THIS WEEK’S ACTIVITY: Creating a budget
There are three things you need to include in a budget: income, daily expenses and large expenses. Large expenses are things like car registration, insurance (health/home/car) and mortgage. To start:
● Write down your fortnightly income.
● Fill in your everyday expenses and calculate the total.
● Figure out how much your large expenses are costing you fortnightly. To do this, check old bills and statements to find out how much each one costs each year. Once you know the annual amount, divide by 26 (weeks) to see how much you spend in a fortnight.
● Calculate the total.
● Now add the totals of your everyday and large expenses together to see how much you spend every fortnight.
● Finally, subtract your total expenses from your income.
This is the money you have to spare. By adding at least some of this to an emergency fund, these savings could come in handy for a ‘rainy day’. If it’s not enough, review your spending diary to see what changes you can make.
Tools for budgeting
There are free templates and tools to help you.
Check out the excellent budget planner tool on ASIC’s MoneySmart website.
For more than 10 years, ANZ, together with a range of community partners, has helped nearly 300,000 people worldwide improve their financial skills through the MoneyMinded program. It's been so successful, we've decided to share a few ideas with everyone.
Each Monday, we'll share a simple, fun tip. So whether you want to learn better budgeting tips, reduce your debt or start saving, check back each week to stay updated. You’ll be amazed what’s possible when you take it one Monday at a time.
Other MoneyMinded tips:
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MoneyMinded is an award-winning financial education course designed to help people build their financial skills, knowledge and confidence. Developed by ANZ, government groups and education experts, MoneyMinded has helped thousands worldwide and is still going strong.
Our investment in innovative financial education programs is part of ANZ’s commitment to help build the prosperity of people living in the communities in which we operate. Learn more about MoneyMinded, our community partners and other programs here.
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