Personal Budgeting – Making the most of your Money

Saving for Special Occasions

Jingle Bells – on 31 January it will be a mere 47 weeks to Christmas Day! Depending on your shopping and budgeting habits, this information will bring a feeling of joy or an anticipation of dread. Some will have it all organised. Others will cross their fingers, and trust that the credit card will be paid off before next Christmas! How about using the time (and pay packets) between now & Christmas to put some money aside? That way, shopping for presents and Christmas Day meals will be a little financially easier this year.

From next pay day, put aside $20 a week (or $40 a fortnight) each pay until Christmas. That is $940 you will have to spend on Christmas! What does it mean to “put it away”? Deposit it to a second, card-less bank account until needed; put it safely in a piggy bank; put the money towards lay-buys; pay the money in advance onto your credit card, so that you have a “bank” for present buying.

How do you find the $20/week? Just a few ideas: forgo a weekly takeaway; buy fewer lunches/drinks/coffees at work; “donate” the cost of a pack of cigarettes to the cause.

Even if you plan to spend more than $940 on Christmas, at least you have made a start on paying for Christmas. If instead you put away $40/week ($80/fortnight), you will have $1880 for Christmas cheer!

The same plan works for any other special occasion or particular item – a holiday, new furniture, deposit for a car.

Getting Organised – for many the idea of budgeting is boring. For others setting up a budget is just too difficult. Still others have no idea where to start. This blog is here to help anyone learn more about personal budgeting.

There is an Australian produced product called Moneybags, details of which can be found here. Moneybags supplies a kit that enables anyone to setup, maintain and update a personal budget. You can run a budget for yourself or with a partner. You can run a budget whether you have few financial responsibilities or many. Moneybags not only helps you set up a budget but helps you keep track of how you are going. In addition to expenses, you can also set up savings goals and keep an eye on your progress. Moneybags comes in a compact A5 size folder with full instructions.

If an Excel spreadsheet is more your style, ASIC provides a budget planner here.

What Does a Habit Cost You? – Do you have a habit that you would like to give up? Does this habit cost you money? Could you use more motivation to help you give up? Sometimes putting a monetary value on a habit gives us a different perspective.

Say your habit is eating chocolate. You have decided to reduce the amount of chocolate you eat for your health. But chocolate is just so nice – perhaps you will give up tomorrow! Could the prospect of saving money help you reduce the amount of chocolate you eat?

Say you currently spend $3 a day on chocolate, just on weekdays. Let’s say you decided to only buy chocolate three days a week. What is it worth to you? Savings – 2 days x $3 = $6/week, $25/month, $300/year. What if your habit was buying CD’s? Say, average spend is $60/week. Change that to $30/week. Savings: $1,560/year. The most important thing is to decide ahead of time what you will do with the savings. What are your goals – new clothes, travel, car, a house? Bank the savings and enjoy putting them towards fulfilling your goals!

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2 Responses to “Personal Budgeting – Making the most of your Money”

  1. Sue Says:

    Typo in the addy for moneybags 🙂

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