The Secret to Budgeting Wisely for the New Year
Hi, my name is Adam Stewart, Debt Collection Expert and owner of Debt Recoveries Australia. Following on from last week’s blog about tips to save money on Christmas spending, I thought I would share some general tips on budgeting to set you up for the new year.
I do not believe in New Year’s resolutions. Who keeps them? I believe in planning and forward thinking. “Set and forget” is my personal motto for saving, budgeting and financial planning.
I assume you, our readers, have a basic idea of a budget and know how to prepare a basic budget. If you do not, check out some of the more popular budgeting apps, such as Pocketbook or Goodbudget. As the end of the year ends, it is a perfect time to start working on a budget.
I hope you give a high priority towards budgeting and sticking to the budget throughout the year. Here are my top budgeting tips for the new year:
1. Give budgeting a priority.
Sounds simple, but this is the first step. Give budgeting a priority, before any other plans are made and before you spend one single cent. Put it on top of your “TO DO” list. It shall enable you to achieve your dreams as long as you set a provision for that dream in your budget.
A budget enables you to avoid unnecessary spending. Using money wisely becomes easier as the only thing that you have to worry is sticking to the budget you set for the year.
2. Create annual and monthly budgets.
I like to get a “big picture” view of my finances, so I like to do the annual figures, and then break then down to monthly. This gives me a bird’s eye view of the whole year and allows me to set realistic goals, right from the start.
A yearly budget will enable you to have a financial preview of the whole year and let you compare it with our annual income. It also enables you to break down your yearly budget into monthly budget items down the line.
3. Automate your financials.
I also like to automate all my payments and savings systems. Set up an automatic direct debit to pay off bills, also for savings accounts and contributions to super. Most of the brokerages and funds accept systematic investment options, where you set a fixed amount to be withdrawn from your savings account.
4. Be Accountable.
I find that if you share your goals and dreams with your loved ones, they will hopefully encourage you to reach your goals and pick you up if you falter along the way. If you do not have anyone you can trust and you are really experiencing major spending problems, there is Debtors Anonymous, which is a not-for-profit fellowship for both men and women who are experiencing problems with their finances.
5. Provision for fun and rewards.
Without fun and rewards, every journey gets boring. Completely depriving yourself of life’s fun things (Haigh’s chocolate for me, yes, that is a hint Mum) leads to potential future splurges which may derail your budget altogether. Do not ignore the fun things and allow for them in your budget.
I hope these tips have helped you prepare for your Christmas spending and set you up for the New Year.
Debt Recoveries Australia is the expert at recovering your outstanding debts without the drama. For more information, email us at email@example.com or call 1300 799 511. Tell us your problems on Skype at “debtrecoveries”.