SPEND RESPONSIBLY - Gaining financial control
Keeping a budget
Good money management involves you having control over your money – not the other way around! And budgeting plays a key role in that process. Even careful spenders can find themselves sliding into debt – sometimes due to unforeseen circumstances, like the loss of a job. Often though, people find themselves in financial trouble simply because they spend more than they earn.
The best way to prevent – and manage credit problems, is to develop good money habits. Budgeting encourages us to do just that. It is the only way you will know both where your money goes each pay period, and where you can cut back if you are overspending.
Track your spending
To make sure your budget shows an accurate picture, rather than a ‘best case’ scenario, you will need to allow for all of your household income and expenses.
For day-to-day spending, a good starting point can be tracking your spending over a week or a fortnight. Carry a small notebook with you to record all your purchases and bank account withdrawals during the period. You will also need to include annual or infrequent expenses, like car registration.
To make sure you have covered everything, review your bank statements, credit card statements and cheque butts.
Click on ‘ My Budget ’ to complete your budget.