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Tip Store: Finances: Budgeting
Easy Bill Payments
I have organised direct debits for all my bills to be paid. Council and water rates , phone, mobiles, electricity etc. When Council rates arrive I schedule payments (select frequency that suits your pay cycle). Electricity etc. I schedule payments fortnightly based on previous bills. Good news when bill arrives as it is paid or in credit. No stress having to outlay a large amount to pay in full.
Contributed by Sue Richardson
Contributed by Sue Richardson
Saving for Slush Fund or Other Emergencies
I am a zero-based budgeter, I give every dollar a job (Income - Expenses = $0). When I have money left over in an important category (e.g. food, fuel, medical) that money is ALWAYS designated for that category, grocery money is always grocery money, fuel money is always fuel money, even if I only have 5 cent left. I separate this money into an ‘Emergency ...’ jar or small coin purse and take it to the bank and exchange coins for notes when I have enough. This money adds up faster than you think. Emergency grocery money can be used to buy in bulk, to feed unexpected guests without blowing out your budget, or to get extra groceries ahead of a natural disaster. Emergency fuel money can help cover those weeks when the budget is tight, to get extra fuel when prices are cheap, or an emergency trip to visit a sick or injured relative, at the end of the year you could also use this fund to pay for a road trip. My rule of thumb is grocery/fuel/medical money is ALWAYS grocery/fuel/medical money and anything left over in these categories is saved as an emergency fund in that category. You could use this approach towards any essential budget category. As well as saving any unused money I also add to my emergency categories any found money, rebates, bonuses, and unexpected money or gifts. You weren’t counting on this money in your budget anyway, you might as well use it to prepare for a rainy day, because as we all know sooner or later it’s going to rain!
Contributed by Kelly Patrick
Contributed by Kelly Patrick
Changing Envelope Budgeting to Card Budgeting
I used to use the envelope system to budget, then changed to the purse system when I joined Cheapskates. Now with what happened with the virus and a lot of places only accepting card payments I’ve changed my system again. I opened a debit card account with my bank (no fee account) and then added sub accounts for e.g. fuel, medical, hair etc. All I do is when I’m going to get fuel, I transfer the amount out of the sub account into the debit account.
Contributed by Leanne Gardner
Contributed by Leanne Gardner
Scan, don't File!
Sick of losing receipts, costing you money or having to file them all the time costing you time? If you have a smart phone, just take a photo of the receipt! I prefer a PDF scanner app, which turns a photo into a PDF document. I then email myself the PDF with the item purchased as the subject and store it in a "receipt" folder in my emails. If the computer crashes, you still have it! The ACCC states a photo or a copy of a receipt is a valid form of proof of purchase. Another handy thing about this if you ever need to claim for contents insurance, you have everything already in an email format
Contributed by Leah Doyle
Contributed by Leah Doyle
Notes App the Best for Budgeting
I see lots of people request suggestions for the best budgeting app - but the best app I've found came free with my phone! I use the generic Notes app. I just list my weekly or monthly budget in a note. As each category is spent or each bill is paid, I tick it off using the 'tick' emoji in my keyboard (✔). My budget is with me wherever I go (unless I accidentally forget my phone). I don't need a fancy spreadsheet, I can make any required changes, and I share it with my husband. I also use the Notes app for my meal planning and grocery list.
Contributed by Amanda Hoskins, 5th January 2017
Contributed by Amanda Hoskins, 5th January 2017
New Year Budget Stocktake
The new year is a great point to take stocktake of your spending for the last year and plan for the year ahead. That being said, I am digital all the way!
Excel spreadsheets can do all the hard work for you in adding, subtracting, highlight high data points, making graphs to map spending etc.
I personally use "Google Sheets" - they are free to use and are "on the cloud" so you can log in and access them from any computer. That means I can log in during my lunchbreak at the office, in bed on my laptop or from virtually anywhere.
If you don't have Excel skills, there are plenty of free guides online to get you started.
Contributed by Kate Bradshaw, 8th December 2016
Excel spreadsheets can do all the hard work for you in adding, subtracting, highlight high data points, making graphs to map spending etc.
I personally use "Google Sheets" - they are free to use and are "on the cloud" so you can log in and access them from any computer. That means I can log in during my lunchbreak at the office, in bed on my laptop or from virtually anywhere.
If you don't have Excel skills, there are plenty of free guides online to get you started.
Contributed by Kate Bradshaw, 8th December 2016
Budget Spreadsheet Tracks Spending and Plugs Holes
I have my budget set up in an Excel Spreadsheet, I created it this year to track my spending and help block any holes in my previous budget (or lack thereof) habits. A spreadsheet is not for everyone but it has helped me keep on track so far this year and I must say it will be the first year I end the year with actual savings in my account.
For 2017 I have changed my budget spreadsheet to have the following categories:
1. Blow which 60% of my income is allocated to this section, it covers Mortgage Repayments, Rates, Insurance (house & car), Gas, Electricity, School Fees, Food, Fuel, Vehicle Registration/Maintenance, Phone/Internet and Private Health
2. Splurge which 10% of my income is allocated, this is my sanity money so I can spend it anyway I want, I have also taken from this money for kids sports, clothing, birthdays, haircuts, Christmas gifts.
3. Smile which 10% of my income is allocated, so this covers holidays throughout the year, this will be divided up once I know when and where we plan to go (we have not had a holiday in over 12 months, so time to change that)
4. Fire Extinguisher which 20% of my income is allocated, this is to pay down debt, so think Credit Cards, Store Cards, Mortgage, Investment Properties, anything that you need to pay down to get ahead. Also this money can be allocated to building your Emergency Fund as soon as main debt like Credit Cards are paid off.
5. Rental Income - this is a separate section to normal income and I have allocated expenses to this section also.
The spreadsheet is set up for each pay period throughout the year with my anticipated base amount, the rental income is also the base amount (so does not account for 5 week months, these are then treated as bonus income and goes straight to savings). Each section has a calculation set into a Balance line which prevents me from going over the allocated percentage.
As my pay comes in I then highlight the line item and add a note to each section when a transfer has been made to either pay the bill or transfer to another account, so I know where the funds are sitting at any given time. It allows me to live within my means and I can see if there is any wriggle room in any of the categories, which has been helpful when negotiating insurance premiums. I recently was able to say to one insurer that my budget does not allow me to pay higher premiums so I will not be able to make the switch unless they can match the other company.
** The first 4 sections I must give credit to Scott Pape - Barefoot Investor for these allocated sections **
Contributed by Tracey Drever, 8th December 2016
For 2017 I have changed my budget spreadsheet to have the following categories:
1. Blow which 60% of my income is allocated to this section, it covers Mortgage Repayments, Rates, Insurance (house & car), Gas, Electricity, School Fees, Food, Fuel, Vehicle Registration/Maintenance, Phone/Internet and Private Health
2. Splurge which 10% of my income is allocated, this is my sanity money so I can spend it anyway I want, I have also taken from this money for kids sports, clothing, birthdays, haircuts, Christmas gifts.
3. Smile which 10% of my income is allocated, so this covers holidays throughout the year, this will be divided up once I know when and where we plan to go (we have not had a holiday in over 12 months, so time to change that)
4. Fire Extinguisher which 20% of my income is allocated, this is to pay down debt, so think Credit Cards, Store Cards, Mortgage, Investment Properties, anything that you need to pay down to get ahead. Also this money can be allocated to building your Emergency Fund as soon as main debt like Credit Cards are paid off.
5. Rental Income - this is a separate section to normal income and I have allocated expenses to this section also.
The spreadsheet is set up for each pay period throughout the year with my anticipated base amount, the rental income is also the base amount (so does not account for 5 week months, these are then treated as bonus income and goes straight to savings). Each section has a calculation set into a Balance line which prevents me from going over the allocated percentage.
As my pay comes in I then highlight the line item and add a note to each section when a transfer has been made to either pay the bill or transfer to another account, so I know where the funds are sitting at any given time. It allows me to live within my means and I can see if there is any wriggle room in any of the categories, which has been helpful when negotiating insurance premiums. I recently was able to say to one insurer that my budget does not allow me to pay higher premiums so I will not be able to make the switch unless they can match the other company.
** The first 4 sections I must give credit to Scott Pape - Barefoot Investor for these allocated sections **
Contributed by Tracey Drever, 8th December 2016
Easy to Review Budget
I have mine set up in excel - I put in all my expenses, and then set up formulas for fortnightly, monthly and annual amounts. I also colour code - A LOT - so it isn't boring, but also that it is clear. So essential bills get one colour, luxury bills (like Netflix, my World Vision monthly donation) get another, variable bills (electricity) might get another again.....it just has to make sense to me, after all!
After the bills are added up, I work out other variable costs of living - groceries, clothes, hairdressing, medical appointments and have a separate area for these.
And of course my income is in there. When I was made redundant, I could see how many months my savings would last. When I took a new job, I could see if it was enough money for holidays. I just need to keep the information updated with price rises, new bills, etc
My final step was getting all my bills and working out due dates - they are now on my outlook calendar so I can see ahead when they are due.
Contributed by Kate R., 8th December 2016
After the bills are added up, I work out other variable costs of living - groceries, clothes, hairdressing, medical appointments and have a separate area for these.
And of course my income is in there. When I was made redundant, I could see how many months my savings would last. When I took a new job, I could see if it was enough money for holidays. I just need to keep the information updated with price rises, new bills, etc
My final step was getting all my bills and working out due dates - they are now on my outlook calendar so I can see ahead when they are due.
Contributed by Kate R., 8th December 2016
Word to the Wise
You read all the Cheapskates books and newsletters and tip and Platinum info and yet some how you never really make a start or you plan to put money in the emergency fund once you have paid everything off. WRONG don't think that way, even if it is only $2 that you can spare do it. I wished I had because now I will be off work until I beat my battle with breast cancer and we have no reserves to fall back on!
Contributed by Janine Bensons, 23rd February 2013
Contributed by Janine Bensons, 23rd February 2013
Tax Yourself
Taking part in No Spending month has opened my eyes to just how much "essential" spending is really not all that essential at all! To keep me on track, and encourage me to really think about whether or not I need to spend money (for whatever reason), I have started taxing myself 10% of the purchase price if I give in and buy anything that is really not essential. This includes my favourite coffee scrolls at the bakery (I can make 12 at home for the price of just 1) and treats for my children (we are still getting over the Christmas toy rush). I found an old coin purse and I am using that to store my "tax". So far I am embarrassed (or proud, not quite sure) to say I have $11.45 in my tax purse - meaning I have actually spent $114.50 this month on things that really were not essential! What an eye opener, I am now determined to end the month without adding a single cent to my tax purse. Contributed by Megan Baxter, 9th February 2013
Saving with a Daily Spending Plan
I work out my Spending Plan based on daily costs e.g. $5.80 per day for electricity. I get paid fortnightly and do my accounts every sixteen days. I send money off to all my creditors and as such when the bills arrive I'm always up to date or in credit. Another feature is you have a ready made ready reckoner to see what is costing what. I wouldn't do it any other way.
