Due to the continual increase in household expenses and bills, it is Imperative that every household must have a budget.

Gone are the days when we only paid a small mortgage, bought food and clothes and few other items!

Nowadays, a household budget contains numerous expenses such as: Mortgage/Rent, rates, water bill, electricity bills, gas bills, mobile phone bills (2-4 bills in some cases), internet bill, pay tv bill, car loan, car insurance, private medical insurance, life insurance, home and contents insurance, petrol and the list goes on and on…..

As you can see from the above, running a household budget is almost like running a business, “if you don’t plan it, you will fail at it”

Money is a necessity of everyday life and in many instances both partners in any relationship are working and still struggling to meet ends meet. At the end of the day, it comes down to driving your dollar further and a Budget is the first step in identifying the requirements to get ahead.

Below are 10 steps that may assist in formulating a budget for the household

1. Create a list of all current expenses (ideally on an Excel spreadsheet) so include all bill payments, loan payments, rent/mortgage, food, education, (allocation for clothing), medical costs, car costs, transport etc… try to write the budget monthly

2. List all you sources of income, after taxes etc… now subtract your current expenses from your earnings

3. Following the first 2 steps, hopefully you still have some money left in your budget. If not don’t worry, cutting down on expenses will be necessary and if it still does not work give us a ring on 1300 351 008 for some advise

4. See where you can cut down on your bills, food expenses, shop around for cheaper insurance, utility bundles etc…

5. Consider rolling expensive debts into cheaper ones such as credit card balance transfers, rolling debts into mortgage (if possible)

6. Now make some future goals with the household. eg Simon wants to purchase some Golf clubs  in 2 years, Anna wants to do a course in photography in 18 months time.

7. Map out how much you will need to save to achieve these. eg if $5,000 is required for both, approx $200 per month needs to be saved to achieve that.

8. Continue to review your budget every month and amend it as necessary. Keep the budget common knowledge to the necessary parties in the house, such as the income earners.

9. Keep things simple, less repayments, less bills and lower interest on all credit accounts

10. Most importantly, only buy what you need, pay off debts first and then focus on “wants & luxuries” Reassess your budget as necessary and get ahead!

If you do need further assistance or help with your current Debt Situation, give Debt Negotiators a call on 1300 351 008 and we can help you to consolidate and pay off these debts with one easy payment or point you in the right direction.