It is often said, ” If you FAIL to PLAN then you have PLANNED to FAIL”. We often tell persons our website allows you to keep track of your food spending and Budget your every order. Have you ever went to a sit down restaurant and when you receive your bill at the end you shocked that the few things you ordered came up to a unbudgeted amount? Then, you find yourself looking around holding your head 🙂

Having a budget helps you to feel in control of your money. You can put aside money for big bills when they arrive, and plan savings to achieve your money goals.

You don’t need an accountant or special software to set up your own budget. Start by looking at where you are right now and where you want to be.

1. Record your income

Record how much money is coming in and when. If you don’t have a regular amount of income, work out an average amount.

Make a list of all money coming in, including:

• how much
• where from
• how often (weekly, fortnightly, monthly or yearly)

This money could be from your wages, pension, government benefit or payment, or income from investments.

2. Add up your expenses

Record your regular expenses, including:

• what are your expenses? RENT, LIGHT, WATER, SCHOOL FEE, GROCERY, etc.
• how much is the average or specific amount?
• when is it due?

Regular expenses are your ‘needs’ — the essential items you need to pay for to live. These include:

Fixed expenses, for example:

• rent or mortgage payments
• electricity, gas and phone bills
• council rates
• household expenses, like food and groceries
• medical costs and insurance
• transport costs, like car registration and public transport
• family costs, like baby products, child care, school fees and sporting activities

Debt expenses, for example:

• personal loan repayments
• credit card payments
• mortgage repayments

Unexpected expenses, for example:

• car repairs and services
• medical bills
• extra school costs
• pet costs

3. See if you can save

Having some savings can help create a safety net for unexpected expenses. Set a savings goal and work out how much you can save each payday.

Work out how long it will take you to reach your savings goal.

4. Set your spending limit

The money you have left after expenses and savings is your spending money. This money is for ‘wants’, such as entertainment, eating out and hobbies.

Make a plan for what you want to do with your spending money. This will help you to keep within your limit. Keep track of your spending so you always know how much you’ve got left.