empowering.
How to start a budget
Our strongest recommendation is that you record your regular essential household expenses, such as mortgage or rent payments, rates and utility bills, by the month, year or quarter (depending upon when they are due). Break them down into average monthly amounts, and track your spending for a minimum of one month, but preferably three months.
This exercise alone will enable you to discover more about where your money is going and how you can plan for the peaks in household bills than you could learn in any seminar. Maintaining a record that you review every quarter or six months will also enable you to track your expenses and spending over time easily and quickly, so that you can see where savings or 'blow-outs' occur, and what effects they have on your finances and lifestyle. Use our online budget tool below to help you get started.
Last updated on 15th December 2011
