Budgeting Tips From AWA Credit Union
The AWA Credit Union has written an article on their web site to help their customers with budgeting. Here are some of the tips:
1. Track your spending – If you don’t know where your money goes each week, you have little chance of fixing any problems.
2. Keep a diary of your spending – for a few weeks, keep a record of everything you spend money on. If you have a smartphone, there are many apps that can help. Alternatively, just record the spends on a notepad. At the end of the period, categorise your spending; e.g. Groceries, Electricity, Rent etc.
3. Make sure that your income exceeds your spending. If you find that you’re spending more than you earn, something has to change (or you will end up with debt). If your income exceeds your spending, you’re off to a good start!
4. Plan a budget. This is where the fun begins. The idea here is to set an amount for each category for each month. Make sure one of your categories is savings. Also include such things as holidays, kids birthdays etc. Make sure you plan to spend less than you ears too!
5. Finally, track your spending against your plan over time.
Having a budget helps you to ensure that everything you spend money on can be afforded and that you make provision for fun times, like holidays.
Sticking to a budget is a good discipline to develop and maintain throughout life. So have a go!
You can read the AWA Credit Union article here: http://www.awacu.com.au/budgeting-tips.html