Steps For Taking Control Of Your Budget

You know that you need to take control of your financial health, but if you are like many people in Australia, you are not following through with those intentions. Employing old-fashion techniques used for generations may help you regain control of your money.

The first step is to understand where your money is going. Head to your online banking portal and discover what you are spending and see what you need to change to take back control of your finances.

Like most Aussies, you may be spending about 20% of your income on housing, 17% on food and 15% on transportation. Find a way to cut about 3% from your essential needs budget.

Paying ahead on mortgages is a great way to put more money back into your long-term budget, but only about 53% of people do that. Meanwhile, 32% pay just the minimum amount and 2% admit that they have missed a payment.

Experts like Dave Ramsey and an accountant Newcastle also say that you should be saving about 30% of your income. Statistics show that many struggle in this area as about 25% report that they did not save any money over the last 6 months, and that has been a steady trend in the previous 4 years. About 10% report paying the bare minimum on their credit cards, and 4% report missing a payment.

According to an accountant Newcastle, paying off your credit cards is a great way to save money. Yet, about 10% of people say they have paid only the minimum amount during the last 6 months, and 2% say they have missed one or more payments, which can be very costly.

The final 20% of your income is your fun fund. Buy new clothes with it or go out for a nice meal.

While there is no doubt that online banking has made life more convenient, many people may find that they need to return to an envelope system and divide their income out each pay period. An accountant Newcastle finds this system highly effective.

One reason that this system is so effective is that it makes money seem more real. Therefore, it hurts more when you spend it and makes you more aware of where your money is going, says an accountant Newcastle.

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