A household budget will help you make sure you spend on what you really need, help you become debt-free and make you feel in control of your finances
The recent Government budget announcement has many looking at their own household budget and let’s be honest we are all a little guilty of spending money on things we never intended to. A bit here, a bit there might seem insignificant but often that spending leaves us with nothing left to help us get ahead financially. A household budget will help you make sure you spend on what you really need, help you become debt-free and make you feel in control of your finances, says New Zealand-wide finance company Yes Finance.
Starting a household budget
For those that don’t have a household budget, it can seem quite daunting to start one. However, when you create a budget, you can start quite simple. Begin by adding up how much money is coming into the household and how much is going out with your spending, then work out the difference. “We recommend downloading your past three months of transactions from your bank. From this, you will be able to see your spending patterns,” says Yes Finance director Peter Steel.
“Responsible budgeting has the goal of making as much of a surplus as possible, so you have money left in your account to save for your goals or pay off debt faster”.
Track how your household budget is doing
After setting a budget it’s essential to see if it is working for you and your lifestyle. You’ll need to track your incoming and outgoing money to know if you are sticking to your budget. You can track this with a traditional spending diary or use an online tool or app. It is a good idea to check this periodically just in case you need to modify your spending as needed to stay on track. “After all, a budget doesn’t mean anything unless you actually stick to it.”
Making household budget adjustments
A key thing to remember is that budgets need to be flexible and have room to breathe! A tight budget is tougher to stick to so it’s essential to be realistic about how much you need. Don’t forget to give yourself some room to have some fun. Coffee, dining out, clothing etc., we’ve all got purchases that make us feel good, which is vital for our mental health. It’s all about moderation.
You’re in control
A household budget helps us feel in control, instead of being confused at the end of every month as to where our money went. A well implemented budget could be the difference between being debt-free versus into overdraft between paydays. Yes Finance work with all their customers to find the best finance plans that work in both the short and long term. Discover more at their website: at https://www.yesfinance.co.nz.
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About Yes Finance
Yes, Finance has been in business for more than 20 years, making them one of the oldest privately-owned finance companies in New Zealand. They are an alternative to the rigid approach of the banks, providing customer-focused solutions for commercial and personal finance. They are based in Auckland and operate nationally.
Contact Yes! Finance
Phone: 0508 10 50 10