Contributed by Patrick Annand, 5th January 2013
Contributed by Patrick Annand, 5th January 2013
iPhone App Keeping You on Track
Approximate $ Savings: This week - at least $250
Having realised that I was living way outside my means, I started talking to friends about recording my expenses. While I don't think I'll ever be one to walk around with a notepad and pen, a bit of research lead me to a little iPhone app called "my weekly budget" (cost .99c). This app is great. You simply enter your weekly budget (which can change from week to week) and enter each item you have spent your money on. It shows you how much money you have to spend, how many days are left in the week and allows you to add 'windfall gains' i.e. if you receive money for a birthday, as well as carry over money left from previous weeks if you wish. Further the "history" section allows you to review where your money is going either by date or category. For example I can see that I spent $92.54 on groceries (a combined four purchases) and $10.35 on snacks (a combined three purchases). Really enlightening and simple to use. I know a notepad, pen and calculator (I'm not one for maths) could probably do the same thing, but this has been very enlightening and simple to use for me. For the first time in a long time, I managed to stick to my weekly budget!! Well worth the .99c if you already have an iPhone.
Contributed by Leah O'Brien, 20th April 2012
Having realised that I was living way outside my means, I started talking to friends about recording my expenses. While I don't think I'll ever be one to walk around with a notepad and pen, a bit of research lead me to a little iPhone app called "my weekly budget" (cost .99c). This app is great. You simply enter your weekly budget (which can change from week to week) and enter each item you have spent your money on. It shows you how much money you have to spend, how many days are left in the week and allows you to add 'windfall gains' i.e. if you receive money for a birthday, as well as carry over money left from previous weeks if you wish. Further the "history" section allows you to review where your money is going either by date or category. For example I can see that I spent $92.54 on groceries (a combined four purchases) and $10.35 on snacks (a combined three purchases). Really enlightening and simple to use. I know a notepad, pen and calculator (I'm not one for maths) could probably do the same thing, but this has been very enlightening and simple to use for me. For the first time in a long time, I managed to stick to my weekly budget!! Well worth the .99c if you already have an iPhone.
Contributed by Leah O'Brien, 20th April 2012
Recycled Envelope Budget
I recycle my envelopes that come in the mail. On the back I write where I have to go to pay bills, buy shopping etc. Under each heading I itemise everything that has to be done i.e. GPO - post letters, collect mail, pay such and such a bill. I put any necessary paperwork in the envelope. When I get a receipt, I put it in the envelope to reconcile my budget at the end of the week/fortnight. I don't have to write it in a notebook. If I spend any money that doesn't have a receipt, it is recorded on the outside of the envelope. If I go out more than once a week, I take a new envelope. This way, everything is kept together, I know where I have been, when I went out, what I have spent and nothing is lost. Easy. Contributed by Sally Coverdale
Using Your Tax Return Wisely
Approximate $ Savings: $40 +
As a single Mum I watch my spending carefully. I have a monthly log for all my expenses and use an exercise book to budget each month. I have set up online ING accounts (Education, Bills, Holiday & Gifts), each fortnight I put away my Family Tax benefit B into Education. To work out how much I need to put into Bills I added all my bills together and worked out a fortnightly amount. As each bill comes in I now have the money. Now for the Tax return tip.. Each year I claim education expenses, that part of the tax return goes straight back to the Education account (gives that the boost required)and the rest of the return (approx $1,000) I use to do something for the house. One year painting children's bedrooms (one each year), this year the bathroom received some funds and work !!. The savings come from peace of mind and the interest received on the ING accounts.
Contributed by Michelle Ferey, 2nd August 2011
As a single Mum I watch my spending carefully. I have a monthly log for all my expenses and use an exercise book to budget each month. I have set up online ING accounts (Education, Bills, Holiday & Gifts), each fortnight I put away my Family Tax benefit B into Education. To work out how much I need to put into Bills I added all my bills together and worked out a fortnightly amount. As each bill comes in I now have the money. Now for the Tax return tip.. Each year I claim education expenses, that part of the tax return goes straight back to the Education account (gives that the boost required)and the rest of the return (approx $1,000) I use to do something for the house. One year painting children's bedrooms (one each year), this year the bathroom received some funds and work !!. The savings come from peace of mind and the interest received on the ING accounts.
Contributed by Michelle Ferey, 2nd August 2011
Budget Smoothing with Monthly Payments
I have worked out a monthly budget but it was hard to make sure we saved each monthly payment for electricity, gas etc. We have all our pay going directly into our mortgage and live on our credit card which is paid off in full each month. We save on mortgage interest and accrue frequent flyer points. This method is hard to track all your savings though. I have just changed our electricity and gas supplier and they have a bill smoothing payment method. We now pay our gas and electricity monthly. I have just discovered we can pay our council rates monthly and am going to check out our water rates. We already pay our car, house etc insurance monthly. This way I am on top of our budget.
Contributed by Megan Hall, 1st August 2011
Contributed by Megan Hall, 1st August 2011
Freeing Up Cash
When I started out seriously budgeting, we had 2 school aged children, credit card bills, mortgage, car payments as well as everyday living. We both work full time and weren't getting anywhere fast or had any spare cash so I set up an envelope system for my bills I split it all up into fortnightly amount (that's when we get paid) and started putting the money away. For the first twelve months it was hard but if you persevere it will get easier. I now can make double payments on the house, have cleared the car payment, credit card bills, have just sent my husband to Germany for a holiday with his family and have spare money in the bank. I have never felt more in control of our money than I do now. Our children don't miss out on anything and now our son works he realises the value of money and saves his up. He has already purchased a car for when he gets his license.
Contributed by Presley Dostal, 14th May 2011
Contributed by Presley Dostal, 14th May 2011
Financials - Getting it Sorted
Approximate $ Savings: Saves time once organised and you can track your progress
I have two files which I find useful. One lists all your assets and liabilities and what is left over or not. The other is the yearly/monthly budget and tracker. I find the first file, if updated every 6 months, really helps you see how far you have come and gives you the encouragement to keep working towards your goals. Whilst the second monthly budget breaks it down step by step and helps to make the process easier. I do hope this is useful to other Cheapskaters.
Contributed by Marg Smith, 5th March 2011
I have two files which I find useful. One lists all your assets and liabilities and what is left over or not. The other is the yearly/monthly budget and tracker. I find the first file, if updated every 6 months, really helps you see how far you have come and gives you the encouragement to keep working towards your goals. Whilst the second monthly budget breaks it down step by step and helps to make the process easier. I do hope this is useful to other Cheapskaters.
Contributed by Marg Smith, 5th March 2011
Envelope Budget Online
We have a savings account, which is linked to a mortgage with a redraw facility. I liked the 'envelope budget' idea, but wanted to keep the money in the bank account to reduce interest. So, here's what I'm doing: I worked out how much I needed to set aside each fortnight (our pay cycle) to cover bills, just as you do for the 'envelope budget'). Each payday I then transfer that amount to the home loan account, which is only accessible online. When a bill is due I hop on Internet banking and BPAY the bill directly from the home loan account (pretty much all my bills can be paid this way). The money is sitting there waiting to go, and it's spent the maximum possible time in the account, reducing the home loan. I'm going to re-visit my calculations in a few months time and see if the amount needs to be changed at all.
Contributed by Katie Richer, 5th August 2010
Contributed by Katie Richer, 5th August 2010
Financial Records Double as Emergency File
I keep an A4 file, divided into sections. In each section I keep my financial records (accounts and receipts) e.g. utilities, bank statements, credit card statements etc in their own section. This way I can keep track of my household expenditure. It also doubles as my emergency file in case I need to grab records and run.
Contributed by Diana Smith, 29th July 2010
Contributed by Diana Smith, 29th July 2010
We Are Saving Money Using Envelopes
Approximate $ Savings: $50-$100
We find using the 'envelope' approach helps us save so much money. We live on one wage so have to watch our budget. Now when we get paid we have money transferred straight in to specific bill accounts to cover weekly and fortnightly payments like rent etc, as well as money transferred in to a savings account, so we don't actually see this money and payments are covered. Then I take out a small amount to cover food, petrol and weekly spending money for my husband and I. This cash I withdraw goes straight into labelled envelopes or labelled plastic seal money bags, and then means I only ever pay for things in cash from my envelopes. I am not tempted to spend money because I don't use my cards, and I really think about what I want to use my cash on. When you use your card you don't realise that $10 here and $15 there all adds up and before you know it you have spent $100 on unplanned items that you could probably live without. I also only pay cash for my groceries and will only spend my budget limit and am very good at sticking to this and anything over goes back on the shelf, and I fill my car up on $50 petrol per fortnight and that's it. Now when I have money left over at the end of the week I put it aside in another envelope and this then gets used when something unplanned comes up and we need it, or we spend it on the family as a treat, put it in a Christmas fund envelope or in an envelope for something we are saving for. It is so nice to see the money start to build up in the account because we aren't making any other withdrawals apart from the one-off withdrawal for our envelopes each pay day.
Contributed by Amanda Woodwood, 8th July 2010
We find using the 'envelope' approach helps us save so much money. We live on one wage so have to watch our budget. Now when we get paid we have money transferred straight in to specific bill accounts to cover weekly and fortnightly payments like rent etc, as well as money transferred in to a savings account, so we don't actually see this money and payments are covered. Then I take out a small amount to cover food, petrol and weekly spending money for my husband and I. This cash I withdraw goes straight into labelled envelopes or labelled plastic seal money bags, and then means I only ever pay for things in cash from my envelopes. I am not tempted to spend money because I don't use my cards, and I really think about what I want to use my cash on. When you use your card you don't realise that $10 here and $15 there all adds up and before you know it you have spent $100 on unplanned items that you could probably live without. I also only pay cash for my groceries and will only spend my budget limit and am very good at sticking to this and anything over goes back on the shelf, and I fill my car up on $50 petrol per fortnight and that's it. Now when I have money left over at the end of the week I put it aside in another envelope and this then gets used when something unplanned comes up and we need it, or we spend it on the family as a treat, put it in a Christmas fund envelope or in an envelope for something we are saving for. It is so nice to see the money start to build up in the account because we aren't making any other withdrawals apart from the one-off withdrawal for our envelopes each pay day.
Contributed by Amanda Woodwood, 8th July 2010
Guarantee a Better Lifestyle on an Erratic Income
I know just how hard living on an intermittent income can be! My husband and I used to farm, and income could be very irregular! To overcome this I sat down and worked out an estimate of all my annual bills e.g. rates, water, electricity, firewood/heating, rego, insurance etc. I then divided this figure by twenty-six as I receive a fortnightly carers payment from Centrelink. I then worked out how much I could afford to put aside towards these bills per fortnight, and I created some separate accounts attached to my main bank account into which this money goes. For example I have a bill account, Christmas account, emergency account, school account and vet bill account linked to my account. Each fortnight I transfer the amount I have calculated into each of these accounts online. I also began to charge my eldest disabled son (ASD) fortnightly board of $140 which goes directly into our bill account. This has allowed us to keep our head above water during periods of low or no income except for the carers pension. I also look at cheapskate ways of reusing and recycling leftovers, getting healthy fresh home grown food, bulk cooking, buying marked down meat and bread items to bulk freeze, entertaining at home and free exercise (walking) regularly. Any income over and above this we use to top up our accounts first, then to top up our pantry cupboard supplies by buying staples in bulk e.g. rice, gluten free cereals, gf bread mixes, dried milk, dried beans, bulk meat, cat and dog food. Some fortnights we have struggled through when a large bill such as rates where due, but a strict menu plan and shopping only fortnightly helped. Our income is a bit more regular now but with interest rates on the rise I continue to use these strategies. Perhaps too Catherine you can speak to Centrelink and see if you qualify for a low income Health care Card. This card may enable you to gain further discounts on bills or rego or rates. When friends come over invite them to bring a plate or a part of a meal e.g. wine or dessert. All my family do this and most are a lot wealthier than I will ever be! Don't give up, you can do it but it may take some time before you start seeing results. If it is the mortgage that is an issue, look at downsizing to a smaller home or a cheaper rental, anything that will guarantee you a better lifestyle on an erratic income.
