The best way to take financial control of your life is to do a Budget. A budget planner is a simple tool that will allow you to understand your money going in and going out of your household.
Many people are often turned off by the simple term BUDGET, they associate it with restrictions and a lot of hassles and headaches. However, budgeting can save your money for a new house and allow you to have more to spend by helping you to take control of your money.
By doing a budget it will help with,
- Stops overspending: By taking control of your spending, you’re not spending it on items that are not necessary for you or your family. Like that extra chocolate bar or that new flat-screen TV that everyone is talking about.
- Helps you reach your goals: We all have goals that we want to achieve, it can be that holiday that you have been planning for a couple of years or it can be a deposit for your first home. By creating a budget, you have a full understanding of where your money is going.
- Helps you save money: By having a budget in place it helps you save money for financial security.
- Helps you stop worrying: Having financial security is a good feeling, having any unexpected cost in your life is inevitable. If you have a car accident or a pipe has burst in your wall, knowing that you are financially secured enough to pay the unexpected things in life and still be able to afford rent, food or your mortgage.
- Allows you to be more flexible financially: Having financial flexibility in your life is another way of being financially secure. It allows you to pursue your goals as desired and to take advantage of the ‘’unique’’ opportunities that will present themselves in your life. For example buying that special investment house, taking a trip, starting a family or changing careers.
- Budgeting puts YOU in control: By being in control of your finances your head will always be above water, no more living by pay to pay or week to week. You will have a better understanding of where your money is going, where you can save and finally reaching your financial goals.
You need to be honest with yourself when creating a budget, at the end of the day, it’s your finances.
Once you create your first budget, you can begin to use it and keep track of your finances, it allows you to map out your spending plan or budget for 6 months to a year. By keeping track of your finances, you can easily forecast how much you’re saving and how much you’re spending.
If you’re spending more than what you’re saving and constantly looking for money you need to have a look at your lifestyle! Question everything you spend money on and ask yourself can you survive without it?.
If you have debt with a financial institute, for example, a personal loan or a car loan or even a mortgage with any of the banks or credit unions, you have the right to ask for lower interest rates, at the end of the day you are a consumer and can take your business to another bank that has offered a lower interest rate.
The same is said with your insurance companies you have the right to ask for lower rates, there are plenty of competitors out there that will be happy to have you as their customer and offer a cheaper service.
Don’t be afraid to shop around for other banks, credit unions and insurance companies, Unfortunately, banks and insurance companies don’t reward loyalty.
This can be a daunting but an exciting experience but you’re one step closer to being financially secure.
A good book to read is Barefoot investor, I highly recommend this book, it has helped me to domino my debt, set up my budget and have a full understanding of my financial situation. I’m now on my way to buying my first block of land and home and no longer worried about my financial security.
Below I have added a link to the QLD government website that offers a free budget planner for your convenience, it’s easy to use and is straight forward.
I have also added a link to Scott Pape website for your convenience, The Author of The Barefoot Investor.