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Household Bugeting service

The key to any family budget is to not spend more than you make. Here are some tips for living within your means.

Many families find themselves struggling to live within their means, either because they have too much debt, or because their spending habits/patterns are uncontrolled and they simply don’t know how to change.  Here are some quick tips on reining in that spending, and keeping yourself debt-free.

1.Don’t use credit cards.

If you have credit card debt and are carrying large payments at high interest that are crippling your budget, set a plan whereby you clear the credit card off by working extra hours or use your saving to clear the credit card.  Moneyworks offers a budgeting service for free.  We'll help you to understand how the debt can be cut down faster. Credit cards are a temptation to spend money you don’t have. If you must have one card, get a Visa Debit card instead of the usual Credit Card, that way your only spending money you actually have.

2.Budget your money and expenses.

Even a simple budget in a notebook will work.  Gather all your bills, and calculate your monthly expenses, remembering to include a 1/12 portion of any annual expenses.  Then take your gross income and figure out how much has to be set aside per week for absolute essentials. Whatever remains, is what you have for optional spending like savings, education or retirement funds, and entertainment.

3.Before you buy, ask yourself if you really need it.

That could be anything from a new stereo system, to a new car.  Ask yourself if it’s worth going into debt for, or just how far it will stretch the family budget.  Remember that you need room in your family finances for emergencies, and stretching your discretionary fund to the limit, is never a good idea.

Last Updated ( Thursday, 14 July 2011 12:59 )  
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