![]() Once it’s all laid out in front of you and you’ve made the earth-shattering realisation that your family eats out more often than you realise, it’s time to set some goals. If you’re spending more than you’re earning, the budgeting process is going to be transformative for you. This will allow you to see what’s left at the end of every month. Next, compare your outgoings with your incomings. These can add up over the course of a year, so reviewing them and getting rid of the ones you don’t use provides an instant savings boost. One last tip: go through your bank statements to highlight all those hidden monthly costs, such as subscriptions you no longer use or small direct debits you may have forgotten about. Some people like to track their expenses through an app on their phone, such as Expensify or Squirrel Street others use an Excel spreadsheet or old-school pen and paper. If you’re unsure what you are spending in a typical month, keep your receipts for 30 days so you can take stock of exactly where your money goes. If it’s a regular or recurring expense, make sure you capture it. This should include mortgage or rental costs, utilities, loans, clothes, entertainment and even that daily caffeine fix. Sit down and work out your regular bills. Start by writing down your wage (including your partner’s wage if you are a couple) and add it to any other income, such as government benefits, side hustles or income from investments, such as rental income on an investment property. Knowing exactly how much your household brings in every month is an obvious but important first step. Here some strategies to help you get started. The big-picture items to consider include: Having a household budget in place can help you understand where your money is going and find better ways to manage your income. Budgeting, on the other hand, is all about finding the right balance for you,” Vipin says. It’s about setting a savings goal and once you reach that, setting a new goal. “Saving isn’t just about stashing money away for eternity. While life can be expensive at times, don’t lose sight of the fact that your income is there to be enjoyed.
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