Contributed by Maureen Prichard, 8th July 2010
Contributed by Maureen Prichard, 8th July 2010
Have an Essentials Budget and a Dream Budget
Create a budget for all essential items (bills, mortgage, insurance, minimum amount for clothes, groceries and a little bit for fun etc) and work out your minimum requirement each month. Then create a dream budget for non essential things such as special outings, birthdays, Christmas, car, holidays etc. You can also work out how much this would be a month. At the end of the month wages first go to essential items, the remainder can be put to whatever non essential items in your dream list you would like.
Contributed by Nicole Ellis, 4th July 2010
Contributed by Nicole Ellis, 4th July 2010
Pay the Priorities First
I have had to survive on a very small income from time to time. Perhaps if you start out with the minimum income that has been brought home and work from there you would know that there will be better times ahead. Work on the priorities first e.g. mortgage and food and any bills that are urgent. Hopefully things would improve from there. Anything above the minimum income can be put to use in other areas. Good luck.
Contributed by Roz Smith, 3rd July 2010
Contributed by Roz Smith, 3rd July 2010
Save for a Rainy Day
Set the budget for the lowest regular income(s), even if it's part-time (including regular Centrelink payments), and anything over that is a bonus to be saved or to pay off debts/mortgage. Save for a rainy day, because when you're on an intermittent income it can feel like a rainy day every day. Also when you have more money coming in it is easy for some people to spend too much, so that when lesser amounts are coming in there is little or nothing left in the bank. A strict budget and a bank account with both signatures and no ATM access is a good idea. Buy specials and plain label products when doing the food shopping. Have all your regular and irregular income deposited straight into your mortgage loan (banks set this up). Then take advantage of the 30/45 days interest free credit cards. Put a direct debit in place to clear the end of month credit card debt automatically from your mortgage loan account. Use your credit card like a revolving line of credit for times when less money is coming in, never paying any interest. And if you have a mortgage you'll probably pay less interest on that, by having all your income sitting in that loan account until it's needed to clear the credit card at the end of the month. Don't forget to have a reasonable and/ or low limit on your credit card (so your debt doesn't get out of hand). Just pretend to have "less or no" money during the times when "more" is coming in, a bit of reverse psychology! Eventually after a while of being in business you can work everything out based on a general annual income divided by 52 or 26 weeks, or even monthly if preferred, and budget from there. Or do it now if you know what your total combined annual income will be, it will give you an idea of your average weekly or fortnightly income. Other than that just use all the tips from the Cheapskates website. Walk and ride leave the car at home.
Contributed by AM Devenish, 2nd July 2010
Contributed by AM Devenish, 2nd July 2010
Take Advantage of Barter Schemes to Stretch Income
Irregular income makes you feel really insecure, doesn't it. My dad had a job where the money flowed or there was nothing for weeks, so the parents rigidly made themselves save in the good times. In New Zealand in the 80s there really was an economic depression and the poor, especially the unemployed, ran green dollar schemes (called L.E.T.S. here I believe). It's a barter scheme where debits and credits are recorded but no money changes hands for services but you pay for goods (e.g wool but not for knitting, dental products but not for dental work). Although the consumer has no comeback they don't seem to need it as the mentality seems to change to wanting the customer to really get a bargain.
Contributed by Jenny Holmes, 2nd July 2010
Contributed by Jenny Holmes, 2nd July 2010
Create a Debt Hierarchy
My partner and I are in a similar situation but are lucky enough to have one steady wage and one that fluctuates erratically. I have struggled with this issue liking to plan my budget as much as possible, but having to fly by the seat of my pants most fortnights. There is hope though. I have created a "minimum living expenses budget" for the never ending ongoing expenses of living such as food, rent, petrol, the things we just can't do without and still make a living... and any minimum payments which incur fees if not paid etc. My second list is for any other debt which we can live without or stretch out over a period (phone, rates, extra credit card payments). I have also created a hierarchy to my debts. I make a list of debts we owe in order of importance. To do this I ask myself if I only have money left to pay one thing what would it be? Then that is the item at the top of my list, and then what would be the next most important etc until all our debts are identified. Then when our money comes in I pay our "need to live" expenses first then apply anything left over to the first item on the list, then the next on the list until there is no money left. This reduces my frustrations and if you and your partner prioritise the list together you learn a lot about what is most important to each other and what you are willing to forgo in the future to ensure the list gets shorter every month.
Contributed by Kirsty Dudley, 2nd July 2010
Contributed by Kirsty Dudley, 2nd July 2010
Live on Regular Wage, Bank the Other
If one income is regular try to base your budget on the regular wage and just bank your the other income into a Peace of Mind account. When that account builds up use it to pay off all or part of one of your debts. That way you are not relying on his wage.
Contributed by Janine Benson, 1st July 2010
Contributed by Janine Benson, 1st July 2010
Budget on Minimum Earnings
My husband works in a twenty-four hour call centre. His hours are erratic and different shifts are worth different rates. I worked out our budget by basing it on the minimum amount earned, then when he gets some penalty rates they go towards extra debt payments, emergencies that pop up or the Christmas fund.
Contributed by Ralene, 1st July 2010
Contributed by Ralene, 1st July 2010
Budget for the Minimum Combined Income
When income is irregular make out your budget to suit the minimum combined wage you have coming in: this is your basic known amount with which to work. Then decide on a percentage of the extra money to put away on those weeks when your income is more generous. This can be your emergency fund/Christmas fund/school expenses, etc. These items can then be left out of your basic budget as you know you will be conscientiously funding them from your "big weeks".
Contributed by Judith Bancks, 1st July 2010
Contributed by Judith Bancks, 1st July 2010
Look to the Past to Forecast the Future
We have the problem of regular bills and an irregular income. What I do is look at the last year's income, and then divide this by fifty-two to work out a weekly budget. If you feel you will make less or more money than last year adjust it accordingly. This way you save the extra money when times are good and have it available for the tougher times. We put the extra we have in a good week onto the mortgage, and then redraw it when it is needed in a 'bad' week. This helps us to pay off our mortgage as well as helping us to stick to a budget.
Contributed by Vicky Muscat, 1st July 2010
Contributed by Vicky Muscat, 1st July 2010
The $400 Rule
My partner and I were in a similar situation a few years ago when I was temping. Whilst income can move around a lot we found our basic expenses of rent, groceries, bills, transport (essentials) cost $400 a week at a minimum for the two of us. I knew that I would always need to make at least $400 per week to survive. This meant that when I made anything over $400 it went straight into a high interest online savings which I could use if I had a week where I made under $400. You become quite possessive of your savings fund once you start to build it up and I often found that I would try to cut grocery bills so I didn't have to take money out of my savings. Since then my work has become full time but we still have the ‘$400 rule' – which means that I can now save a lot more! As we are getting married next year we are considering how we can make it the ‘$350 rule'! Cheers,
Contributed by Emma Healey, 1st July 2010
Contributed by Emma Healey, 1st July 2010
Money Planner
A few years ago whilst surfing the internet I came across the "Money" website on ninemsn. www.ninemsn.com.au/money On this website I found a budget planner which I have used since. Just enter in what you spend weekly, monthly or yearly and it will calculate how much you are either over spending or saving and once this is calculated you can go back and analyse where you may be able to cut back. Using this tool my husband and I have travelled overseas each year, owe nothing on credit cards or personal loans and have nearly paid off our mortgage which is only 8 years old. Admittedly, had we not travelled as much, the mortgage would be fully paid but we decided to live a little whilst we were young but our goal is to have this paid off in the next 2 years as well. Anyway, take my advice and have a look at the planner, You wont regret it. I know I haven't.
Contributed by K. Johnston, 6th July 2009
Website: www.ninemsn.com.au/money
Contributed by K. Johnston, 6th July 2009
Website: www.ninemsn.com.au/money
My Money Inc.
I am self-employed and my business finances were always in perfect order, however my personal finances weren't. I found that if I kept a financial record book the same as I do with my business then I could see exactly what comes in and what goes out. Multi-columned books are available for about $17 from newsagents. I have columns for income, home loan, bills, food, general expenses, savings, etc. and a separate section for what goes in and out of my credit card. That way at the end of the week I can perform a profit/loss and see exactly what I have spent and where it has gone. I also have a credit card that has the lowest credit limit available and I use this card purely for food and bills. That way I pay it off in full every month and get the benefit of reward points without the interest. Contributed by Sharon, Ararat, 23rd June 2009
Baggie Budgeting System Slashes Mortgage
Approximate $ Savings: $1000's off our mortgage over the life of the loan.
About 10 years ago we started using a budget system where we worked out how much we spent on all items per fortnight and withdrew this amount from our bank account. This money was divided up into envelopes marked with the "account" names on them and allowed to accumulate until needed. We found that when a bill came in we had the money already to pay it or if we needed money to buy anything it was there waiting for us. We included everything such as groceries, petrol, school, sport/dance, pets, power, telephone, clothing etc. Four or five years ago we decided that having thousands of dollars sitting in our house not earning us interest was dangerous due to possible loss from theft or fire and not as useful as it could be. We decided that instead of withdrawing all of our budget money from the bank we would transfer some of it to our mortgage so that we would benefit from it by not paying as much interest on our home loan. We only do this with the "accounts" that we pay on a monthly, quarterly or yearly basis such as power, telephone, insurance, vehicle registration, memberships etc. We continue to withdraw cash and use our envelope system for "accounts" that we use on a daily or weekly basis. We keep a spreadsheet on our computer to keep track of how much is in each "account" within the mortgage and when we pay a bill we redraw the money from the mortgage to cover it. We have found that over the past 4 or 5 years we have been able to keep $16000 to $20000 in front on our mortgage and have saved ourselves hundred of dollars in interest payments. We are also saving for an overseas holiday using this same system so the money stays in our mortgage account until we have enough to go, saving us interest all the time.
