Do you see a budget as something that will limit your fun or create new worries? Or are you put off by the effort and headspace you think a budget will involve? There’s no need to be daunted, a budget is simply a tool to help you get on top of your finances.
A budget is a tool that can help you make better spending choices in the short term and reach your financial goals in the long term. Do you have a different idea about budgets? Read on to have your budget fears or concerns answered.
If you see budgeting the same way you see dieting, you’re sure to feel as if you’re depriving yourself. Focusing on what you’re missing rather than what you’re achieving can make it harder to stay on track with your goals for the future.
A budget isn’t about restricting your lifestyle. Instead, it’s about making sure you’re spending money on what’s important to you and not wasting it on what’s not important. A budget can help you limit the little splurges that can drain your bank account and plan for bigger ticket items such as holidays.
Perhaps budgeting feels overwhelming because you don’t know where to begin. Get started by working out where your money is going then laying it out with our budget planner. It doesn’t have to take hours, so don’t be put off if you think it will take a lot of time and effort.You might even like to choose a guide to help you budget.
You may think you’re doing well without a budget. Our research shows this may not be the case. We found that people who have a budget, whether it’s a mental or a formal one, have higher financial wellbeing than those who don’t have one.
Perhaps you don’t want to face up to what you’re spending money on. Scrutinising your spending habits is eye-opening and becoming a forensic investigator of your finances is the best way to see your options clearly.
You may see what spending habits you can eliminate or replace with other ones. This will help you plan what to do with your money before you get it and help you smooth out expenses if you tend to run out of money before your next pay arrives.
Everyone has different attitudes to money, so it’s no surprise if managing money together is a little tricky. Creating a budget could be the first step towards improving your joint finances. By talking about your income, expenses and goals you can create a plan to manage your money together.
When creating a budget with your partner it’s important to share the decisions, be clear with each other and consider one another's needs.
Things you should know
This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Some terms and conditions apply to our financial wellbeing features – please see commbank.com.au for details.
