(personal budgeting – 3 minute read)
Hey accounting fans!
As we edge closer to what some say will be a recession this year, its important to fall back on some finance basics. And by basics, I mean BUDGETING! Budgeting doesn’t have to be a chore, in fact, here are some tips to make it a painless experience for you:
Budget where your money is going
This might sound like a no-brainer, but it’s amazing how many people don’t have a clear understanding of where their money is going. Start by tracking your spending for a few weeks, and you might be surprised by what you find.
Tracking your spending is easier to do with financial applications that sync up with your bank account. Pocketsmith is one of my personal favorites. There are other options available out there, you just need to find one that works for you!
Set some personal financial goals
What do you want to achieve with your personal budget? Do you want to save up for a down payment on a house? Pay off credit card debt? Whatever your goals may be, make sure to write them down and keep them in mind as you create your budget.
Approach your family budget the same way you’d approach an investment, by setting your financial goals. With financial goals in place, you can be better placed in where to allocate funds for savings and holiday trips.
Budget Realistically
I mean, we all want to imagine that we’re making five figures each month, consistently and to have enough to set aside for a yearly holiday…but that may not always be the case.
It’s important to be realistic when creating a personal budget. If you set unrealistic goals or cut back too much on spending, you’re likely to end up feeling frustrated and discouraged. Make sure to set achievable goals and allow for some flexibility in your budget.
Think about your budget must-haves. Things like your mortgage/rent is a good place to start. From there, start tacking on the essentials like groceries, food and fuel. Then you can start looking at what goals you can achieve with the budget you have left
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Was that a shameless plug?
Yes, yes it was. Seriously though, if you like your financial content in light, easy sized bites, this is the website for you. We’ve always got tips on how to stay motivated and on track to meet your financial goals. If you’re a small business owner, hit us up at our business arm, www.shadvisory.co.nz and we’ll help you work on the income side of your budget,
Disclaimer: This article was written with ChatGPT assistance and edited by our team for accuracy and clarity.