How To Create a Budget 


 SAVINGS.  The word can be scary.  Let’s face it; saving a deposit for a home can be really tough.  Between paying rent, car loan commitments, mobile phone and internet bills and a host of other financial obligations, we often find that there isn’t much left to add to our savings each month. Even when we are able to make a contribution to our savings, things seem to come up like car registration and dental bills that can undo all the hard work we’ve done.  Without a solid savings plan it can feel as though we are going around in circles.
Fortunately there is help available for even the most inexperienced of savers.  This help comes in the form of a budget.  A budget is a tool I would recommend for all households irrespective of your stage in life.  It provides a detailed view of your financial position and helps you to set goals and stay on track to reach those goals.  A budget gives you clear transparency and there is nowhere to hide, so you will be reminded of the $200 shoes you purchased last week, months after the shine has worn off. 
Find a budgeting tool, I recommend the Money Smart budget tool on the ASIC website, fill it in and see if there are areas in which you could reduce your spending.  You will most likely be surprised by how much is spent on non-essential items.  Even small changes to these items will make a big difference to your ability to save.
 Once you have your budget, stick to it.  Set yourself a realistic goal for one month and at the end of the month reassess your spending and see if there are areas which needed adjustment, either up or down.  A budget should be workable and have a little room for flexibility.  You are more likely to stick to it if your goals are realistic.  For example make sure you allow some wriggle room for important social outings and school excursions.  A budget should enhance your life, not have you eating two minute noodles alone on a Saturday night.
One of the services we provide as part of your home buying journey is to assist you with creating a savings plan and setting up a budget.  This will enable you to realise your dream of home ownership a lot sooner than you might expect.  
Nicole Palazzi    
Nicole is passionate in helping people find the right path to their financial goals, she gets much satisfaction from seeing clients achieve their home ownership or investment dreams. Having over 9 years’ experience in home lending, having worked for banks and brokerage firms, has allowed her to understand the ‘ins and outs’ of the Australian home loan landscape. Nicole draws upon this knowledge when consulting with clients through her Franchise at Rams Aspley to ensure they receive the best product for their unique situation.