Managing your money effectively is the key to creating great financial outcomes and security.
Selecting the right home loan, time in the market, buying the right assets, having effective protection and implementing smart strategies are all important elements but without the ability to save, real financial success is not possible.
Budgeting isn’t the most exciting financial strategy but without one it is difficult to achieve your goals, like going on a holiday or buying a house.
A budget is a forecast of earnings and expenses over a given period - weekly, monthly or annually – set out to give you an outline of your future spending patterns.
This seems simple but most people struggle with this concept. Mainly because they don’t have the discipline to stick to their budget, they set unrealistic targets, don’t include all their expenses in their budget, such as a morning cappuccino and they continue to impulse buy.
When preparing a budget, the actual figures you use should be based on what you have spent in the past, taken from receipts and bank statements. A real reflection of your expenses will give you a greater chance of achieving your desired financial position.
Your budget is a working document, not a spreadsheet you create at the beginning of the year and don’t look at until the following one. Your income, expenses and lifestyle goals will change overtime and your budget needs to reflect your current position. Budgeting is about managing the frequency, value and timing of your lifestyle goals in balance with your income and expenses.
If like most people you have made many false starts or you believe you do not have the discipline or tools to create a budget and achieve it you should speak with a Bernie Lewis adviser. They will provide advice, assistance and ensure all of your income and expenses are included in your plan and importantly make you accountable to achieve it.