If you hit a mental road roadblock when you hear the word “budget” you are not alone. Many people associate a budget as a form of deprivation. But it is really a means of empowerment.
Importantly, it is not difficult to put into place.
Irrespective of the size of your income and expenses, budgeting makes it easier for you to make conscious decisions about how you would like to allocate your money. It’s all about giving you the confidence to make those decisions.
Our discussions with you can help identify possible areas of savings and we will work with you to keep you on track.
To get you thinking, ASIC’s MoneySmart website has a good Budget Planner, which will give you an idea of where your money is going and also provide valuable input into any future budgeting discussion you may wish to have.
In addition to budgeting, another key element of your advice is to help you appreciate the value of debt.
Using debt, you could buy a home you would not be able to afford outright. You could also use debt to buy an investment with the potential to grow in value, like an investment property or shares. In doing so, you are effectively leveraging debt to help you build an investment portfolio faster than you otherwise would have.
The above initiatives typically form the basis of the discussions we have and ultimate strategies we may employ in relation to inefficient and efficient debt. There are a number of beneficial strategies for each, depending on individual circumstances.
Recommended tool – MoneySmart Budget Planner
“Financial Planning is not about money, it is about having the flexibility and choice in how you live your life.”
“Financial planning may seem boring, however if it helps you establish a plan that turns something unrealistic into something that is achievable, then it becomes exciting.”