Budgeting - how do you get started?
How many times have you heard "if you look after the cents, the dollars will look after themselves?" Most of us have great intentions, but somehow never quite seem to get around to actually making things happen. It's a certainty that unless you have the discipline to sit down and put together the numbers, you are unlikely to make any headway.
Budgeting is one of those simple things that changes assumptions into fact. And it's amazing how much you can learn just from writing down where all your money goes (especially when it comes to how much we spend on unnecessaries and incidentals). To help you get started we've provided you with a . Hopefully this will help you get a better idea of your incomings and outgoings.
Once you have written down all your expenses and matched them against your income there will hopefully be a gap. This gap represents money that unaccountably 'disappears' every month. You can use this 'disappearing' money as the basis for your investment strategy. Arranging a monthly into a managed fund can help give you the discipline to kick-start your financial plan.
On the other hand, you may find you simply don't have any money left over. In which case, you need to decide if you can afford to let things be for a while or whether you want to make some sacrifices and start saving. Alternatively, if you're the kind of person who isn't good at saving, but is good at paying off debt, you might consider borrowing money to invest. A gearing strategy is not suitable for everyone so it's crucial to seek financial advice.
What to consider next
Speak to your financial adviser or choose an option here:
The information contained in this document is based on the understanding Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468 has of the relevant Australian laws as at 1 July 2009. This document is not advice and is intended to provide general information only. It does not take into account your individual needs, objectives or personal circumstances. You should assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. Product Disclosure Statements (PDS) for products offered by Colonial First State are available from colonialfirststate.com.au or by contacting us on 13 13 36. You should read the relevant PDS and consider whether the product is right for you. Past performance and awards are no indication of future performance.