Budgeting, that dreaded thing people don’t like talk about let alone do.
Most of us assume we know what we spend, but when I ask most of our clients what income do you need to maintain your current lifestyle, there are very few people who can give a rough figure let alone an accurate idea of what they spend each year.
Some of the ideals in life; to not worry about money, have more than you need, go on that annual holiday, or be able to put away enough to have a comfortable retirement.
There are only two ways to save money. Increase what you earn or spend less. For most of us the only realistic way to move forward is to spend less, or at least get spending under control.
A budget isn’t hard, but it is confronting on what we choose to spend our money on. The propensity to spend more increases each time we get a wage increase.
In the age of the Internet there is access to more tools for budgeting than we have people in our pretty little state. You just have to find the one that suits you.
Once you have sat down, and have a good idea of the areas and amount that you spend, it comes down to the implementation of a new process. There are many different ways people use to put money aside, including the tried and true method of “envelopes”, utilising many bank accounts or just prepaying bills regularly through direct debits. Whatever the method you use, it is all about putting the money aside before you need it so you have the confidence you are ahead. Forming new habits is hard, but it does become easier. Within a year you will notice big differences and even within a month you will feel more in control.
Worrying about money causes major health problems to many in our population. If you could take all this away would it be worth it? How would it feel having the confidence to know that you have the funds aside to pay for that unexpected medical bill or car breakdown? It’s hard to put a price on this, but with determination and patience you can achieve a plan. It all just starts with putting pen to paper. If you have any questions or wish to get further information please let the staff at Ritchie Advice know we would be more than happy to help with a conversation that counts.
This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided in this article is general advice only.
Ritchie Advice Pty Ltd ABN 12 150 128 448, is a Corporate Authorised Representative 408050 of Dover Financial Advisers Pty Ltd, Australian Financial Services Licensee No. 307248.
Erin Gourlay
