Take Control Of Your Budget
Successfully managing your money requires a budget. About 80% of Australians use some system to track where their money is going, and about seven in 10 reports that they have created a budget in the last six months. Yet, only about 20% report that they always stick to their budget. While these statistics may look promising on the surface, only 25% have a long-term financial plan in place, and less than 50% have created a three-to-five-year plan. Almost 20% did not add to their savings over the last 6 months. The trend is more disturbing for those individuals who make less than $55,000 annually as 24% say that they have not been able to save any money, and 12% report they struggle to find extra income before month's end. An accountant Newcastle says that people often contact his office for help in getting their budgets lined out. These people often want to
save more for a significant expense, like a once-in-a-lifetime trip or a home remodelling project. According to the Australian Bureau of Statistics Household Expenditure Survey, the average Australian household spent $1,525 per week in 2015-2016, but your family may not be average. You need to be spending less than your household makes. In 2020, an average Australian household was spending 20% of their income on housing, 17% on food and 15% on transportation. Most Australians expect that the cost of meeting their basic needs will continue to rise, especially the cost of their housing and energy. Electronic banking has made money seem less real. To take control of your financial health, it may be time to turn back to practices our parents and grandparents used so that spending money becomes more painful. The first step is knowing where your money is going. Then, you must take control of it. Electronic banking has made it easier because you can see where you spend money. Start by evaluating where your money is currently going as many people have no real idea, says an accountant Newcastle. Then, create a budget. For most, the budget should follow the 50-20-30 rule. According to an accountant Newcastle, they should be spending 50% of their income on essentials, like housing, groceries, and petrol. Then, spend 30% on savings, including paying off loans and credit cards. The final 20% is your fun money for new clothes and eating out. According to an accountant Newcastle, some people can do it electronically, but the majority may have to develop an envelope system until they get control of their finances.
Powered By