by Anthony on June 29, 2007
Before you begin you need to decide if your budget is going to be weekly, fortnightly, monthly or yearly. Most people find it helpful to make their budget match how often they get paid. You will need to convert all of your income and expenses to match this time period.
The following chart allows you to convert your budgeting periods
Example: if you have a quarterly gas bill but a fortnightly budget you would multiply the gas bill by 4 to get the yearly amount and then divide the yearly amount by 26 to get the fortnightly amount.
Be organised
To make an accurate budget you need to keep a record of your income and your spending - you need to be organised.
Most people find it works best to have a filing system such as a filing cabinet where you can keep your payslips, statements, bills, receipts and other financial records. You may also find it helpful to keep a diary or a payment & cash receipt book.
Tip: If you have not kept your past payslips, statements and bills most companies will provide another copy on request, although they may charge an extra fee for this.
by Anthony on June 29, 2007
Our first guide is budgeting. If you want to save money having a budget makes it much easier.
This series will provide you with a step by step guide into creating a good budget. This will cover:
- Budgeting basics
- Pre-budget organisation
- Income
- Expenses
- Calculations
- Budget presentation
What is budgeting?
Budgeting is the process of balancing your income with your expenses, and saving what you can to achieve your financial goals. A budget is a plan of how you will manage your income and spending in the future.
You may not realise it, but every day you make budgeting decisions. When you make a choice between the cost of eating at home and eating out or which brand to buy at the supermarket you are budgeting.
This ‘micro budgeting’ is helpful but it is also important to have a ‘macro budgeting’ – a ‘big picture’ so you can see what you spend compared to what you earn. When we refer to budgeting in this booklet we are talking about macro budgeting.
Why is budgeting important?
- Everyone is on a limited income, a good budget will help you to get the most out of your money and avoid debts
- Budgeting can help you achieve your financial goals whether it be buying a new TV, going to a concert or buying a car
- Budgeting can help prevent you stressing over money
- Budgeting can give you a sense of control over your finances and your life
- If you can see where your money is going, it can help you manage your expenses more effectively
The next step is pre-budget organisation
by Anthony on June 28, 2007
What is Mind Your Own Money?
MYOM is a new iniative that makes you financially smarter. This blog will feature tips, ideas and guides inspiring you to:
- develop your financial literacy
- get the most bang for your buck
- build wealth and save money
MYOM will be updated regularly so check back often or subscribe to either our RSS feeds or mailing list!
Who are we?
MYOM is run by the Australian National University (ANU) Students in Free Enterprise (SIFE) team.
Although we have a long acronym, ANU SIFE has a simple mission:
to deliver outreach projects that educate and enhance the community in entrepreneurial and business skill. ANU SIFE is a self-funded not-for-profit organisation run by a small group of talented intellectuals.
For more information see the ANU SIFE website.