20 Jul Budgeting 6 Steps to Get Started
Budgeting 6 Steps to get started
Budgeting is tough to master, but it’s the beginning of financial success. We have put together BudgetNet’s 6 steps to get started on a budget and improve your situation.
1) Find out where you’re at!
a. It’s hard to measure the success of a budget if you don’t know where you started. There are a variety of ways to do this, setup an online budgeting tool to help track your finances. Or the old fashioned way and go through your bank statements, fill out a notebook or excel spreadsheet. I’ve included a link to register for a free version of BudgetNet’s software.
2) Goals Goals Goals!!
a. We need something to work towards, it’s hard enough to put money aside without a goal. Set your target, whether it be a holiday, new car, or even have money aside for bills when they come in.
3) Review your initial budget
a. Here you review if your current spending is appropriate or needs to be changed. Are you able to meet those goals with your current spending? Do you need to change anything?
4) Make a budget you can stick with.
a. This means having funds set aside for the mortgage , grocery’s, bills , car expenses but also some things you enjoy such as buying DVD’s or going out for dinner. Without a budget you can enjoy, it will fall through when temptation strikes.
a. Portion your funds into separate ‘buckets’, example you could have 3 bank account, the first is for your day to day spending, lunch, groceries, petrol etc.
b. The second is for longer term bills such as car or home insurance and utilities. Along with any other expenses that may fit here.
c. The third is your long term savings. This is where you save towards your goals.
6) Review (ongoing)
a. Are you still meeting your goals? Are you happy with your setup? This is an ongoing process and something you should revisit at least once a month.
It may seem like a long process but it will improve your life and help to remove stress. If your not sure where to start you can contact BudgetNet on 1300 402 568 and we can help put you back on track.