‘Budgeting’ is necessary to take control of your finances. It can help you create more money and space in your finances!
Creating and sticking to a budget is not difficult:
Just calculate all of your weekly, fortnightly and monthly outgoings, set them against your income, and rank and prioritise all expenses according to your personal preferences.
Necessary and inevitable expenditure, such as utility bills, rent and food should be ranked at the top of your list. On the other hand, new clothes, a night out with friends and take-away lunches should rank near the bottom.
This ranking should provide you with a rough idea of how much you are ‘overspending’ each month. With this method, you should be able to save approximately 10 per cent of your income each month.
Often the most difficult part of budgeting, particularly with long-term goals such as paying off a loan, is upholding your motivation.
To keep yourself motivated, set regular goals and monitor your progress. Start off with smaller, weekly goals, and then build up to monthly then ultimately to quarterly targets. Included below is a Naritas calculator to help you budget.
Alternatively, a Naritas credit adviser can help you with your budgeting needs. Contact us through our live chat, or call us on 1300 558 887 today.