Contributed by Leanne, South West Rocks, 1st May 2009
About 10 years ago we started using a budget system where we worked out how much we spent on all items per fortnight and withdrew this amount from our bank account. This money was divided up into envelopes marked with the "account" names on them and allowed to accumulate until needed. We found that when a bill came in we had the money already to pay it or if we needed money to buy anything it was there waiting for us. We included everything such as groceries, petrol, school, sport/dance, pets, power, telephone, clothing etc. Four or five years ago we decided that having thousands of dollars sitting in our house not earning us interest was dangerous due to possible loss from theft or fire and not as useful as it could be. We decided that instead of withdrawing all of our budget money from the bank we would transfer some of it to our mortgage so that we would benefit from it by not paying as much interest on our home loan. We only do this with the "accounts" that we pay on a monthly, quarterly or yearly basis such as power, telephone, insurance, vehicle registration, memberships etc. We continue to withdraw cash and use our envelope system for "accounts" that we use on a daily or weekly basis. We keep a spreadsheet on our computer to keep track of how much is in each "account" within the mortgage and when we pay a bill we redraw the money from the mortgage to cover it. We have found that over the past 4 or 5 years we have been able to keep $16000 to $20000 in front on our mortgage and have saved ourselves hundred of dollars in interest payments. We are also saving for an overseas holiday using this same system so the money stays in our mortgage account until we have enough to go, saving us interest all the time.
Contributed by Leanne, South West Rocks, 1st May 2009
Envelope Saving for Big Expenses
At the start of each financial year, I buy a diary and write in when all big things are due to be paid e.g. car insurance and rego. I then divide each cost by the number of pay days I have until each are due. I then make an envelope for each and put in the total I have to put away each pay day. This makes life a lot easier each year as I never have to worry about when each of these big items are due. Contributed by Jessica, Ringwood, 19th April 2009
Increase your Tax Refund
I have been back in the work force for a little over a year and made a decision to have full tax taken out of my pay (not taking the tax free threshold option: The annual tax free free threshold is $6000 therefore by claiming the threshold you reduce the amount of tax that is withheld from your tax during the year) To not claim the tax free threshold you need to ask your employer for a "Tax File Number declaration form" and choose not to have the tax free threshold taken from your payer (section 8). You can also get these forms from your newsagent or the ATO (www.ato.gov.au and type in tax free threshold in the search section). If your total income for the year is in the lowest income tax bracket, you pay no tax at the end of the year. This means that all the tax you paid regularly will be refunded to you in one lump sum after you lodge your tax return. This option can work for all tax brackets. This is a great way to save. You know that you pay tax each pay anyway so a little extra each pay to the ATO will get you bigger returns later. It is a savings plan that offers no choice but to save! The only bad part to this is not earning any interest on your money if you were to invest the extra tax you would pay in the bank each pay. But lets face it...who would put that extra in the bank and what bank would pay great interest on a few dollars a week?. This year I was a low income earner and was able to pay out a personal loan when to my surprise I received nearly $2500 back. Next year maybe it will get me a holiday!
Contributed by Leanne, Willaston, 12th August 2008
Contributed by Leanne, Willaston, 12th August 2008
How to Budget Your Pay Packet!
Approximate $ Savings: $100's to $1000's
Here is my budget plan to get out of debt trouble and back into the savings fast lane! It is the only way I can think of to easily get back on track by planning to pay off my bills and still manage my living expenses. I can do this by allocating where I am going to spend my money in advance. It is great because it takes the guesswork out of budgeting and you can reach your deadlines in time. The best part, once it is all down on paper it is off your mind, so you can focus on more important things. My budget this year will run until September, when at this time, if I follow my budget plan, I will be debt-free. In September when I have reached this goal I will re-think my budget, and gear it towards saving for my own home!!! (And I can use the same budget plan template again)Yay!! I love being lazy!!!
Contributed by Samantha, Warburton, 26th May 2010
Here is my budget plan to get out of debt trouble and back into the savings fast lane! It is the only way I can think of to easily get back on track by planning to pay off my bills and still manage my living expenses. I can do this by allocating where I am going to spend my money in advance. It is great because it takes the guesswork out of budgeting and you can reach your deadlines in time. The best part, once it is all down on paper it is off your mind, so you can focus on more important things. My budget this year will run until September, when at this time, if I follow my budget plan, I will be debt-free. In September when I have reached this goal I will re-think my budget, and gear it towards saving for my own home!!! (And I can use the same budget plan template again)Yay!! I love being lazy!!!
Contributed by Samantha, Warburton, 26th May 2010
Banking on Budgeting
Approximate $ Savings: $100-500
I was pleased to see the mum's winning tip of dividing all your bills up for the year and paying them all every fortnight. It is similar to my practice, but I have a further suggestion for those who can exercise sufficient self control. Pay your bill allowance into a separate high interest savings account, rather than to the biller. ING for example have high interest savings accounts which are completely fee free, calculate interest daily and paid monthly, and access to your money without penalty - but with a day or two delay before it hits your hot little hands, which is helpful to stave of any impulse purchases! This way, you can do everything the same (such as check each bill as it comes in and adjust your allowance accordingly), but you can also take advantage of some decent interest. Interest is relatively low at the moment, but even so you can still get around 4% pa (shop around, there is often bonus interest periods for new accounts) which adds up across the year. I have a separate high interest account also for 'wishful things' (you can have several accounts with the one institution, and name them as you wish) and any interest or excess from over-budgeting is transferred into this. I gain several hundred dollars per year by doing this - it's not a huge amount but it's better in my pocket than not!
Contributed by Korinne, Gungahlin, 19th February 2009
I was pleased to see the mum's winning tip of dividing all your bills up for the year and paying them all every fortnight. It is similar to my practice, but I have a further suggestion for those who can exercise sufficient self control. Pay your bill allowance into a separate high interest savings account, rather than to the biller. ING for example have high interest savings accounts which are completely fee free, calculate interest daily and paid monthly, and access to your money without penalty - but with a day or two delay before it hits your hot little hands, which is helpful to stave of any impulse purchases! This way, you can do everything the same (such as check each bill as it comes in and adjust your allowance accordingly), but you can also take advantage of some decent interest. Interest is relatively low at the moment, but even so you can still get around 4% pa (shop around, there is often bonus interest periods for new accounts) which adds up across the year. I have a separate high interest account also for 'wishful things' (you can have several accounts with the one institution, and name them as you wish) and any interest or excess from over-budgeting is transferred into this. I gain several hundred dollars per year by doing this - it's not a huge amount but it's better in my pocket than not!
Contributed by Korinne, Gungahlin, 19th February 2009
Monthly Budget Review Keeps Spending In Check
Approximate $ Savings: $500 a month
I do a budget sheet each month with headings like date, petrol, cash out, food shopping, bills and other expenses. I put all dockets in a box and write all amounts on the sheet. At the end of each month I add up all columns for my monthly expenses. I then highlight items that I could have done without or columns that were over budget. I then write the amount I could have saved at the top of the sheet and highlight it showing me what I could have saved and what I could have done without and try to better it the next month.
Contributed by Yvonne, Mount Helena, 5th February 2009
I do a budget sheet each month with headings like date, petrol, cash out, food shopping, bills and other expenses. I put all dockets in a box and write all amounts on the sheet. At the end of each month I add up all columns for my monthly expenses. I then highlight items that I could have done without or columns that were over budget. I then write the amount I could have saved at the top of the sheet and highlight it showing me what I could have saved and what I could have done without and try to better it the next month.
Contributed by Yvonne, Mount Helena, 5th February 2009
Have a Visible Savings Goal
In relation to sticking to a budget, I found that having a goal written in bold letters on my fridge, helped me to stay focused on the end goal. It took me a while to get the hang of it but with perseverance and dedication you CAN learn to stick to a budget. We did and in 16 months we fully paid off all our credit and store cards, and are halfway to saving to go on a two week holiday with all four of our children. (Something that we have never done)
Contributed by Ann Booth, 5th June 2010
Contributed by Ann Booth, 5th June 2010
Teenagers Need to Pay Their Way
This little sister should be paying board and lodgings! If she is under 16, you could qualify for government funding, if over 16 and studying, she should be sat down and shown the stats of the difference in costs before and after she came. Perhaps she needs to get a part time job and pay the actual amount it costs you to keep her - if she sees her own money disappearing, she may be more inclined to live more cheaply. And if she's working, she should definitely be paying at least what she is costing you. You are not doing her any favours if she doesn't take responsibility for herself if she is old enough to.
Contributed by Rachael Thiele, 1st April 2010
Contributed by Rachael Thiele, 1st April 2010
Icy Prison Solves Credit Card Temptation
I was a terrible credit card abuser and I am still in terrible credit card debt but I thought of a way to curb my spending. I placed my credit card into a bowl of water and put the bowl in my freezer. Once the water turned to ice, my card was trapped inside its icy prison. This made it hard for those impulse purchases and over spending. Not having the card in my purse meant that if I wanted something badly enough, I would have to come home, defrost the ice and go back to store again. It gave me the opportunity to reassess how much I really 'needed' the purchase and most of the time the card stayed frozen. I have since cut my card up and can no longer purchase anything at all.
Contributed by Roxanne, Windale, 29th March 2010
Contributed by Roxanne, Windale, 29th March 2010
An Online Version of Baggie Budgeting
Approximate $ Savings: $1000 in 3 months My husband and I are not the best at saving, so in the past when we were paid each fortnight, I would take the cash out for food, bills, petrol etc, and have the money sitting in envelopes. Problem was come to the end of the fortnight, I would borrow from other envelopes for various things. Well ING Direct have solved that for us. They now have an everyday account that can be linked up to their online savings accounts. Now I have different savings accounts for the different budget items and each fortnight, I have the same amounts put into the various accounts as I used to put into envelopes. Then when I need to buy the groceries or pay bills, I pay the bill or make the purchase and then transfer that exact amount from the relevant account. The excess just sits in the savings account and earns interest. And the best part, the everyday account has no account keeping fees, so we are even saving there!
Contributed by Belinda, Narara, 14th January 2010
Contributed by Belinda, Narara, 14th January 2010
This Old Wive's Trick Is Still Working
This is an old trick used by my mother and her mother when money was tight. Needs a bit of discipline to adhere to this. First week take your housekeeping money, for example, on Monday. Make it stretch to Tuesday of week two. Then on Wednesday of week three and so on. At the end of seven weeks you have saved the equivalent of one weeks housekeeping money.
Contributed by Rosemary, Glen Waverley, 18th November 2009
Contributed by Rosemary, Glen Waverley, 18th November 2009
Calendar Budgeting
Use a calendar to record your automatic payments, daily expenses, pay days and when irregular bills are due. By listing your income and expenses on a calendar you can see at a glance where your finances are each month. At the start of each year go through the calendar and mark regular payments such as direct debits and pay days so you can see exactly when money is going into and out of your accounts. This is especially helpful in tracking when a direct debit will occur before a regular deposit, running the risk of there not being enough funds to cover it. After a recording for a few months you should be able to see the pattern in your incomings and outgoings, enabling you to make a few phone calls to utility companies to have due dates adjusted to match pay days, eliminating the threat of overdraft.
Calendar Motivation
I use a calendar to keep track of all our bills, when they are due and how much they are. Once the bill has been paid or has come out of our bank account (in the case of direct debits) I cross them out with a highlighter so they stand out on the calendar. Seeing all those highlighted, crossed out payments really makes you feel like you are getting somewhere !
