Are you on track of your financials and saving enough for the uncertain times? Basically, to be in control of your finances you need to have a budget.
Budgeting is simply managing how you spend your money. This is to ensure that you are spending less than you are earning and setting aside for your future. Creating a spending plan will help you ensure that you have enough money for the things you need and the things that matter to you. You might be planning to purchase your own house, starting a car loan, or saving for your kids’ education.
There are a variety of budgeting approaches; a popular method is the 50-30-20 budget rule. In this, you may allocate your money into three categories; the first 50% of your money goes to your needs which are necessary for your day to day living. It can be food, transportation, rent, utilities and clothing. The next 30% is for your wants. These things are not absolutely essential and differ according to your lifestyle including gym fees, eating out, pets, entertainment and hobbies. Lastly, the 20% is what you should set aside for your savings and investments. This could be something for your emergency fund for the unexpected surprises life throws at you, or pension fund which could provide your retirement income.
The 50-30-20 method is just one of the many approaches of budgeting. The key take away is, whatever your financial goals are, you should plan and act on it to achieve them.
Let us help you understand where your money goes and be in control of your spending habits.
If you want to know more on how to proactively manage your personal finances, talk to us at 07 3290 0393.
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