What Is A Budget and Why Do I Need One?

Whether you’re saving for a gap year in Europe, your first home, or a caravan to travel around Australia in retirement, no matter the reason, keeping track of your money is the best way to reach your financial goals.

A budget is a really simple way to help you take control of your finances and understand where exactly your money is going on a daily, weekly and even yearly basis. By tracking your household’s incoming and outgoing money, you are able to analyse your spending habits against your wage, and begin to make plans for your financial future by directing your money to where you want it to be.

We’ve put together a few tips on why you should use a budget.

You can set goals for the future

By implementing, and keeping to a budget, you can set yourself financial goals and track your way to achieving them.

Instead of throwing your money away, and telling yourself you will save whatever is ‘leftover’ in your account come payday, build your savings into your budget so you have a consistent stream of savings every week. Before you know it you will have enough money to put a deposit on that house you’re dreaming of.

You can cut bad spending habits

Are you signed up to Netflix, Stan, and Presto but you never actually find time to watch television?

Perhaps $10 a month didn’t seem like a lot at the time, but by being able to track where your money is going and whether what you are splurging it on is a necessity in your lifestyle, you are able to cut bad spending habits and instead, put it towards your financial goals.

You can rest easy at night

Have you ever lost sleep worrying about how you are going to afford rent next month, or constantly turning down dinner with friends because you can’t afford it?

Building a realistic budget and implementing ways to keep to it will help you reduce stress and get more shut eye knowing that you are prepared for your household costs, and saving towards your financial future.

 

This communication has been prepared on a general advice basis only. The information has not been prepared to take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individual needs and you should seek advice from your financial adviser before making any investment decisions.

Smart Financial Solutions ABN 61 981 146 489 Australian Credit Licence Number 364253



Leave a Reply