Contributed by Julie Long, 18th November 2009
Contributed by Julie Long, 18th November 2009
Saving Motivation
It was recently my mother's birthday and with not much money around to spare I had been searching for a cheap but good gift for her. She has been talking about wanting to go on a holiday to Vietnam this year but doesn't think she will be able to afford it and I came up with an idea. I bought one of those big money tins and some clear plastic contact book cover from a two dollar shop, all up costing four dollars. Then I went to the travel agent and picked up some brochures on Vietnam for free. I then made a motivational money saving tin by cutting out pictures from the brochures, making them into a collage on the contact and then wrapping it around the money tin. This way my mum gets a reminder every time she looks at it what she is putting her money away for and a birthday present for under $5! And she will eventually get a trip to Vietnam out of it too! She loves it and is very excited about her trip! This doesn't have to only be a cheap gift, you could make one for yourself at home to have a visual reminder and motivator for what you are saving for...holiday, house, car, the sky's the limit! Contributed by Cleo, Moil, 13th September 2009
Easy Way to Stick to Christmas Budget
Remember to go to garage sales and Op shops. Especially in the lead up to Christmas, as it is so easy to overspend. And when having a clean out, a garage sale is a great way to get rid of a lot of stuff, and make some money in the process. Advertising in the local paper, and putting up signs with directions to your house is ideal to get people to come. In this area, Saturday is the best day, We also put the Garbage bin out with a garage sale sign on it, if this is not usual in your area, what about a sign with balloons, so that people will be able to see which house is having the sale. If you live in country/remote area, perhaps have a shared sale with a friend in town (and have the sale in town), so that more people will come because it is closer, and it is more fun when shared with friends, you also have more people to oversee when the sale is happening. This is also good for collectors, as often they can pick up items that otherwise may have been hard to find. When going to the sales it is a good idea to have thought of what you want to buy/are looking for, as it very easy to pick up so much treasure you have not room for at home. My weakness is cooking books, especially old ones that many people would throw out. Read your local paper for garage sales, note which day they are on and what time they start, and you will find you are racing others to get there first to get all the bargains. Op shops are great too, sometimes you find brand new stuff. Also good for second hand school uniforms, and prices are usually so much cheaper than new. Some are open on a Saturday morning, so check out your local Op shop, also they may need volunteers, so if you have a few hours spare and want to do some charity work, ask them if they need a hand, and you get to meet more penny conscious people.
Contributed by Jenny Orr, 10th October 2009
Contributed by Jenny Orr, 10th October 2009
Save With Any Major Service Provider
Approximate $ Savings: $300 or more!
It is worthwhile having a look at all your services such as phone, Internet, mobile, pay TV, insurances, banks, loan providers etc, especially those who were initiated via a contract (such as free installation for pay TV when you sign up for 24 months). Often we forget that our bargaining power increases once these contract periods are over and the big companies such as Telstra rely on the fact that we will just blindly continue to pay our monthly fees. Recently I rang Telstra as I wasn't happy with what I was paying for broadband Internet per month. My start up contract had finished and I had noticed there were a lot of better deals to be had out there! Just mentioning these facts politely got me through to someone whose sole job was to retain my business. She offered me 10 months broadband at half price, which was credited to my Telstra account in a lump sum of $300. For this I was not put under any further contract or obligation! Since then I have been inspired to contact my pay TV provider once the contract ends, have another look at my insurances and loans and I anticipate I may be able to save many hundreds of dollars in the coming months and years. Use the competitive market place to your advantage!
Contributed by Kylie, Morphett Vale, 7th November 2007
It is worthwhile having a look at all your services such as phone, Internet, mobile, pay TV, insurances, banks, loan providers etc, especially those who were initiated via a contract (such as free installation for pay TV when you sign up for 24 months). Often we forget that our bargaining power increases once these contract periods are over and the big companies such as Telstra rely on the fact that we will just blindly continue to pay our monthly fees. Recently I rang Telstra as I wasn't happy with what I was paying for broadband Internet per month. My start up contract had finished and I had noticed there were a lot of better deals to be had out there! Just mentioning these facts politely got me through to someone whose sole job was to retain my business. She offered me 10 months broadband at half price, which was credited to my Telstra account in a lump sum of $300. For this I was not put under any further contract or obligation! Since then I have been inspired to contact my pay TV provider once the contract ends, have another look at my insurances and loans and I anticipate I may be able to save many hundreds of dollars in the coming months and years. Use the competitive market place to your advantage!
Contributed by Kylie, Morphett Vale, 7th November 2007
Money Management Made Easy
After struggling to keep track of our spending each month on spreadsheet, we discovered the free online ANZ Money Manager software. This program downloads the transactions from your bank accounts (including credit cards) and allocates them to spending categories. You can enter your budgeted spending into the program and it will send you alerts when you are nearing your budget for the month on each category. And you can even use it if you're not an ANZ customer! The website is www.anzmoneymanager.com.au.
Contributed by Julianne, Brighton, 11th September 2009
Website: www.anzmoneymanager.com.au
Contributed by Julianne, Brighton, 11th September 2009
Website: www.anzmoneymanager.com.au
Creative Doing is a Living Example of Cheapskating
Since becoming a member of CJ I have tried all sorts of things to convince my partner of the benefits of spending less. Alas, any hint of Cheapskating (like buying generic brands, shopping at Aldi, refusing to buy takeaway) seems to bring out the spendthrift in him. I have found that the best way to go about reducing our spending is to do so quietly, without making mention of it. Eg: using half the washing powder recommended (he doesn't even know how the washing machine works so this is easy), buying generic brands but quickly decanting them into storage containers, making takeaway type meals one night a week at home so we get our takeaway fix, packing lunch if we go out for the day, packing drinks if we only go out for a few hours, etc. It would be easier to achieve more savings if my partner was into the Cheapskate lifestyle as well. But just because he isn't, doesn't mean I have to give up on Cheapskating. It just means I need to be more "creative".
Contributed by Tania, Ballarat, 13th September 2009
Contributed by Tania, Ballarat, 13th September 2009
Keep Receipts Organized
An easy way to keep the hundreds of receipts in order every year is to have a file for each credit card, bank account, cash, etc. File the receipts for purchases, statements, etc., in that particular file. When you need to go back and retrieve receipts to return an item or to claim a repair under warranty you'll be able to find it immediately. You may not always remember what month you purchased an item but you can usually remember how you paid for it. At the end of the year, put all the statements, receipts, etc., for each account in its own manila envelope and label it for the year. Makes retrieving and organizing receipts much easier than keeping them in a box somewhere. It also makes getting ready for taxes a little less stressful.
Contributed by Sharon, Dapto, 15th June 2009
Contributed by Sharon, Dapto, 15th June 2009
Review Your Budget, the Savings Can Be Enormous
Approximate $ Savings: $30 - $60 per month
Some years ago we sat down and made a yearly budget with all the expenses we had incurred. This proved very helpful in that we found we were actually paying two electricity bills for our house. The electricity company had the details correct on both bills but one bill had a different meter number. We didn't realise this was happening as we are busy and when a bill comes in we just paid it. The electricity company refunded us $1200. The next time we went through our bills we found we were paying an extraordinary amount for our phone and Internet, we have now gone to a 'fusion' plan which combines them and is a lot cheaper. We also used iselect to change health funds and saved $30 a month there. So it is well worth taking the time to see where your money is going, it can be quite frightening but the savings can be enormous.
Contributed by Cheryl, Sunbury, 14th June 2009
Website: www.iselect.com.au
Some years ago we sat down and made a yearly budget with all the expenses we had incurred. This proved very helpful in that we found we were actually paying two electricity bills for our house. The electricity company had the details correct on both bills but one bill had a different meter number. We didn't realise this was happening as we are busy and when a bill comes in we just paid it. The electricity company refunded us $1200. The next time we went through our bills we found we were paying an extraordinary amount for our phone and Internet, we have now gone to a 'fusion' plan which combines them and is a lot cheaper. We also used iselect to change health funds and saved $30 a month there. So it is well worth taking the time to see where your money is going, it can be quite frightening but the savings can be enormous.
Contributed by Cheryl, Sunbury, 14th June 2009
Website: www.iselect.com.au
Bills, Budgeting & Home Finances
When my husband and I first built our house and moved in together, we had heaps of money and not a lot of sense. We were spenders, not savers. I used this bill paying system to make sure my bills were always paid on time. I looked at every single bill that we had, such as electricity, gas, phone, Internet, water, rates, insurances, subscriptions, memberships, fees etc, and worked out the yearly total for each, and then a weekly total (by dividing by 52). Then on each payday, I would BPay to each of the regular bills the weekly amount. When the bill arrived, I was either in credit, or owed only a few dollars. For yearly bills, like rego, insurance and the like, I opened an account (no fees due to our mortgage, and no access except online) in which I would put the weekly amount for each bill. When the bill arrived, there was enough sitting there to cover it. Now we have kids and only one income, it's even more important that I budget this way. When I get a $550rego bill and a $400 electricity bill in the same week, one has already been paid and is in credit, and the other has the exact amount earmarked to cover it.
Contributed by Tania, Berwick, 13th June 2009
Contributed by Tania, Berwick, 13th June 2009
Look at the Budget to Find the Savings
Approximate $ Savings: $150
Previously, my monthly spending was around $500-$600 for groceries and household items I would buy from Coles/Woollies. I worked out the money I save if I grow my own veggies (tomatoes, chilli, eggplant, mangoes), buy free range eggs from my friend, shop other groceries from Asian shops, local growers and independent supermarkets instead of the big one and try to cook simple, healthy meals. In a month, I now spend only $350, with $50 allowed for fine dining once a week and put the rest towards my mortgage. I also actively enter competitions and as a result, I never spend $ for entertainment anymore.
Contributed by Shirley, Beechboro, 1st April 2009
Previously, my monthly spending was around $500-$600 for groceries and household items I would buy from Coles/Woollies. I worked out the money I save if I grow my own veggies (tomatoes, chilli, eggplant, mangoes), buy free range eggs from my friend, shop other groceries from Asian shops, local growers and independent supermarkets instead of the big one and try to cook simple, healthy meals. In a month, I now spend only $350, with $50 allowed for fine dining once a week and put the rest towards my mortgage. I also actively enter competitions and as a result, I never spend $ for entertainment anymore.
Contributed by Shirley, Beechboro, 1st April 2009
Money Bag Budget System
When preparing your budget break it down into categories: Food, Petrol, Children, Money to Spoil Yourself, Money to Spoil hubby, Money you are saving up for a specific purpose. Using snap lock bags, make a bag for each item on your budget. Each week/fortnight/month get your cash out (using that whole you spend less if you spend cash principle) and make sure you withdraw the right denominations (i.e. food you might just use $50 notes, but in spoil yourself each treat might be $5, so use $5 notes), and put your specific budget in each bag. As you spend through your budget put the receipts in the bags. Make sure you decide whether or not money left in each bag 'rolls over' for next time, or goes into savings. At the end of each budget period go through your receipts to check what you have spent on - file away any receipts relating to warranties, collect any fuel/other vouchers, and either roll the money over to add to next weeks budget or put it into a savings fund/pay off a debt. With our budget we are expecting a baby so all extra money goes into the 'baby' bag and it is what i use to buy anything i need for the baby, or any maternity clothes etc i am buying. So far everything i have needed to buy has come out of the bag so has not really cost us anything. We roll over our 'food' bag, so that every 6 weeks or so there is enough in there for a huge shop for all those basics. The spoil money is really important - it is from there i can buy a lunch out or get my eyebrows waxed (cause i do a terrible job by myself). My husband and i last weekend put together all our spoil ourselves money and stayed a night at a fancy hotel. Each time you decide you need a 'big' item, make a new bag for it and decide how much of your budget will go in each time - watch how fast it accumulates. This is a great way to find any blow outs in your budget and to make sure it is really working.
