Make a Budget

Before we can go looking for too many bargains, we really need to sort out the budget.

Whether it is weekly, fortnightly or monthly here is a simple way to get on top of things.
 

So grab a pen and paper (and a cuppa) and let’s work through this together.


1) Write down all incoming income and how often it is received (to the dollar if you can)


2) Think of all the regular bills you receive- don’t worry about prices just yet. These will most likely be: rent/mortgage, landline phone, internet, mobile/s, pay TV, electricity, gas, water, car insurance, house/contents insurance.


3) Now we will list how often they are-monthly/quarterly/yearly and roughly how much they are per bill.


Before we go too much further, if you have noticed some of you bills are creeping up in price per bill cycle due to usage, perhaps it is time to call the companies and see if there are any different plans they can offer.

Perhaps a better cap?

A bundle deal?

A loyal customer offer?

While you are on the phone to them, see if they offer an “Even pay” option.

This usually means that they will work out for you, how much you need to pay per week/fortnight/month to be able to cover the cost of the bill, therefore making your spending feel smaller, helps pay off the bill and also makes the day you receive the paper bill less daunting as the amount owing will be smaller… if not, it may even be in credit.
 

4) I highly recommend paying a small amount on each bill per pay day for the above reasons of making this less daunting.

Divide each of your bill amounts by how many pay days you have per month

E.g.: your phone bill is $189 per month, and I want to pay a little of it during each of my fortnightly pay days= $94.50
However, I am going to round my payment UP to an even $100. To help cover the times I use over my plan, and just to catch up a little and to be able to see the rewards when it does end up in credit.


5) Continue to do this with all of your bills and you should be able to see exactly what is going in and out each pay day.


Don’t leave yourself short.

Reassess things if you have more money going out then coming in.
 

Also, beware some companies charge to automatically take out your chosen payment per pay day (and don’t risk an overdraw fee if your pay is delayed and payment comes out when there isn’t enough money in your account)

Your bank also has the option of automatic direct debits- but again check for hidden fees.

Otherwise, it might be time to get in to the habit of spending a few minutes on your pay day, manually sending out payments from your home internet banking account.

  

The more disciplined you are at sticking with your budget; the more likely you are to see the benefits from it.
 

If you have any further question- or I have completely confused you, please feel free to email me and I can help you further.