Financial Management – Claire and Murray’s Budgeting Basics

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Step 1 – set goals

List the things you want to achieve over the next year (e.g. plan a holiday, paying off debts, buying new car etc)

Step 2 – know your expenses

Add the total amount you spent last year on electricity, mortgage/rent, food etc and divide by 26 to work out how much to set aside fortnightly for bills

STEP 3 – add up your debts

Make a list of your debts (e.g. mortgage, car loan, personal loan) and include them in your budget

STEP 4 – needs v wants

Look at your spending and consider whether the things you buy are NEEDS or WANTS.  Reduce spending on WANTS.

STEP 5 – create your budget

Using a ruled ledger, an excel spreadsheet or whatever suits you, create your budget and stick to it!

Top Tips for Making your Household Budget Work

  • Use cash as much as possible – you will spend less than when using cards
  • Keep a spending diary – writing it down makes you think before spending
  • Add up your regular food costs and try to stick to your budget when shopping. Look for specials and stock up!
  • Buy a supermarket gift card when you get paid and keep it in case you run out of food or fuel before your next payday
  • Always make a shopping list before going to the supermarket
  • Never go food shopping when hungry!
  • If you find saving for Christmas difficult, try buying gift vouchers throughout the year (remember to check the expiry dates)

To make an appointment in Albany with a Financial Counsellor, call Anglicare WA  on 9845 6666.

Click here to find out more about Anglicare’s Financial Counselling service.