Contributed by Megan, Taree, 23rd February 2009
Contributed by Megan, Taree, 23rd February 2009
Buying on Sale, Banking the Difference
Approximate $ Savings: $240 in a week
My husband and I are on a very tight budget as we are on the one income with a 20 month old son. My hubby has also started a business which he works on as well as working at his current job. So to save money and pay off our debts, we only purchase things that are on sale or relatively cheap. The money saved by purchasing items on sale goes into another bank account where it gets saved for that fortnight. We just pretend we have spent that money at the shops. By the end of the first fortnight of shopping on sale we had managed to save $240.00. This has been ongoing for us over a few months now, and we seem to be averaging $240 per fortnight. This way we think we have spent the money but really we use it wisely once saved and pay bills (where before we had to borrow to pay) or we put it into the business. This way the more money we have in his business the less we need to borrow.
Contributed by Christina, Prairiewood, 18th March 2009
My husband and I are on a very tight budget as we are on the one income with a 20 month old son. My hubby has also started a business which he works on as well as working at his current job. So to save money and pay off our debts, we only purchase things that are on sale or relatively cheap. The money saved by purchasing items on sale goes into another bank account where it gets saved for that fortnight. We just pretend we have spent that money at the shops. By the end of the first fortnight of shopping on sale we had managed to save $240.00. This has been ongoing for us over a few months now, and we seem to be averaging $240 per fortnight. This way we think we have spent the money but really we use it wisely once saved and pay bills (where before we had to borrow to pay) or we put it into the business. This way the more money we have in his business the less we need to borrow.
Contributed by Christina, Prairiewood, 18th March 2009
Deco Storage Idea
If you have bought new bedding and manchester in the huge after-Christmas sales (and invested in quality for a fraction of the price), a great way to re-use the heavy duty plastic bags/wrappers that your quilts, mattress protectors etc come in is to store your Christmas decorations. The bags have zippers so they seal easily and are usually clear so you can see what you put in them. You could put baubles in one, other decorations in another, and the small bags that pillow cases come in can be used for tinsel. Why throw something out when it can be used again and save your decorations from getting dusty or tangled up when they are put in the shed for another year? It recycles some plastic, keeping them out of landfill, saves you time from sorting the decorations out next Christmas and saves you money because you aren't buying 'purpose-made' storage containers that no-one will see anyway!
Contributed by Erin, Abernethy
Editor's note: I do this too. Some of the bags I've had since the late 1980's when we were married. I use them to store the Christmas linen, decorations etc but they are also handy for keeping sets together in the linen cupboard. I have sets of linen and towels just for visitors and each set is stored in one of these types of bags. Makes them easy to find, lets the rest of the household know they are not to be used and saves space in the cupboard too. Cath
Contributed by Erin, Abernethy
Editor's note: I do this too. Some of the bags I've had since the late 1980's when we were married. I use them to store the Christmas linen, decorations etc but they are also handy for keeping sets together in the linen cupboard. I have sets of linen and towels just for visitors and each set is stored in one of these types of bags. Makes them easy to find, lets the rest of the household know they are not to be used and saves space in the cupboard too. Cath
Spending Journal
At the end of every month I list in a journal things I have done to save money for that month, it may be something as simple as using cold water for washing, washing the dishes by hand etc. I also list things where I haven't saved money and how I can improve on this the following month. This technique gives me a monthly guide to encourage me to keep going with what I am doing, incorporate new tips, these can be obtained from the Cheapskates Club website, and to reflect on over-spending and learn from it so I don't do it again. As I know myself so well, I can find flaws. For example, I seem to get caught up in the Christmas spending easily and by writing down what I have done I can be prepared not to make the same mistake again. It's like a journal for your spending/saving and it's nice to look back on and see how you grow with wisdom and willpower!
Contributed by Pauline, Clare
Contributed by Pauline, Clare
Old Fashioned Budgeting Saves Real Money
Approximate $ Savings: $50 upwards
I recently went back to the age old system of withdrawing my total expenditure and keeping it in envelopes at home for petrol, food and my budgeted 'general expenses'. On pay day, whatever is in my wallet and in the envelopes, gets put into the savings jar and it is surprising to see how much money is left over. I have found this to be an excellent saver with the recent drop in petrol as I have withdrawn my normal budgeted amount that was allocated while the price was higher. Last month I saved $30 on the petrol alone and this month with pay day still two weeks away there is an extra $150 to spare (after taking away my normal budget spending). You just need to make sure that you put away your cards (both debit and credit) with the cash that you have set aside so you are not tempted to make any extra purchases or withdrawals. It stops you making impulse purchases and encourages you to always check what is in your wallet before you spend as if there is no money, you can't make impulse purchases which always used to eat into my budget even though if I did make a purchase, it wouldn't be anymore than $20. I also only take with me the amount that I am prepared to spend when doing the grocery shopping which means that there is only room for the necessities because I am aware that I can't cover the difference of the bill to what is in my wallet with my card.
Contributed by Annette, Ringwood, 30th November 2008
I recently went back to the age old system of withdrawing my total expenditure and keeping it in envelopes at home for petrol, food and my budgeted 'general expenses'. On pay day, whatever is in my wallet and in the envelopes, gets put into the savings jar and it is surprising to see how much money is left over. I have found this to be an excellent saver with the recent drop in petrol as I have withdrawn my normal budgeted amount that was allocated while the price was higher. Last month I saved $30 on the petrol alone and this month with pay day still two weeks away there is an extra $150 to spare (after taking away my normal budget spending). You just need to make sure that you put away your cards (both debit and credit) with the cash that you have set aside so you are not tempted to make any extra purchases or withdrawals. It stops you making impulse purchases and encourages you to always check what is in your wallet before you spend as if there is no money, you can't make impulse purchases which always used to eat into my budget even though if I did make a purchase, it wouldn't be anymore than $20. I also only take with me the amount that I am prepared to spend when doing the grocery shopping which means that there is only room for the necessities because I am aware that I can't cover the difference of the bill to what is in my wallet with my card.
Contributed by Annette, Ringwood, 30th November 2008
Budget Come Christmas Club
Approximate $ Savings: $500-$1000 per annum
With five people in our family, I have found that the doctor has become very familiar. Most visits are not bulk billed and each one costs between $40 and $80. Medicare refunds the majority of the cost. If I pay the cost up front for each visit, I save approx $10 on an accounting fee that is charged if I choose to pay later. All of these receipts are then kept together for twelve months and just before Christmas I take the whole lot to Medicare for a bulk cash refund. This money then goes towards our Christmas holiday and Christmas presents. Over the past five years I have found that I don't miss the initial fee and Medicare refunds enough for good holiday. I also save on time, effort and postage or fuel by making the one visit to Medicare instead of many over the year.
Contributed by Maree, Norwood, 4th November 2008
With five people in our family, I have found that the doctor has become very familiar. Most visits are not bulk billed and each one costs between $40 and $80. Medicare refunds the majority of the cost. If I pay the cost up front for each visit, I save approx $10 on an accounting fee that is charged if I choose to pay later. All of these receipts are then kept together for twelve months and just before Christmas I take the whole lot to Medicare for a bulk cash refund. This money then goes towards our Christmas holiday and Christmas presents. Over the past five years I have found that I don't miss the initial fee and Medicare refunds enough for good holiday. I also save on time, effort and postage or fuel by making the one visit to Medicare instead of many over the year.
Contributed by Maree, Norwood, 4th November 2008
Weekly Budget Leaves Money for Luxuries
I draw up a budget every month that has everything on it. We have a set limit for the fortnight for food and each bill is listed on the week it is due so we know if we have to get the money for it, leaving us with spending money each week for fuel etc and luxuries.
Contributed by Michellyen, Sale, 9th September 2008
Contributed by Michellyen, Sale, 9th September 2008
Tally Up the Spending
Tally Up the Spending Just thought I would let you in on a tip that I learnt from David Koch (of Sunrise Fame). Write everything that you spend down in a notebook and at the end of each week do a tally up to make sure that you haven't overspent.
Contributed by Maryellen Flynn,1st August 2008
Contributed by Maryellen Flynn,1st August 2008
Easy to Use Budget Program
I have recently found an excellent budgeting program on-line at http://sourceforge.net/project/showfiles.php?group_id=127723&package_id=150767 it allows you to enter in categories and a budget amount. You then enter in your expenses as the occur and it will show you how much money remains allocated for that expense. It makes me more aware of where our money goes and accountable for any I am wasting. I have found this software excellent and would highly recommend!
Contributed by Samantha, Cranbourne East, 23rd July 2008
Contributed by Samantha, Cranbourne East, 23rd July 2008
Tax Time Check Up on Medical Expenses
With tax time upon us, my husband and I have done some research and found that any out of pocket medical expenses over $1,500 can be claimed. This year alone we've have large medical fees, so it's something we're going to be looking into.
Contributed by Sarah, Legana, 4th July 2008
Contributed by Sarah, Legana, 4th July 2008
Best Budget in the World
I have found the best budget in the world! It is fully automated so it does everything for you. I found it at a site: www.live-it-up.com.au and was able to download it directly to my computer. It tells me what bills are due, when and how much. It works out all my income and bills and puts a set amount away each week. I am so happy with it, It does everything buy is easy for a non computer person like me to operate. HIGHLY RECOMMENDED!!
Contributed by Bobby, 22nd November 2006
Contributed by Bobby, 22nd November 2006
Daily Spending Record Keeps Budget on Track
I use an excel spreadsheet to do my budget every pay. It works very well and shows me the % of total income I am spending on each item and the % I am saving. I also used to use an accounting program to keep track of our spending but found it was not 'in my face' enough to register that I may be over spending in some areas. So starting on 1/1/06 we have stuck a Cheapskates 'Daily Spending Record' printout on our bedroom wall. Every night before bed we write up anything that we have spent that day. It is working very well at helping us stay aware of how much we are spending and already helping us not to overspend. I've also decided if we runout of something - too bad, we wait until next pay day and shopping day. No more are those shops going to catch me walking out with 10 things when I only went for 1. This week for the first time in months we have not gone over in our grocery bill and the freezer is full. I feel we are winning already.
Contributed by Donna, 5th January 2006
Contributed by Donna, 5th January 2006
My Budget Saves Me $7,000 a Year
I find it easiest to set up my budget for the year on a spreadsheet (like a lot of the others). It is the only way that you don't have any nasty surprises. I list every bill I receive and every purchase I make. That way it is easy to know if you are within budget or need to cut back in some areas. I also take a list shopping and <u>do not</u> impulse buy. It is amazing how much you can spend on incidentals if you don't document your purchases. Also it is a good idea to visit your insurance policies yearly. I recently saved $728.00 per year on insurance for our car and house just by shopping around. So far this year we are around $7000.00 better off by having and sticking to the budget, so I am very happy. Contributed by Linda, 14th September 2005
Account for Every Cent and Build Up to the Black
I started out with envelopes. Sometimes I think I should go back to doing it that way. I've got into a bad habit of borrowing from Peter to pay Paul. Recently I set-up a much improved budget where every expense is accounted for on a fortnightly basis even hair care, magazines, school excursions, all only at $2-$5 but it's still there. I transfer all of it into a separate bank account and then pay the bills from it. In a spreadsheet I keep a record of how much I've spent on each bill so far. As yet though I'm in the red because we got a huge electricity bill because of the air conditioners, our first summer here in 9 years. I'm looking forward to seeing the bank balance grow as the year progresses and hopefully somewhere in there I've over budgeted and there will be a bit left as a bonus.
