Budgeting tools
A good budget helps you to spend less money than you earn. When you spend more than you earn, it can put strain on your whole family.
A budget can help you to save money and avoid debt. It will also help you to:
- spend money on the things you really need
- set aside money for unexpected costs or times when your earnings will drop (parental leave, for example)
- reduce, or stop, accidental overspending
- save money for things you would like – paying off your student loan, or buying a home or car.
The first step is to work out your income (weekly, fortnightly or monthly – whatever suits you). Work out how much money you need for your everyday essentials – electricity, food, rent/mortgage, transport and so on. After you’ve accounted for the essentials, hopefully there is some money left over to buy some of the things you want, as well as to save for emergencies and your long-term goals. The key is knowing how much ‘spare’ money you have, and only spending that.
The Sorted website has tips on budgeting and budgeting calculators. You can save your budget and financial plans on the website, and update them when things change.
The Federation of Family Budgeting Services has lots of ideas about budgeting – and a free phone line to call with any budgeting questions. They can also refer you to a budgeting service in your area.
The Raising Children website has more on budgeting tools and managing money well.
