
Preparing a budget
by Announcer Group in Budgeting
It can be a real challenge to prepare a budget unless you take the right steps from the start. We all have different priorities but there are some basic principles that can make the process clear and easy to prepare. We provide some simple tips and steps in setting out a budget that can work for you.
- sponsor - Announcer Group
Announcer Group
Created and grown from one extraordinary idea, to have all your financial experts in one place, at one time, for your ongoing care and convenience.
Our privately owned, holistic and unique One_Stop_Shop experience, ensures a streamlined & integrated approach to your specific objectives, utilising our in-house team of experts, from Financial Planning,Tax, Property, Law, Mortgages & Lending.
Ensuring your experience with Announcer is a truely rewarding one. Don't believe us - Try Us! Let's Plan!
www.announcer.com.au
Published on 18 Jul 14
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Testamentary trusts
Duration 02:52
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It can be a real challenge to prepare a budget unless you take the right steps from the start. We all have different priorities but there are some basic principles that can make the process clear and easy to prepare. We provide some simple tips and steps in setting out a budget that can work for you.
Sponsor - Announcer Group
Announcer Group
Created and grown from one extraordinary idea, to have all your financial experts in one place, at one time, for your ongoing care and convenience.
Our privately owned, holistic and unique One_Stop_Shop experience, ensures a streamlined & integrated approach to your specific objectives, utilising our in-house team of experts, from Financial Planning,Tax, Property, Law, Mortgages & Lending.
Ensuring your experience with Announcer is a truely rewarding one. Don't believe us - Try Us! Let's Plan!
www.announcer.com.au
-
Testamentary trusts
Duration 02:52
The first thing to do is look at your income. Use your net pay, after superannuation contributions and tax. If you are self-employed or have any outside sources of income, such as rent or share dividends be sure to record these as well. Record this total income as a monthly amount.
Next, create a list of monthly expenses. Write down all the expenses you expect to incur over the course of a month. The obvious items might be a mortgage payment, car payments, auto insurance, groceries, utility bills, entertainment, gym memberships, school fees, dry cleaning: essentially, everything you spend.
But also don’t forget the items you pay for in cash. That means that your budget can’t be confined to just the obvious items. Think about those two cups of coffee a day: or you lunch you buy daily; think about the children’s basketball games and the traditional visit to the ice-cream shop after every game. It all adds up.
Sort your expenses into two categories: fixed and variable. Fixed expenses are those that stay relatively the same each month and are required parts of your way of living. They included expenses such as your mortgage or rent, car payments, internet service, mobile phone plans, electricity and water bills and so on. These expenses for the most part are essential yet not likely to change in the budget.
The variable expenses are the type that will change from month to month and include items such as groceries, petrol, entertainment, eating out and gifts, to name a few. This category is where you're most likely to be able to make adjustments.
But even the seemingly fixed costs such as utility bills can often be reduced. The point is that when you have a better grasp on exactly what you’re spending, you can start to look for ways to reduce many of these expenses so that the income coming in is greater than your expenses. You can also have a plan that you can stick too to achieve your saving or debt repayment goals