Contributed by Donna, 18th June 2005
Contributed by Donna, 18th June 2005
No Interest
My husband and myself have bought a computer, television, and flooring over the years on interest free deals. If used properly they are the greatest way to purchase big items that are expensive. Take the term over the longest time possible usually 24-36 months. After purchasing an item for say $2,000.00 and the term was for 24 months you ignore the minimum payment and divide 24months by $2,000. This will give you your minimum monthly payment and you will own your goods before the interest free period expires. Think of it as forced savings but you get to enjoy the goods while paying them off. It is always wise to pay the final payment before (maybe a month ) your interest free period expiring just as a safety net. Also pay extra if you can in other months in case something goes wrong where you are unable to pay one month. These are a great way to purchase things if used properly and always make sure you can afford the monthly repayment to finalise before the period expires not just the minimum payment. That is where people go wrong by purchasing the goods before thinking about whether they can pay them off, if you can they are great.
Contributed by Nicole, Tweed Heads West, 20th March 2008
Contributed by Nicole, Tweed Heads West, 20th March 2008
Managing Money
To assist anyone creating their budget I found the above website gave a fantastic budget planner. It gives options of entering weekly, monthly or yearly amounts and then calculates all at the end. You can go back and adjust you figures anytime and have in ongoing.
Contributed by Michelle, Kalgoorlie, 18th March 2008
Website: www.money/ninemsn/com.au/managing-money/tools/budget-planner.aspx
Contributed by Michelle, Kalgoorlie, 18th March 2008
Website: www.money/ninemsn/com.au/managing-money/tools/budget-planner.aspx
Search Online for a Budget
If you do a search on the Internet for family budget or just budget, there are a lot of sites that will give you an idea of what you should be including. Basically a budget is a written record of money that comes in and money that goes out. The theory is that if you allocate what goes out, and stick to it, you will save. Also it becomes a real eye opener when you write down what you spend on incidentals and extras......it's always way too much.
Contributed by Megan, 9th June 2005
Contributed by Megan, 9th June 2005
Online Account for Bills Earns Interest
A way to save more money would be to transfer your bill money into an online savings account every month, pay your bills when they are due and the bill money earns interest waiting for the bills. Also I use a software program to track all of our accounts, investments, super etc and always know to within a few dollars, our financial position.
Contributed by Aaron, 10th March 2005
Contributed by Aaron, 10th March 2005
Ready, Steady Payments
With most of our utilities bills arriving quarterly we were getting a big slug out of the budget all at once. So I worked out on average what our bills were per month, and I arranged through my Internet banking a Bpay payment of that average to be made on the same day every month. Now when the utilities bills arrive I usually end up only owing $2-$5. I am even ahead with the phone bill. The utilities companies don't seem to mind, as at the end of the day they are getting paid.
Contributed by Megan, 7th March 2005
Contributed by Megan, 7th March 2005
Everything In the One Place Makes Budgeting Easy
I use an expanding file for our budget. Each portion of the file is for an expense (mortgage, food, insurances, clothing, school fees, entertainment etc). If there is more than one thing in each category i.e. under insurance I have house, contents, car 1, car 1, health and life insurances, I have a folder for each item. Then I keep a notebook that is ruled up into 13 columns, one for each month and then a total column, with each budget item on a line. I write the budgeted amount in black pen and then on the line under it I write the actual amount of the bill when it arrives in red pen so I can see the difference and make any adjustments. Then I can put the actual paid bills in the file where I can find them if I need to query it, or use it to plan our budget for next year. I know it sounds complicated but it works easily for me as I keep it all in one place and I can see straight away just how much everything is costing me and if I'm in debit or in credit for each category.
Contributed by Anne, 3rd March 2005
Contributed by Anne, 3rd March 2005
Know How Much Comes In and How Much Goes Out
This may not work for everybody but it does for us. We have a yearly budget that I put into Excel (computer program). It tells us each month what is due when and once a year bills, kids birthdays etc. Then on the months where you have a little more money due to less bills (rego etc) you can put the extra to stock up the cupboards etc. I have been using this system for the last 3 years and it works well for us. We pay all the bills we can monthly. This means we can plan holidays as we know how much money we have and when we will have it, which means we can book in advance and save more money etc. Everybody should know how much money is coming in and what it is spent on, it is also useful to go back on and see if prices are going up and by how much. As I said it works for us hopefully it can work for some of you as well.
Contributed by Kay, 1st March 2005
Contributed by Kay, 1st March 2005
Simple Money Management Folder Stops Big Bills
I have a plastic folder with clear pages. The first page has my budget, the next are my bills - I pay most fortnightly by direct debit ( it costs nothing as we have a mortgage saver account). All can be paid at the post office to save bank charges. I pay my house rates by direct debit all year round so when rates are due they are already paid, the little interest I miss out on by not putting money in an account is far outweighed by my peace of mind as I now get no big bills. Every fortnight I write down where all our money has gone, this makes it easier if I ever want to know what we bought i.e. tyres were bought, when and how much. An exercise book is sufficient for this. It is amazing where you can save a little when it is written down. I also work out a fortnights menu before go shopping and stick to it, I may swap days but I never impulse buy.
Contributed by Linda Elliot, 13th September 2005
Contributed by Linda Elliot, 13th September 2005
Downloadable Budget Form
For anyone who can't seem to be able to set up an excel spreadsheet. That would be me! There is a good Budgeting Form you can get from the National Australia Bank for free and it lists just about everything you could think of http://www.nab.com.au/Personal_Finance/0,,81292,00.html They also have lifestyle guides on different stages of your life.
Contributed by Kathy, 3rd August 2005
Contributed by Kathy, 3rd August 2005
Pay the Bills Religiously
I am a single Mum with teenagers. I manage like this: I get paid fortnightly (on a Thursday) and pay my rent, gas, electricity and phone fortnightly. I get my rent taken out of my pay and use direct debit or BPAY for the others. Then I put $5 in the Christmas/holiday tin and $5 in my Freedom tin and mark it down on a label on the front. I do it religiously each payday, then we have dinner out to celebrate at one of a few cheap places around. On the other Thursday I plan all our food for the fortnight. This has saved me HEAPS. I don't know why but this all makes me feel more secure and in control of things. P.S. I don't smoke but I do like to have some money for wine or beer so I can spend up to $20 a fortnight on this. Another $20 goes on videos/books/haircuts/coffee out with friends - I keep this in a special pouch so I can control it. I would probably spend more on entertainment if I didn't have to run a car. That's my biggest expense after the rent and food. I save $40 a fortnight towards this in a separate credit union account. I hope this helps someone else to budget.
Contributed by Annabel, 12th July 2005
Contributed by Annabel, 12th July 2005
Free Budget Templates
I have recently discovered the budget templates from Microsoft online - if you have / use excel, you can download free templates including budgeting tools that are already set up to calculate expenditure vs income. I struggled for a long time making a budget that I understood and stuck to, as I never included all expenses and would have to re-do it all the time to make up for things I'd missed. but with the template I downloaded I was able to alter it to suit my specific expenses etc and even estimate how much I can save (with interest) in my savings account by the end of the year. It's a great motivator and very easy to use and change. just Google 'Microsoft templates' (don't select Aus only as it's a US site) and start browsing!
Contributed by Kate, Croydon, 16th June 2008
Contributed by Kate, Croydon, 16th June 2008
Personal Allowance
Approximate $ Savings: $100
My husband and I have a specific amount allocated monthly. This not household expenditure. I spend this carefully, makes me think about everything I purchase. When it runs out I have to wait until next month.
Contributed by Carole, Barrington, 6th June 2008
My husband and I have a specific amount allocated monthly. This not household expenditure. I spend this carefully, makes me think about everything I purchase. When it runs out I have to wait until next month.
Contributed by Carole, Barrington, 6th June 2008
Working Out the Budget Amounts
It's not what you should allow its how much of your disposable income you want to use. You need to work out either per week or per fortnight (however often you get paid), of each pay packet how much you need to allow to cover all of your fiscal responsibilities for example I need to pay my car insurance (approximately $500, always round up not down). I get paid fortnightly so divide that by 26 and that's how much I put away ($20). Now do that for all your bills per annum and you will find out how much is left for your disposable income then you can allow for those special items that all women want, but be warned you may be shocked as to how much is really left. I did this a long time ago and review it all the time and have made lots of sacrifices to save up for what is important to me and my son and the animals!
Contributed by Narelle, Berserker, 1st June 2008
Contributed by Narelle, Berserker, 1st June 2008
Split the Budget Into Four
The basic rule is to break your take home pay into four. One quarter goes into bank (and stays there hopefully), one quarter living expenses, one quarter spending money and one quarter is clothing. Obviously you can play around with this, it works best for singles and students living at home. But remember if you don't have enough to buy this week (or pay period), you just don't buy it at all till you have the amount. Don't touch the bank money for incidentals, this is your nest egg for something you really want.
Contributed by Carole, Wiley Park, 1st June 2008
Contributed by Carole, Wiley Park, 1st June 2008
How Much of the Budget for Jewellery and Other Trinkets?
As much as you like, providing you have set aside a percentage of your pay for savings and provided for your regular essential spending first (food, rent/mortgage, electricity, insurances etc). Many financial experts reckon you should save 10% of your pay but it depends on how quickly you are paying off existing debts. E.g. If you are on track to pay off your mortgage in 5 years you won't be able to find 10% for savings (and by paying it off so quickly you are in effect saving more than 10% anyway). If you don't have any debt, aim for higher than 10% savings. Setting up 2 accounts, with automatic payments from your pay packet for 1)savings and 2)essential expenditure means you can spend the remaining money on whatever you want. -
Contributed by Nick, Braddon, 1st June 2008
Contributed by Nick, Braddon, 1st June 2008
Simple Budget Rule
I use the following simple rule to divide up my income: 50% needs, 30% wants, 20% savings. So that would allow 30% of your pay packet for clothes, jewellery, CDs, shoes, etc If you find that you have extra left over on some weeks, it can go into savings.
Contributed by Anjum, Granville, 28th May 2008
Contributed by Anjum, Granville, 28th May 2008
Only Buy What You Need When You Need It
With today's cost of living, you should only buy what you need, when you need it. If you put about 5% away each week, that will add up to a good amount by the time you need to buy something. Contributed by Donna, 31st May 2008
Discretionary Spending or From Allowance?
I have never seen these (jewellery, CDs, shoes, clothes) actually included in a budget, they come under discretionary spending and that is what's left after everything else has been paid. Don't forget second hand CDs on the Internet, much cheaper.
