Balancing your household budget

05 Mar Balancing your household budget

Balancing your budget

Budgeting is a great way to keep track of your income and expenses, keep on top of your bills, make sure those incidental items are covered, and start a savings plan.

Here is some simple tips to make balancing your budget a little easier:

        1. Calculate your income – check your payslips, Centrelink payments, child support, etc.
        2. Work out what your fixed expenses – these are the costs that are the same every month such as mortgage, utilities, insurances, child care, Council rates, etc
        3. Work out what your variable expenses are – groceries, phone bill, medications, fuel, car rego, etc.
        4. Work out what your ‘want’ expenses are – gifts, trips, clothes, shoes, beauty treatments, etc
        5. Work out how much you want to put aside in an emergency fund – put this into a different account and DO NOT TOUCH unless it’s an absolute emergency e.g., car break down.
        6. Balance your budget by checking that you have enough income to pay for all of your expenses. If you do not have enough to cover everything, adjust the amounts in your ‘wants’ list and see our tips on doing a Budget Audit.
        7. It can be helpful to ‘pay yourself’ what you need for food, fuel, fashion and fun, leave the rest of your money in a separate bank account and leave that transaction card at home. This means that your available money is easily accessible but the money you have promised to the mortgage or rent, insurance, school fees, phone, gas, car rego, etc is all safely quarantined away. You’d be surprised how the surplus builds up in that account over time. Make sure all of your income goes into the main account and that you set up an automated payment transfer of your discretionary money – food, fuel, fashion, fun – to another account and only carry that transaction card with you.

There are free budgeting spreadsheets available online that can help make this budgeting easier and help you to capture the elusive annual bills such as your driver’s license and kids’ school expenses.

Trouble balancing you budget?

If you are experiencing difficulties in balancing your budget even after a budget audit, a debt consolidation may be a helpful tool to reduce down your debt.  “Debt consolidation” means refinancing your debt onto the lowest interest rate possible – and setting up a realistic repayment plan to get it paid off! Of course, any debt consolidation strategies can only be successful if you cancel or cut up your credit cards and avoid running up any further debt. If you can commit to that, debt consolidation can potentially save you a lot of money.

There are a few ways that you can do this:

  • Consolidate your credit card debts into one personal loan
  • Transfer your debt onto a card offering low balance transfer
  • Incorporate the debts into your mortgage.

If your situation has negatively impacted your credit rating, you may find that you are not eligible for a loan to consolidate, can’t transfer to a new credit card or even re-mortgage.  You may find yourself in a real struggle with debt collectors chasing you and it seems like you might have to go bankrupt.

How we can help

There are alternatives even if your situation is serious.  Talk to us about the Financial Hardship obligations of your creditors, Moratoriums and restructured payment amounts and at Active Debt Specialists, we are experts at implementing the Debt Agreement* repayment option, which has no interest, stops debt collectors and your repayment is only what you can afford.

Find the right solution to help solve your credit card debt issues.

Give us a call today on 1800 085 550 for a free no- obligation confidential chat.

* Debt Agreements will affect your credit rating and conditions apply. Find out first.

 

 

 

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