Megan and Creagh
2 years
Personal budgeting
"It wasn't big lavish expenses that got us into trouble, it was day-to-day stuff."
- MyBudget clients Megan & Creagh
Struggling to budget and take control of your finances? We’re here to help.
Budgeting can be a challenge
You may be earning wages from contract fees, a salary, your own full-time business, or a part-time side hustle.
As well as the complex variety of different types of wages one can earn, Australians also have a wide range of expenses. Mortgage repayments, rent, utility fees, transportation costs, car maintenance costs, insurance premiums, medical bills, groceries and credit card bills can all contribute to accumulating debt.
It’s a lot to stay on top of, and it’s easy to lose sight of what you earn. It’s even easier to lose control of what you spend. Your financial future can become blurry.
Planning your future can be hard when you don't have visibility or support. It makes it challenging to stay on top of your ever-changing financial situation.
If you want clarity and control of your financial future, you need a strategic and tailored personal budget.
Why is personal budgeting so important?
The trap that Aussies often fall into is spending more than they earn. Many of us have very little to no savings and are neck-deep in debt, which can make it seem impossible to pay off because of non-stop interest fees. If you sort your money out, it goes a long way towards your life working out the way you want!
Eight more reasons that you should create a personal budget
Creating a personal budget gives you control over your money and a clearer path to financial success. It will also help you weather some of life’s most intense events.
A career change to a new role
Achieving your financial goals
Becoming sick or getting injured
Unexpectedly losing your job
Birth of a child or addition to the family
A relationship breakdown or separation
A reduction in your income or cashflow
Your retirement from employment
Personal budgeting helps you avoid bad financial situations
It lets you know how much you’re earning, but more importantly, it makes it transparent how much you’re spending and saving. It gives you clarity on your financial situation. It’s the key to achieving your financial goals, no matter what they are.
Personal budgeting gives you control over your spending and which debts you should focus on paying off. Budgeting is a road map to financial success.
How to create a personal budget that works for you
Budgeting is about managing your finances so you can focus your money on what matters the most.
Budgets that work incorporate all the details of your financial situation, lifestyle and priorities.
They’re designed with long-term goals in mind. They’re comprehensive but also flexible. They allow for constant changes and the addition of unexpected or even overlooked expenses.
By creating a personal budget, you can track:
How much you spend
Be honest with yourself here.
To track your spending properly, include everything from your coffee, to your gym membership through to your utility bills and existing debts.
Don’t just think about what you spend daily, weekly or monthly. Think longer term, quarterly, yearly or even longer.
What you’re earning
Double check your payslips.
Take into account what you’re really earning after tax and superannuation is removed.
Own shares or other assets? Record the earnings on those assets too. Be comprehensive and don’t leave anything out.
Work out the difference
Look at what you’re earning, then compare it to what you’re spending.
If you’re spending more than what you’re earning, it’s time to make changes.
Cut your expenses back
Have a good think about where you can cut back on what you’re spending.
Do you really need to buy that cappuccino from the cafe every morning? Can you take the bus instead of driving? Why not make your lunch and take it to the office?
Cut everything you don’t need. Again, be honest with yourself.
Set goals
Once you have true clarity on what you’re earning and spending, you’ll be able to see if you’re saving.
Set yourself a specific amount of money you want to save each day, month, quarter and year.
Then stick to it!
Need help budgeting and saving money?
Book your free consultation nowWe provide free consultations
When you have a consultation with us, we look at:
-
Your bills
-
Your loans
-
Your expenses
-
Your current debts
In our free consultation, we’ll offer a solution that works, just for you.
-
We discuss your short and long-term financial goals
-
We discuss how you can reach those goals
-
We work with you to your vision for your financial success
-
Create a personal budgeting plan that will help you get there
Megan and Creagh didn't get into money trouble because of big, lavish expenses, but just the day to day living. After coming to MyBudget with a debt of 91K, they've paid off 5 credit cards and are now saving for a house!