Contributed by Meryll, 31st May 2008
Contributed by Meryll, 31st May 2008
Percentages Help to Balance the Budget
Rather than thinking in percentages of total income, start by subtracting your fixed costs from your total income(including 10% emergency savings)and looking at the remainder as potentially available. After that I'd make a "Wish List" for holidays, shoes, makeup, outings, etc, etc. I've divided mine into two groups: Major purchases (holiday, new carpet, etc) and Minor (clothes , jewellery etc.) I get really specific with my lists i.e. the shoes I REALLY need are black and dressy(because I could very easily fall in love with ANOTHER pair of strappy silver ones !)I also note that if they aren't Hush Puppies, Kumfs, Footrest or Homyped, I will love them and not wear them! List what you consider a good price to pay, and then prioritise your list. It helps when you think about parting with money for a gorgeous bracelet to look at your list and realise that a bracelet is in position 32, you're freezing, and your top 7 positions are winter clothes! I doubt that anyone else could help you decide on a percentage, someone else's passions might be sports events, great hair cuts, and computer games. I would suggest , though, that you look at what you can afford to give charitably, and factor that into your thinking.
Contributed by Coral, Coorparoo, 31st May 2008
Contributed by Coral, Coorparoo, 31st May 2008
Divide Your Pay for Budget Success
I have found the most successful way to divide your pay is - 10% savings, 20% debt reduction (e.g. getting rid of credit card debt), 70% living expenses (food, petrol, bills, clothes etc.) Because I get paid different amounts each week, some weeks I have more to spend and other weeks less. But it is much easier to be a Cheapskate when you know you are putting money into savings as well as reducing your debt.
Contributed by Sara, Blackmans Bay, 31st May 2008
Contributed by Sara, Blackmans Bay, 31st May 2008
Pocket Money Pays Off This Family's Mortgage
Approximate $ Savings: up to $200/week
My husband and I are having problems paying off our mortgage because the money in his account just "evaporates". I have taken his eftpos card from him and put it in a safe place at home and now he has $50 a week only to spend. This is for everything: lunches, papers, anything that he wants during the week comes out of his money. If he gets groceries on the way home or pays a bill, he gets reimbursed from the relevant budget kitty. He also has to write down everything he spends during a week on a list so he can SEE where his money has gone. It's great that he now has an idea of what he spends and now that it impacts directly on him his view on money has changed a great deal. PS. Getting his card off him at first was a fight, but now he can see the benefits, because after just a month we have stopped fighting about money, and he is actively trying to pay off debts so he can have a bit more "play" money.
Contributed by Denise, Golden Grove, 27th February 2008
My husband and I are having problems paying off our mortgage because the money in his account just "evaporates". I have taken his eftpos card from him and put it in a safe place at home and now he has $50 a week only to spend. This is for everything: lunches, papers, anything that he wants during the week comes out of his money. If he gets groceries on the way home or pays a bill, he gets reimbursed from the relevant budget kitty. He also has to write down everything he spends during a week on a list so he can SEE where his money has gone. It's great that he now has an idea of what he spends and now that it impacts directly on him his view on money has changed a great deal. PS. Getting his card off him at first was a fight, but now he can see the benefits, because after just a month we have stopped fighting about money, and he is actively trying to pay off debts so he can have a bit more "play" money.
Contributed by Denise, Golden Grove, 27th February 2008
DIY Christmas Club
To help with the cost of Christmas food, my mum and I each put away $2 a week in a money box. At the end of the year we have $208 to spend on the Christmas lunch, a nice ham, turkey and all the extras. $2 a week is not missed but makes a huge difference come December and it's simpler than the hamper companies and we can buy exactly what we want!
Contributed by Janene, Quakers Hill, 21st February 2008
Contributed by Janene, Quakers Hill, 21st February 2008
Basic Accounting Keeps You Accountable
Here is my tip for saving: I don't say to myself "I only have this much to spend", instead I use basic accounting by using a 18 column dissection account book. Every month I rule up for Item/Date/Dr (I place a hard line downwards after this) then I have individual columns e.g. Food/Misc/Clothing/Car/Medical etc. across the other columns. When I spend I record it. It's unbelievable when you actually write up how much you spend, how much you hate writing it down, hence you curb your spending quite considerably. I've been using this system for years and it works a treat. At the end of the month add up all the columns, you can then see how much and exactly where your money has gone. The debit (Dr) column will show you total expenditure while others will show you individual totals.
Contributed by Sandra, Erskine Park, 7th February2008
Contributed by Sandra, Erskine Park, 7th February2008
Budget Re-jig Saves Big Dollars
Approximate $ Savings: At least $300 per year depending on size of family
Having recently had our third child we have had to redo our budget in order for me to stay at home with the children. I decided to start with the groceries as it is very easy to blow it out of the water at the supermarket. I have a shopping list template I created in word which I print each week and put on the pantry door so when I use items I can write them on there. I keep a list of all the items we normally buy and the size and price in an Excel spreadsheet. Each week I highlight the items from the pantry list on my excel spreadsheet so not only can I estimate how much shopping will be but I can see the cheapest price I have paid for that item in the past. This list has also cut down on our impulse buys. The second part of redoing or grocery budget was to cut back on wastage. We also had a banana or 2 going yucky before the kids would get to eat it. So I have been mashing them and freezing them for my banana cakes which I also freeze to last longer and the kids love it! I also buy bulk jars of tomato paste and freeze them in ice cubes which also works for any wine you might have left over too. Freeze them in ice cubes then when you needs a splash of wine you have it rather than opening a bottle for a splash. Yoghurt is another great thing you can freeze and your kids will think its great. Not only will you save money we are passing down an invaluable lesson to or children to "Reduce, Reuse & Recyle" which is the most important thing of all.
Contributed by Samantha, Cranbourne, 21st January 2008
Having recently had our third child we have had to redo our budget in order for me to stay at home with the children. I decided to start with the groceries as it is very easy to blow it out of the water at the supermarket. I have a shopping list template I created in word which I print each week and put on the pantry door so when I use items I can write them on there. I keep a list of all the items we normally buy and the size and price in an Excel spreadsheet. Each week I highlight the items from the pantry list on my excel spreadsheet so not only can I estimate how much shopping will be but I can see the cheapest price I have paid for that item in the past. This list has also cut down on our impulse buys. The second part of redoing or grocery budget was to cut back on wastage. We also had a banana or 2 going yucky before the kids would get to eat it. So I have been mashing them and freezing them for my banana cakes which I also freeze to last longer and the kids love it! I also buy bulk jars of tomato paste and freeze them in ice cubes which also works for any wine you might have left over too. Freeze them in ice cubes then when you needs a splash of wine you have it rather than opening a bottle for a splash. Yoghurt is another great thing you can freeze and your kids will think its great. Not only will you save money we are passing down an invaluable lesson to or children to "Reduce, Reuse & Recyle" which is the most important thing of all.
Contributed by Samantha, Cranbourne, 21st January 2008
Organized Shopping and Bill Paying Pays Off
We get paid fortnightly on the day we're paid I pay all bills and rent I can online, then go to town to do shopping and pay other bills. I park my car at Woolworths pull out the pram and walk around town to do all of my errands, my last job being doing the fortnightly shop. Maybe not the smartest tip ever but it saves on fuel and wear and tear on the car. Also by paying my what I can online before I leave there is less chance of "re-arranging budget". Also doing it all in the one stint stops me having to go to town and waste extra money till the next fortnight.
Contributed by Heidi, Esperance, 20th July 2007
Contributed by Heidi, Esperance, 20th July 2007
Start Putting Money Aside for Christmas Early in the Year
Start putting money aside for Christmas. If you haven't already started doing this, there are several simple measures you can take that will make a big difference to your festive bank balance. Set up an automatic payment, to be deducted from your weekly wages to go into a Christmas savings club with your bank. No matter how small the amount, it will add up nicely by the time Christmas comes. Otherwise, save all your loose change in a tin and don't touch it until December! If rent bills are usually hanging over your head along with all your other Christmas expenses try this: throughout the year I pay an extra $5.00 on my rent every week. While I don't notice the extra $5.00 going out, they add up through the months so that when Christmas week arrives, I am in credit and do not have to worry about paying rent over the Christmas season!
Contributed by Kaye, Dianella, May 23rd 2005
Contributed by Kaye, Dianella, May 23rd 2005
Budget and Direct Debit Weekly Payments
I had trouble budgeting for monthly bills and other debts. So I worked out all my regular expenses into a weekly amount which included phone, electricity, rates, health insurance, internet, and I scheduled the weekly payments to come out of my bank account on pay day using internet banking. I use my birthday to remember when to renew or revise the payments, but this can be easily done at any time. I also use my home loan redraw facility to transfer child care and sport fees over the Christmas break to get ahead and continue this during the term to make bulk payments so I never fall behind. You don't miss the money and you feel relieved knowing that most of your bills are taken care of and what you have left each week is what you have to spend or save and that itself is a form of enforced budgeting.
Contributed by Heather, Currarong, March 9th 2005
Contributed by Heather, Currarong, March 9th 2005
Spending Deal
As a young married couple we did not have a lot of money and to help us to not over spend we made a deal with each other. The deal was that we would not spend $50 without consulting with each other as to whether it was a suitable use of our money or not. We have been married 18 years and that deal or rule has saved us so much grief and unnecessary buys! Simple but effective.
Contributed by Teresa, Yamanto, March 26th 2005
Contributed by Teresa, Yamanto, March 26th 2005
Using a Monthly Allowance to Teach Budgeting Skills
I have found an excellent method to teach my teenage daughter the value of budgeting and have saved money as well. When she was in Year 8 at school, l began giving her a monthly allowance, paying it into her atm savings card. This amount ($160) was to cover all the things l would normally pay for i.e. entertainment, clothing, toiletries, and gifts for friends/family, spending money, and church collection, small school expenses. My daughter soon became very frugal with what she spent her allowance on. Suddenly, an $80 pair of brand name board shorts didn't seem so necessary, although l will admit she still was able to purchase brand name clothing, but when it was reduced. I was amazed at how far her $160 went each month. I saved money as there were no longer any impulse buys to pay for and she learned it was no use nagging me about buying her something because l would say, 'that's what your monthly allowance is for.' Along with learning to budget, she gained confidence with banking and making choices. It also gave her a wonderful feeling of prosperity. $160 is a lot of money for a 14 year old! She now has an after school job and has opened another account specifically to save. I have recently started my 10 year old daughter on $50 a month clothing allowance. I closely monitor this, so that she buys items she really needs, but it's working well too (and saving me money/angst too). I hope this tip is useful for parents.
Contributed by Linda, Ararat, March 17th 2005
Contributed by Linda, Ararat, March 17th 2005
Putting It Into Perspective
Sometimes it easy to get caught up in saving money without realising that it's not a real saving after all. I always try to find savings wherever I can, but I would prefer to support a business that supports unionised workers as opposed to one that does not. Similarly I would not want to save a few cents if it cost the earth as the environmentalists say. I think saving money has to be put into perspective - what are we saving for? Whether it is for our children or for ourselves then we have to make sure that the planet and our society are both in good shape for the future.
Contributed by Patrick, Bankstown, March 17th 2005
Contributed by Patrick, Bankstown, March 17th 2005